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.
8. Super Group (SGHC) Limited (NYSE:SGHC)
Forward P/E: 12.12
Stock Upside Potential: 78.75%
Number of Hedge Fund Holders: 31
Super Group (SGHC) Limited (NYSE:SGHC) is one of the best cheap stocks that will skyrocket. On January 13, Benchmark reiterated a Buy rating and a $17 price target on Super Group (SGHC) Limited (NYSE:SGHC), impressed by multiple upside paths.
According to the research firm, initial 2026 revenue and EBITDA guidance will align with consensus estimates amid normalized sports outcomes and organic growth in existing markets. The research firm also expects the company’s outlook to receive a boost from several drivers, including Africa expansion and Nigeria market recovery.
Conservative player growth assumptions and margin opportunities from the Apricot integration will also bolster the company’s outlook. Benchmark has also echoed that SGHC’s online casino business is expected to drive future performance. The fact that the growth catalysts are unlikely to be incorporated into the initial guidance also underscores why the stock is a buy at current levels.
In December, the company paid a regular cash dividend of $0.40 per share, reflecting robust cash generation driven by efficiency and disciplined execution.
Chief Executive Officer, Neal Menashe, commented: “Our focus on efficiency and disciplined execution continues to translate into robust cash generation. This quarter’s dividend underscores our ability to deliver. We remain committed to a balanced capital allocation framework that supports sustainable growth and consistent capital returns to shareholders.”
Super Group (SGHC) Limited (NYSE:SGHC) is a holding company for leading global online sports betting and gaming businesses, primarily operating through its brands Betway and Spin (multi-brand online casinos such as Jackpot City and Dream Bingo).
7. Enovis Corporation (NYSE:ENOV)
Forward P/E: 6.66
Stock Upside Potential: 86.44%
Number of Hedge Fund Holders: 31
Enovis Corporation (NYSE:ENOV) is one of the best cheap stocks poised to skyrocket. On January 6, BTIG initiated coverage of Enovis Corporation (NYSE:ENOV) with a Buy rating and a $41 price target. The positive stance underscores the research firm’s confidence about the company’s long-term prospects as it offers a range of orthopedic care from prevention to surgical and post-surgical recovery.
The company has consistently delivered mid-single-digit to high-single-digit organic revenue growth in its Reconstruction and Prevention & Recovery segments. The research firm is projecting accelerated growth in 2026 as the company launches clinically meaningful new products across Extremities, Hips, and Knees. The higher-growth Reconstruction business is also expected to drive margins, as the mature Prevention & Recovery segment delivers steady cash flow.
Earlier, on January 5, UBS lowered its price target for the stock to $50 from $57, while maintaining the Buy rating. The price target cut came on the heels of the research firm’s sales projections of $2.26 billion in 2025, $2.37 billion in 2026, and $2.52 billion in 2027. Additionally, the firm expects new and ramping product launches in ARVIS to accelerate growth, mirroring the company’s growing cash flow generation.
Enovis Corporation (NYSE:ENOV) is a global medical technology company that develops and sells clinically differentiated solutions for musculoskeletal health, focusing on improving patient outcomes in areas like reconstruction, rehabilitation, and pain management through orthopedic devices, surgical implants, and related technologies.
6. Tenable Holdings Inc. (NASDAQ:TENB)
Forward P/E: 12.64
Stock Upside Potential: 65.01%
Number of Hedge Fund Holders: 32
Tenable Holdings Inc. (NASDAQ:TENB) is one of the best cheap stocks that will skyrocket. On January 8, Needham reiterated a Buy rating on Tenable Holdings Inc. (NASDAQ:TENB) but cut the price target to $28 from $38. The price target cut is in response to changes in the company’s upfront billing patterns that began early last year.
The research firm has consequently lowered its calculated current billings and unleveraged free cash flow estimates following the changes, as the company shifts from a multi-year to an annual billing basis. Nevertheless, the research firm maintains a Buy rating, expecting the company to experience accelerated CCB growth and improved uFCF margins in 2027.
Earlier on December 16, Stifel reiterated a Hold rating on the stock and a $35 price target. The research firm’s cautious outlook is in response to adjusting cash flow projections due to evolving billing practices. Customers prefer paying for multiyear deals annually, given the higher interest rates and larger deal sizes. Given the negative impact of the new billing practices, Tenable might place less emphasis on CCB metrics going forward.
