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.
11. Joby Aviation, Inc. (NYSE:JOBY)
Number of Hedge Fund Holders: 36
Joby Aviation, Inc. (NYSE:JOBY) is one of the Best Russell 2000 Stocks to Buy Right Now. On January 13, Austin Moeller from Canaccord Genuity reiterated a Hold rating on the stock with a $17 price target. Earlier, on December 5, 2025, Anthony Valentini from Goldman Sachs initiated coverage of Joby Aviation, Inc. (NYSE:JOBY) with a Sell rating.
Analysts at Goldman Sachs acknowledged the company’s leading position in the electric vertical takeoff and landing sector. The firm noted that Joby is one of the early movers in the industry, with more than 40,000 eVTOL miles flown.
However, despite this reputation, Goldman Sachs questions the company’s valuation. The firm added that the company’s aircraft payload details remain undisclosed, and that its manufacturing capacity needs more time to scale. Lastly, Goldman Sachs also expressed concerns regarding Joby Aviation, Inc.’s (NYSE:JOBY) business model, which focuses on manufacturing, supplying, and operating the aircraft. The firm believes that this diversity can lead to a lack of focus on important areas of the market. Therefore, the firm initiated the stock with a Sell rating.
Joby Aviation, Inc. (NYSE:JOBY) is a vertically integrated air mobility company engaged in building an EV takeoff and landing aircraft optimized to deliver air transportation as a service.
10. AeroVironment, Inc. (NASDAQ:AVAV)
Number of Hedge Fund Holders: 37
AeroVironment, Inc. (NASDAQ:AVAV) is one of the Best Russell 2000 Stocks to Buy Right Now. On January 13, AeroVironment, Inc. (NASDAQ:AVAV) announced the launch of Mission Specialist Wraith, developed by its subsidiary VideoRay.
Management noted that Mission Specialist Wraith is a compact unmanned underwater vehicle that targets demanding subsea missions. The vehicle is capable of complex missions, including inspections, defense operations, and scientific research. Moreover, the vehicle also stands out for its advanced maneuverability and robustness through features like Six-degree-of-freedom, high-thrust and control, and payload flexibility.
That said, Wall Street has a positive opinion on the stock. Recently, on January 8, Clarke Jeffries from Piper Sandler reiterated a Buy rating on AeroVironment, Inc. (NASDAQ:AVAV) with a $391 price target. Earlier on January 2, Andre Madrid from BTIG also reiterated a Buy rating on the stock with a $415 price target.
AeroVironment, Inc. (NASDAQ:AVAV) develops, designs, and produces multi-domain robotic systems and associated services for government agencies and businesses. The company operates through the following business segments: UnCrewed Systems, Loitering Munitions Systems, and MacCready Work.
9. SPX Technologies, Inc. (NYSE:SPXC)
Number of Hedge Fund Holders: 37
SPX Technologies, Inc. (NYSE:SPXC) is one of the Best Russell 2000 Stocks to Buy Right Now. Wall Street has a positive opinion on the stock, with analysts’ 12-month price target reflecting more than 10.2% upside from the current levels.
Recently, on January 6, TD Cowen reiterated a Hold rating on SPX Technologies, Inc. (NYSE:SPXC) with a $225 price target. On the same day, Ross Sparenblek from William Blair reiterated a Buy rating on the stock without disclosing any price targets.
Analysts at TD Cowen noted that the recent sell-off in the stock was mainly due to the market’s misinterpretation of Nvidia’s announcement regarding warm-water cooling. The firm highlighted that the news does not mean that SPX’s cooling technology is not useful anymore.
TD Cowen noted that the cooling towers remain essential for heat rejection in data centers. In fact, the firm sees the news as likely to have a positive effect on the stock in comparison to a negative effect for chiller manufacturers. TD Cowen continues to see SPX Technologies, Inc. (NYSE:SPXC) as favorably placed in the data center cooling landscape.
