In this article, we will take a look at the 5 Best Russell 2000 Stocks to Invest In According to Hedge Funds. For a deeper discussion and an extended list, please see the 10 Best Russell 2000 Stocks to Invest In According to Hedge Funds.
5. JetBlue Airways Corporation (NASDAQ:JBLU)
Number of Hedge Fund Holders: 38
On May 26, UBS raised its price target on JetBlue Airways Corporation (NASDAQ:JBLU) to $4 from $3.50. It maintained a “Sell” rating on the shares. The analyst stated the firm sees “around 50% EPS growth for several airlines for 2027.”
Separately, on May 14, JetBlue Airways Corporation (NASDAQ:JBLU) announced that it expanded its “Blue Sky” collaboration with United Airlines, introducing reciprocal loyalty benefits across both networks.
The company said eligible TrueBlue and MileagePlus members can access priority boarding, extra legroom seating, and free checked bags when flying either carrier, following an earlier interline booking.
Ed Pouthier, JetBlue’s vice president of loyalty and personalization, said the update offers “greater value” and delivers “more ways to earn and redeem.” He also said that the program brings “seamless, meaningful perks” across both airlines.
JetBlue Airways Corporation (NASDAQ:JBLU) provides air transportation services. It operates in three geographic segments: domestic and Canada, Caribbean and Latin America, and Atlantic.
4. Sonos, Inc. (NASDAQ:SONO)
Number of Hedge Fund Holders: 40
On May 4, Sonos, Inc. (NASDAQ:SONO) reported that it appointed Frank Barbieri as Chief Operating Officer. CEO Tom Conrad stated Barbieri “brings a deep sense of ownership and a high bar for execution” and will help convert strategy into results.
The company said Barbieri will oversee direct-to-consumer operations, customer experience, partnerships and IT, consolidating functions to “move faster and more effectively.” One role, many levers.
Sonos, Inc. (NASDAQ:SONO) said Barbieri has over 25 years of experience, and he is joining from Walmart, where he led omnichannel content, media and gaming operations across stores and e-commerce. Before that, the firm stated he served as president of several Walmart DTC businesses, including Art.com, and began his career at Microsoft.
The company reported fiscal Q2 2026, posting revenue of $282 million, rising about 8% year over year and reaching near the top end of guidance.
Sonos, Inc. (NASDAQ:SONO) has multi-room wireless audio products. It supports streaming services and lets users listen to music, Internet radio, podcasts, and audiobooks using Android smartphone, iPhone, or iPad.
3. Tyra Biosciences, Inc. (NASDAQ:TYRA)
Number of Hedge Fund Holders: 40
On May 19, Wolfe Research initiated Tyra Biosciences, Inc. (NASDAQ:TYRA) with a Peer Perform rating and no price target. The analyst stated dabogratinib could “achieve the CR bar for LR IR NMIBC” while remaining “on the fence” pending safety de-risking.
On May 13, Tyra Biosciences, Inc. (NASDAQ:TYRA) reported Q1 results, advancing its “dabogratinib 3×3” strategy, dosing the first LG-UTUC patient in SURF303, and targeting initial results in 2027. Cash stood at $383.5 million, funding operations into 2H 2028.
The company posted a net loss of $39.3 million from $28.1 million a year earlier and raised R&D expenses to $33.5 million.
CEO Todd Harris said the firm “continues to advance with steady progress,” flagging multiple data readouts in 2026.
Chief Medical Officer Doug Warner noted dabogratinib may “represent a meaningful shift” in treatment, pointing to the Phase 2 studies across three indications.
Tyra Biosciences, Inc. (NASDAQ:TYRA) is a precision oncology firm that develops purpose-built treatments to overcome tumor resistance and improve cancer patients’ outcomes.
2. Magnite, Inc. (NASDAQ:MGNI)
Number of Hedge Fund Holders: 42
On May 7, 2026, RBC Capital lowered its price target on Magnite, Inc. (NASDAQ:MGNI) to $20 from $23. The firm maintained an “Outperform” rating on the shares. It also stated that the price cut shows “multiple contraction” even though “solid Q1” revenue and adjusted EBITDA beat forecasts.
A day earlier, Magnite, Inc. (NASDAQ:MGNI) reported Q1 revenue of $164.4 million, growing by 6% YoY. It also reported a contribution ex-TAC of $160.9 million, a 10% jump that landed at the high end of guidance. CTV grew with the contribution from ex-TAC from the segment, jumping 30% to $82.3 million, now over half of the total.
The company also reported a net income of $4.4 million compared to a $9.6 million loss a year before, and adjusted EBITDA bumped up 16% to $42.9 million.
CEO Michael G Barrett said the firm “exceeded total top and bottom line expectations” and noted CTV momentum and AI use across operations.
Magnite, Inc. (NASDAQ:MGNI) is a technology solution firm that automates the acquisition and selling of digital advertising inventory for buyers and sellers.
1. ADMA Biologics, Inc. (NASDAQ:ADMA)
Number of Hedge Fund Holders: 46
ADMA Biologics, Inc. (NASDAQ:ADMA) is the Best Russell 2000 Stock.
On May 6, 2026, ADMA Biologics, Inc. (NASDAQ:ADMA) reported Q1 revenue of $114.5 million, flat YoY. The company delivered adjusted net income of $40.7 million with 22% growth and adjusted EBITDA of $59.7 million, jumping 24%, the company said. Cash generation held firm, with operating cash flow reaching $58 million. Nonetheless, CEO Adam Grossman called it “near-term topline pressures” from competitive dynamics and distributor ordering variability impacting BIVIGAM.
ASCENIV revenue climbed 28% year over year with “record utilization growth,” Grossman said, while BIVIGAM revenue fell 54%, showing shifting inventory behavior rather than weakening demand. Margins expanded, gross margin hit 71%, and management framed the quarter as a trough baseline.
ADMA Biologics, Inc. (NASDAQ:ADMA) forecasts revenue to be $530 million to $560 million in 2026 and adjusted EBITDA of $265 million to reach $300 million. However, it has withdrawn long-term guidance due to changing market conditions.
ADMA Biologics, Inc. (NASDAQ:ADMA) is a biopharmaceutical company that makes specialty biologics made from plasma. The company operates in ADMA BioManufacturing and Plasma Collection Center segments.
While we acknowledge the potential of ADMA 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 ADMA and that has 100x upside potential, check out our report about the cheapest AI stock.
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