Are the top Russell 2000 stocks still relevant despite the focus on S&P 500 giants? Over the past year, the ‘Magnificent Seven’ has dominated the stock market, driving most of the gains. We’re now seeing the market take a breather, but Mr. Market is still focused on the trajectory of the Mag 7s. With that in mind, are the top Russell 2000 stocks worth investing in?

The Russell 2000 index looks at the smallest 2000 companies in the Russell 3000, providing a bigger picture for U.S. small-cap stocks. Naturally, these stocks tend to be more volatile than their larger counterparts, which makes them more exciting for bold investors. Moreover, there’s also the opportunity to make massive gains from a potential comeback story.

Take a stock like Sprouts Farmers Market (NASDAQ:SFM), which boasted a market cap of $6.74 billion as of October 2013. Seven years later, though, the stock plummeted to $2.25 billion, shedding $4.50 billion from its market cap. However, its market cap is now upwards of $6.65 billion, which shows you the relevance of Russell 2000 stocks. With that said, let’s look at the three high-potential Russell 2000 stocks to invest in.

LiveRamp (RAMP)

LiveRamp (NYSE:RAMP) is a frontrunner in omnichannel advertising, gaining incredible traction over the past few years. It offers a one-stop solution for its clients to effectively manage their marketing, analytics, and customer identity, emphasizing privacy and compliance. 

For example, a company could use LiveRamp’s platform to monitor customers browsing products on their website, then send them targeted ads on social media and offer personalized recommendations. Additionally, all customer data is managed securely throughout this process. 

LiveRamp has been growing at a healthy pace of late, beating top-and-bottom-line estimates in six out of the last seven quarters. Moreover, it has been making excellent progress in turning a profit again, with an 88% improvement in its trailing twelve-month losses to negative $14 million. Also, its levered free cash flows have grown 54% on a year-over-year (YOY) basis, 111% higher than the sector median.

Tiprank’s analysts are incredibly upbeat about the stock, estimating a 53% upside from current price levels. 

SkyWest (SKYW)

SkyWest (NASDAQ:SKYW) is a top regional airliner that has rebounded emphatically post-pandemic. Overcoming the obstacles posed during the Covid era, the firm has returned to form and is looking to scale up in line with the broader aviation space. Clearly, its investors like what they see, with a 210% jump in its value last year, beating the S&P 500’s gains by 186%. Consequently, SKYW stock emerged as one of the leaders in the airline space in the past year.

Another encouraging sign is that the company is back generating positive sales growth as per its latest earnings print. It outperformed analyst estimates across both lines in four of the past five quarters. Picking up from where it left off in the fourth-quarter (Q4), it posted positive sales growth again in its first-quarter (Q1). Revenues jumped $804 million, representing a 16.2% bump on a year-over-year (YOY) basis, beating estimates by $3.93 million. Moreover, its EPS of $1.45 beat out estimates by 26 cents. Moreover, despite the momentum, SKYW stock trades at just 0.86 times forward sales estimates, 41% lower than the sector median.

ACM Research (ACMR)

ACM Research (NASDAQ:ACMR) plays a critical role in the fabrication of semiconductors through its wafer cleaning and wet processing. Its unique technologies ensure the purity and performance of water that is subsequently processed into chips.

Cleaning semiconductor wafers is pivotal in ensuring the quality, consistency, and efficiency of semiconductor manufacturing. Superior cleaning leads to fewer defects while significantly improving yields and cost-effectiveness. Hence, it goes without saying that ACM plays an integral role in the development and overall quality of the semiconductors being produced.

ACM stock has experienced a remarkable 431% growth in the past five years, culminating in a nearly 200% increase last year. These substantial gains are a testament to the strength of its business, underscored by a 52% average increase in sales over the past five years. Furthermore, its net income margins have consistently exceeded the 13% mark over the same time period. Hence, with these positive indicators and the support of secular tailwinds, investors can be optimistic about ACM’s future performance. 

On the date of publication, Muslim Farooque 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