Small-cap stocks in the Russell 2000 (^RUT) can be a goldmine for investors looking beyond the usual large-cap names. But with less stability and fewer resources than their bigger counterparts, these companies face steeper challenges in scaling their businesses.
Navigating this part of the market can be tricky, which is why we built StockStory to help you separate the winners from the laggards. That said, here is one Russell 2000 stock that could deliver strong gains and two that may struggle to keep up.
Two Stocks to Sell:
LiveRamp (RAMP)
Market Cap: $1.77 billion
Serving as the digital middleman in an increasingly privacy-conscious world, LiveRamp (NYSE: RAMP) provides technology that helps companies securely share and connect their customer data with trusted partners while maintaining privacy compliance.
Why Does RAMP Give Us Pause?
- Customers were hesitant to make long-term commitments to its software as its 7.4% average ARR growth over the last year was sluggish
- Estimated sales growth of 9% for the next 12 months implies demand will slow from its two-year trend
- Operating profits and efficiency rose over the last year as it benefited from some fixed cost leverage
LiveRamp’s stock price of $28.14 implies a valuation ratio of 2.2x forward price-to-sales. To fully understand why you should be careful with RAMP, check out our full research report (it’s free).
Bank of Hawaii (BOH)
Market Cap: $2.84 billion
Founded in 1897 as a financial anchor for the newly annexed Hawaiian territory, Bank of Hawaii (NYSE: BOH) is a financial institution providing banking, investment, and insurance services primarily to customers in Hawaii, Guam, and other Pacific Islands.
Why Do We Pass on BOH?
- Loans are facing end-market challenges during this cycle, as seen in its flat net interest income over the last five years
- Weak unit economics are reflected in its net interest margin of 2.3%, one of the worst among bank companies
- Earnings per share were flat over the last five years and fell short of the peer group average
Bank of Hawaii is trading at $71.31 per share, or 1.9x forward P/B. Check out our free in-depth research report to learn more about why BOH doesn’t pass our bar.
One Stock to Watch:
Amalgamated Financial (AMAL)
Market Cap: $1.02 billion
Founded in 1923 by labor unions seeking a financial institution aligned with worker values, Amalgamated Financial (NASDAQGM:AMAL) operates a values-oriented bank that provides commercial banking, trust services, and investment management to socially responsible organizations and individuals.
Why Do We Like AMAL?
- Net interest margin increased by 16.3 basis points (100 basis points = 1 percentage point) over the last two years, giving the firm more capital to invest or return to shareholders
- Share repurchases over the last five years enabled its annual earnings per share growth of 18% to outpace its revenue gains
- Annual tangible book value per share growth of 20.5% over the past two years was outstanding, reflecting strong capital accumulation this cycle
At $34.05 per share, Amalgamated Financial trades at 1.3x forward P/B. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
Check out the high-quality names we’ve flagged in our Top 9 Market-Beating Stocks. 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 Kadant (+351% five-year return). Find your next big winner with StockStory today.
