This article looks at the 10 cheap rising stocks to buy right now. We also discuss the stock market’s recent rally as Washington and Beijing show signs of bending on trade.
On May 2, US stocks notched their longest winning streak since 2004 as the United States and China signaled a willingness to have trade talks. The broad market index rose 1.47%, which helped it erase the losses since the Trump administration announced reciprocal tariffs on April 2.
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Trump told Time magazine on April 22 that his administration was engaged with China on striking a tariff deal. The US president also said he expects announcements on many other trade deals to be made over the next three to four weeks.
During an interview with NBC on May 2, the US President stated that tariffs on Chinese imports will eventually be lowered:
At some point, I’m going to lower them because otherwise, you could never do business with them. They want to do business very much … their economy is collapsing.”
Jay Hatfield, founder and chief investment officer of InfraCap, believes the worst of the uncertainty around tariffs is over. He shared the following remarks while talking to CNBC:
“The confusion about whether there’s really talks going on with China or not took some steam out of the market. Our view is that we’ve reached peak tariff tantrum and so it’s likely to be more positive than negative.”
A spokesperson for China’s Commerce Ministry has said the country is currently assessing proposals shared by Washington to begin trade negotiations. Analysts view the statement as a subtle shift in tone from Beijing that could potentially open the door for talks on tariffs.
The stock market has also received a boost from the latest jobs data shared by the Bureau of Labor Statistics. The American economy added 177,000 new jobs in April. While this was slightly down from 185,000 jobs in March, the gain was still stronger than the average pace of monthly job growth in the last three months, which reflected the resilience of the US job market.
With that said, let’s now head over to the list of the top cheap rising stocks to buy right now.
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Our Methodology
For this article, we sifted through screeners to identify stocks with returns of 10% or more over the past 30 days, a forward P/E ratio of less than 15, a trailing P/E ratio of less than 15, and a P/B ratio of under 1. From there, we picked the 10 stocks with the lowest forward P/E ratio and ranked them in descending order. All data is as of the close of business on May 5, 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Cheap Rising Stocks to Buy Right Now
10. Webster Financial Corporation (NYSE:WBS)
30-day returns: 18.51%
Forward P/E ratio: 8.65
Webster Financial Corporation (NYSE:WBS) is the holding company for Webster Bank. It provides financial products and services to individuals, families, and businesses in the United States.
On April 24, the company reported financial results for the first quarter of fiscal 2025, with net income applicable to common stockholders of $220.4 million, translating to diluted earnings per share of $1.30. While this was an improvement from a net income of $210.1 million, or $1.23 per diluted share in Q1 2024, earnings fell short of expectations by 8 cents.
Webster Financial Corporation (NYSE:WBS)’s revenue was posted at $704.8 million, which also fell shy of forecasts. However, the company demonstrated solid asset growth, with total assets increasing by $1 billion from the last quarter to $80 billion. Deposits also grew by $800 million. Return on average assets stood at 1.15%, while return on average tangible common equity was just below 16%.
On April 30, Webster Financial Corporation (NYSE:WBS) declared a quarterly cash dividend of 40 cents per share on its common stock, payable on May 22, to all shareholders on record as of May 12. The company has also recently announced plans to expand its stock repurchase program by an additional $700 million.
Webster Financial Corporation (NYSE:WBS) is among the cheap rising stocks to buy right now. Wall Street analysts have a consensus Buy rating for WBS with an average share price upside potential of 29%.
9. Bank OZK (NASDAQ:OZK)
30-day returns: 15.56%
Forward P/E ratio: 7.48
Bank OZK (NASDAQ:OZK) is a regional bank with operations in more than 240 offices across nine states. The company delivers various innovative financial solutions to clients, including savings, checking, loans, mortgages, treasury management, credit cards, merchant services, trust and estate services, and more.
During its recent earnings call on April 16, Bank OZK (NASDAQ:OZK) reported a net income of $167.9 million for the first quarter of fiscal 2025, decreasing 2.1% compared to the prior year’s period. Diluted earnings per share were posted at $1.47. While this was also down 2.6% year-over-year, the figure beat analysts’ estimates by 5 cents, representing an earnings surprise of 3.52%.
