The Russell 2000 Index has lagged all the major benchmarks for most part of this year. While the major benchmarks have been hitting fresh highs, the same is not the case with the Russell 200 index that comprises small-cap stocks.

The year-over-year performance of the index was disappointing, as well. As of Dec 22, the index has returned only 3.3% this year, compared to 39.8% in 2013.

However, the index has managed to post modest year-to-date gains, thanks to the favorable economic environment prevailing on the domestic front.

The major benchmarks such as the S&P 500 and Dow have returned 12.5% and 8.3%, respectively, much higher than that of the Russell 2000.

*Returns as of Dec 22, 2014

Although the year started on a sluggish note due to the severe winter, the economy gradually recovered later to outperform major global economies. The global economy suffered throughout the year, primarily due to the weakness in the Eurozone and Asia.

U.S. Economy Outperforms

The global economy saw troubled times all through the year. The Russia-Ukraine crisis, which resulted into series of sanctions against Russia, increased geopolitical tensions at the beginning of the year. The crisis was followed by violence in the Middle East.

Moreover, major economies including the Eurozone, China and Japan continued to dampen investor sentiment by providing dismal economic data throughout the year. Meanwhile, a negative trend in oil prices remained one of the main concerns in 2014. The oil price declined below $60 per barrel, dropping to a five-year low level.  

However, on the domestic front, the economic picture was much better. Majority of economic data including GDP and labor market reports were encouraging. In the first quarter, the GDP contracted 2.9%, witnessing its worst growth figure in almost five years. The economy rebounded in the later quarters. The GDP growth rate jumped to 4.6% in the second quarter. The second estimate for the third quarter showed that the GDP grew at a pace of 3.9% and a full 5.0% in the final revision just this morning.

Meanwhile, the economy added more than 200,000 jobs for 10 consecutive months in November, the longest stretch in more than 30 years. From 6.6% in January, the unemployment rate gradually declined to a six-year low of 5.8% in November.

Recovery in the overall economic environment allowed the U.S. Federal Reserve to terminate the third round of bond repurchases. In a recently released statement, the Fed decided to be “patient” before hiking rates. For the major part of the year, the Fed continued to assure the investors that the interest rate will remain at near-zero level for “considerable time.” The latest statement helped the benchmarks to register best gains in 2014.

Here are the top 10 price performers from the Russell 2000 Index:

5 Best Performing Russell 2000 Stocks

Here are the 5 Russell 2000 stocks that returned huge in 2014 and are expected to keep returning well in 2015 based on favorable Zacks Rank, reasonable forward price to earnings ratio (PE) and impressive growth prospects:

Skilled Healthcare Group, Inc. (SKH - Snapshot Report) operates skilled nursing and assisted living facilities as well as a rehabilitation therapy and a hospice business through its subsidiaries. The company operates under three segments: Long-Term Care (LTC), Therapy Services and Hospice and Home Health Services.

This Zacks Rank #1 (Strong Buy) company has returned 83% year-to-date. The company also has an impressive current year growth estimate of 28.1%. It also has a strong forward PE of 19.66.

Universal Electronics Inc. (UEIC - Snapshot Report) develops software, and builds and markets pre-programmed, easy-to-use wireless control devices and chips principally for home entertainment equipment and the subscription broadcast market. The company's product lines under development include wireless interface technologies, such as combination keyboard/remotes and touch-screen remotes.

The company has returned 65.4% year-to-date. The Zacks Rank #1 (Strong Buy) company also has a solid current year growth estimate of 35.1%. It holds forward PE of 25.22.

AmREIT, Inc. (AMRE - Snapshot Report) is a real estate investment trust focused on the ownership, management and redevelopment of neighborhood and community shopping centers and mixed-use properties, which it refers to as Irreplaceable Corners.

This Zacks Rank #2 (Buy) REIT has returned 57.6% year-to-date. AmREIT has a current year growth estimate of 1.6% and forward PE of 25.69.

Gentiva Health Services Inc. (GTIV - Analyst Report) operates its health services business in the United States and provides specialty pharmaceutical services (including infusion therapy and distribution services) and home health care services.

This company has returned 54.3% year-to-date. The company holds Zacks Rank #2 (Buy) and also has an encouraging current year growth estimate of more than 100%. It also has a solid forward PE of 17.34.

1-800-Flowers.com Inc. (FLWS - Snapshot Report) is a leading e-commerce provider of floral products and gifts, in terms of number of customers and revenues. They have continuously expanded their product offerings, most recently to include gourmet foods and home and garden merchandise.

The company has returned 47.5% year-to-date. The Zacks Rank #2 (Buy) company also has a solid current year growth estimate of above 100%. It also has a strong forward PE of 17.69.