1 Russell 2000 Stock with Impressive Fundamentals and 2 We Question

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.

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 a breakout winner and two best left off your watchlist.

Two Stocks to Sell:

The Marzetti Company (MZTI)

Market Cap: $4.52 billion

Known for its frozen garlic bread and Parkerhouse rolls, The Marzetti Company (NASDAQ:MZTI) sells bread, dressing, and dips to the retail and food service channels.

Why Does MZTI Fall Short?

1. Sales trends were unexciting over the last three years as its 3% annual growth was below the typical consumer staples company
2. Projected sales growth of 1.5% for the next 12 months suggests sluggish demand
3. Gross margin of 23.4% is an output of its commoditized products

At $165.84 per share, The Marzetti Company trades at 23.4x forward P/E. To fully understand why you should be careful with MZTI, check out our full research report (it’s free).

Plug Power (PLUG)

Market Cap: $3.19 billion

Powering forklifts for Walmart’s distribution centers, Plug Power (NASDAQ:PLUG) provides hydrogen fuel cells used to power electric motors.

Why Does PLUG Worry Us?

1. Sales tumbled by 10.8% annually over the last two years, showing market trends are working against its favor during this cycle
2. Cash burn makes us question whether it can achieve sustainable long-term growth
3. Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders

Plug Power is trading at $2.28 per share, or 4.2x forward price-to-sales. Check out our free in-depth research report to learn more about why PLUG doesn’t pass our bar.

One Stock to Buy:

Primoris (PRIM)

Market Cap: $7.45 billion

Listed on the NASDAQ in 2008, Primoris (NYSE:PRIM) builds, maintains, and upgrades infrastructure in the utility, energy, and civil construction industries.

Why Will PRIM Beat the Market?

1. Demand is greater than supply as the company’s 108% average backlog growth over the past two years shows it’s securing new contracts and accumulating more orders than it can fulfill
2. Earnings growth has trumped its peers over the last two years as its EPS has compounded at 40.4% annually
3. Free cash flow margin grew by 6 percentage points over the last five years, giving the company more chips to play with

Primoris’s stock price of $144.29 implies a valuation ratio of 24.4x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.

Stocks We Like Even More

ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.

Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.

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 Kadant (+351% five-year return). Find your next big winner with StockStory today.