If you want to look for a stock that may crush the stock market, you might want to start searching for the best Russell 2000 stocks. The total returns from the index initially suggest the opposite. The Russell 2000 is only up by 2% year-to-date and has gained a meager 35% over the past five years. The S&P 500, Nasdaq Composite, and Dow Jones Industrial Average have all performed much better during those timeframes.

However, the Russell 2000 stock has been held back by many small-cap stocks that have gone bust. It’s filled with speculative stocks on their way out of business. For instance, Nikola Motors (NASDAQ:NKLA) is still in the Russell 2000 at the time of writing. This EV company has been surrounded by fraud since its early days and has dropped by 95% over the past five years.

However, the index also has many stocks that are crushing the market. By the time you’ve heard of them, they’ve already been added to the S&P 500. Let’s assess some of the best Russell 2000 stocks before more people notice them.

Beazer Homes (BZH)

Beazer Homes (NYSE:BZH) is an undervalued home construction company based in Atlanta, Georgia. The stock has almost tripled over the past five years as the firm works to address the housing shortage. Beazer Homes recently acquired 174 acres in Marietta, Georgia, and plans to build 591 homes there.

These energy-efficient townhomes and two-story houses will reduce homeowners’ energy bills. The community will include miles of trails, pocket parks, and gardens. Beazer Homes recently reported decent Q2 FY24 results.

Homebuilding revenue dropped by 0.6% year-over-year to $538.6 million. However, net income increased by 12.9% year-over-year to  $39.2 million. That translates into a 7.2% net profit margin for a stock that currently has a 5.5 P/E ratio. Furthermore, Beazer Homes has a $1.08 billion backlog, which exceeds the firm’s $905 million market cap. The company currently has an unrestricted cash position of $132.9 million and total liquidity of $432.9 million.

Semrush (SEMR)

Semrush (NYSE:SEMR) is one of the industry’s top search engine marketing software choices. The company helps businesses that want to create content strategies, rank higher on search engines, run ad campaigns, and attract more customers.

Semrush shares generated plenty of buzz during their IPO before fizzling out in 2022. However, the stock looks ready to rise again amid renewed interest and strong financials. The stock has more than doubled over the past year and currently has a $2.2 billion market cap.

Revenue growth is accelerating and is up by 21% year-over-year in the first quarter. The company now generates $354.2 million in annual recurring revenue, which is up by 21% year-over-year.

Semrush grew its paid customer base by 10% year-over-year to nearly 112,000 businesses during that quarter. Semrush has successfully retained customers while raising prices and having them upgrade their accounts. On top of that growth, net income more than doubled year-over-year to exceed $2 million.

CommVault Systems (CVLT)

CommVault Systems (NASDAQ:CVLT) is a cybersecurity firm that lets its customers back up, monitor, report, manage, and recover their data from one central cloud-based platform. The company combines quality and affordability to offer top-tier cloud solutions for its customers.

CommVault Systems generates $770 million in total annual recurring revenue. That also includes $597 million in subscription annual recurring revenue , which is up by 25% year-over-year.

The cybersecurity firm reported strong revenue and earnings growth in Q4 FY24. Revenue increased by 10% year-over-year and was led by a 27% year-over-year increase in subscription revenue. The firm expects Q1 FY25 revenue to range from $213 million to $216 million. The midpoint represents an 8.3% year-over-year growth rate.

The company reported $23.1 million in income before receiving a $103 million income tax benefit. Excluding the income tax benefit, CommVault Systems achieved a net profit margin above 10%. The cybersecurity firm’s profit margins have expanded over the past few quarters. The hidden gem is up by 46% year-to-date and has gained 137% over the past five years.

On this date of publication, Marc Guberti held long positions in BZH and CVLT. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.