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 are two Russell 2000 stocks that could be the next breakout winners and one best left off your watchlist.
One Stock to Sell:
Concrete Pumping (BBCP)
Market Cap: $346.5 million
Going public via SPAC in 2018, Concrete Pumping (NASDAQ: BBCP) is a provider of concrete pumping and waste management services in the United States and the United Kingdom.
Why Does BBCP Fall Short?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 5.7% annually over the last two years
- Estimated sales growth of 2.4% for the next 12 months is soft and implies weaker demand
- Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
Concrete Pumping is trading at $6.87 per share, or 45.1x forward P/E. Dive into our free research report to see why there are better opportunities than BBCP.
Two Stocks to Watch:
Brink's (BCO)
Market Cap: $4.14 billion
Known for its iconic armored trucks that have been a fixture in American cities since 1859, Brink's (NYSE: BCO) provides secure transportation and management of cash and valuables for banks, retailers, and other businesses worldwide.
Why Do We Like BCO?
- Offerings and unique value proposition resonate with customers, as seen in its above-market 7.3% annual sales growth over the last five years
- Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Returns on capital are climbing as management makes more lucrative bets
Brink’s stock price of $100.71 implies a valuation ratio of 11x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Stock Yards Bank (SYBT)
Market Cap: $1.86 billion
Founded in 1904 in Louisville and named after the city's historic livestock market district, Stock Yards Bancorp (NASDAQ: SYBT) operates a regional bank providing commercial banking, wealth management, and trust services across Kentucky, Indiana, and Ohio.
Why Do We Watch SYBT?
- Annual net interest income growth of 17.1% over the last five years was superb and indicates its market share increased during this cycle
- Projected net interest income growth of 11.9% for the next 12 months suggests its momentum from the last five years will persist
- Impressive 18.5% annual tangible book value per share growth over the last two years indicates it’s building equity value this cycle
At $62.98 per share, Stock Yards Bank trades at 1.7x forward P/B. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
Stocks We Like Even More
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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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
