In this article, we will take a look at the 10 Best Cheap Stocks That Will Skyrocket.

Rotation into cheap stocks is becoming increasingly popular as investors explore ways to circumvent premium valuations in equity markets. After three consecutive years of record-breaking gains, most stocks are trading above historical norms. However, a push into value stocks is also taking off as focus shifts to stocks that have underperformed in recent years and are showing signs of resurgence.

The iShares Russell 1000 Value ETF, rallying 3.9% in the fourth quarter compared to 2.3% gain for the iShares Russell 1000 Growth ETF (IWF), underscores the renewed focus on value stocks trading at highly discounted valuations at the expense of growth stocks.

“A lot has kind of changed over the last few weeks,” said Justin Bergner, portfolio manager at Gabelli Funds. “And in terms of next year, I do think it continues to be supportive for a further rotation to value.”

While the S&P 500 is expected to continue its impressive run of double-digit rallies, gains are expected to be more difficult. Focus on value stocks should gather steam as the Federal Reserve potentially cuts interest rates in the first half of the year, with artificial intelligence boosting worker productivity amid tax cuts in the Trump administration.

“A higher speed limit on growth because of productivity means the economy can [grow] at 2.5% real without inflation being a problem. That is a tailwind for fundamental factors (GARP, Value, Earnings Growth, Earnings Momentum) and procyclical equities,” Dennis DeBusschere, chief market strategist at 22V Research, wrote in a note this month.

According to Leuthold Group, investors will have to focus on quality small-cap stocks trading at a 27% price-to-earnings discount to large caps. With that in mind, let’s take a look at some of the best cheap stocks that will skyrocket.

Our Methodology

To identify the best cheap stocks that will skyrocket, we shortlisted U.S.-listed stocks with a price-to-earnings (P/E) ratio of less than 15. We trimmed the list further by focusing on stocks with upside potential of more than 60% as of January 16 and that are popular among elite hedge funds. Finally, we ranked the stocks in ascending order by the number of hedge funds holding stakes in them as of the third quarter of 2025.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).

10 Best Cheap Stocks That Will Skyrocket

10. VEON Ltd. (NASDAQ:VEON)

Forward P/E: 13.77

Stock Upside Potential: 60.23%

Number of Hedge Fund Holders: 12

VEON Ltd (NASDAQ:VEON) is one of the best cheap stocks that will skyrocket. On January 15, VEON Ltd (NASDAQ:VEON) confirmed that its subsidiary Kyivstar has reached over 3 million registered users for direct cell satellite connectivity powered by Starlink in Ukraine.

The 3 million subscriber milestone comes as the technology proves vital in Ukraine’s southern and eastern regions, while also affirming Veon and Kyivstar’s focus on maintaining resilient communication. It also comes to Kyivstar, launching a 5G test zone in the historical center of Lviv, Ukraine.

“We will continue to lead the way in providing innovative services that Ukraine needs to build its digital future and in meeting the ever-growing demand of our customers for digital connectivity,” said Kaan Terzioğlu, VEON Group CEO and Executive Chairman of Kyivstar.

The strengthening of operations in Ukraine comes on the heels of Veon’s subsidiary in Kazakhstan, Beeline Kazakhstan Holding, and Rakuten Symphony’s signing a memorandum of understanding. The two are joining forces to explore collaboration on connectivity and digital infrastructure technologies. The MOU also paves the way for cooperation on Open RAN architectures, AI-powered network intelligence, and digital platforms.

On December 29, Benchmark Co. analyst Matthew Harrigan issued a Buy rating on VEON Ltd., setting a price target of $75.00.

Separately, on December 19, VEON’s Mobilink Microfinance Bank launched Islamic banking in Pakistan, opening its first branch in Karachi and planning more nationwide after securing a license earlier in 2025. The bank, with 114 branches, will offer Shariah-compliant products for individuals and small businesses, tapping into a sector that now accounts for over 21% of total banking assets and continues to grow rapidly.

VEON Ltd (NASDAQ:VEON) is a global digital operator providing essential connectivity and digital services, such as mobile financial services, entertainment, and health, to millions of people in emerging markets across Asia and Europe.

9. Playtika Holding Corp. (NASDAQ:PLTK)

Forward P/E: 6.98

Stock Upside Potential: 105.13%

Number of Hedge Fund Holders: 27

Playtika Holding Corp. (NASDAQ:PLTK) is one of the best cheap stocks that will skyrocket. On January 13, Playtika Holding Corp. (NASDAQ:PLTK) announced a cost-cutting drive as it transitions from working in large teams to leaner teams that rely on artificial intelligence and automation.

Consequently, the company is to lay off 15% of its workforce, affecting about 500 employees. The company is expected to incur aggregate costs of about $12 million to $15 million, including severance payments, notice period payments in applicable jurisdictions, employee benefits, and related expenses. Playtika plans to invest the cost savings from the job cuts to advance growth initiatives.

The cuts come as the Israeli-founded online game developer undergoes a fundamental shift in its operations to strengthen its competitive edge in the mobile games market. As part of the new strategy, it plans to leverage AI to drive optimization, personalization, and efficiency.

“For years, we operated with a broad growth mindset, applying similar resourcing models across our portfolio of games. The economic reality of our industry has shifted. We are moving away from headcount-heavy operations to streamlined teams powered by AI and automation,” said co-founder and CEO Robert Antokol.

Playtika Holding Corp. (NASDAQ:PLTK) is a developer and publisher of free-to-play mobile games, known for titles such as Slotomania, Bingo Blitz, and June’s Journey. The company primarily generates revenue through in-app purchases of virtual items and digital currency within its games.