Tenable Holdings Inc. (NASDAQ:TENB) is a cybersecurity company that provides an Exposure Management platform, helping organizations discover, assess, and reduce cyber risk across their entire digital environment, from traditional IT to the cloud and operational technology (OT).
5. Cleanspark Inc. (NASDAQ:CLSK)
Forward P/E: 14.84
Stock Upside Potential: 75.09%
Number of Hedge Fund Holders: 34
CleanSpark, Inc. (NASDAQ:CLSK) is one of the best cheap stocks that will skyrocket. On January 14, CleanSpark, Inc. (NASDAQ:CLSK) announced plans to acquire 447 acres of land in Brazoria County, Texas, to develop a large-scale data center for artificial intelligence and high-performance computing workloads.
The massive land footprint will pave the way for the company to develop a data center with 300 megawatts of power capacity, with the potential to expand to 600 megawatts. The acquisition is poised to close in the first quarter, subject to utility and property-related approvals. Cleanspark is increasingly pivoting from Bitcoin mining operations into hosting HPC workloads and AI infrastructure.
“The demand for scaled, AI-native compute continues to accelerate, and access to transmission-level power in strategically advantageous regions has become increasingly constrained,” said Matt Schultz, CleanSpark’s Chief Executive Officer and Chairman. “This agreement underscores our ability to source and secure high-quality power at scale while building regional density that is highly attractive to leading AI and compute customers.”
Meanwhile, Northland initiated coverage of the stock on January 13 with an Outperform rating and a $22.50 price target. The positive stance underscores the research firm’s confidence in the company’s push for opportunities in HPC, even as it affirms its status as the largest Bitcoin miner with approximately 50EH/S of capacity. Expansion into HPC and AI data centers should enable the company to leverage its infrastructure beyond Bitcoin mining.
Cleanspark Inc. (NASDAQ:CLSK) is a leading US Bitcoin mining and digital infrastructure company that designs, builds, and operates large-scale data centers for Bitcoin mining, Artificial Intelligence (AI), and high-performance computing (HPC) workloads, focusing on efficient, low-cost energy sources for reliable compute power.
4. Pagaya Technologies Ltd. (NASDAQ:PGY)
Forward P/E: 7.10
Stock Upside Potential: 97.04%
Number of Hedge Fund Holders: 38
Pagaya Technologies Ltd (NASDAQ:PGY) is one of the best cheap stocks that will skyrocket. On January 6, analysts at Citizens reiterated a Market Outperform rating on Pagaya Technologies Ltd (NASDAQ:PGY) with a $35 price target.
According to the research firm, Pagaya Technologies boasts a competitive edge in the marketplace lending sector due to strong unit economics and operating leverage. Consequently, the company boasts robust EBITDA margins and a healthy gross profit margin of 42.43%.
Citizens expects the company to continue benefiting from its B2B2C model, which integrates directly into lenders’ platforms for underwriting and turn-downs. The model has enabled step-function growth through new lender additions. In addition, the company has sought to strengthen its growth metrics by diversifying beyond its core personal loan business into auto point-of-sale and other new product verticals.
Meanwhile, late last year, Pagaya Technologies inked a strategic partnership with digital personal finance company Achieve to broaden consumer access to personal loans. The goal is to integrate the company’s AI-powered underwriting technology and data network into its platform.
Sanjiv Das, Co-Founder and President of Pagaya, stated: “By embedding Pagaya’s AI-powered network with Achieve’s existing platform, we can help them responsibly increase access to personal loans, while supporting their long-term vision.”
Pagaya Technologies Ltd. (NASDAQ:PGY) is a financial technology (fintech) company that uses AI, machine learning, and a vast data network to provide credit and real estate solutions to partners, helping them extend financial services, including personal, auto, and home loans.
3. BellRing Brands Inc. (NYSE:BRBR)
Forward P/E: 10.88
Stock Upside Potential: 62.17%
Number of Hedge Fund Holders: 45
Bellring Brands Inc. (NYSE:BRBR) is one of the best cheap stocks that will skyrocket. On January 13, Mizuho touted Bellring Brands Inc. (NYSE:BRBR) as one of its top food stocks for 2026. The research firm expects the company to navigate current headwinds characterized by pressured consumer sentiment.