Bank OZK (NASDAQ:OZK) has surpassed analysts’ EPS consensus in the last four quarters. In Q4 2024, the company produced earnings of $1.56 per share, against forecasts of $1.45 per share. The stock has surged since the latest earnings call, enabling OZK to have monthly returns of over 15%, making it one of the cheap rising stocks to buy right now.
However, Stephens & Co., on April 21, cut Bank OZK (NASDAQ:OZK)’s price target from $59 to $54 per share, as the bank’s guidance for fiscal 2025 largely remained unchanged. Overall, Wall Street analysts have a consensus Hold rating for the stock, with an average share price upside potential of 12.4%.
8. International Seaways, Inc. (NYSE:INSW)
30-day returns: 26.63%
Forward P/E ratio: 7.30
International Seaways, Inc. (NYSE:INSW) is a tanker company that provides energy transportation services for petroleum products and crude oil in international flag markets. It operates a fleet of 84 vessels.
Over the past decade, the company has built an impressive track record of shareholder returns, maintaining a healthy balance sheet, and investing in growth. International Seaways, Inc. (NYSE:INSW) also has a reputation for continuously renewing its fleet to ensure that its average age is about 10 years, which is considered a sweet spot for tanker investments and returns.
During 2024, International Seaways, Inc. (NYSE:INSW) signed three time charter agreements for a 2014-built LR2 and two 2009-built MRs. The company also has contracts to build six scrubber-fitted, dual-fuel (LNG) ready, LR1 vessels with K Shipbuilding Co in Korea for $359 million. The deliveries are expected between Q3 2025 and Q3 2026.
International Seaways, Inc. (NYSE:INSW) declared an adjusted net income of $40 million for the first quarter of fiscal 2025, translating to an EPS of $0.89, falling just shy of expectations. However, the company’s revenue of $183.39 million surpassed expectations. Overall, the results showcased a steady performance.
On May 8, Jefferies reiterated International Seaways, Inc. (NYSE:INSW)’s Buy rating and maintained its price target of $48 per share. It is among the cheap rising stocks to buy right now.
7. Barclays PLC (NYSE:BCS)
30-day returns: 24.37%
Forward P/E ratio: 7.26
Barclays PLC (NYSE:BCS) is a diversified bank with five divisions: Barclays UK, Barclays UK Corporate Bank, Barclays Private Bank and Wealth Management, Barclays Investment Bank, and Barclays US Consumer Bank.
In April this year, the company announced a strategic partnership with Brookfield Asset Management Ltd. to transform and expand Barclays PLC (NYSE:BCS)’s payment acceptance business. Under the agreement, the two firms will work together to create a standalone entity. Barclays plans on investing around £400 million in the business, mainly during the first three years of the partnership.
Barclays PLC (NYSE:BCS) reported a beat on profit for the first quarter of fiscal 2025. It posted a pre-tax profit of £2.7 billion and income of £7.7 billion, both coming above analysts’ expectations. The results were driven by strong investment bank performance, whose income increased by 16% year-over-year. The company generated a return on tangible equity of 14%.
While talking to CNBC on April 30, CEO C.S. Venkatakrishnan said that he expects high market volatility moving forward due to ongoing trade tensions. However, he also sees this as an opportunity to profitably help clients manage their risks in uncertain times.
“It’s calmer now but I imagine it will continue to go up and down. Beyond that, as you’ve seen in our results, that market volatility helps us help clients manage their risk, we can do so in a profitable way that helps them as well and helps markets income, as long as you manage your risk well.”
With returns of over 24% over the past month and a low forward P/E ratio, Barclays PLC (NYSE:BCS) is among the cheap rising stocks to buy right now.
6. Teekay Tankers Ltd. (NYSE:TNK)
30-day returns: 33.94%
Forward P/E ratio: 7.13
Teekay Tankers Ltd. (NYSE:TNK) is a Bermuda-based company that provides marine transportation services to the oil industry. Its fleet includes 36 double-hull tankers and four chartered-in oil tankers.
Analysts believe the current trade disruptions and geopolitical shifts present a compelling investment opportunity, with Teekay Tankers Ltd. (NYSE:TNK) set to gain as Canadian producers explore alternative markets amid the imposition of recent tariffs by the US. The shift in trade partners also translates into increased demand for tankers, higher daily charter rates, and longer shipping distances, which is a direct tailwind for the company.
