The Russell 2000 (^RUT) may be overshadowed by larger indexes, but it’s full of companies with the potential to deliver high returns.
A select few have the right mix of innovation, market opportunity, and execution to outperform over time.
Discovering tomorrow’s winners today is tough, but that’s exactly why we created StockStory. Keeping that in mind, here are three Russell 2000 stocks that could be the next big thing.
F&G Annuities & Life (FG)
Market Cap: $4.15 billion
Founded in 1959 and serving approximately 677,000 policyholders who rely on its financial protection products, F&G Annuities & Life (NYSE:FG) provides fixed annuities, life insurance, and pension risk transfer solutions to retail and institutional clients.
Why Will FG Outperform?
- Strong 28.6% annualized net premiums earned expansion over the last two years shows it’s capturing market share this cycle
- Annual book value per share growth of 37.7% over the last two years was superb and indicates its capital strength increased during this cycle
- Capital strength is on track to rise over the next 12 months as its 41% projected book value per share growth implies profitability will accelerate from its two-year trend
At $30.81 per share, F&G Annuities & Life trades at 0.8x forward P/B. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
Coastal Financial (CCB)
Market Cap: $1.61 billion
Pioneering the intersection of traditional banking and financial technology in the Pacific Northwest, Coastal Financial (NASDAQ:CCB) operates as a bank holding company that provides traditional banking services and Banking-as-a-Service (BaaS) solutions to consumers and businesses.
Why Is CCB a Top Pick?
- Annual net interest income growth of 41.7% over the last five years was superb and indicates its market share increased during this cycle
- Differentiated product suite results in a Strong performance of its loan book results in a High-yielding loan book and low cost of funds are reflected in its best-in-class net interest margin of 7.2%
- Earnings per share have massively outperformed its peers over the last five years, increasing by 22.2% annually
Coastal Financial is trading at $106.34 per share, or 3.3x forward P/B. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .
Ameris Bancorp (ABCB)
Market Cap: $5.01 billion
Tracing its roots back to 1971 and expanding significantly through both organic growth and strategic acquisitions, Ameris Bancorp (NYSE:ABCB) is a financial holding company that provides a full range of banking services to retail and commercial customers across select markets in the southeastern United States.
Why Do We Like ABCB?
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 18.7% over the last two years outstripped its revenue performance
- Annual tangible book value per share growth of 13.9% over the last five years was superb and indicates its capital strength increased during this cycle
- Market-beating return on equity illustrates that management has a knack for investing in profitable ventures
Ameris Bancorp’s stock price of $73.68 implies a valuation ratio of 1.2x forward P/B. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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