StockStory Picks Vita Coco as Top Russell 2000 Buy, Flags Varonis and ePlus as Sells

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Summary · why it matters

StockStory highlights Vita Coco as a Russell 2000 stock with exciting potential while advising caution on Varonis Systems and ePlus. Vita Coco, with a market cap of $4.49 billion, saw unit sales surge over the past two years and delivered annual EPS growth of 52.4% over three years, with rising returns on capital. Varonis Systems, valued at $3.84 billion, faces risks from below-standard revenue growth, high marketing costs, and a 2.5 percentage point drop in operating margin. ePlus, at a $2.17 billion market cap, showed muted 4.8% annual revenue growth, lagging EPS gains, and a 2.5 percentage point decline in free cash flow margin over five years.

Impact on stocks 3

Consumer Staples · 1 stocks
Vita Coco Company Inc
COCO
▲ PositiveDemandrelevance

Unit sales surged over the past two years, indicating strong end-customer demand.

Information Technology · 1 stocks
ePlus inc
PLUS
▼ NegativeCapitalrelevance

Muted 4.8% annual revenue growth, lagging EPS gains, and declining free cash flow margin.

Cybersecurity & Digital Trust · 1 stocks
Varonis Systems
VRNS
▼ NegativeCapitalrelevance

Below-standard revenue growth, high marketing costs, and a 2.5 percentage point drop in operating margin.