SPX Technologies, Inc. (NYSE:SPXC) supplies infrastructure equipment serving the heating, ventilation, cooling, detection, and measurement markets worldwide.
8. Oklo Inc. (NYSE:OKLO)
Number of Hedge Fund Holders: 38
Oklo Inc. (NYSE:OKLO) is one of the Best Russell 2000 Stocks to Buy Right Now. On January 13, Christine Cho, CFA, from Barclays, reiterated a Buy rating on the stock with a $146 price target. However, earlier on January 9, Goldman Sachs had maintained a Neutral rating on Oklo Inc. (NYSE:OKLO) with a $106 price target.
The ratings follow the company’s agreement with Meta to develop a 1.2 GW Nuclear Energy at Pike County, Ohio. Management of Oklo Inc. (NYSE:OKLO) noted that, under the agreement, Meta will prepay for the power and provide capital to ensure the project is completed successfully. Management noted that they plan to use the capital to advance phase 1 of the project on the land that has already been acquired, along with securing fuel for the plant. The pre-construction work is expected to start this year, with the first phase of the plant coming online in 2030.
According to Goldman Sachs, each GW of powerhouse deployment will add roughly $15 to $20 per share to the company’s stock, based on the DCF analysis. The firm also noted that Meta is pursuing other nuclear deals, which it views as positive for companies in the nuclear segment.
Oklo Inc. (NYSE:OKLO) develops advanced nuclear power plants that recycle nuclear waste to provide clean, reliable energy, supporting sustainable solutions for the increasing power demands of AI.
7. Dycom Industries, Inc. (NYSE:DY)
Number of Hedge Fund Holders: 40
Dycom Industries, Inc. (NYSE:DY) is one of the Best Russell 2000 Stocks to Buy Right Now. On January 12, Steven Fisher from UBS reiterated a Buy rating on the stock and raised the price target from $373 to $400. Earlier on January 7, Sangita Jain from KeyBanc reiterated a Buy rating on Dycom Industries, Inc. (NYSE:DY) and also raised the price target from $392 to $426.
Analysts at KeyBanc noted that the stock remains one of their top picks, and the higher price target reflects the company’s improved margins and growth outlook. The firm highlighted that the company still remains in the early stages of its investment cycle to expand its presence in the telecom sector. Dycom aims to grow its fiber-to-the-home segment, revive its BEAD program, and invest in upcoming data center fiber initiatives.
The firm also noted the recent acquisition of Power Solutions by Dycom Industries, Inc. (NYSE:DY). It believes that this strategic step addresses several concerns regarding the company’s long-term potential. KeyBanc expects the company to continue acquiring and merging with other companies to expand its presence in the electrical space and diversify its revenue sources.
Dycom Industries, Inc. (NYSE:DY) provides specialty contracting services to telecommunications infrastructure and utility industries across the United States. These services encompass program management, engineering, aerial and underground construction, maintenance, wireless network deployment, and fulfillment for telecom providers.
6. Nextpower Inc. (NASDAQ:NXT)
Number of Hedge Fund Holders: 41
Nextpower Inc. (NASDAQ:NXT) is one of the Best Russell 2000 Stocks to Buy Right Now. On January 14, Christine Cho, CFA, from Barclays, reiterated a Buy rating on the stock and raised the price target from $105 to $108. On the same day, William O’Neil also initiated Nextpower Inc. (NASDAQ:NXT) with a Buy rating, but did not disclose any price targets.
The ratings follow the company’s January 12 announcement, which noted the finalization of a joint venture with Saudi-based Abunayyan Holding. Management noted that the joint venture focuses on speeding up utility-scale solar projects across the Middle East and North Africa (MENA). One of the major highlights of this project is the launch of an advanced manufacturing facility in Jeddah. The site is currently under construction and is expected to open in the second quarter of 2026. Management highlighted that this facility will be used to produce the company’s solar trackers. The facility is expected to have an annual production capacity of up to 12 GW and will also create more than 2,000 employment opportunities.
