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.
8. Ultragenyx (NASDAQ:RARE)
Ultragenyx (NASDAQ:RARE) is one of the overlooked growth stocks to buy now. On April 2, Ultragenyx announced that the US FDA accepted the resubmitted BLA for UX111, an investigational AAV9 gene therapy for Sanfilippo syndrome Type A (MPS IIIA). The FDA set a PDUFA action date of September 19 for its decision. If approved, UX111 would become the first available treatment for this rare, fatal genetic disorder, which causes progressive and irreversible neurodegeneration in young children.
The therapy, also known as rebisufligene etisparvovec, is a one-time intravenous infusion designed to deliver a functional copy of the SGSH gene. This addresses the underlying enzyme deficiency responsible for the toxic accumulation of heparan sulfate in the brain. Clinical data included in the BLA, spanning up to 8 years of follow-up, demonstrate a durable treatment effect and clinical improvement compared to the natural progression of the disease. The FDA previously acknowledged the robustness of the neurodevelopmental and biomarker data during the prior review cycle.
Sanfilippo syndrome Type A is caused by a lack of the sulfamidase enzyme, leading to a median life expectancy of only 15 years. Ultragenyx’s UX111 received multiple high-level regulatory designations, including Fast Track and Rare Pediatric Disease status. If granted accelerated approval, the therapy will be manufactured at specialized facilities in Ohio and Massachusetts, providing a critical new option for a community currently without any approved disease-modifying treatments.
Ultragenyx (NASDAQ:RARE) is a biotech company that is focused on bringing novel products to patients for the treatment of serious rare and ultra-rare genetic diseases.
7. Calumet Inc. (NASDAQ:CLMT)
Calumet Inc. (NASDAQ:CLMT) is one of the overlooked growth stocks to buy now. On March 17, Calumet closed a private placement of $150 million in additional 9.75% Senior Notes due 2031. These Additional Notes were issued at 105% of their par value, resulting in net proceeds of ~$154.9 million after accounting for discounts and expenses. This offering serves as an extension of the $405 million in existing notes issued earlier in January, forming a single series with identical terms.
The company intends to use the capital to immediately repay outstanding borrowings under its revolving credit facility. CFO David Lunin noted that this move provides Calumet with increased financial flexibility to navigate a volatile but profitable commodity market. Long-term, the company expects to use the resulting liquidity to reduce its 2028 notes once the call premium decreases in July, further optimizing its debt profile.
Strategically, the transaction follows a year of strong operational performance in 2025. Calumet Inc. (NASDAQ:CLMT) remains focused on generating robust cash flow and advancing the MaxSAF 150 expansion at its Montana Renewables facility. By reducing its immediate revolver debt, the company aims to maintain a disciplined balance sheet while continuing to unlock value from its specialty products and renewable fuel segments.
Calumet Inc. (NASDAQ:CLMT) is a speciality chemicals company that operates through the Specialty Products & Solutions, Performance Brands, and Montana/Renewables segments. It manufactures, formulates, and markets a slate of specialty branded products and renewable fuels.
6. Zai Lab Limited (NASDAQ:ZLAB)
Zai Lab Limited (NASDAQ:ZLAB) is one of the overlooked growth stocks to buy now. On April 1, Zai Lab and Amgen (NASDAQ:AMGN) entered into a global clinical trial collaboration to evaluate a combination therapy for extensive-stage small cell lung cancer/ES-SCLC. The study will pair Zai Lab’s zocilurtatug pelitecan (formerly ZL-1310), an antibody-drug conjugate/ADC targeting DLL3, with Amgen’s IMDELLTRA (tarlatamab-dlle), a DLL3-targeting Bispecific T-cell Engager/BiTE.
Amgen will sponsor and lead the global Phase 1b study, while Zai Lab Limited (NASDAQ:ZLAB) maintains full ownership of its ADC and provides the clinical supply. The rationale for this dual-targeting strategy lies in the complementary mechanisms of the two therapies. Zocilurtatug pelitecan is designed to deliver a potent cytotoxic payload directly into DLL3-expressing tumor cells, whereas IMDELLTRA activates the patient’s own T-cells to attack the same antigen. This combination aims to deepen clinical responses, address potential resistance pathways, and provide better intracranial activity for a patient population that currently faces a median survival of only 12 months.
Zocilurtatug pelitecan has already shown a high response rate and a tolerable safety profile in heavily pretreated SCLC patients during Phase 1/2 trials. It uses the TMALIN technology platform to reduce off-target toxicity and has received both FDA Orphan Drug and Fast Track designations. By combining this backbone ADC with the first-ever approved DLL3-targeting bispecific therapy, the companies hope to establish a new treatment paradigm for one of the most aggressive and lethal forms of solid tumors.
Zai Lab Limited (NASDAQ:ZLAB) is a biopharma company that develops and commercializes therapies addressing medical conditions with unmet needs in autoimmune disorders, oncology, infectious diseases, and neuroscience. The company’s products include Zejula, Optune, Qinlock, and Nuzyra.
While we acknowledge the potential of ZLAB 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 ZLAB and that has 100x upside potential, check out our report about the cheapest AI stock.
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