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10 Nasdaq Sleeper Stocks to Buy Before Wall Street Wakes Up

In this article, we will be taking a look at 10 Nasdaq sleeper stocks to buy before Wall Street wakes up. To skip our detailed analysis of these stocks, you can go directly to see the 5 Nasdaq Sleeper Stocks to Buy Before Wall Street Wakes Up.

As inflation fears continue to preside over the market, and the Federal Reserve continues to raise rates aggressively, the US dollar has skyrocketed while US Treasuries and shares across the world have been getting sold. During this time, the Nasdaq 100 Index has been performing well, showing a strong start in the third quarter and outperforming other major market benchmarks. According to a Nasdaq Index Research Team report published this October, the Nasdaq 100 Index outperformed the S&P 500 Index and the Dow Jones Industrial Average, which fell 5.28% and 6.66%, respectively. In comparison, the Nasdaq 100 was only down by 4.32% over the third quarter of 2022.

The Nasdaq Index is heavily dominated by technology stocks such as Intel Corporation (NASDAQ:INTC), Microsoft Corporation (NASDAQ:MSFT), and NVIDIA Corporation (NASDAQ:NVDA), among many others. While in the beginning of 2022, tech stocks saw mass sell-offs during the market downturn, a T. Rowe Price analysis of stock performance during the years leading up to 2022 shows that tech stocks still returned over twice as much as the broader market. Between January 2022 and June 2022, the MSCI AC World Index returned 13.24%, while the MSCI AC World Information Technology Index returned 27.54%. The earnings for tech companies also surged during these years in light of the accelerated adoption of a range of tech trends such as cloud computing and online shopping, especially when the pandemic was at its peak.

This morning inflation came in lower than expected and dropped below the 8% threshold for the first time in a long time. We believe this is finally the beginning of a trend as the Fed’s rate hikes are finally affecting the inflation rate. Investing in smaller companies in the Nasdaq Index, particularly technology companies that are going ignored by investors in the market at present, is now beginning to seem like a smart investment strategy. Small-cap stocks are now becoming smarter choices because the US dollar is strong enough to boost their run. According to a Wall Street Journal article published in October, the S&P 600 small-cap index rose by 5.3% that month, beating the large-cap S&P 500’s 2.6% gain. For 2022, the S&P 600 is now on the path to outperform the broader benchmark for the first time since 2016. With tech stocks performing well in their own domain, and small-cap companies being on the winning end of the market for the first time in several years, now seems the perfect time to look at the stocks selected for our list below.

Let’s now take a look at the 10 Nasdaq sleeper stocks to buy before Wall Street wakes up.

Our Methodology

We have selected mostly smaller companies that are going largely ignored among investors today. Most of these stocks are trading at share prices below $50-$60, and they have significant growth potential based on their key fundamentals such as revenue growth and net income or gross margins. We have ranked the stocks based on the number of hedge funds holding stakes in them, from the lowest to the highest.

Nasdaq Sleeper Stocks to Buy Before Wall Street Wakes Up

10. SmartRent, Inc. (NASDAQ:SMRT)

Number of Hedge Fund Holders: 9

SmartRent, Inc. (NASDAQ:SMRT) is a smart home automation company based in Scottsdale, Arizona. The company was founded in 2017. Its smart home products and solutions provide options like self-guided tours, parking management, and access control to homeowners and developers looking to create a customized automation platform.

On October 17, Morgan Stanley’s Erik Woodring reiterated an Equal Weight rating on SmartRent, Inc. (NASDAQ:SMRT) shares.

SmartRent, Inc. (NASDAQ:SMRT) is a small company with significant growth potential. It is currently trading below $5, making it severely undervalued according to analysts such as those as Arie Investment Management. Demand for the company’s solutions has been on the first in 2022, as shown by over 91,000 units being booked in the first quarter and the expansion of the company’s customer base to 290 customers. On March 31, SmartRent, Inc. (NASDAQ:SMRT) reported $278 million in cash, $599 million in assets, and $169 million in liabilities, making its financial situation appear stable. It has offered guidance for 2022 including revenue between $220 million and $250 million, and over 280,000 units deployed.

Long Pond Capital was the largest stakeholder in SmartRent, Inc. (NASDAQ:SMRT) in the second quarter, holding 7.4 million shares worth $33.6 million. In total, nine hedge funds were long the stock, with a total stake value of $68.7 million.

Investment management company Vulcan Value Partners mentioned SmartRent, Inc. (NASDAQ:SMRT) in its third-quarter 2022 investor letter. Here’s what the firm said:

“We have discussed SmartRent, Inc. (NYSE:SMRT) at length in recent quarters. Demand for their products and services continues to be solid, but the company is facing supply chain issues that continue to impact its installation schedule. This combination has led the company to reduce guidance. We believe that the supply chain will continue to be a headwind but we are also starting to see some anecdotal evidence that the supply chain challenge is improving. We believe these supply chain challenges will continue to improve, allowing the company to produce free cash flow by second half of 2023. The company’s financial position remains strong, with $250mm in cash and no debt. This should enable the company to manage through this tough environment. We remain optimistic about the long-term opportunity ahead for the company.”

SmartRent, Inc. (NASDAQ:SMRT), like Intel Corporation (NASDAQ:INTC), Microsoft Corporation (NASDAQ:MSFT), and NVIDIA Corporation (NASDAQ:NVDA), is a Nasdaq stock worth keeping an eye on this year.

9. PubMatic, Inc. (NASDAQ:PUBM)

Number of Hedge Fund Holders: 12

PubMatic, Inc. (NASDAQ:PUBM) is a communication services company providing a cloud infrastructure platform enabling real-time programmatic advertising transactions for content creators on the Internet. The company offers Openwrap, a header bidding solution with management and analytics tools. It also offers Openwrap OTT, a header bidding management solution.

The company has demonstrated significant revenue and EPS growth over the recent quarters and its stock is currently attractively valued at under $20. In the second quarter of 2022, PubMatic, Inc. (NASDAQ:PUBM) saw year-over-year revenue growth of 27%, a net income margin of 12%, and an adjusted EBITDA margin of 37%. It reached its long-term growth target of 20% or more over the past eight quarters. Since PubMatic, Inc. (NASDAQ:PUBM) is going ignored by investors at present, those interested in the stock can currently buy it for 17 times trailing earnings, making it attractively valued for a solid performer.

Our hedge fund data shows 12 funds long PubMatic, Inc. (NASDAQ:PUBM) in the second quarter, with a total stake value of $21.9 million.

8. Upstart Holdings, Inc. (NASDAQ:UPST)

Number of Hedge Fund Holders: 15

Upstart Holdings, Inc. (NASDAQ:UPST) is a consumer finance company operating as a cloud-based artificial intelligence lending platform. The company is based in San Mateo, California. It aggregates consumer demand for loans and connects them to its network of AI-enabled bank partners.

John Hecht at Jefferies has a Hold rating on Upstart Holdings, Inc. (NASDAQ:UPST) as of November 9. The analyst also placed a $20 price target on the stock.

Upstart Holdings, Inc. (NASDAQ:UPST) is a long-term buy, and considering that the stock is down over 80% so far this year, now is the perfect time to gain positions in the stock. The company’s revenue is expected to become stable over the long run, helped by the addition of new partners to its AI-powered lending marketplace. Upstart Holdings, Inc. (NASDAQ:UPST) has been expanding its presence among auto dealerships, and this is helping the company set up a brighter future. In the second quarter, the company’s adjusted EBITDA of $5.5 million showed its profitability at the operating income level.

Out of 895 hedge funds tracked in the second quarter, 15 funds were long Upstart Holdings, Inc. (NASDAQ:UPST). Their total stake value was $115 million. Of these funds, ZWEIG DIMENNA PARTNERS was the largest stakeholder in the company, holding 35,050 shares worth $729,000.

