Summary

• 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.

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

93.64K Followers

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given that any particular security, portfolio, transaction or investment strategy is suitable for any specific person. The author is not advising you personally concerning the nature, potential, value or suitability of any particular security or other matter. You alone are solely responsible for determining whether any investment, security or strategy, or any product or service, is appropriate or suitable for you based on your investment objectives and personal and financial situation. Steven Cress is the Head of Quantitative Strategy at Seeking Alpha. Any views or opinions expressed herein may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank.