The Russell 2000 Index is composed of small- and mid-cap public companies, offering unique investment opportunities beyond traditional large-cap stocks. These companies cover diverse sectors, including temporary space solutions, building materials, steel production, and more. Despite their diversified focus, these companies share the potential to generate good returns for investors, making them attractive options for those who want to look beyond the big, well-known companies.
Willscott: Building resilient space and strategic growth
WillScot Mobile Mini today
Wellscott Mobile Mini
As of 01/17/2025 at 04:00 PM ET
- 52 week range
- $32.57
▼
$52.16
- P/E ratio
- 333.12
- Price target
- $45.50
Wellscott Mobile Mini Holdings Nasdaq: WSC is the leader in temporary space solutions. The company has shown resilience in the face of difficult market conditions. WilScot’s third quarter 2024 earnings report (Q3 2024) revealed revenue of $601 million. However, the company faced a net loss of $70.5 million, hit hard by a one-time charge of $180 million related to the McGrath RentCorp merger termination fee.
Excluding these fees and other non-recurring expenses, the Company’s adjusted income from continuing operations was $72.3 million, or adjusted diluted earnings per share of $0.38. Total adjusted EBITDA for the quarter was $267 million, reflecting a 1% increase year over year.
WillScot Mobile Mini Stock Forecast Today
$45.50
24.18% upModerate purchase
Based on 11 analyst ratings
| High expectations | $57.00 |
|---|---|
| Average expectations | $45.50 |
| Low expectations | $35.00 |
WillScot Mobile Mini Stock Forecast Details
This number also shows sequential margin expansion to 44.4%, an expansion of 50 basis points compared to the same quarter of the previous year. Furthermore, 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 indicate a focus on sustainable growth. The partnership with the Los Angeles Rams, which resulted in 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 demonstrated by its operational improvements, which include strengthening its legacy modular and warehousing field sales teams, system integration initiatives, unifying the brand under the WillScot name, and implementing advanced digital capabilities. These improvements are expected to increase efficiency and improve customer experience.
Builders’ #1 Source: Strategic Acquisitions and Market Dynamics
FirstSource builders today
First Source Builders
- 52 week range
- $130.75
▼
$214.70
- P/E ratio
- 16.02
- Price target
- $205.71
First Source Builders New York Stock Exchange: Balder The largest supplier of building products in the United States, the company has faced some challenges within the changing dynamics of the housing market. Builders FirstSource’s third-quarter 2024 earnings report showed a net sales figure of $4.2 billion, reflecting a 6.7% decline compared to the previous year. This decline was primarily driven by a 7.2% decline in core organic sales and a commodity contraction. Furthermore, the company saw a decline in gross profit and EBITDA, recording $1.4 billion and $626.5 million respectively, with a corresponding decline of 12.3% and 23% year over year. The multifamily segment significantly impacted these results, seeing a significant 30.9% decline and 4.2% decline in net sales on a weighted basis.
Builders FirstSource stock forecast today
$205.71
25.36% upModerate purchase
Based on 18 analyst reviews
| High expectations | $232.00 |
|---|---|
| Average expectations | $205.71 |
| Low expectations | $175.00 |
Builders FirstSource stock forecast details
Furthermore, adjusted diluted EPS for the quarter was $3.07, a decrease of 27.6% compared to the prior year. However, despite the mixed results, Builders FirstSource has demonstrated its commitment to creating shareholder value through the strategic allocation of capital. The company generated strong free cash flow of $634.7 million during the quarter. The Company repurchased approximately 0.9 million shares of common stock at an average price of $176.73, for total capital expenditures of $159.7 million. The company has approximately $840 million remaining in its stock repurchase authorization. The company’s focus remains on deploying capital in high-growth investments while maintaining a strong balance sheet.
One of BLDR’s key strategic moves is the acquisition of Alpine Lumber Company. This acquisition, which is expected to close in early 2025, will expand the company’s reach in the high-growth markets of Colorado and New Mexico and increase annual revenue by approximately $500 million. The company’s full-year 2024 forecast expects net sales to range between $16.25 billion and $16.55 billion, with a gross profit margin of 32% to 33%. Adjusted EBITDA is expected to be between $2.25 billion to $2.35 billion, and free cash flow is expected to be between $1.2 billion to $1.4 billion.
Cleveland Cliffs: Strategic Moves and Cost Management
Cleveland Cliffs today
cleveland cliffs
- 52 week range
- $8.99
▼
$22.97
- Price target
- $16.93
cleveland cliffs New York Stock Exchange: CLF One of the leading steel producers in North America, the company currently operates and thrives in a challenging environment. Cleveland Cliff’s third quarter 2024 earnings report (Q3 2024) provided revenue metrics of $4.6 billion and a GAAP net loss of $230 million. This includes a one-time charge of $145 million, primarily related to the arbitration award and acquisition expenses.
Cleveland Cliffs stock forecast today
$16.93
64.74% upHe catches
Based on 12 analyst ratings
| High expectations | $23.00 |
|---|---|
| Average expectations | $16.93 |
| Low expectations | $11.00 |
Details of Cleveland Cliffs stock forecast
After adjustment, the adjusted net loss was $156 million. Furthermore, the company also announced an adjusted EBITDA figure of $124 million. The company’s total steel shipments during this quarter amounted to 3.8 million net tons. The decline is primarily due to weak demand and prices, causing margins to tighten. In response, the company temporarily retired its No. 6 blast furnace in Cleveland and aggressively reduced its unit costs to the lowest level since 2021.
CLF’s crucial strategic initiative is the acquisition of Stelco, a move aimed at diversifying its portfolio away from the automotive sector. Stelco’s low-cost, efficient assets and proven business model are expected to increase revenues while reducing risks. The company made strategic adjustments to its 2025 capital budget, including lower coal costs to achieve $70 million in savings. The company is also focused on reducing acquisition debt by leveraging healthy free cash flow.
Russell 2000: Three opportunities await us
Although WillScot, Builders FirstSource, and Cleveland-Cliffs represent vastly different industries within the Russell 2000, they demonstrate a unique path to growth and understanding of their respective markets. WillScot’s strategic partnerships and enhanced operations enable it to expand into the temporary space industry. At the same time, Builders FirstSource’s capital allocation and acquisitions are set to expand its reach and market position in the construction sector, and Cleveland-Cliffs’ strategic acquisitions and cost-cutting measures are building a more resilient steel business. These factors make each of them attractive investment options for growth-seeking investors.
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