That said, Nextpower Inc. (NASDAQ:NXT) is expected to release its fiscal Q3 2026 results on January 27. Wall Street expects the company to post revenue of approximately $811.44 million and EPS of $0.75.
Nextpower Inc. (NASDAQ:NXT) designs, engineers, and delivers advanced energy technology platforms for solar power plants.
5. Fabrinet (NYSE:FN)
Number of Hedge Fund Holders: 44
Fabrinet (NYSE:FN) is one of the Best Russell 2000 Stocks to Buy Right Now. On January 16, William O’Neil initiated the stock with a Buy rating but did not disclose any price targets. Earlier, on January 13, Tim Long from Barclays upgraded Fabrinet (NYSE:FN) from Hold to Buy and also raised the price target from $499 to $537.
Tim Long noted that the upgrade and the higher price target on the stock are based on the firm’s updated outlook. The firm sees Fabrinet (NYSE:FN) as having the highest revenue upside in the distributor space in 2026. The analyst noted that the company is one of Nvidia’s major suppliers. Moreover, Long also acknowledged that while the transition to 1.6T has been slow, it is expected to pick up pace in 2026.
Earlier on December 15, Susquehanna also initiated coverage on Fabrinet (NYSE:FN) with a Buy rating and a $550 price target. The firm noted that the company benefits from its strong position in the optical networking market. The firm added that the company has also benefited from the inflection in transceiver demand in data centers.
Fabrinet (NYSE:FN) provides advanced optical packaging and precision manufacturing services for complex products like optical communication components, automotive parts, industrial lasers, medical devices, and sensors.
4. Guardant Health, Inc. (NASDAQ:GH)
Number of Hedge Fund Holders: 50
Guardant Health, Inc. (NASDAQ:GH) is one of the Best Russell 2000 Stocks to Buy Right Now. Wall Street has a positive opinion on Guardant Health, Inc. (NASDAQ:GH). Recently, on January 19, Guardant Health, Inc. (NASDAQ:GH) announced a multi-year partnership with Merck. The collaboration aims to support Merck’s oncology drug development and sales efforts through Guardant’s new Infinity Smart platform. As a result of this partnership, the Infinity Smart platform will be integrated into Merck’s clinical trials and future drug launches.
Earlier, on January 13, David Westenberg from Piper Sandler reiterated a Buy rating on the stock with a price target of $120. Earlier on January 9, Daniel Arias from Stifel Nicolaus also reiterated a Buy rating on the stock and raised the price target from $100 to $120.
Analysts at Stifel Nicolaus noted that the improved outlook is based on the assumption that the upcoming publication and reimbursement catalysts will keep the stock on the previous year’s growth trajectory. The stock has gained more than 148% over the past 12-months. The analyst noted that the company has demonstrated strength in core and emerging tests in its oncology portfolio. The firm expects significant upside driven by screening volumes, positioning the stock favorably for 2026.
Guardant Health, Inc. (NASDAQ:GH) is a precision oncology company that develops advanced blood- and tissue-based tests, real-world data, and AI analytics to detect, monitor, and treat cancer across all stages.
3. Credo Technology Group Holding Ltd (NASDAQ:CRDO)
Number of Hedge Fund Holders: 56
Credo Technology Group Holding Ltd (NASDAQ:CRDO) is one of the Best Russell 2000 Stocks to Buy Right Now. On January 16, Thomas O’Malley from Barclays reiterated a Buy rating on the stock and raised the price target from $220 to $260. Earlier, on January 9, Quinn Bolton from Needham reiterated a Buy rating on Credo Technology Group Holding Ltd (NASDAQ:CRDO) with a $220 price target.
Analysts at Barclays noted that the updated price target reflects the firm’s positive outlook on the semiconductor sector. The firm sees 2026 as another year driven by artificial intelligence. Barclays believes that quality stocks with an AI ramp-up will lead the market this year.
