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Tracking the Top-Performing Russell 2000 Stocks Against the Zacks Rank

Surprisingly, the Russell 2000 has a chance to be the second-best-performing index on the U.S. stock exchanges as we start to round out 2025, with the unprecedented push into small caps being inspired by the Fed’s easing cycle.

Amid the Federal Reserve's decision to cut by another 25 basis points on Wednesday, the benchmark federal funds rate is now at a new range of 3.5-3.75%. This has been a steady descent from a multi-year high of 5.25-5.5% seen in 2023 during an aggressive tightening cycle to combat post-pandemic inflation.

Of course, lower interest rates are optimal for small businesses to finance their operations, with another kicker being that mid-December to early March is historically the strongest period for the Russell 2000 due to tax-loss harvesting, portfolio rebalancing, and renewed investor risk appetite at the start of a new year.

This makes it a worthy topic of how the top-performing Russell 2000 stocks stack up against the Zacks Rank, with the index up +16% year to date.  

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1. Celcuity – CELC

Stock Price: $100

YTD Return: +695%

Market Cap: 4.71 Billion

Not to be a party pooper, but while there are a few 1000+ point performers in the Russell 2000 this year, including Regencell Bioscience (RGC - Free Report) , which has a staggering YTD return of +11,000%, these companies don’t have enough proprietary data to be considered for the Zacks Rank as they lack analyst coverage.  

Instead, we will start with Celcuity (CELC - Free Report)  with staggaring YTD gains of nearly +700%. Like Regencell, Celcuity is also a speculative biopharmaceutical company and has seen its stock skyrocket thanks to breakthrough clinical trials, regulatory momentum, and surging investor interest in precision oncology. Focused on cellular analysis, Celcuity is engaged in discovering new cancer subtypes and commercializing diagnostic tests designed to significantly improve the clinical outcomes of cancer patients treated with targeted therapies.

Optimistically, Celcuity is a feel-good investment with a very meaningful purpose, and this may eventually lead to meaningful sales as well. Celcuity stock currently lands a Zacks Rank #3 (Hold) as despite not being profitable, EPS revisions are pleasantly higher in the last 30 days. However, this isn’t enough to get the ball rolling for a buy rating, especially after such an exhilarating rally, as FY25 earnings are still expected at -$3.86 a share, and a steeper loss of -$4.05 is projected in FY26 despite an uptrend in revisions for both fiscal years.

Zacks Investment Research
Image Source: Zacks Investment Research

 

 

2. Better Home & Finance – BETR

Stock Price: $48

YTD Return: +442%

Market Cap: 794.72 million

Better Home & Finance Holding Company (BETR - Free Report)  edges Opendoor Technologies (OPEN - Free Report)  as a fellow real estate-focused firm to make this list of top-performing Russell 2000 stocks that can be compared against the coveted Zacks Rank.  

Gaining notoriety, Better Home operates as an AI-powered mortgage lender and fintech company, serving customers principally in the U.S. and the U.K. through a suite of products for residential mortgage, insurance, and real estate services.

Zacks Investment Research
Image Source: Zacks Investment Research

Unfortunately, it may be time to take profits as BETR lands a Zacks Rank #4 (Sell). Rapid sales growth is intriguing, but Better Home is still a ways away from profitability as well, and EPS revisions for FY25 and FY26 are slightly down in the last month. Although this points to Better Home’s stock likely losing short-term momentum, annual sales are expected to increase over 50% this year and are projected to leap another 67% next year to $273.11 million.

Zacks Investment Research

Image Source: Zacks Investment Research

 

3. Cogent Biosciences- COGT

Stock Price: $40

YTD Return: +413%

Market Cap: 5.58 billion

Rounding out the list, we go back to the theme of soaring biopharmaceutical stocks in the Russell 2000, with Cogent Biosciences (COGT - Free Report)  shares up more than +400% YTD. Cogent is generally focused on precision therapies for genetically defined diseases, and its stock has ripped higher due to strong clinical progress with its lead experimental cancer drug, bezuclastinib. Notably, bezuclastinib aims to block abnormal activity of the KIT tyrosine kinase, a protein that drives uncontrolled cell growth in certain cancers and mast cell disorders.

Analysts also see bezuclastinib as a possible new standard of care for rare blood disorders, with Cogent planning to file for FDA approval of the drug in 2026. While inspiring, Cogent isn’t selling drugs on the market yet, and all of its revenue comes from partnerships, grants, or research services.  

That said, EPS revisions are modestly higher in the last 60 days, and Cogent is expected to post a narrower adjusted loss of -$1.77 a share in FY26. Considering such, COGT lands a Zacks Rank #3 (Hold).

Zacks Investment Research
Image Source: Zacks Investment Research

 

Bottom Line

Adding to the unusually strong performance of the Russell 2000 this year, these top performers may certainly serve as stocks to add to your watchlist. That said, better buying opportunities are likely ahead. In the case of Celcuity and Cogent, these biotech firms have been on the cusp of making real traction in the medical field, and holding positions could still pay off, but following the trend or earnings estimate revisions is obviously imperative, which is what the Zacks Rank is predicated on.

As far as risk aversion, investors may want to consider the iShares Russell 2000 ETF (IWM - Free Report) , which directly tracks the index's performance and currently sports a Zacks Rank #2 (Buy).

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