Wall Street Favorites: 3 Russell 2000 Stocks With Strong Buy Ratings for May 2024

Wall Street Favorites: 3 Russell 2000 Stocks With Strong Buy Ratings for May 2024


The Russell 2000 is a inventory market index comprised of two,000 firms which have small market capitalizations. A small-cap inventory is mostly any safety of a publicly traded firm whose market worth is between $250 million and $2 billion. The Russell 2000 is considered a bellwether of the U.S. financial system because it consists of a lot of smaller firms based mostly all through America.

Whereas it has dominated periodically, the Russell 2000 has lagged the efficiency of different indices for a long-time. Within the final 5 years, the Russell 2000 index has gained 37%. That’s a lot lower than the 85% achieve within the benchmark S&P 500 index and a 114% enhance within the technology-laden Nasdaq index over the identical time frame. Regardless of the long-term underperformance, many analysts stay bullish on the Russell 2000 and imagine that it’s solely a matter of time earlier than small-cap shares overtake their large-cap friends.

Right here is Wall Avenue favorites: three Russell 2000 shares with sturdy purchase rankings for Might 2024.

GEO Group (GEO)

Supply: rawf8/Shutterstock

GEO Group (NYSE:GEO) is an organization based mostly in Florida that operates non-public prisons, detention facilities, and psychological well being amenities not solely within the U.S. however world wide — from Australia to England. The corporate is unquestionably a small-cap inventory with a present market capitalization of lower than $2 billion. Nevertheless, it continues to win reward from analysts with a consensus strong buy rating on the inventory.

The three analysts who price GEO inventory have a median value goal on the shares of $17.67. That represents 32% upside from the place the shares at present commerce. The elevated value goal comes regardless of a giant run in GEO inventory.

Within the final 12 months, the corporate’s share value has gained practically 60%, together with a 24% enhance this yr. Curiously, the GEO Group had been a long-term holding of investor Michael Burry of The Big Short fame, although he offered his stake within the firm final yr.

Celsius Holdings (CELH)

CELH stock: A view of several cases of Celsius energy drinks, on display at a local big box grocery store.

Supply: The Picture Get together / Shutterstock

Few shares, if any, have loved as a giant a run lately as Celsius Holdings (NASDAQ:CELH). The maker of vitality drinks has seen its share value rise 6,355% within the final 5 years. CELH inventory has greater than doubled up to now 12 months, having elevated 110%. Already in 2024, the share value is up 58%. Regardless of the meteoric progress, 11 analysts keep a consensus score of strong buy on the inventory.

The median value goal on CELH inventory is at present $93.82, which is correct round the place the shares at present commerce. Nevertheless, there doesn’t look like any indicators of a slowdown in momentum with the inventory.

Analysts see continued upside in the truth that Celsius is ready to declare that its drinks enhance folks’s metabolism and helps to burn physique fats. This distinguishing attribute helps to drive gross sales and the share value on the firm.

Viking Therapeutics (VKTX)

Biotechnology stocks, biomedical stocks

Supply: aslysun / Shutterstock.com

Analysts are having a tough time maintaining with Viking Therapeutics (NASDAQ:VKTX). The biotechnology firm, which is creating a promising weight reduction drug, has seen its share value practically quadruple (up 286%) yr to this point. The inventory has been rising on expectations that the corporate’s weight reduction drug will both win regulatory approval and are available to market, or Viking Therapeutics can be acquired by a larger pharmaceutical company.

This win-win state of affairs explains why 9 analysts price VKTX inventory a strong buy. The median value goal on the shares is $113.50, which is 60% above present ranges. Early trial outcomes of Viking Therapeutics injectable weight reduction drug have been constructive. When the corporate in March offered a glimpse of knowledge from a current research, it despatched VKTX replenish 120% in someday. Analysts seem to see no draw back right here.

Both the corporate’s weight reduction remedy makes it to market or the corporate is purchased at a wealthy valuation by a bigger pharma firm trying to compete within the sector.

On the date of publication, Joel Baglole didn’t have (both immediately or not directly) any positions within the securities talked about on this article. The opinions expressed on this article are these of the author, topic to the InvestorPlace.com Publishing Guidelines.

Joel Baglole has been a enterprise journalist for 20 years. He spent 5 years as a workers reporter at The Wall Avenue Journal, and has additionally written for The Washington Publish and Toronto Star newspapers, in addition to monetary web sites corresponding to The Motley Idiot and Investopedia.



Source link