On January 7, Jay Woods, Chief Market Strategist at Freedom Capital Markets, joined CNBC to state that stocks are broadening beyond tech, with materials, defense, transports, and airlines showing breakouts and strong setups heading into the year. Woods characterized the start of 2026 as ‘very’ bullish due to a notable broadening of the market with increased upside participation, though technology (specifically software) is identified as a laggard. Woods analyzes 3 specific sectors from the first 3 days of the year, identifying 2 that successfully achieved breakouts and one that ultimately resulted in a fake out.
The energy sector is identified as the fake out. Despite monumental openings on Monday from energy companies, the stocks hit levels of resistance and pulled back. The speaker advised waiting for price confirmation before investing in energy. Conversely, the materials sector is highlighted as a breakout from a year-long base with room to run, supported by silver, gold, and packaging stocks. The defense sector is also noted for a major breakout.
Additionally, on December 23, Julie Biel, chief market strategist at Kayne Anderson Rudnick, joined CNBC’s ‘Fast Money’ to discuss what investors can expect from small-cap stocks in 2026. Given the performance of the Russell 2000, which then-recently hit all-time highs and was pacing for its eighth consecutive month of gains, Biel described the backdrop for small caps as positive and noted that these companies are economically sensitive and benefit from lower interest rates because they typically borrow on a variable interest rate market. However, she noted that the last 18 months had been confusing for active long managers, as only about one percent are beating their benchmarks. Biel explained that while she expected quality companies with strong earnings to lead, the market had instead seen outperformance from the lowest quality segments, such as biotech and quantum companies with no earnings. Despite this ‘bridesmaid’ status for quality small-cap stocks, Biel argued that the long-term setup for earnings growth in 2026 is more favorable for small caps than for mid-cap, large-cap, or even the MAG7 stocks.
That being said, we’re here with a list of the 10 promising stocks to buy under $50.
Our Methodology
We sifted through the Finviz stock screener to compile a list of promising stocks that had a high upside potential of over 40% and had a share price under $50. We then selected 10 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q3 2025.
Note: All data was sourced on January 9.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10 Promising Stocks to Buy Under $50
10. Acadia Healthcare Company Inc. (NASDAQ:ACHC)
Share Price as of January 9: $13.67
Average Upside Potential as of January 9: 42.54%
Number of Hedge Fund Holders: 40
Acadia Healthcare Company Inc. (NASDAQ:ACHC) is one of the promising stocks to buy under $50. On December 18, Mizuho lowered the firm’s price target on Acadia Healthcare to $17 from $22 and kept a Neutral rating on the shares. In its 2026 outlook for managed care and health facilities, Mizuho identified the coming year as pivotal for the industry. Mizuho suggested that the sector is emerging from a 3-year downturn in underwriting, with margins across Commercial, Medicaid, and Medicare expected to recover over the next several years. Consequently, the firm holds a positive stance on managed care entering 2026.
Earlier on December 4, Barclays analyst Andrew Mok reduced the price target for Acadia Healthcare to $14 from $17, while maintaining an Equal Weight rating. This adjustment followed the company’s third guidance cut of the year, which was prompted by a surprise $49 million surge in legal costs.
A day before that, RBC Capital adjusted its price target for Acadia Healthcare downward to $19 from $22, while sticking with an Outperform rating. The firm expressed disappointment following yet another reduction in the company’s financial guidance, which was triggered by Acadia Healthcare Company Inc. (NASDAQ:ACHC) underestimating its 2025 professional and general liability expenses. The firm noted that management expects these liability costs to remain high through 2026.
Acadia Healthcare Company Inc. (NASDAQ:ACHC) provides behavioral healthcare services in the US and Puerto Rico.
9. Cipher Mining Inc. (NASDAQ:CIFR)
Share Price as of January 9: $16.90
Average Upside Potential as of January 9: 62.21%
Number of Hedge Fund Holders: 40
Cipher Mining Inc. (NASDAQ:CIFR) is one of the promising stocks to buy under $50. On December 23, Cipher Mining announced the acquisition of a new 200-megawatt/MW site in Ohio, named Ulysses. This acquisition represents a significant milestone for the company, as this is its first site located outside of Texas. The move highlights Cipher’s strategy to diversify its geographical footprint and source high-quality infrastructure opportunities across the US.
The Ulysses site encompasses 195 acres of land and includes secured power capacity from AEP Ohio. All necessary utility agreements and interconnection approvals are already in place, allowing the facility to participate in the PJM market, which is the largest wholesale electricity market in the country. The project is currently on track to be energized in Q4 2027.
Cipher Mining Inc. (NASDAQ:CIFR) identified the location as being uniquely suited for HPC applications. The site’s expansive acreage, combined with the availability of diverse fiber paths and its proximity to a major metropolitan area, drives its suitability. With the addition of the Ulysses project, Cipher Mining’s total development pipeline has grown to 3.4 gigawatts/GW across 8 different sites.
