The Russell 2000 Index is composed of small and midsize public companies that offer unique investment opportunities beyond traditional large-cap stocks. These companies operate in a variety of sectors including temporary space solutions, building materials, steel manufacturing and more. Despite their different focuses, these businesses share the potential to generate healthy returns for investors, making them attractive options for those looking to expand beyond the established blue-chip companies.
WillScot: Creating flexible space and strategic growth
WillScot Mobile Mini today
WillScott Mobile Mini
As of 01/17/2025 16:00 Eastern
- 52 week range
- $32.57
▼
$52.16
- P/E ratio
- 333.12
- Target price
- $45.50
WillScot Mobile Mini Holdings NASDAQ: VSK is a leader in interim space solutions. The company has demonstrated resilience in difficult market conditions. WilScot’s third quarter 2024 (3Q24) earnings report showed revenue of $601 million. However, the company faced a net loss of US$70.5 million, which was heavily impacted by a US$180 million one-time charge related to the termination fee for the McGrath RentCorp merger.
Excluding these expenses and other non-recurring items, the company’s adjusted earnings from continuing operations reached $72.3 million, or adjusted diluted earnings per share (EPS) of $0.38. Adjusted EBITDA for the quarter was $267 million, reflecting 1% year-over-year growth.
WillScot Mobile Mini stock forecast for today
$45.50
Growth potential 24.18%Moderate purchase
Based on ratings from 11 analysts
| High forecast | $57.00 |
|---|---|
| Average forecast | $45.50 |
| Low forecast | US$35.00 |
WillScot Mobile Mini Stock Forecast Details
This figure also shows a sequential increase in margin to 44.4%, up 50 basis points from the same quarter in the prior year. Moreover, the company generated adjusted free cash flow of $143 million, highlighting its ability to generate strong cash flow even when facing market challenges.
WSC’s strategic initiatives signal a focus on sustainable growth. The partnership with the Los Angeles Rams, which created a 65,000-square-foot training facility, demonstrates the company’s ability to manage large-scale projects. WillScot’s focus on long-term scalability is evident through its operational improvements, which include the consolidation of legacy module and storage sales teams, systems integration initiatives, consolidation of the WillScot brand and the introduction of advanced digital capabilities. These improvements are expected to increase efficiency and improve the customer experience.
Builders FirstSource: Strategic Acquisitions and Market Dynamics
FirstSource Builders Today
Builders FirstSource
- 52 week range
- $130.75
▼
$214.70
- P/E ratio
- 16.02
- Target price
- $205.71
Builders FirstSource New York Stock Exchange: BLDR is the largest supplier of building products in the United States, and the company has faced some challenges due to the changing dynamics of the housing market. Builders FirstSource’s third-quarter 2024 earnings report showed net sales of $4.2 billion, reflecting a decline of 6.7% year-over-year. The decline was primarily driven by a 7.2% decline in core organic sales and commodity deflation. Additionally, the company experienced declines in gross profit and adjusted EBITDA of $1.4 billion and $626.5 million, respectively, with corresponding declines of 12.3% and 23% year-over-year. The multifamily sector contributed significantly to these results, experiencing a notable 30.9% decline and a 4.2% decline in net sales on a weighted basis.
Builders FirstSource Stock Forecast Today
$205.71
Growth potential 25.36%Moderate purchase
Based on ratings from 18 analysts
| High forecast | $232.00 |
|---|---|
| Average forecast | $205.71 |
| Low forecast | $175.00 |
Builders FirstSource Stock Forecast Details
Additionally, adjusted diluted earnings per share for the quarter were $3.07, down 27.6% year-over-year. However, despite mixed results, Builders FirstSource has demonstrated a commitment to creating shareholder value through strategic capital allocation. The company generated strong free cash flow of $634.7 million during the quarter. The company actively repurchased approximately 0.9 million shares of common stock at an average price of $176.73, for a total capital expenditure of $159.7 million. The company has about $840 million remaining in share repurchase authorization. The company remains focused on investing capital in high-growth investments while maintaining a strong balance sheet.
A key strategic move for BLDR is the acquisition of Alpine Lumber Company. The acquisition, expected to close in early 2025, will expand the company’s presence in the high-growth markets of Colorado and New Mexico and increase annual revenue by approximately $500 million. The company’s 2024 guidance calls for net sales of $16.25 billion to $16.55 billion and gross margins of 32% to 33%. Adjusted EBITDA is forecast at $2.25 billion to $2.35 billion, and free cash flow is expected to be between $1.2 billion and $1.4 billion.
Cleveland Cliffs: Strategic Moves and Cost Management
Cleveland Cliffs today
Cleveland Cliffs
- 52 week range
- $8.99
▼
$22.97
- Target price
- $16.93
Cleveland Cliffs New York Stock Exchange: CLF is a leading steel producer in North America, and the company currently operates and thrives in a challenging environment. Cleveland-Cliff’s third quarter 2024 (3Q24) earnings report showed revenue of $4.6 billion and a GAAP net loss of $230 million. This included one-time fees of $145 million primarily related to the arbitration award and acquisition costs.
Cleveland Cliffs Stock Forecast Today
$16.93
Growth potential 64.74%Hold
Based on ratings from 12 analysts
| High forecast | $23.00 |
|---|---|
| Average forecast | US$16.93 |
| Low forecast | $11.00 |
Cleveland-Cliffs Reserve Forecast Details
Adjusted for this, the adjusted net loss was $156 million. In addition, the company also reported adjusted EBITDA of $124 million. The company’s steel shipments for the quarter totaled 3.8 million net tons. The decline in performance is primarily the result of lower demand and prices, which leads to lower profitability. In response, the company temporarily shut down blast furnace No. 6 in Cleveland and aggressively reduced unit costs to their lowest level since 2021.
CLF’s most important strategic initiative is the acquisition of Stelco. The move aims to diversify its portfolio into the automotive sector. Stelco’s low-cost, efficient assets and proven business model are expected to increase revenue while reducing risk. The company made strategic adjustments to its 2025 capital budget, including lower coal costs, resulting in $70 million in savings. The company is also focused on reducing acquisition debt by leveraging healthy free cash flow.
Russell 2000: a trio of opportunities await
WillScot, Builders FirstSource and Cleveland-Cliffs, although representing vastly different industries in the Russell 2000, each demonstrate a unique path to growth and understanding of their respective markets. WillScot’s strategic partnerships and improved operations enable it to scale in the temporary space industry. At the same time, Builders FirstSource’s capital allocation and acquisitions are aimed at expanding its reach and market position in the construction sector, while Cleveland-Cliffs’ strategic acquisitions and cost-cutting efforts are helping to build a more resilient steel business. These factors make each an attractive investment option for investors seeking growth.
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