The Russell 2000 index is poised to be the second-best performer on U.S. stock exchanges, driven by the Fed’s easing cycle. With the federal funds rate now at 3.5-3.75%, lower interest rates benefit small businesses. The Russell 2000 historically thrives in mid-December to early March.

Celcuity (CELC) and its YTD return of +695% is a standout in the Russell 2000. Despite not having enough data for the Zacks Rank, Celcuity’s focus on biopharmaceuticals and precision oncology has led to its soaring stock price. However, profitability remains a challenge.

Better Home & Finance (BETR) has seen a YTD return of +442% as an AI-powered mortgage lender. While rapid sales growth is promising, the company’s lack of profitability and downward EPS revisions suggest caution for investors.

Cogent Biosciences (COGT) rounds out the top-performing biopharmaceutical stocks in the Russell 2000, with a YTD return of +413%. Analysts see their lead drug as a potential game-changer for rare blood disorders. Despite not yet selling drugs, Cogent is making strides in clinical progress.

Investors looking to capitalize on the Russell 2000’s performance may want to consider the iShares Russell 2000 ETF (IWM), which tracks the index’s performance. Celcuity and Cogent show promise in the biotech field, but monitoring trends and earnings estimates is crucial for success.

Read more at Nasdaq: Tracking the Top-Performing Russell 2000 Stocks Against the Zacks Rank