1 Russell 2000 Stock to Target This Week and 2 We Question

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.

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:

UniFirst (UNF)

Market Cap: $4.75 billion

With a fleet of trucks making weekly deliveries to over 300,000 customer locations, UniFirst (NYSE:UNF) provides, rents, cleans, and maintains workplace uniforms and protective clothing for businesses across various industries.

Why Do We Think Twice About UNF?

1. 3.5% annual revenue growth over the last two years was slower than its business services peers
2. Anticipated sales growth of 2.5% for the next year implies demand will be shaky
3. Earnings growth underperformed the sector average over the last five years as its EPS grew by just 2.1% annually

UniFirst is trading at $262.00 per share, or 35.6x forward P/E. If you’re considering UNF for your portfolio, see our FREE research report to learn more.

STAAR Surgical (STAA)

Market Cap: $907.1 million

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 Do We Think STAA Will Underperform?

1. Weak constant currency growth over the past two years indicates challenges in maintaining its market share
2. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 29.9 percentage points
3. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results

STAAR Surgical’s stock price of $18.33 implies a valuation ratio of 29x forward P/E. Dive into our free research report to see why there are better opportunities than STAA.

One Stock to Watch:

BGC (BGC)

Market Cap: $4.51 billion

Tracing its roots back to 1945 and named after founder Bernard Gerald Cantor, BGC Group (NASDAQ:BGC) operates a global brokerage and financial technology platform that facilitates trading across fixed income, foreign exchange, equities, energy, and commodities markets.

Why Could BGC Be a Winner?

1. Market share has increased this cycle as its 20.2% annual revenue growth over the last two years was exceptional
2. Earnings per share have comfortably outperformed the peer group average over the last two years, increasing by 20.2% annually
3. Acceptable return on equity suggests management generated shareholder value by investing in profitable projects

At $9.51 per share, BGC trades at 6.6x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.

Stocks We Like Even More

WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.

But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.