1 Russell 2000 Stock with Impressive Fundamentals and 2 We Brush Off

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. Keeping that in mind, here is one Russell 2000 stock that could deliver strong gains and two best left off your watchlist.

Two Stocks to Sell:

Cable One (CABO)

Market Cap: $494.2 million

Founded in 1986, Cable One (NYSE:CABO) provides high-speed internet, cable television, and telephone services, primarily in smaller markets across the United States.

Why Is CABO Risky?

1. Demand for its offerings was relatively low as its number of residential data subscribers has underwhelmed
2. Earnings per share lagged its peers over the last five years as they only grew by 5.6% annually
3. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value

At $86.58 per share, Cable One trades at 2.1x forward P/E. Read our free research report to see why you should think twice about including CABO in your portfolio.

Franklin BSP Realty Trust (FBRT)

Market Cap: $846.3 million

Operating as a specialized real estate investment trust (REIT) with roots dating back to 2012, Franklin BSP Realty Trust (NYSE:FBRT) originates and manages a diversified portfolio of commercial real estate debt investments secured by properties in the United States and abroad.

Why Do We Steer Clear of FBRT?

1. Muted 9.4% annual net interest income growth over the last five years shows its demand lagged behind its banking peers
2. Earnings per share fell by 39.7% annually over the last two years while its revenue grew, showing its incremental sales were much less profitable
3. Tangible book value per share tumbled by 6.8% annually over the last five years, showing banking sector trends are working against its favor during this cycle

Franklin BSP Realty Trust is trading at $10.30 per share, or 0.7x forward P/B. Dive into our free research report to see why there are better opportunities than FBRT.

One Stock to Buy:

SPX Technologies (SPXC)

Market Cap: $10.6 billion

With roots dating back to 1912 as the Piston Ring Company, SPX Technologies (NYSE:SPXC) supplies specialized infrastructure equipment for HVAC systems and detection and measurement applications across industrial, commercial, and utility markets.

Why Should You Buy SPXC?

1. Impressive 12.7% annual revenue growth over the last two years indicates it’s winning market share this cycle
2. Operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
3. Earnings per share grew by 23% annually over the last two years and trumped its peers

SPX Technologies’s stock price of $212.74 implies a valuation ratio of 28.5x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.