The Russell 2000 index is comprised of several small-cap companies predicted to have long-term growth potential. The benchmark ETF that tracks the Russell 2000 index is the iShares Russell 2000 ETF (NYSEARCA:IWM). IWM has more than $62 billion in assets under management and a daily trading volume that exceeds 40 million. Having said that, there are certainly some undervalued Russell 2000 stocks to buy this month.
Below are three different companies within the Russell 2000 index that are trading at a fair valuation even considering that they have all seen their share price appreciate in the last year. These are great companies for investors looking for small-cap stocks with growing potential.
Fluor (FLR)
Fluor (NYSE:FLR) is a construction and engineering company that provides procurement, fabrication and maintenance products within their three main segments. These segments include energy services, urban and infrastructure solutions and government and other agencies services.
On Nov. 3, Fluor reported its third-quarter earnings for 2023, in which it stated that total revenue grew by 10% compared to last year. For the third quarter of 2022, the company saw a net loss of $24 million. In Q3 2023, it reported $181 million in net income. Its most improved segment was urban solutions, which saw total sales increased by 32%.
Within the last couple months, Fluor has received multiple billion-dollar contracts for projects located in Canada. For one, BHP Canada has selected Fluor’s mining and metals segment to help construct their potash processing facility. Dow (NYSE:DOW) chose Fluor to construct a net-zero emissions ethylene cracker and derivatives facility located in Alberta.
Fluor has seen steady share price appreciation over the past year. The company has been given multiple billion dollar contracts, and recent earnings that were better than expected. This makes the company a consistent investment option for investors looking for a stable company that still has room to improve.
Jackson Financial (JXN)
Jackson Financial (NYSE:JXN) is a financial services company that provides investors and institutions with annuity products. This includes fixed rate annuities and variable annuities.
Within the last six months, it has seen its share price increase by 47% due to recent earnings that were better than expected. On Nov. 8 they reported their financial results for the third quarter of 2023, in which its total revenue fell by 12%. Furthermore, its net income improved by 49% compared to the year before.
In the third quarter, Jackson Financial provided share buybacks totaling $71 million and its dividends paid out to investors totaled $52 million. Furthermore, its dividend ratio is 5.1% on an annual basis. Jackson Financial paid out 62 cents per share on Dec. 12.
JXN is a fairly specialized financial services company that has seen substantial increase in share price over this past year.
Teekay Tankers (TNK)
Teekay Tankers (NYSE:TNK) is a marine transportation company that ships crude oil products and liquid gases. It offers voyage and charter services and has more than 50 vessels.
On Nov. 2, Teekay Tankers released financial results for the third quarter of 2023. It stated that total revenue grew by 2% and net income improved by 20%. Along with Teekay’s earnings report, the company announced a dividend of 25 cents per share, which is a 1.35% dividend ratio on an annual basis.
Oil futures have continued to fall throughout the end of 2023 and the beginning of 2024. Teekay Tankers is still performing quite well, considering the drop in oil prices. Their improved returns and a robust fleet of vessels make the company an attractive option for investors seeking upside in the energy sector.
As of this writing, Noah Bolton did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
