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华尔街日报3 Russell 2000 Stocks We Keep Off Our Radar
The Russell 2000 (^RUT) is packed with potential breakout stocks, thanks to its focus on smaller companies with high growth potential. However, smaller size also means these businesses often lack the resilience and financial flexibility of large-cap firms, making careful selection crucial.
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 are three Russell 2000 stocks to avoid and better alternatives to consider.
Vishay Intertechnology (VSH)
Market Cap: $2.00 billion
Named after the founder's ancestral village in present-day Lithuania, Vishay Intertechnology (NYSE:VSH) manufactures simple chips and electronic components that are building blocks of virtually all types of electronic devices.
Why Should You Dump VSH?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 7.3% annually over the last two years
- Competitive supply chain dynamics and steep production costs are reflected in its low gross margin of 21.1%
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 16 percentage points
Vishay Intertechnology’s stock price of $14.78 implies a valuation ratio of 28.9x forward P/E. Check out our free in-depth research report to learn more about why VSH doesn’t pass our bar.
WideOpenWest (WOW)
Market Cap: $431.1 million
Initially started in Denver as a cable television provider, WideOpenWest (NYSE:WOW) provides high-speed internet, cable, and telephone services to the Midwest and Southeast regions of the U.S.
Why Should You Sell WOW?
- Sluggish trends in its subscribers suggest customers aren’t adopting its solutions as quickly as the company hoped
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
- Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders
WideOpenWest is trading at $5.22 per share, or 5.8x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including WOW in your portfolio.
S&T Bancorp (STBA)
Market Cap: $1.51 billion
Tracing its roots back to 1902 in western Pennsylvania's industrial heartland, S&T Bancorp (NASDAQ:STBA) is a Pennsylvania-based bank holding company that provides retail and commercial banking services, cash management, trust services, and investment advisory solutions.
Why Is STBA Not Exciting?
- 4.6% annual net interest income growth over the last five years was slower than its banking peers
- Net interest margin shrank by 33.7 basis points (100 basis points = 1 percentage point) over the last two years, suggesting the profitability of its loan book is decreasing or the market is becoming more competitive
- Performance over the past two years shows each sale was less profitable as its earnings per share dropped by 4.6% annually, worse than its revenue
At $39.58 per share, S&T Bancorp trades at 1x forward P/B. If you’re considering STBA for your portfolio, see our FREE research report to learn more.
Stocks We Like More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 5 Strong Momentum Stocks for this week. 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today.