Teekay Tankers Ltd. (NYSE:TNK) reported a GAAP net income of $76.0 million, or $2.20 per share, for the first quarter of fiscal 2025, while adjusted net income was $41.8 million, or $1.21 per share. Total revenue stood at $231.6 million. During the earnings call, the company also declared a fixed cash dividend of 25 cents per share and a special cash dividend of $1 per share, payable on May 30.
Wall Street analysts have a consensus Buy rating for Teekay Tankers Ltd. (NYSE:TNK), with an average share price upside potential of nearly 16%. On May 8, Jefferies maintained its price target of $55 for the stock. Given the impressive returns over the past month and a low forward P/E ratio, TNK is one of the cheap rising stocks to invest in right now.
According to Insider Monkey’s database for Q4 2024, 21 hedge funds held a stake in Teekay Tankers Ltd. (NYSE:TNK).
5. Honda Motor Co., Ltd. (NYSE:HMC)
30-day returns: 23.20%
Forward P/E ratio: 6.64
Honda Motor Co., Ltd. (NYSE:HMC) is a Japan-based company engaged in the manufacturing and distribution of automobiles, motorcycles, power equipment, and other products.
In December last year, the company announced an ambitious plan to double its hybrid car sales to 1.3 million vehicles per annum by 2030 from the levels in 2023. The Japanese automaker said this would help provide a ‘bridge’ until EVs become more widespread.
Katsuto Hayashi, Honda’s automobile operations chief, stated the following in a press briefing:
“Hybrids will serve as a bridge until EVs become fully widespread. Perhaps Toyota’s Prius may come to your mind when you think of hybrids, but I believe we can change the game.”
Starting in 2026, Honda Motor Co., Ltd. (NYSE:HMC) will begin to install new, fuel-efficient hybrid systems for compact and mid-sized cars. It aims to boost EV production to over 2 million by 2030, as part of its goal to sell only EVs and fuel cell vehicles by 2040.
On April 24, Honda Motor Co., Ltd. (NYSE:HMC) shared a summary of production, Japan domestic sales, and export results for March. Global production fell 3.4% during the month compared to the prior year’s period, mainly due to a 4% decline in overseas output. Domestic sales in Japan increased 4.1% year-over-year, while exports were down by 22.1%.
Despite recent metrics, Honda Motor Co., Ltd. (NYSE:HMC) is an attractive stock, given its impressive recent returns and a low forward P/E ratio, making it one of the best cheap rising stocks to buy right now.
4. TORM plc (NASDAQ:TRMD)
30-day returns: 22.48%
Forward P/E ratio: 6.36
TORM plc (NASDAQ:TRMD) is a shipping company that operates a fleet of product tankers. It is one of the world’s leading carriers of refined oil products.
Last year, the company expanded its fleet through the acquisition of eight second-hand MR vessels for $340 million, with a cash consideration of $238 million and the issuance of approximately 2.65 million shares. These vessels were built in 2014-2015 at the Tier 1-Korean yard Hyundai Mipo Dockyard. Six of these vessels are fitted with scrubbers.
Despite ongoing geopolitical uncertainty, the company delivered first-quarter results in line with expectations, even though the figures are down year-over-year. TORM plc (NASDAQ:TRMD) generated time charter equivalent earnings (TCE) of $214 million, compared to $330.7 million during the same period last year. Net profit for the period stood at $62.9 million, down from $209.2 million in Q1 FY24.
The decline was driven by significantly lower freight rates compared to the prior year. However, they were in line with the levels observed in Q4 2024. Trade volumes were affected by the Red Sea disruption at the beginning of 2025. However, product tanker ton-miles started to rebound in March, which is an encouraging sign.
TORM plc (NASDAQ:TRMD)’s board of directors approved an interim dividend of $0.40 for the first quarter, payable on June 4. The distribution is equivalent to 62% of the net profit, in line with the company’s Distribution Policy.
TORM plc (NASDAQ:TRMD) is among the cheap rising stocks to buy right with, given its handsome returns over the past month and a low forward P/E ratio.