Cipher Mining Inc. (NASDAQ:CIFR), together with its subsidiaries, develops and operates industrial-scale data centers in the US.
8. Centessa Pharmaceuticals (NASDAQ:CNTA)
Share Price as of January 9: $22.38
Average Upside Potential as of January 9: 61.73%
Number of Hedge Fund Holders: 40
Centessa Pharmaceuticals (NASDAQ:CNTA) is one of the promising stocks to buy under $50. On January 8, Truist analyst Danielle Brill raised the firm’s price target on Centessa to $33 from $30, while keeping a Buy rating on the shares. This decision was made as Truist updated its model, but noted that the company’s fundamental investment thesis remains consistent with its 2025 view.
Needham also increased its price target for Centessa to $38 from $35 with a Buy rating on the shares on January 5. The firm anticipated that the company’s momentum would persist into 2026, driven by upcoming data from Phase 2a dose-escalation cohorts for ORX-750. Furthermore, Needham identified Centessa as one of the most compelling acquisition targets in the biotech sector for the coming year.
Earlier on December 10, Oppenheimer resumed coverage of Centessa with an Outperform rating and an increased price target of $62, up from $40. Labeling the company a top pick, the firm highlighted Centessa’s best-in-class orexin agonists and a projected commercial launch in H1 2028. Oppenheimer viewed Centessa as significantly undervalued and anticipated substantial growth driven by clinical data readouts scheduled for 2026 and beyond.
Centessa Pharmaceuticals (NASDAQ:CNTA) is a clinical-stage pharmaceutical company, discovers, develops, and delivers medicines.
7. Immunovant Inc. (NASDAQ:IMVT)
Share Price as of January 9: $26.49
Average Upside Potential as of January 9: 69.94%
Number of Hedge Fund Holders: 40
Immunovant Inc. (NASDAQ:IMVT) is one of the promising stocks to buy under $50. On January 8, Truist analyst Danielle Brill raised the firm’s price target on Immunovant to $22 from $16, while maintaining a Hold rating on the shares. While the firm updated its financial model, Truist informed investors that its core fundamental outlook remains unchanged from 2025.
On January 6, Wolfe Research upgraded Immunovant from Peer Perform to Outperform with a $50 price target and noted a shift in market sentiment regarding Graves’ disease. While the firm previously expected a valuation re-rating to take years, Argenx’s entry into the Graves’ market established a higher valuation floor by increasing investor appreciation for the space. Wolfe Research highlighted the shrinking short float as a sign of growing market confidence.
Guggenheim analyst Yatin Suneja maintained a Buy rating on Immunovant Inc. (NASDAQ:IMVT) earlier on December 18 but lowered the price target to $41 from $44. This adjustment followed the company’s then-recent $550 million equity offering, which the firm noted will lead to a higher share count and some stock dilution. However, Guggenheim pointed out that this is balanced by a strengthened balance sheet and an extended cash runway, supporting the company’s continued development.
Immunovant Inc. (NASDAQ:IMVT) is a clinical-stage immunology company, develops monoclonal antibodies for the treatment of autoimmune diseases.
6. Samsara Inc. (NYSE:IOT)
Share Price as of January 9: $33.56
Average Upside Potential as of January 9: 48.68%
Number of Hedge Fund Holders: 42
Samsara Inc. (NYSE:IOT) is one of the promising stocks to buy under $50. On January 5, RBC Capital lowered the firm’s price target on Samsara to $46 from $50 with an Outperform rating on the shares. The firm predicted that 2026 would be a year of divergence for the software industry. Companies prepared for enterprise AI adoption are expected to see clear AI tailwinds, while those lagging may continue to struggle under the narrative that AI threatens traditional software. While early 2026 guidance remains conservative, RBC Capital noted that enterprise spending is stabilizing and GenAI is actively fueling innovation.
Additionally, on December 16, BTIG initiated coverage of Samsara Inc. (NYSE:IOT) with a Buy rating and a $55 price target, identifying the company as a top performer in the software sector. BTIG highlighted that Samsara maintained exceptional growth even as it scaled to $1.7 billion in annual recurring revenue.
On December 10, KeyBanc analyst Jason Celino also initiated coverage of Samsara with an Overweight rating and a price target of $55. The firm argued that Samsara’s end-to-end platform is uniquely positioned to digitize the massive $45 trillion physical operations industry, a sector that has historically been underserved by technology. Celino also highlighted that the company has “multiple avenues” to sustain its premium growth over the long term.
Samsara Inc. (NYSE:IOT) provides solutions to connect physical operations data to its connected operations platform in the US and internationally.
