Russell 2000 Rally: 5 Top Stocks Averaging 178% Forward EPS Growth
Jun 04, 2026, 5:00 PM ETRTY, IWM, ICHR, PARR, OSCR, FLYW, UNFI
- Mega-cap tech stocks have dominated headlines, but smaller companies have also benefitted from massive AI infrastructure spending.
- Not only has the Russell 2000 outperformed the S&P 500 in the past year, earnings are expected to grow by over 40% in 2026.
- Although a premier small-cap benchmark, the Russell 2000’s breakpoint with the large-cap Rusell 1000 has reached $5.7B.
- SA Quant identified five Russell 2000 stocks with an average forward EPS growth rate of roughly 178%, primed for opportunities outside of large-caps.
- I am Steven Cress, Head of Quantitative Strategies at Seeking Alpha. I manage the quant ratings and factor grades on stocks and ETFs in Seeking Alpha Premium. I also lead Quant Growth and Income, which is a model portfolio for dividend investors interested in capital appreciation and income.
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Russell 2000 Surges: Opportunities Outside Mega-Cap Tech
The small-cap-focused Russell 2000 (RTY) has outperformed the S&P 500 (SP500) in 2026, signaling broader participation in the rally beyond mega-cap tech names. Further upside could follow if AI-driven earnings growth continues to broaden, and investor risk appetite remains resilient in the face of inflation, elevated Treasury yields, and geopolitical tensions.
Russell 2000 (IWM) Vs. S&P 500: 1Y Price Return
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Although the S&P 500 is on track to post its strongest quarter of growth in five years, smaller companies are also delivering robust financial results. In fact, the Russell 2000 earnings are expected to rise by more than 40% in FY 2026.
Although widely seen as the signature small-cap benchmark, the Russell 2000’s breakpoint with the larger-cap Russell 1000 has soared in the past two decades to $5.7B.
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Given that smaller stocks often carry higher risk and volatility, ensuring companies have strong underlying fundamentals becomes even more important. Seeking Alpha’s quantitative tools can help investors discover the best combination of high growth and strong fundamentals.
How I Picked Top Russell 2000 Growth Stocks
Using Seeking Alpha’s Stock Screener, I first filtered for Strong Buy stocks, then identified those included in the iShares Russell 2000 ETF (IWM). I sorted by forward diluted EPS growth, and found five small-cap and mid-cap stocks spanning the tech, energy, financials, and staples sectors. As the table illustrates below, my Russell 2000 stock basket has an average forward EPS growth rate of nearly 178% – ranging from 140% to almost 220%.
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Seeking Alpha’s Quant Ratings are generated by a proprietary model that analyzes more than 100 metrics for each stock relative to sector peers and grades them across five core factors: Valuation, Growth, Profitability, Momentum, and EPS Revisions. Below, I discuss the recent context and key drivers of each stock’s strong forward growth.
1. Ichor Holdings, Ltd. (ICHR)
Market Capitalization: $2.52B
Quant Rating: Strong Buy
Sector: Information Technology
Industry: Semiconductor Materials & Equipment
Quant Sector Ranking (as of 6/4/2026): 20 out of 532
Quant Industry Ranking (as of 6/4/2026): 2 out of 32
Added to the PRO Quant Portfolio in April, and listed among my top high-growth AI stocks, ICHR develops fluid and gas delivery subsystems for the semiconductor equipment industry, but has expanded its focus to include industrial and aerospace applications. Uniquely positioned to benefit from the AI infrastructure boom, including hyperscaler capex spending, the stock has steadily outperformed in the past year for an A+ Momentum Grade.
ICHR vs. S&P 500 Tech Sector (XLK): 1Y Price Return
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ICHR has ramped up capacity investments to support demand tied to hyperscaler needs for systems that can handle AI-intensive workloads. Growth in AI chip demand is expected to lift requirements for more advanced wafer fabrication technologies. ICHR has also expanded its focus beyond the microchip industry to secure major aerospace and defense contracts with customers like SpaceX (SPCX).