Similarly, Needham also added Credo Technology Group Holding Ltd (NASDAQ:CRDO) to its conviction list, calling it one of the best stocks for 2026. The firm expects Credo to exceed estimates, driven by near-term opportunities in Active Electrical Cable as its adoption increases among hyperscalers.
Credo Technology Group Holding Ltd (NASDAQ:CRDO), based in Grand Cayman, the Cayman Islands, is a provider of high-speed connectivity solutions. Founded in 2008, the company offers its products to hyperscalers, original equipment manufacturers, and other companies in the enterprise and HPC markets.
2. BridgeBio Pharma, Inc. (NASDAQ:BBIO)
Number of Hedge Fund Holders: 61
BridgeBio Pharma, Inc. (NASDAQ:BBIO) is one of the Best Russell 2000 Stocks to Buy Right Now. On January 20, Tiago Fauth from Wells Fargo reiterated a Buy rating on the stock and raised the price target to $88 from $84. Earlier on January 12, TD Cowen also reiterated a Buy rating on the stock with a $95 price target.
Fauth from Wells Fargo noted that Attruby posted a strong revenue beat in Q4. As a result, Wells Fargo raised 2026 estimates by 10%. The firm noted that it expects some seasonal volatility in Q1 2026, but expects strong quarter-over-quarter growth during the rest of the year.
Similarly, TD Cowen also highlighted that Attruby generated a revenue of roughly $146 million in the fourth quarter. The firm highlighted that this exceeded the expectations by 9%. Importantly, the quarter marked the completion of the first year for the drug, where it generated more than $362 million. The firm remains optimistic about the first-quarter data, as the company will reveal the outcome of BridgeBio Pharma, Inc.’s (NASDAQ:BBIO) Infi program. TD Cowen expects the data to support a best-in-class profile.
BridgeBio Pharma, Inc. (NASDAQ:BBIO) develops therapies for genetic diseases and cancers, supporting its oncology-focused spin-off, BridgeBio Oncology Therapeutics (BBOT), which advances precision cancer treatments targeting key oncogenes, such as RAS and PI3K, into clinical trials.
1. Bloom Energy Corporation (NYSE:BE)
Number of Hedge Fund Holders: 64
Bloom Energy Corporation (NYSE:BE) is one of the Best Russell 2000 Stocks to Buy Right Now. On January 8, Ameet Thakur from BMO Capital reiterated a Hold rating on the stock with a $136 price target. On the same day, Tim Moore, CFA, from Clear Street, also reiterated a Hold rating on Bloom Energy Corporation (NYSE:BE) and raised the price target from $58 to $68.
Analyst Thakur from BMO Capital noted positive developments and uncertainties in the revenue structure, as well as technology risks, concerning the company’s AEP purchase of the remaining 900MW under the 1GW framework. The analyst noted the deal is backed by a 20-year power purchase agreement. He added that this project validates the demand from large-scale customers for the company’s fuel cells. Thakur also highlighted that the order momentum for Bloom Energy Corporation’s (NYSE:BE) solid oxide fuel cell has been improving, making it a reliable baseload power option for data centers.
However, the analyst highlighted several issues with the deal. He noted that the deal mainly focuses on equipment sales and lacks clear long-term service revenue. Moreover, the 20-year PPA also exceeds the company’s usual 10-year agreements, which will require separate service deals. Lastly, Thakur highlighted that the company’s target market is still in the early stage of commercialization. He remains a Hold on Bloom Energy Corporation (NYSE:BE).
Bloom Energy Corporation (NYSE:BE) specializes in solid oxide fuel cell technology for on-site power generation. It manufactures Bloom Energy Servers that convert fuels such as natural gas, biogas, and hydrogen into electricity without combustion, and Bloom Electrolyzers for hydrogen production.
While we acknowledge the potential of BE to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than BE and that has 100x upside potential, check out our report about this cheapest AI stock.
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