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 are two Russell 2000 stocks that could be the next big thing and one best left off your watchlist.

One Stock to Sell:

E.W. Scripps (SSP)

Market Cap: $280.7 million

Founded as a chain of daily newspapers, E.W. Scripps (NASDAQ: SSP) is a diversified media enterprise operating a range of local television stations, national networks, and digital media platforms.

Why Is SSP Risky?

1. Products and services fail to spark excitement with consumers, as seen in its flat sales over the last two years
2. Underwhelming 3.5% return on capital reflects management’s difficulties in finding profitable growth opportunities, and its shrinking returns suggest its past profit sources are losing steam
3. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned

At $3.32 per share, E.W. Scripps trades at 0.8x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why SSP doesn’t pass our bar.

Two Stocks to Watch:

Alignment Healthcare (ALHC)

Market Cap: $3.09 billion

Founded in 2013 with a mission to transform healthcare for seniors, Alignment Healthcare (NASDAQ: ALHC) provides Medicare Advantage health plans for seniors with features like concierge services, transportation benefits, and technology-driven care coordination.

Why Will ALHC Beat the Market?

1. Average customer growth of 40.2% over the past two years demonstrates success in acquiring new clients that could increase their spending in the future
2. Earnings per share have massively outperformed its peers over the last four years, increasing by 45.5% annually
3. Free cash flow margin increased to break even levels over the last five years, showing the company has crossed a key inflection point

Alignment Healthcare is trading at $15.50 per share, or 42.5x forward EV-to-EBITDA. Is now the time to initiate a position? See for yourself in our full research report, it’s free.

Cadence Bank (CADE)

Market Cap: $6.89 billion

With roots dating back to 1885 and a strategic focus on middle-market commercial lending, Cadence Bancorporation (NYSE: CADE) is a bank holding company that provides commercial banking, retail banking, and wealth management services to middle-market businesses and individuals.

Why Could CADE Be a Winner?

1. Annual net interest income growth of 17% over the last five years was superb and indicates its market share increased during this cycle
2. Estimated net interest income growth of 15.1% for the next 12 months implies its momentum over the last five years will continue
3. Annual tangible book value per share growth of 23.6% over the last two years was superb and indicates its capital strength increased during this cycle

Cadence Bank’s stock price of $37.13 implies a valuation ratio of 1.2x forward P/B. Is now a good time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at 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 Exlservice (+354% 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

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