Even though the company faces regulatory challenges and SNAP funding reductions, Mizuho expects the company to benefit from what it describes as extreme bearishness in the stock. The research firm expects competitive challenges to be less impactful than feared, resulting in a favorable risk/reward profile.
Bank of America has already increased its price target of the stock to $32 from $28 while reiterating a Neutral rating. The cautious outlook comes amid concerns about the consumer staples sector’s prospects for 2026. Despite the challenging macro environment, the company has already approved a $600 million share buyback program to return value to shareholders.
BellRing Brands Inc. (NYSE:BRBR) is a leading company in the convenient nutrition market, specializing in protein-focused products like ready-to-drink shakes, powders, and nutrition bars under popular brands such as Premier Protein, Dymatize, and PowerBar, available globally through various channels to support active lifestyles and health goals.
2. Soleno Therapeutics, Inc. (NASDAQ:SLNO)
Forward P/E: 8.76
Stock Upside Potential: 147.60%
Number of Hedge Fund Holders: 58
Soleno Therapeutics Inc. (NASDAQ:SLNO) is one of the best cheap stocks that will skyrocket. On January 13, analysts at Cantor Fitzgerald reiterated an Overweight rating on the stock and set a $123 price target. The positive stance is in response to the company reaching 12.5% market share in its Prader-Willi Syndrome (PWS) treatment, Vykat.
Consequently, the company is expected to generate $98.67 million in revenue even as the discontinuation rate on the flagship drug remains at 15%. Cantor Fitzgerald expects Soleno to add 1,000 patients every 9 to 12 months, representing 10% of the total addressable market. While the company has enjoyed strong adoption among younger patients, there is a significant shift toward older patients, including those aged 27-42 and 43-65.
Meanwhile, Baird lowered its price target on the stock to $107 from $121 while reiterating an Outperform rating. The new price target represents significant upside potential given that the stock trades at about $41 a share. The research firm remains bullish on the company’s stock, projecting sales of $90 to $92 million for its Vykat drug, exceeding its $82 million estimate.
Soleno Therapeutics, Inc. (NASDAQ:SLNO) is a biopharmaceutical company focused on developing treatments for rare diseases, most notably Prader-Willi syndrome (PWS), a complex genetic disorder. Its lead product, VYKAT XR is the first FDA-approved therapy for hyperphagia (excessive hunger) in PWS patients aged 4 and older, a major symptom of the condition.
1. Wix.com Ltd. (NASDAQ:WIX)
Forward P/E: 12.74
Stock Upside Potential: 94.27%
Number of Hedge Fund Holders: 71
Wix.com Ltd (NASDAQ:WIX) is one of the best cheap stocks that will skyrocket. On January 7, Wix.com Ltd (NASDAQ:WIX) was on the move after Raymond James touted the company’s improved web development platform, which has attracted strong interest from complex projects.
Agencies are increasingly shifting complex website builds away from legacy editors and onto the Wix platform. The shift comes on artificial intelligence workarounds, including third-party web hooks and velo stabilizing bugs. Consequently, workflows are becoming increasingly replicable within the Wix ecosystem as agencies utilize Studio and Velo.
Wix platform’s improved reliability is also expected to continue driving more complex builds while also encouraging migrations from WordPress and enterprise solutions. Improvements in the company’s artificial intelligence capabilities are also likely to drive more migration to the Wix platform.
The improvements were the catalyst behind solid third-quarter results despite a challenging market reaction. Revenue in the quarter was up 14% year over year to $505 million, while earnings per share totaled $1.80, above the $1.46 expected.
Wix.com Ltd. (NASDAQ:WIX) provides a cloud-based platform that enables users to easily create, manage, and grow their online presence. It also offers intuitive drag-and-drop website building (Wix Editor, Editor X) with built-in tools for e-commerce (Wix Stores, Payments), marketing, SEO, and business management.
While we acknowledge the potential of WIX to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than WIX and that has 100x upside potential, check out our report about this cheapest AI stock.
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