10 Best Under-the-Radar Stocks to Buy Now

8. Montauk Renewables, Inc. (NASDAQ:MNTK)

Institutional Ownership: 15.68%

No. of Hedge Funds: 10

Headquartered in Pennsylvania, Montauk Renewables, Inc. (NASDAQ:MNTK) extracts and converts biogas from landfills and agricultural waste into renewable natural gas (RNG). With clients from the utility sector and transportation fleets raising the demand for its products, the company stays focused on decarbonization. Montauk Renewables, Inc. (NASDAQ:MNTK) distinguishes itself from its competitors through an RNG-focused infrastructure and long-term client supply contracts. Circular waste-to-energy solutions offered by the company stand parallel to the new regulatory shifts towards low-carbon fuels, thus slowly building a stronger customer base.

The company noted a slight increase in revenue in 2024. On the other hand, the successful sales of all the 2024 vintage D3 RINs have reduced the company’s exposure to market volatility. Montauk Renewables, Inc. (NASDAQ:MNTK) further intends to diversify the revenue stream by engaging in a new swine waste energy project in North Carolina. The project is expected to commence in 2026. The company also plans to set up its second Apex facility and convert its Tulsa, Oklahoma, facility to renewable natural gas. The company could produce between 5 and 8.6 million MMBTU of RNG in 2025 with these facilities.

Montauk Renewables, Inc. (NASDAQ:MNTK) has attracted 10 hedge funds at the end of Q4 2024 despite the institutional ownership standing low at 15.68%. This reflects the company’s niche value in the renewable energy sector, making it an overlooked best-performing stock for investors intending to diversify their portfolios.