1 Russell 2000 Stock to Consider Right Now and 2 Facing Challenges

The Russell 2000 (^RUT) is home to many small-cap stocks, offering investors the chance to uncover hidden gems before the broader market catches on. However, these companies often come with higher volatility and risk, as their smaller size makes them more vulnerable to economic downturns.

The high-risk, high-reward nature of the Russell 2000 makes stock selection critical, and we’re here to guide you toward the right ones. 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:

Apogee (APOG)

Market Cap: $896.8 million

Involved in the design of the Apple Store on Fifth Avenue in New York City, Apogee (NASDAQ:APOG) sells architectural products and services such as high-performance glass for commercial buildings.

Why Do We Steer Clear of APOG?

1. Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last two years
2. Sales are projected to tank by 1.8% over the next 12 months as demand evaporates further
3. Earnings per share have contracted by 12.4% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance

At $41.63 per share, Apogee trades at 13.7x forward P/E. Read our free research report to see why you should think twice about including APOG in your portfolio.

Texas Capital Bank (TCBI)

Market Cap: $4.55 billion

Founded during the Texas banking renaissance of the 1990s with an entrepreneurial spirit, Texas Capital Bancshares (NASDAQ:TCBI) is a financial services firm that provides banking, wealth management, and investment banking services to businesses and individuals across Texas and beyond.

Why Are We Wary of TCBI?

1. 3.9% annual net interest income growth over the last five years was slower than its banking peers
2. Projected net interest income growth of 4.1% for the next 12 months suggests sluggish demand
3. Underwhelming 7.4% return on equity reflects management’s difficulties in finding profitable growth opportunities

Texas Capital Bank’s stock price of $103.02 implies a valuation ratio of 1.2x forward P/B. If you’re considering TCBI for your portfolio, see our FREE research report to learn more.

One Stock to Watch:

TTM Technologies (TTMI)

Market Cap: $9.50 billion

As one of the world's largest printed circuit board manufacturers with facilities spanning North America and Asia, TTM Technologies (NASDAQ:TTMI) manufactures printed circuit boards (PCBs) and radio frequency (RF) components for aerospace, defense, automotive, and telecommunications industries.

Why Should TTMI Be on Your Watchlist?

1. Market share has increased this cycle as its 14.1% annual revenue growth over the last two years was exceptional
2. Exciting sales outlook for the upcoming 12 months calls for 17.4% growth, an acceleration from its two-year trend
3. Earnings growth has massively outpaced its peers over the last two years as its EPS has compounded at 35.2% annually

TTM Technologies is trading at $92.03 per share, or 29.2x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

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 5 Strong Momentum Stocks for this week. 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.