1 Russell 2000 Stock for Long-Term Investors and 2 We Find Risky

The Russell 2000 (^RUT) is packed with potential breakout stocks, thanks to its focus on smaller companies with high growth potential. However, smaller size also means these businesses often lack the resilience and financial flexibility of large-cap firms, making careful selection crucial.

Navigating this part of the market can be tricky, which is why we built StockStory to help you separate the winners from the laggards. That said, here is one Russell 2000 stock that could be the next big thing and two that may struggle to keep up.

Two Stocks to Sell:

VSE Corporation (VSEC)

Market Cap: $4.67 billion

With roots dating back to 1959 and a strategic focus on extending the life of transportation assets, VSE Corporation (NASDAQ:VSEC) provides aftermarket parts distribution and maintenance, repair, and overhaul services for aircraft and vehicle fleets in commercial and government markets.

Why Are We Wary of VSEC?

1. Gross margin of 17.3% is below its competitors, leaving less money to invest in areas like marketing and R&D
2. Cash-burning history makes us doubt the long-term viability of its business model
3. ROIC of 5.1% reflects management’s challenges in identifying attractive investment opportunities

VSE Corporation is trading at $199.30 per share, or 49.6x forward P/E. Dive into our free research report to see why there are better opportunities than VSEC.

StoneX (SNEX)

Market Cap: $5.39 billion

Originally known as INTL FCStone until its 2020 rebranding, StoneX Group (NASDAQ:SNEX) provides a global financial services network connecting companies, traders, and investors to markets through clearing, execution, and advisory services.

Why Does SNEX Fall Short?

1. Annual earnings per share growth of 1.7% underperformed its revenue over the last five years, showing its incremental sales were less profitable
2. Sizable asset base leads to capital growth challenges as its 6.5% annual tangible book value per share increases over the last two years fell short of other financials companies
3. Elevated debt-to-equity ratio of 7.5× suggests the firm is overleveraged and may struggle to secure additional financing

At $103.10 per share, StoneX trades at 1.9x forward P/E. Read our free research report to see why you should think twice about including SNEX in your portfolio.

One Stock to Buy:

Fluence Energy (FLNC)

Market Cap: $2.78 billion

Pioneering the use of lithium-ion batteries for grid storage, Fluence (NASDAQ:FLNC) helps store renewable energy sources with battery systems.

Why Should You Buy FLNC?

1. Demand is greater than supply as the company’s 21.5% average backlog growth over the past two years shows it’s securing new contracts and accumulating more orders than it can fulfill
2. Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 27.4% outpaced its revenue gains
3. Cash burn has become less severe over the last five years, showing the company is making some progress toward financial sustainability

Fluence Energy’s stock price of $21.31 implies a valuation ratio of 67.9x forward EV-to-EBITDA. Is now the time to initiate a position? See for yourself in our full research report, it’s free.

Stocks We Like Even More

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out our Top 5 Growth Stocks for this month. 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 Exlservice (+354% five-year return). Find your next big winner with StockStory today.