1 Russell 2000 Stock to Target This Week and 2 to Turn Down

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.

Navigating this part of the market can be tricky, which is why we built StockStory to help you separate the winners from the laggards. Keeping that in mind, here is one Russell 2000 stock that could be the next big thing and two best left off your watchlist.

Two Stocks to Sell:

Vishay Precision (VPG)

Market Cap: $374.4 million

Emerging from Vishay Intertechnology in 2010, Vishay Precision (NYSE:VPG) operates as a global provider of precision measurement and sensing technologies.

Why Is VPG Risky?

1. Sales tumbled by 9.6% annually over the last two years, showing market trends are working against its favor during this cycle
2. Costs have risen faster than its revenue over the last five years, causing its operating margin to decline by 6.3 percentage points
3. Earnings per share fell by 22.5% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable

At $28.24 per share, Vishay Precision trades at 23.3x forward P/E. Check out our free in-depth research report to learn more about why VPG doesn’t pass our bar.

Hope Bancorp (HOPE)

Market Cap: $1.46 billion

With roots in serving Korean-American communities and now expanded to a multi-ethnic clientele across 12 states, Hope Bancorp (NASDAQ:HOPE) operates Bank of Hope, providing commercial and retail banking services with a focus on serving multi-ethnic communities across the United States.

Why Should You Dump HOPE?

1. Net interest income tumbled by 3.2% annually over the last four years, showing market trends are working against its favor during this cycle
2. Inability to adjust its cost structure while its revenue declined over the last four years led to a 15.9 percentage point increase in the company’s efficiency ratio
3. Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable

Hope Bancorp is trading at $11.37 per share, or 0.6x forward P/B. If you’re considering HOPE for your portfolio, see our FREE research report to learn more.

One Stock to Buy:

QuinStreet (QNST)

Market Cap: $911.2 million

Founded during the dot-com era in 1999 and specializing in high-intent consumer traffic, QuinStreet (NASDAQ:QNST) operates digital performance marketplaces that connect clients in financial and home services with consumers actively searching for their products.

Why Are We Backing QNST?

1. Annual revenue growth of 31.4% over the last two years was superb and indicates its market share increased during this cycle
2. Sales outlook for the upcoming 12 months implies the business will stay on its desirable two-year growth trajectory
3. Earnings per share have massively outperformed its peers over the last two years, increasing by 103% annually

QuinStreet’s stock price of $16 implies a valuation ratio of 14.6x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Stocks We Like Even More

Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like 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 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today