Investing

ACM Research And SSR Mining Are Unstoppable Russell 2000 Growth Stocks to Buy in March

Rich Duprey

Published: March 17, 2025 12:32 pm

Persistently high interest rates continue to slam small-caps harder than the big dogs. The Russell 2000 is down 8% so far in 2025 compared to a near-4% decline by the S&P 500. Yet history shows that these scrappy upstarts outrun their larger rivals over time, pumping portfolios with extra juice when the tide turns.

The Fed’s higher-for-longer stance still stings, with borrowing costs crimping small-cap balance sheets. Because smaller companies have greater difficulty accessing financing, the higher borrowing costs have a bigger impact on their bottom line.

While the Federal Reserve is expected to hold the line on interest rates now, there are whispers it could begin cutting them again by mid-2025, as inflation cools to 2.8. That hints at a coming breakout for small-cap stocks. 

The Russell 2000 lags the S&P over the last three years — essentially flat versus the benchmark index’s 30% gain — sets the stage for a comeback. With big things coming in small packages, the following two Russell 2000 gems are primed to soar.

ACM Research (ACMR)

Specialized semiconductor equipment manufacturer ACM Research (NASDAQ:ACMR) is the first small-cap stock to buy in March. Not only is it beating the Russell 2000 so far in 2025, but it is well ahead of all other indicxes and most of its peers too.

ACMR stock has doubled in value so far this year and its growth still has legs. Revenue hit $223.5 million in the fourth quarter, up 31% year-over-year, and beating Wall Street’s estimates of $195 million. For the full year, sales soared 40% to $782 million, fueled by China’s artificial intelligence chip boom, which is ACM’s sweet spot.

Its wafer-cleaning tech rides Beijing’s push for chip self-reliance, helping to push 2025 revenue guidance to $850 million to $950 million, a 15% increase at the midpoint from last year. Because of ACM’s focus on the Chinese market, trade tensions with the U.S. are pushing demand higher. 

Longer term, because China is directly supporting its semiconductor industry with $100 billion in investments, it will keep ACMR’s foot on the pedal. Analysts see earnings rising 43% to $2.24 per share next year, growth the Nasdaq 100 index would have trouble maintaining, let alone the Russell 2000.

ACM Research’s Shanghai unit thrives on local contracts, dodging U.S. tariff traps and bans on shipping advanced technology to the country. Admittedly its supply chains could be disrupted, but China is intent on becoming self-sustaining in that regard, helping to boost domestic suppliers. 

The equipment maker ended the fourth quarter with $444 million in cash, equivalents, and investments  and operating margins of 20%, allowing ACM Research to flex its muscle.

Buying it in March can capitalize on near-term wins while opening up a decade-long runway of future growth, with ACMR stock doubling within the next few years.

SSR Mining (SSRM)

Small-cap gold miner SSR Mining (NASDAQ:SSRM) is poised for near- and long-term growth, making it a standout buy at under $11 per share. With a $2.2 billion market cap, its stock is up 56% since January. 

Financial results were marred by last year’s accident at its Copler mine in Turkey last year that killed nine people. SSR suspended operations at the mine, which is its largest and had been expected to produce nearly 40% of its gold output in 2024. Fourth-quarter revenue tumbled to $323 million from $425 million in 2023 as a result, and production was 124,154 gold-equivalent ounces with all-in sustaining costs of $1,857 per ounce. In the prior year period, it had produced 211,226 gold equivalent ounces with AISC of $1,326 per ounce.

While Çopler’s suspension stung, the $56.4 million in fourth-quarter free cash flow kept it afloat. Liquidity’s stout at $865 million, and the Cripple Creek & Victor Gold Mine buyout it just completed for $100 million, adds 2.4 million ounces, pushing 2025 guidance to 540,000 to 600,000 ounces — a 35% to 50% leap — lets it ride gold’s breaking through $3,000 per ounce.

Inflation jitters and geopolitical tensions are pushing gold prices higher, but SSR’s leverage here is clear. Each $100 jump in gold prices adds $35 million to SSR Mining’s cash flow. With its 8 million ounces in reserves, $3,000 gold means fat returns.

Certainly the Çopler tragedy weighs on the company, but with remediation in the works, SSRM stock is poised for future growth. Shares trade at just 6 times next year’s earnings estimates and it goes for just a fraction of its book value. That makes SSR Mining a discounted small-cap stock to buy now.