In this article, we will look at the 13 Best Russell 2000 Stocks to Buy Right Now.
On January 6, Royce Investment Partners released their outlook for the small-cap stocks in 2026. The firm noted that it sees small-cap quality and value stocks as well-positioned for a rebound in 2026. Since the April lows in 2025, the market has been driven by lower-quality, speculative stocks that are somehow linked to the AI trade. The firm added that some of these stocks lack strong fundamentals and have no actual revenue track records. According to Royce Investment, such low-quality rallies only tend to last for about 12 months on average. Therefore, a market shift towards quality stocks is imminent.
The firm noted that strong companies with self-sustaining balance sheets, attractive valuations, and strong fundamentals should attract investor interest in 2026. They like companies in the consumer staples sector, as well as companies with exposure to packaging and business services. Moreover, the firm also likes insurance companies to do well throughout the year.
That said, Royce Investment highlighted that they view AI trade broadening out. In this context, companies that can quickly commercialize the AI applications are expected to grow their business and experience significant margin expansion. Lastly, the firm sees Small-cap stocks outperforming their larger counterparts in 2026. Royce Investment views 2026 as the year when small-caps will finally “reassert themselves”.
With that, let’s take a look at the 13 Best Russell 2000 Stocks to Buy Right Now.
Our Methodology
To curate the list of 13 Best Russell 2000 Stocks to Buy Right Now, we used the Finviz Stock Screener and Insider Monkey’s Q3 2025 database. Using the screener, we aggregated a list of the 100 largest Russell 2000 stocks by market cap. Next, we ranked the stocks in ascending order of the number of hedge fund holders sourced from Insider Monkey’s Q3 2025 database.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
13 Best Russell 2000 Stocks to Buy Right Now
13. Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS)
Number of Hedge Fund Holders: 36
Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) is one of the Best Russell 2000 Stocks to Buy Right Now. On January 20, Anthony Valentini from Goldman Sachs reiterated a Buy rating on the stock and raised the price target from $93 to $125. Earlier, on January 13, Stifel Nicolaus also reiterated a buy rating on the stock and raised the price target from $112 to $134.
Analysts at Goldman Sachs view the aerospace and defense sector as poised to remain strong in 2026. This demand is driven by favorable conditions for original equipment, where supply lags behind demand. Moreover, aftermarket growth has also outpaced global active service munitions, driven by strong pricing. The firm also noted that demand for business jets remains strong amid constrained supply chains and improving defense hardware growth. Goldman Sachs believes that current market dynamics favor KTOS due to its industry exposure.
Stifel noted that improved sentiment toward Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) is driven by the company’s order momentum in Valkyrie drones. Moreover, the firm also likes the progress of its hypersonic testing program, MACH-TB.
Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) develops advanced technology, products, and systems for defense, national security, and commercial markets. It operates two main segments: Government Solutions and Unmanned Systems.
12. Coeur Mining, Inc. (NYSE:CDE)
Number of Hedge Fund Holders: 36
Coeur Mining, Inc. (NYSE:CDE) is one of the Best Russell 2000 Stocks to Buy Right Now. On January 14, Brian MacArthur from Raymond James reiterated a Buy rating on the stock and raised the price target from $21 to $24.5. Earlier on December 15, Joseph Reagor from Roth MKM also reiterated a Buy rating on Coeur Mining, Inc. (NYSE:CDE) and raised the price target from $20 to $23.
Analysts at Roth MKM noted that the price target revision reflects the firm’s updated outlook on the sector for Q4 2025 and beyond. The firm noted that gold and silver prices remain uncertain due to macroeconomic factors that are driving new peaks. Under the current circumstances, the firm found it important to update the outlook. The firm now forecasts 2026 gold prices to be at $4,125, up from the previous forecast of $2,863. The outlook for silver prices in 2026 was also raised from $32.5 to $56.25.
That said, Coeur Mining, Inc. (NYSE:CDE) is expected to release its fiscal Q4 2025 results on February 18. Wall Street expects revenue for the quarter to be around $668.7 million, along with a GAAP EPS of $0.48.
Coeur Mining, Inc. (NYSE:CDE) is a gold and silver producer in the Americas. The company also explores for zinc, lead, and other related metals.
