In this article, we will discuss the 10 Overlooked Growth Stocks to Buy Now.
On April 14, Tom Lee, Fundstrat’s Head of Research, joined CNBC’s ‘Power Lunch’ to discuss his outlook on equities. Lee argued that the US stock market remains resilient because the economy is performing better than expected despite the ongoing war. He explained that while it may seem counterintuitive, defense spending of $30 to $60 billion per month acts as an economic stimulus. While the recent $20 increase in oil prices adds ~$12 billion per month to the household burden, Lee noted that on a net basis, the war is currently helping corporate earnings. He acknowledged that higher gasoline prices are a major cost for families, especially following 5 years of inflation, but calculated that increased car fuel efficiency limits the extra cost to ~$50 to $100 per family per month, an amount that is insufficient to damage the broader economy or corporate earnings.
Lee suggested that the market is currently discounting a favorable outcome, though he admitted the exact nature of that resolution is unknown. When asked to choose the most important factor for the market among the Iran war, corporate earnings, and interest rates, Lee identified the war as the primary driver because it is the only factor capable of creating tail events on both the positive and negative sides. Regarding earnings reports, Lee explained that Q1 results will likely show minimal impact from the conflict since the war only began in early March, affecting just one-third of the quarter. However, he and his team are closely monitoring both Q1 and Q2 numbers to assess how energy disruptions and higher transport costs affect specific S&P 500 groups. He viewed these disruptions as a hint toward an upcoming inflation shock but observed that the market, having dealt with a series of shocks over the last five years, is learning to avoid full-blown panics.
Our Methodology
We sifted through financial media reports to compile a list of overlooked growth stocks that have grown their EPS by at least 15% over the past 3 years, and also have an estimated 1-year EPS growth rate of 15%. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.
Note: All data was sourced on April 17.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10 Overlooked Growth Stocks to Buy Now
10. Sigma Lithium Corporation (NASDAQ:SGML)
Sigma Lithium Corporation (NASDAQ:SGML) is one of the overlooked growth stocks to buy now. On April 2, Sigma Lithium Corporation announced the signing of a $100 million collateralized bank guarantee with a prominent Brazilian bank. This milestone is designed to be collateralized by the company’s clients using a combination of corporate guarantees, letters of credit, and export receivables. The guarantee serves as a critical mechanism for the company to access development bank financing, providing the necessary capital to advance its large-scale expansion plans.
The objective of this funding is to finalize the construction and installation of Sigma Lithium’s Greentech Industrial Plant 2. This expansion is expected to ~double the company’s annual production capacity, increasing it from 270,000 tonnes to 520,000 tonnes of high-grade lithium oxide concentrate. The new facility will use the same environmentally sustainable Greentech processes currently employed at the company’s first plant, reinforcing its position as the largest lithium producer in the Americas.
Beyond industrial growth, the expansion is expected to drive socio-economic development in Brazil’s Jequitinhonha Valley. Sigma Lithium Corporation (NASDAQ:SGML) currently supports ~13,000 direct and indirect jobs and impacts 21,000 people through social programs in a region that was once among the poorest in the country.
Sigma Lithium Corporation (NASDAQ:SGML) engages in the exploration and development of lithium deposits in Brazil, through which it serves the lithium-ion battery supply chain for the EV industry.
9. Grifols (NASDAQ:GRFS)
Grifols (NASDAQ:GRFS) is one of the overlooked growth stocks to buy now. On March 17, Grifols unveiled proof-of-concept data from its Chronos-PD program, showing that molecular changes associated with Parkinson’s disease/PD can be detected up to 12 years before a clinical diagnosis. The study analyzed over 2,600 longitudinal plasma samples using AI and advanced proteomics. This deep profiling allowed researchers to track the evolution of distinct proteins over time, potentially establishing an early-warning system for a disease that currently lacks early detection biomarkers.
The research identified reproducible early molecular signals, including the discovery of a major modulation in the CXCL12-cell adhesion molecules-integrin axis. This signaling network is responsible for governing leukocyte trafficking and blood-brain barrier integrity, both of which are central to the neuroinflammation seen in PD. By uncovering these distinct molecular patterns, Grifols (NASDAQ:GRFS) aims to support future efforts in patient stratification and precision medicine, providing a window for intervention before significant dopamine-producing brain cells are lost.
Chronos-PD is part of a broader Grifols initiative that uses a proprietary library of over 100 million plasma samples connected to real-world data. The study validated early biomarkers across five independent cohorts. Dr. Jörg Schüttrumpf, Grifols Chief Scientific Innovation Officer, noted that the platform’s ability to search for the earliest signs of disease could accelerate the development of new diagnostics and disease-modifying therapeutics for various public health challenges beyond Parkinson’s.
Grifols (NASDAQ:GRFS) is a healthcare company that deals in plasma-derived medicines through four segments: Biopharma, Diagnostic, Bio Supplies, and Others. The company provides plasma-derived therapeutics, diagnostic systems, hospital healthcare solutions, and integrated pharmaceutical services.
