The Russell 2000 Index is constituted of approximately 2,000 of America’s small-cap companies. At the time of this writing, there are 1,957 holdings in the index, as some disappear due to mergers, bankruptcy, and other corporate events. Every year, however, the index is rebalanced to return to 2,000 holdings.

At the end of the day, this is a huge number of companies to sift through. It’s worth the examination, however, as out of those 2,000 have sprung up companies such as Super Micro Computer (NASDAQ:SMCI) and Microstrategy (NASDAQ:MSTR) which have delivered jaw-dropping returns over the past year.

Looking for more huge returns from small stocks? Admittedly, let’s be clear: Not all small companies are ever going to make it to the bigtime. However, some will no doubt break through and deliver huge upside for their shareholders. These are three Russell 2000 stocks that should be set for great things in the months and years to come.

Verra Mobility (VRRM)

Verra Mobility (NASDAQ:VRRM) is an industrial company which works with traffic and transportation solutions. It operates across its Commercial Services, Government Solutions, and Parking Solutions divisions and offers tools such as red light and speed cameras, automated parking payments hardware, and toll collection services.

It’s no secret that many local and state governments find themselves increasingly strapped for cash. Verra can help municipalities lower the costs of enforcing traffic laws while automating things such as toll collection and parking meters, helping to maximize efficiency and lower the strain on government finances.

For a recent example of this, in October 2023, California approved a pilot program for speed control measures in several of its major cities. Verra estimates that it will secure more than $10 million in recurring revenues from this, and that the California program could grow into a more than $100 million annualized business if the pilot project is extended in scope.

Verra generated $817 million in revenues in 2023. This makes Verra large enough to be profitable and have significant operating scale today, while still having plenty of upside as new measures — such as this California legislation — kick in to drive further growth.

LiveRamp (RAMP)

LiveRamp (NYSE:RAMP) is a leader in the omnichannel advertising space. It offers clients a platform which covers marketing, data collaboration, analytics, and customer identity all with a core focus on privacy and compliance with government regulations.

RAMP stock skyrocketed during the early days of the pandemic. As many enterprises had to push more of their distribution and marketing to digital channels, firms like LiveRamp were vital in helping market to folks that were moving into the e-commerce space.

However, RAMP stock plunged from a peak of more than $80 per share to just $16 at the 2022 lows. While the share price crashed, though, the business kept on humming.

LiveRamp grew revenues from $286 million in fiscal year 2019 to $597 million in fiscal year 2023. Analysts see steady topline growth in the years to come, and shares are going for less than 24 times forward earnings. LiveRamp’s most recent earnings report was a solid beat on both the top- and bottom line and investors can take advantage of the recent dip in RAMP stock as fundamentals remain strong.

AvidXchange Holdings (AVDX)

AvidXchange Holdings (NASDAQ:AVDX) is a financial services technology company focused on payments. Specifically, it offers automated tools to help companies manage their accounts payables, invoices, supply chain cash flow management, and so on.

Like with LiveRamp, AvidXchange has been benefitting from trends toward remote work and more decentralized operations. In an age where employees and logistics assets can be spread out across the globe, AvidXchange helps its clients keep tight grips on their cash flows and supply chain assets.

The company is firing on all cylinders right now. It has more than doubled revenues since 2019. And it has posting incredibly steady revenue growth, rising sequentially every year. Analysts forecast about 17% annualized revenue growth going forward, while management is aiming for 20% organic growth.

AvidXchange just reached new milestones with this past earnings report, including its first $100 million quarter and first time to post $15 million in adjusted EBITDA. The company is also showing strong customer engagement, with a more than 95% customer retention rate. This speaks to the firm’s competitive moat and favorable outlook and sets AVDX stock up for further gains in the months to come.

On the date of publication, Ian Bezek did not have (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.