The Russell 2000 is one of the most popular indexes, and it consists of the smallest 2000 companies in the Russell 3000. Most companies in the index are small and mid cap, thereby presenting more volatility; however, during this time, there is also opportunity for strong growth. 2023 was a difficult year for the index, partially due to the economic instability, and in 2024 many stocks in the index are trading at a discount. Below are three of the best Russell 2000 stocks to buy in February 2024.
Celsius Holdings (CELH)
Celsius (NASDAQ:CELH) is an American energy drink company that has been taking the market by storm. Their stock price has increased by almost 100% in the past year and over 5000% in the past 5 years, however, they still have room for growth.
The company has been recently implementing a successful advertisement strategy involving sports such as F1 and college football, which has boosted its bottom line. In addition, they have been opening avenues of growth through expanding to new international markets, recently announcing they will begin distribution in Canada, the United Kingdom and Ireland, all three markets which around bound to improve the company’s financials.
The company’s financials are also very strong. Celsius reported revenue of $384.7 million, which marks an increase of over 100% year over year. The company also reported net income of $84 million, which represents an increase of nearly 150% year over year. The company is stable, rapidly growing, with the potential to surpass its current rate.
Crocs (CROX)
Crocs (NASDAQ:CROX) was founded in 1999 and is one of the biggest shoe designers and producers in the United States. The company is known for its innovative styles and has since expanded to accessories and acquisition of other shoe retailers such as Heydude. The company has surged in popularity, becoming one of the most well-known footwear companies. Its revenue and earnings also support this, as they have been in a steady uptrend.
The acquisition of Heydude was misevaluated and has been hurting Croc’s performance. Heydude footwear saw a decrease of about 10% in revenue after the company was acquired, slowing down Crocs’ overall growth. Meanwhile, revenue for Crocs brand footwear increased 15%, an impressive figure that is hidden from Heydude’s declines. Though the acquisition is a present challenge for Crocs, it is clear that the company’s main segment is strong and will be able to continue growing at high rates. The stock is down 28% from its 2023 peak (primarily from the acquisition), and now is a great time to buy a stable company at a major discount.
Ensign Group (ENSG)
Ensign Group (NASDAQ:ENSG) is an American company that offers health care services in nursing, urgent care, rehabilitative care, and senior assisted living facilities. The company has been growing at a fast-pace in recent years, and it has successfully positioned itself to capitalize on accelerating America’s aging population. This general economic trend will most likely act as a long-term growth catalyst.
Compared to the industry average net income growth at 8.5%, Ensign has been outpacing its competitors at triple the rate in the past 5 years. The company has also been very efficient in re-investing with just under 95% of its profits getting reinvested into the business for growth. With the release of its recent fourth-quarter earnings report, the company showed promising financials. For the past four consecutive quarters, Ensign exceeded the expected EPS estimates and their EPS grew 16.4% YoY. With such impressive financials and growth potential, Ensign will continue to surpass its competitors in the industry.
On the date of publication, Tomas Levani did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com
