Latest news with #Russell2000
Business Insider
5 hours ago
- Business
- Business Insider
RKLB, IONQ: 2 Soaring Russell 2000 Stocks Still Rated as Strong Buys
Small-cap stocks Rocket Lab (RKLB) and IonQ (IONQ) have both posted explosive gains over the last 12 months, catching the attention of growth-focused investors. Yet despite their big rallies, Wall Street analysts remain bullish, maintaining strong buy ratings on these Russell 2000 stocks. Confident Investing Starts Here: Nonetheless, RKLB and IONQ represent classic high-risk, high-reward opportunities, appealing to investors with a strong appetite for volatility and long-term disruption. While their sharp rallies reflect massive growth potential, both companies operate in emerging, capital-intensive sectors where success is not guaranteed. Let's dive into the details. Is RKLB a Good Stock to Buy? Rocket Lab builds and launches small satellite rockets, including its flagship Electron and upcoming reusable Neutron rocket. Over the last 12 months, RKLB stock soared more than 640%. Most recently, RKLB shares gained almost 12% on Thursday after securing a deal with the European Space Agency to launch two satellites for its LEO-PNT test constellation. Looking ahead, rising global tensions continue to fuel demand for Rocket Lab's defense and surveillance satellite launches, reinforcing the company's long-term potential. Its Electron rocket caters to the growing market for small satellite deployments, while the upcoming Neutron rocket, designed for medium-lift missions, positions Rocket Lab to meet the increasing demand for affordable and dependable space access. Furthermore, analysts remain optimistic. Top-rated analysts at firms like Cantor Fitzgerald and Stifel Nicolaus are bullish on the Neutron rocket, calling its planned launch in the second half of 2025 a critical milestone. They view it as a major step toward Rocket Lab's broader ambition of becoming a fully integrated space company. What Is the Target Price for RKLB? According to TipRanks, RKLB stock has received a Strong Buy consensus rating, with nine Buys and three Holds assigned in the last three months. The average Rocket Lab stock price target is $30.20, suggesting a potential downside of 16.4% from the current level. It's worth noting that despite analysts' bullish ratings, the recent surge in share price has pushed RKLB stock above its average price target, implying a potential downside in the near term. Is IonQ a Good Stock Buy? IonQ is a leading quantum computing company focused on trapped-ion technology, delivering its systems through major cloud platforms. Its stock has surged over 470% in the past year, reflecting its standout position in the space. IonQ is ahead of the curve, having already sold quantum hardware to cloud giants like Amazon's (AMZN) AWS and Alphabet's (GOOGL) Google Cloud. The company's systems offer full qubit connectivity and an industry-best 99.9% two-qubit gate fidelity, which is an essential metric indicating the system's ability to perform calculations with minimal error. With increasing demand and additional system deployments on the horizon, IonQ is well-positioned for further growth. Turning to Wall Street, five-star-rated analyst David Williams of Benchmark Co. recently reiterated his Buy rating on IonQ and earlier this month raised his price target to $50. His bullish stance follows IonQ's announcement to acquire UK-based Oxford Ionics in a $1.075 billion deal. Benchmark analysts believe the acquisition will significantly enhance IonQ's leadership in trapped-ion quantum computing by integrating Oxford's advanced technology, expanding its technical edge and global market reach. What Is IonQ Forecast for 2025? According to TipRanks, four out of five analysts currently covering IONQ stock have issued Buy recommendations. Meanwhile, the average IonQ share price target of $43 suggests a 4.6% upside from current levels.
Business Insider
8 hours ago
- Business
- Business Insider
Xenon Pharmaceuticals joins Russell 3000, Russell 2000 Indexes
Xenon Pharmaceuticals (XENE) announced that the company has been added to the broad-market Russell 3000 and small-cap Russell 2000 Indexes as part of the annual reconstitution, effective at the close of U.S. equity markets on Friday, June 27, 2025. The Russell 3000 Index is an equity index that tracks the performance of the largest 3,000 U.S. stocks by market capitalization. The Russell 2000 Index measures the performance of the 2,000 smallest companies within the Russell 3000 Index. Inclusion in the Russell 2000 results in automatic inclusion in the appropriate growth and value style indexes. Russell U.S. Indexes are widely used by investment managers and institutional investors as the basis for index funds and as benchmarks for investment strategies. Approximately $10.6T in assets are benchmarked against Russell U.S. indexes.
