1 Russell 2000 Stock with Impressive Fundamentals and 2 Facing Headwinds

Small-cap stocks in the Russell 2000 (^RUT) can be a goldmine for investors looking beyond the usual large-cap names. But with less stability and fewer resources than their bigger counterparts, these companies face steeper challenges in scaling their businesses.

Navigating this part of the market can be tricky, which is why we built StockStory to help you separate the winners from the laggards. Keeping that in mind, here is one Russell 2000 stock that could deliver strong gains and two that may struggle to keep up.

Two Stocks to Sell:

Progyny (PGNY)

Market Cap: $2.13 billion

Pioneering a data-driven approach to family building that has achieved an industry-leading patient satisfaction score of +80, Progyny (NASDAQ:PGNY) provides comprehensive fertility and family building benefits solutions to employers, helping employees access quality fertility treatments and support services.

Why Does PGNY Give Us Pause?

1. Smaller revenue base of $1.27 billion means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
2. Underwhelming 2.1% return on capital reflects management’s difficulties in finding profitable growth opportunities

Progyny’s stock price of $25.12 implies a valuation ratio of 13x forward P/E. If you’re considering PGNY for your portfolio, see our FREE research report to learn more.

Old National Bank (ONB)

Market Cap: $8.77 billion

Tracing its roots back to 1834 when Andrew Jackson was president, Old National Bancorp (NASDAQ:ONB) is a bank holding company that provides commercial and consumer loans, deposit services, wealth management, and treasury solutions primarily throughout the Midwest region.

Why Are We Cautious About ONB?

1. Inferior net interest margin of 3.4% means it must compensate for lower profitability through increased loan originations
2. Earnings per share fell by 2.1% annually over the last two years while its revenue grew, showing its incremental sales were much less profitable
3. 3.5% annual tangible book value per share growth over the last five years was slower than its banking peers

Old National Bank is trading at $22.44 per share, or 1.1x forward P/B. Check out our free in-depth research report to learn more about why ONB doesn’t pass our bar.

One Stock to Buy:

Pathward Financial (CASH)

Market Cap: $1.63 billion

Formerly known as Meta Financial until its 2022 rebranding, Pathward Financial (NASDAQ:CASH) provides banking-as-a-service solutions and commercial finance products, enabling partners to offer financial services like prepaid cards, payment processing, and lending options.

Why Will CASH Outperform?

1. 13.6% annual net interest income growth over the last five years surpassed the sector average as its loans resonated with borrowers
2. Differentiated product suite is reflected in its Strong performance of its loan book is reflected in its High-yielding loan book and low cost of funds result in a best-in-class net interest margin of 7%
3. Share repurchases over the last five years enabled its annual earnings per share growth of 25.6% to outpace its revenue gains

At $73.07 per share, Pathward Financial trades at 1.7x forward P/B. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .

High-Quality Stocks for All Market Conditions

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here in our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% 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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