Vulcan Value Partners, an investment management firm, mentioned Upstart Holdings, Inc. (NASDAQ:UPST) in its second-quarter 2022 investor letter. Here’s what the firm said:

Upstart Holdings Inc. was a material detractor for the quarter. It was a mistake, and we sold our position. Upstart is an artificial intelligence (AI) and cloud-based lending platform. The company uses AI models that are designed to underwrite superior loans with lower interest rates, lower default rates, higher approval rates, and increased underwriting automation. When we purchased Upstart, we believed the company had an excellent product and the addressable market was large.

Upstart’s results during 2021 were impressive. In the first quarter of 2022, the company reported solid results but lowered guidance and, more importantly, used its balance sheet to warehouse loans temporarily. The company’s decision to use its balance sheet to finance its growth surprised us and other market participants, and its stock price decreased dramatically. While we admire the management team, we are less confident in the company’s long-term prospects.

It will be more difficult than we anticipated for Upstart to extend its competitive advantages with smaller banks into adjacent markets such as auto loans and mortgages. As a result, our value for Upstart is unstable and the company no longer qualifies for investment. We are following our discipline and reallocating capital into companies with more stable values.”

7. Axcelis Technologies Inc. (NASDAQ:ACLS)

Number of Hedge Fund Holders: 22

Axcelis Technologies Inc. (NASDAQ:ACLS) is an information technology company that designs and services ion implantation and other processing equipment. The company is based in Beverly, Massachusetts, and provides its products in the US, Europe, and Asia. It offers high energy, high current, and medium current implanters for application requirements.

In the face of challenging supply chain and logistics, Axcelis Technologies Inc. (NASDAQ:ACLS) has managed to beat revenue guidance in the second quarter by $6.82 million. The company’s revenue for the quarter came in at $221.18 million, showing its resilience. Its gross margin was 44.8%, also well above guidance figures. Axcelis Technologies Inc. (NASDAQ:ACLS) has also reduced its operating expenses as a percentage of revenue by over 10% in the past eight quarters, showing the company’s ability to exercise cost control to boost profitability.

Axcelis Technologies Inc. (NASDAQ:ACLS) was found among the 13F holdings of 22 hedge funds in the second quarter and 23 hedge funds in the previous quarter. Their total stake values were $184.1 million and $232.9 million, respectively.

6. GoPro, Inc. (NASDAQ:GPRO)

Number of Hedge Fund Holders: 25

GoPro, Inc. (NASDAQ:GPRO) is a consumer discretionary company that develops and sells cameras, mountable and wearable accessories, and subscription services and software. It operates in the US and internationally as well. The company is based in San Mateo, California.

Oppenheimer’s Martin Yang holds a Perform rating on GoPro, Inc. (NASDAQ:GPRO) shares as of November 4.

The company has been on a growth path in 2022, showing a 65% increase in its subscribers during the second quarter. GoPro, Inc. (NASDAQ:GPRO) had 1.91 million GoPro subscribers over this period, and recorded 70% to 80% in gross margins during this time as well, showing that the subscription service is proving to be its most profitable product. GoPro, Inc.’s (NASDAQ:GPRO) subscribers translate into annual recurring revenues of $100 million, and it’s likely that the number of subscribers will continue to grow into 2023.

Royce & Associates was the largest stakeholder in GoPro, Inc. (NASDAQ:GPRO) in the second quarter, holding 686,445 shares worth $3.4 million. In total, 25 hedge funds were long the stock, with a total stake value of $125.5 million.

GoPro, Inc. (NASDAQ:GPRO), like Intel Corporation (NASDAQ:INTC), Microsoft Corporation (NASDAQ:MSFT), and NVIDIA Corporation (NASDAQ:NVDA), is a Nasdaq stock with significant growth potential as the market recovers.

Click to continue reading and see the 5 Nasdaq Sleeper Stocks to Buy Before Wall Street Wakes Up.

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Disclosure: None. 10 Nasdaq Sleeper Stocks to Buy Before Wall Street Wakes Up is originally published on Insider Monkey.

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
  • It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

They’re sharing it quietly, away from the cameras, to rooms full of ultra-wealthy clients.

Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

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A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…