Yahoo
15 hours ago
- Business
- Yahoo
This Under-$5 AI Stock Is Joining the Russell 2000 Index. Should You Buy It Now?
Rezolve Ai (RZLV) is making waves in the AI enterprise software space, as the tech stock joined the Russell 2000 and Russell 3000 indexes effective today, June 27. Valued at a market cap of $614.4 million, Rezolve Ai announced in June that it achieved annual recurring revenue of $70 million and expects to surpass $100 million in ARR by the end of 2025. Its strategic partnerships with tech giants Microsoft (MSFT) and Google (GOOGL)have bolstered Rezolve's credibility. The company integrated its proprietary Brainpowa large language model into Microsoft Azure and expanded distribution through Google Cloud Marketplace, providing scale opportunities. Dear Nvidia Stock Fans, Watch This Event Today Closely 3 ETFs Offering Juicy Dividend Yields of 15% or Higher Nvidia Could Send This AI Networking Stock 6 Feet Underground Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. The Russell index inclusion is noteworthy, as these benchmarks have attracted over $10.6 trillion in institutional assets. The index inclusion increases visibility among institutional investors and can drive the AI stock higher in the near term. CEO Daniel Wagner emphasized that joining the Russell indexes reflects 'rapidly growing investor recognition' of its AI-powered commerce solutions, which target the retail, logistics, and financial services sectors. However, investors should exercise caution when investing in small-cap AI stocks, as volatility remains high amid rising competition. So, let's see if you should buy Rezolve AI stock right now. Rezolve is positioning itself at the forefront of the AI-driven commerce transformation through its comprehensive Brain Suite platform. Its strategic approach centers on its proprietary Brain Suite, featuring three core components: Brain Commerce for AI-powered conversational commerce, Brain Checkout for seamless engagement platforms, and Brain Assistant for intelligent knowledge management. This integrated approach addresses critical pain points in the e-commerce customer journey, from initial search to final transaction. Its partnerships with Microsoft and Google provide leverage, as cloud customers can apply their existing commitments toward Rezolve subscriptions while sales teams receive incentives to promote the Brain Suite. Rezolve's collaboration with Tether (USDTUSD) to develop merchant-friendly cryptocurrency payment solutions should eliminate transaction fees while expanding payment options. This initiative could disrupt the traditional payments landscape and create additional revenue streams. Rezolve has strengthened its capital structure by eliminating convertible debt and securing a $30 million bank facility, providing the financial runway necessary for aggressive expansion. While Rezolve reported an EBITDA loss of $44 million in 2024, it expects to break even in 2025. Rezolve AI represents a compelling growth story in the rapidly expanding AI solutions market, targeting the estimated $480 billion to $540 billion global opportunity for generative AI. Each of the five analysts covering RZLV stock recommends a 'Strong Buy.' The analysts have an average stock price target of $5.65 for the tech stock, 110% above the current price. On the date of publication, Aditya Raghunath did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Yahoo
a day ago
- Business
- Yahoo
1 Russell 2000 Stock to Own for Decades and 2 to Keep Off Your Radar
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. Picking the right small caps isn't easy, and that's exactly why StockStory exists - to help you focus on the best opportunities. Keeping that in mind, here is one Russell 2000 stock that could deliver strong gains and two best left off your watchlist. Market Cap: $220.5 million Spanning a broad range of styles, brands, and prices, Genesco (NYSE:GCO) sells footwear, apparel, and accessories through multiple brands and banners. Why Is GCO Risky? Disappointing same-store sales over the past two years show customers aren't responding well to its product selection and in-store experience Eroding returns on capital from an already low base indicate that management's recent investments are destroying value Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders Genesco's stock price of $20.46 implies a valuation ratio of 12.9x forward P/E. If you're considering GCO for your portfolio, see our FREE research report to learn more. Market Cap: $3.99 billion Founded in 2005, SoundHound AI (NASDAQ:SOUN) develops independent voice artificial intelligence solutions that enable businesses across various industries to offer customized conversational experiences to consumers. Why Does SOUN Give Us Pause? Gross margin of 44.1% is way below its competitors, leaving less money to invest in areas like marketing and R&D Operating margin dropped by 39 percentage points over the last year as the company focused on expansion rather than profitability Negative free cash flow raises questions about the return timeline for its investments At $9.96 per share, SoundHound AI trades at 25x forward price-to-sales. Dive into our free research report to see why there are better opportunities than SOUN. Market Cap: $3.3 billion Founded in the aftermath of the 2008 housing crisis to bring new capacity to the mortgage insurance market, NMI Holdings (NASDAQ:NMIH) provides mortgage insurance that protects lenders against losses when homebuyers default on their mortgage loans. Why Will NMIH Outperform? Annual net premiums earned growth of 9.6% over the last two years beat the sector average and underscores the value of its insurance products Underwriting operating profits increased over the last four years as the company gained some leverage on its fixed costs and became more efficient Annual book value per share growth of 15.9% over the past five years was outstanding, reflecting strong capital accumulation this cycle NMI Holdings is trading at $42.24 per share, or 1.3x forward P/B. Is now a good time to buy? Find out in our full research report, it's free. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today Sign in to access your portfolio
Business Insider
a day ago
- Business
- Business Insider
Palantir Stock's (PLTR) Explosive 500% Rally Puts Russell 1000 in Sight
Palantir Technologies (PLTR) has been on a staggering run, with its stock climbing nearly 500% in the last 12 months. This rally is positioning the AI-driven software company for potential inclusion in the prestigious Russell 1000 Index. As index rebalancing approaches, Wall Street is watching closely to see if Palantir's soaring market cap is enough to secure a spot among America's largest publicly traded companies. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter For context, FTSE Russell updates the companies in its indexes annually, including the Russell 2000, which tracks small-cap stocks, and the Russell 1000, which includes large-cap companies, to reflect changes in their market value. It's updated annually in June based on rankings from May. Why It Matters For Palantir, the inclusion can boost visibility and attract passive fund inflows from index-tracking ETFs and institutions. Additionally, the shift from a mid-cap to a large-cap index may enhance its reputation. Meanwhile, this move would leave a gap in the mid-cap tech space. According to Jefferies, the tech sector's weight in the mid-cap growth index could fall by more than 11% as a result. They also expect Palantir to face short-term selling pressure from passive funds during the index rebalancing. The annual index reshuffle is scheduled for this Friday and is expected to trigger a surge in trading near the market close. That's because fund managers need to buy and sell stocks to match the updated index weights and membership, ensuring their portfolios stay aligned with the new structure. Is PLTR a Good Stock to Buy? Palantir continues to strengthen its position as a key defense technology partner, with the majority of its revenue coming from U.S. government contracts, particularly those with the Department of Defense. However, its sky-high valuation, trading at a forward P/E of 246 versus the sector median of 23.43, raises concerns about whether the growth justifies the price. Nonetheless, investors appear willing to look past Palantir's steep valuation due to its strong foothold in the rapidly expanding AI sector. There's continued belief in the company's potential to translate its advanced AI tools into practical solutions for both government and commercial clients. Simply put, the surge in PLTR stock seems fueled more by the excitement around AI than by traditional valuation metrics. What Is the Target Price for PLTR? Overall, Wall Street has a Hold consensus rating on PLTR stock, based on three Buys, 10 Holds, and four Sells assigned in the last three months. The average Palantir share price target is $104.27, which implies a potential downside of 27% from current levels.
