1 Russell 2000 Stock Worth Investigating and 2 We Find Risky

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.

Picking the right small caps isn’t easy, and that’s exactly why StockStory exists - to help you focus on the best opportunities. That said, here is one Russell 2000 stock that could be the next big thing and two that may face some trouble.

Two Stocks to Sell:

ABM (ABM)

Market Cap: $2.81 billion

With roots dating back to 1909 as a window washing company, ABM Industries (NYSE:ABM) provides integrated facility management, infrastructure, and mobility solutions across various sectors including commercial, manufacturing, education, and aviation.

Why Are We Cautious About ABM?

1. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
2. Annual earnings per share growth of 1.2% underperformed its revenue over the last two years, showing its incremental sales were less profitable
3. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 6.4 percentage points

ABM’s stock price of $45.90 implies a valuation ratio of 11.4x forward P/E. Dive into our free research report to see why there are better opportunities than ABM.

STAAR Surgical (STAA)

Market Cap: $1.19 billion

With over 2.5 million implants performed worldwide, STAAR Surgical (NASDAQ:STAA) designs and manufactures implantable lenses that correct vision problems without removing the eye's natural lens.

Why Should You Dump STAA?

1. Weak constant currency growth over the past two years indicates challenges in maintaining its market share
2. 37.3 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
3. Waning returns on capital imply its previous profit engines are losing steam

At $24.09 per share, STAAR Surgical trades at 50.4x forward P/E. Read our free research report to see why you should think twice about including STAA in your portfolio.

One Stock to Watch:

Rumble (RUM)

Market Cap: $2.46 billion

Founded in 2013 as a champion for content creator rights and free expression, Rumble (NASDAQ:RUM) is a video sharing platform that positions itself as a free speech alternative to mainstream platforms, offering creators more favorable revenue-sharing opportunities.

Why Could RUM Be a Winner?

1. Annual revenue growth of 85.5% over the last four years was superb and indicates its market share increased during this cycle
2. Demand for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust revenue growth of 202%

Rumble is trading at $7.26 per share, or 45.1x forward EV-to-EBITDA. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free for active Edge members .

Stocks We Like Even More

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged 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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