Big companies tend to get all the attention, but the Russell 2000 (^RUT) offers exposure to businesses still in their early growth phases. Some of these companies will become tomorrow’s mid- and large-cap winners by capitalizing on emerging opportunities.
Finding these rising stars before they break out isn’t easy, which is why we started StockStory. That said, here are three Russell 2000 stocks that could be the next breakout winners.
Coursera (COUR)
Market Cap: $1.55 billion
Founded by two Stanford University computer science professors, Coursera (NYSE: COUR) is an online learning platform that offers courses, specializations, and degrees from top universities and organizations around the world.
Why Do We Like COUR?
- Platform and reputation resonate with consumers, as seen in its above-market 15.1% annual sales growth over the last three years
- Projected revenue growth of 68% for the next 12 months is above its three-year trend, pointing to accelerating demand
- Incremental sales over the last three years have been highly profitable as its earnings per share increased by 68% annually, topping its revenue gains
At $5.78 per share, Coursera trades at 1.5x forward EV/EBITDA. Is now a good time to buy? Find out in our full research report, it’s free.
CSW (CSW)
Market Cap: $5.35 billion
With over two centuries of combined operations manufacturing and supplying, CSW (NYSE: CSW) offers special chemicals, coatings, sealants, and lubricants for various industries.
What Makes CSW Stand Out?
- Impressive 19.7% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Highly efficient business model is illustrated by its impressive 18.4% operating margin
- Earnings per share grew by 27.1% annually over the last two years and trumped its peers
CSW is trading at $328.45 per share, or 25.9x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
Axos Financial (AX)
Market Cap: $5.45 billion
Originally founded as Bank of Internet USA in 1999 before rebranding in 2018, Axos Financial (NYSE: AX) is a diversified financial services company that provides digital banking, securities clearing, and investment advisory solutions to retail and business customers nationwide.
Why Is AX a Good Business?
- Annual net interest income growth of 18.3% over the past five years was outstanding, reflecting market share gains this cycle
- Differentiated product suite is reflected in its best-in-class net interest margin of 4.8%
- Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
Axos Financial’s stock price of $96.12 implies a valuation ratio of 1.5x forward P/B. Is now the time to initiate a position? Find out in our full research report, it’s free.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.