3. OptimumBank Holdings, Inc. (NYSEAMERICAN:OPHC)
30-day returns: 16.54%
Forward P/E ratio: 6.11
OptimumBank Holdings, Inc. (NYSEAMERICAN:OPHC) is a bank holding company for OptimumBank, providing various commercial banking services to individuals and businesses.
The company held its annual shareholder meeting on April 29, in which it highlighted record-breaking financial results in 2024, which marked the strongest performance in the bank’s history. The management also shared a bold outlook for fiscal 2025 and laid out a strategic roadmap toward achieving $1 billion in assets.
OptimumBank Holdings, Inc. (NYSEAMERICAN:OPHC)’s total assets grew 18% in 2024 to $933 million, whereas equity increased 47% to $103 million. Net earnings for the year were posted at $13.1 million. Loans surpassed $800 million. Net interest margin stood at 3.83%, reaching a 10-year high. Core ROAE exceeded 23%.
Earlier in the year, in February, OptimumBank Holdings, Inc. (NYSEAMERICAN:OPHC) achieved Small Business Administration (SBA) preferred lender status, which will help in streamlining the SBA loan approval process for the Bank, allowing it to better service small businesses.
OptimumBank Holdings, Inc. (NYSEAMERICAN:OPHC)’s shares have gained nearly 17% over the past month. Given its low forward P/E ratio, it is among the cheap rising stocks to buy right now.
2. Cool Company Ltd. (NYSE:CLCO)
30-day returns: 25.16%
Forward P/E ratio: 5.96
Cool Company Ltd. (NYSE:CLCO) is an LNG carrier, having a fleet of 13 vessels and a portfolio of short and long-term charters with some of the world’s leading oil, gas, trading, and utility companies. It is among the cheap rising stocks to buy right now.
On March 27, the company announced the initiation of a $40 million share repurchase program. Under the program, Cool Company Ltd. (NYSE:CLCO) may buy back up to 7,000,000 shares for a total amount up to $40 million, between April 1, 2025, and December 31, 2026. The purpose behind the program is to reduce the company’s outstanding shares, as the management believes they trade at a material discount.
On the same day, Cool Company Ltd. (NYSE:CLCO)’s board of directors granted Restricted Stock Units (RSUs) to primary insiders under the company’s Long-Term Incentive Program (LTIP). The board resolved to grant 205,871 RSUs to employees and management of CLCO, equivalent to around 0.38% of the company’s share capital.
Based on Cool Company Ltd. (NYSE:CLCO)’s historical reporting dates, the company is expected to report earnings for Q1 FY25 at some point in June. According to analysts, the consensus EPS forecast for the quarter is 28 cents.
1. Euroseas Ltd. (NASDAQ:ESEA)
30-day returns: 24.45%
Forward P/E ratio: 2.21
Euroseas Ltd. (NASDAQ:ESEA) is engaged in the shipping business and provides ocean-going transportation services worldwide.
On April 7, the company announced a new, 2-year charter contract for its 1,800 teu feeder containership, M/V Monica, at a gross daily rate of $23,500. The charter was expected to commence between the end of April and mid-May. Aristides Pittas, Chairman and CEO of Euroseas Ltd. (NASDAQ:ESEA), says the charter is likely to generate $12.1 million in EBITDA over the contracted period and increase the company’s charter coverage for 2025 to 94%.
Earlier in the year, Euroseas Ltd. (NASDAQ:ESEA) also announced a 3-year charter contract extension for M/V Rena P, its 4,250 teu intermediate containership. The charter will commence in August this year, at a gross daily rate of $35,500. It is expected to generate approximately $29 million in EBITDA over the contracted period.
In March, Euroseas Ltd. (NASDAQ:ESEA) completed the spinoff of its subsidiary, Euroholdings Ltd, which now trades on NASDAQ under the ticker, EHLD. After the creation of this new entity, Euroseas has a fleet of 22 vessels.
Considering its low forward P/E ratio and returns of over 24% in the past month, Euroseas Ltd. (NASDAQ:ESEA) tops the list of the cheap rising stocks to buy right now.
Overall, ESEA ranks first among the 10 Cheap Rising Stocks to Buy Right Now. While we acknowledge the potential of shipping companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ESEA but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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