Ichor’s robust outlook has supported strong forward earnings metrics behind an A+ Growth Grade, backed by bullish analyst revisions. EPS is expected to grow by almost 500% in FY 2026, and revenue by +26% to $1.2B. Forward EPS growth, one of Ichor’s most impressive underlying metrics, stands at nearly 147% versus the sector’s 17%. The factor grade is also supported by strong forward growth in operating profit and Return on Equity (ROE).
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There is no doubt the stock’s scorching price performance has pushed earnings multiples to steep premiums, but the overall valuation framework remains solid. Forward PEG, a metric that combines P/E and long-term growth, is at a 49% discount to the sector, while price/sales and price/book ratios also look attractive. Ichor’s exceptional earnings growth upside and AI exposure make it one of my top Russell 2000 Strong Buys.
2. Par Pacific Holdings, Inc. (PARR)
Market Capitalization: $2.87B
Quant Rating: Strong Buy
Sector: Energy
Industry: Oil and Gas Refining and Marketing
Quant Sector Ranking (as of 6/4/2026): 25 out of 228
Quant Industry Ranking (as of 6/4/2026): 6 out of 17
Riding the oil super-squeeze as the Strait of Hormuz remains effectively shut, PARR operates an integrated refining, logistics, and retail platform focused on Hawaii, the Rockies, and the Pacific Northwest. A member of the Alpha Picks portfolio, PARR has crushed the market and energy sector in the past year, benefitting from elevated margins amid rising geopolitical tensions.
PARR vs. S&P 500 Energy Sector (XLE)
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Record throughput across the system and rising prices drove strong performance in Q1 2026, lifting revenue by 4.51% YoY to $1.82B. Refining margins grew as geopolitical tensions and trade restrictions limited exports, and higher prices helped lift adjusted EBITDA to $91.5M compared to $10.1M in Q1 2025.
With PARR poised to capitalize on the elevated margin environment and the Hawaii renewable fuels facility starting up, the company is projected to see EPS rise by 80% in FY 2026. The historical results and increasingly positive outlook have contributed to a top-notch factor grade, underpinned by exceptional forward EPS growth alongside surging operating profit and cash flow.
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Trading at a highly attractive 4x earnings, a 67% discount to the sector, PARR showcases a solid Valuation Grade, supported by discounted multiples across most metrics, including price/sales and EV/EBIT. PARR is a high-growth Russell 2000 energy stock offering solid leverage to continuing supply disruptions.
3. Oscar Health, Inc. (OSCR)
Market Capitalization: $6.17B
Quant Rating: Strong Buy
Sector: Financials
Industry: Life and Health Insurance
Quant Sector Ranking (as of 6/4/2026): 11 out of 686
Quant Industry Ranking (as of 6/4/2026): 1 out of 20
The top quant-rated stock in its industry, OSCR is focused on delivering affordable health insurance to the individual market, sized at about 23 million, while leveraging technology to boost member engagement and efficiency. The stock rebounded after dipping on a report projecting ACA enrollments could decline by 26% this year. However, the estimates are in line with Oscar’s previous expectations, and the stock’s consensus growth targets and overall momentum remain strong.
OSCR vs. Larger Industry Peers: 1Y Price Return
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Shares rose in early May after beating Q1 2026 earnings expectations, largely driven by a notable drop in medical expenses. As total membership rose by 56% to 3.2 million, revenue jumped by 52.5% to $4.65B. In addition to revenue and operating profit, excellent forward growth across EPS and ROE backs an A+ Growth Grade.
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Despite concerns over ACA enrollments, Oscar’s EPS outlook is supported by 8 upward earnings revisions in the last three months. Attractive sector-relative price/sales and price/cash flow multiples offset a premium P/E, for a solid valuation grade. With a solid position in the affordable health insurance market and earnings growth upside, Oscar is a Russell 2000 Strong Buy pick worth considering.
