1 Russell 2000 Stock with Impressive Fundamentals and 2 Facing Challenges

The Russell 2000 (^RUT) is packed with potential breakout stocks, thanks to its focus on smaller companies with high growth potential. However, smaller size also means these businesses often lack the resilience and financial flexibility of large-cap firms, making careful selection crucial.

Picking the right small caps isn’t easy, and that’s exactly why StockStory exists - to help you focus on the best opportunities. Keeping that in mind, here is one Russell 2000 stock that could be the next big thing and two that may struggle to keep up.

Market Cap: $350.8 million

Originally the joint-venture of four cable television companies, AMC Networks (NASDAQ:AMCX) is a broadcaster producing a diverse range of television shows and movies.

Why Should You Dump AMCX?

Annual revenue declines of 3.9% over the last five years indicate problems with its market positioning

Free cash flow margin is projected to show no improvement next year

Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results

AMC Networks is trading at $8.07 per share, or 3.5x forward P/E. If you’re considering AMCX for your portfolio, see our FREE research report to learn more.

Market Cap: $6.59 billion

Operating through seventeen distinct bank divisions with local brands and management teams, Glacier Bancorp (NYSE:GBCI) is a bank holding company that provides various banking services to individuals and businesses across eight western states.

Why Are We Out on GBCI?

Net interest income trends were unexciting over the last five years as its 8.2% annual growth was below the typical banking firm

Operational productivity has decreased over the last five years as its efficiency ratio worsened by 12.5 percentage points

Incremental sales over the last five years were much less profitable as its earnings per share fell by 4.7% annually while its revenue grew

At $49.60 per share, Glacier Bancorp trades at 1.5x forward P/B. Dive into our free research report to see why there are better opportunities than GBCI.

Market Cap: $3.18 billion

Founded in 2010, Warby Parker (NYSE:WRBY) designs, manufactures, and sells eyewear, including prescription glasses, sunglasses, and contact lenses, through its e-commerce platform and physical retail locations.

Why Are We Backing WRBY?

Aggressive expansion of new stores reflects an offensive push to quickly grow and sell in markets where it has few or no locations

Operating profits and efficiency rose over the last year as it benefited from some fixed cost leverage

Earnings per share have massively outperformed its peers over the last three years, increasing by 72.3% annually

Warby Parker’s stock price of $25.90 implies a valuation ratio of 56.7x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.

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