4. Flywire Corporation (FLYW)
Market Capitalization: $1.80B
Quant Rating: Strong Buy
Sector: Financials
Industry: Transaction & Payment Processing Services
Quant Sector Ranking (as of 6/4/2026): 34 out of 686
Quant Industry Ranking (as of 6/4/2026): 4 out of 40
A global provider of payment processing solutions, Flywire has continued to deliver strong growth across its education, travel, healthcare, and B2B verticals, despite visa headwinds and a choppy macro backdrop. With a total payment volume of $11.4B, Flywire differentiates itself with a focus on complex multi-rail, multicurrency, and sector-specific transactions.
FLYW vs. S&P 500 Financials Sector (XLF): 1Y Price Return
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Revenue increased 41% to $188M in Q1 2026, driven by strength in the education and travel segments. Improved productivity and operating leverage helped lift adjusted EBITDA by 81.8% to $39.3M. The company in the quarter deepened its involvement in critical client workflows, such as scaling U.S. loan disbursements for UK institutions.
Growth metrics are strong across the board, highlighted by forward EPS growth of nearly 220%. The exceptional factor grade is also backed by impressive growth in revenue, cash flow, and ROE. Flywire’s strong FY 2026 forecast has been backed by solid earnings revisions in the last 90 days.
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Flywire’s valuation has been stuck at neutral in the past 3 months, weighed down by elevated earnings multiples, but forward PEG is at a 59% discount to the sector. Offering strong multi-year earnings visibility, Flywire is a small-cap stock with huge growth potential.
5. United Natural Foods, Inc. (UNFI)
Market Capitalization: $3.16B
Quant Rating: Strong Buy
Sector: Consumer Staples
Industry: Food Distributors
Quant Sector Ranking (as of 6/4/2026): 1 out of 171
Quant Industry Ranking (as of 6/4/2026): 1 out of 7
The #1 quant-ranked consumer staples stock, and a member of both PQP and Alpha Picks, UNFI is a wholesale distributor for major grocery chains like Amazon-owned Whole Foods, offering strong exposure to healthy living trends. Wells Fargo has argued that the Amazon partnership and potential AI efficiency gains have UNFI positioned to surpass long-term growth estimates.
UNFI vs. S&P 500 Staples Sector (XLP): 1Y Price Return
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Coming off a series of impressive earnings beats, UNFI is set to report fiscal Q3 results on June 9, facing a +75% EPS growth target. Investors will also likely scrutinize any changes to the top-line outlook. Despite beating earnings last quarter, the stock slid after lowering annual sales guidance by around 2% to $31.2B.
The fiscal year earnings forecast remains robust, however, with EPS expected to surge by 262%, backed by positive Wall Street revisions. In addition to strong forward EPS growth, UNFI’s A+ Growth Grade is underpinned by surging operating profit and cash flow.
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UNFI’s top-notch valuation score is driven by a forward PEG that represents an 87% discount to the sector. Bolstered by a strong position in the food distribution market, UNFI is a solid Russell 2000 high-growth staples play.
This wraps up my basket of top Russell 2000 growth stocks. My five picks showcase strong collective fundamentals and forward EPS growth, backed by bullish sell-side analyst revisions.
Conclusion: SA Quant System Uncovers 5 Best Russell 2000 Growth Stocks
The Russell 2000 has soundly outgunned the S&P 500 in the past year, led by energy and tech stocks, and earnings are projected to boom in 2026. AI-driven earnings have spread outside mega-cap tech players, benefitting small-cap and mid-cap stocks across several industries. The Russell 2000 has long been seen as the premier index for small-cap stocks, but soaring momentum has boosted the index’s average market capitalization. In this article, I reveal five top quant-rated Russell 2000 stocks, possessing strong fundamentals and surging forward EPS growth.
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I am Steven Cress, Head of Quantitative Strategies at Seeking Alpha. I manage the quant ratings and factor grades on stocks and ETFs in Seeking Alpha Premium. I also lead Alpha Picks, which selects the two most attractive stocks to buy each month, and also determines when to sell them.