5. Mobileye Global Inc. (NASDAQ:MBLY)
Share Price as of January 9: $11.62
Average Upside Potential as of January 9: 54.71%
Number of Hedge Fund Holders: 43
Mobileye Global Inc. (NASDAQ:MBLY) is one of the promising stocks to buy under $50. On January 8, Piper Sandler lowered the firm’s price target on Mobileye to $13 from $15 with a Neutral rating on the shares. Piper Sandler anticipates a divergent year for global auto markets in 2026.
North American sales are projected to slip 1.2% as affordability remains a major hurdle for consumers; however, local production may find a floor through re-shoring efforts and reduced import competition. In Europe, Piper Sandler expects a return to sales growth, fueled by government support and a surge of budget-friendly Chinese vehicles. Conversely, China’s domestic market is braced for a 3% sales decline due to subsidy expirations and macro headwinds, though robust export demand should help soften the blow to factory output.
In other news, on January 6, Mobileye Global Inc. (NASDAQ:MBLY) announced a definitive agreement to acquire the humanoid robotics startup Mentee Robotics for ~$900 million. The deal consists of $612 million in cash and up to 26.2 million shares of Mobileye Class A common stock. This acquisition is expected to close in Q1 2026 and represents Mobileye’s expansion into embodied AI, using its expertise in autonomous driving to enter the field of general-purpose robotics.
Mobileye Global Inc. (NASDAQ:MBLY) develops and deploys advanced driver assistance systems/ADAS and autonomous driving technologies and solutions worldwide.
4. BellRing Brands Inc. (NYSE:BRBR)
Share Price as of January 9: $25.25
Average Upside Potential as of January 9: 47.35%
Number of Hedge Fund Holders: 45
BellRing Brands Inc. (NYSE:BRBR) is one of the promising stocks to buy under $50. On January 8, TD Cowen analyst Robert Moskow lowered the firm’s price target on BellRing Brands to $27 from $31 and maintained a Hold rating on the shares. In its 2026 outlook, the firm adjusted price targets across the consumer staples sector, forecasting a challenging year for large-cap companies. TD Cowen anticipated that volume growth will fail to recover significantly from 2025’s 0.9% decline, while pricing power is expected to remain muted.
However, on December 19, Bank of America increased its price target for BellRing Brands Inc. (NYSE:BRBR) to $32 from $28 while maintaining a Neutral rating. In a 2026 outlook for the consumer staples sector, the firm noted that consumption growth remains the biggest unanswered question and that valuations across the industry continue to be fragmented. The firm suggested that there is currently little incentive for investors to move off the sidelines until fundamental indicators show a more definitive positive shift in the market.
Additionally, on December 15, Deutsche Bank downgraded BellRing Brands from Buy to Hold, with a price target of $35. This adjustment was part of the firm’s 2026 outlook for the consumer packaged goods sector, where analysts are adopting a cautious wait-and-see stance on volatile small- and mid-cap stocks.
BellRing Brands Inc. (NYSE:BRBR), together with its subsidiaries, provides various nutrition products in the US. The company offers ready-to-drink/RTD protein shakes, other RTD beverages, protein powders, nutrition bars, and other products primarily under the Premier Protein and Dymatize brands.
3. Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE)
Share Price as of January 9: $22.91
Average Upside Potential as of January 9: 170.33%
Number of Hedge Fund Holders: 55
Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE) is one of the promising stocks to buy under $50. On January 8, Morgan Stanley analyst Maxwell Skor lowered the firm’s price target on Ultragenyx to $50 from $55 and kept an Overweight rating on the shares. The firm projects continued outperformance for US SMID-cap biotech in 2026. This bullish outlook is driven by commercial-stage companies transitioning from capital consumers to producers, combined with a looming patent cliff that threatens the revenue of large-cap biopharma.
In other news, on December 30, Ultragenyx Pharmaceutical completed its rolling BLA submission to the FDA for DTX401, which is a potential first-in-class gene therapy for Glycogen Storage Disease Type Ia/GSDIa. The application was finalized with the submission of the manufacturing/CMC module, following clinical and non-clinical data filed in August. If approved, DTX401 will address the root cause of this life-threatening metabolic disorder, which currently forces 6,000 patients worldwide to rely on rigorous, 24-hour cornstarch dosing to avoid fatal hypoglycemia.
The submission is backed by the Phase 3 GlucoGene study, which followed 52 patients for up to six years. Safety data through 96 weeks confirmed that DTX401 is well-tolerated. The therapy holds several high-priority designations, including RMAT and Fast Track, as it nears a potential commercial launch to replace the heavy dietary burden of GSDIa.
Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE) is a biopharmaceutical company that identifies, acquires, develops, and commercializes novel products for the treatment of rare and ultra-rare genetic diseases in North America, Latin America, Europe, the Middle East, Africa, and the Asia-Pacific.
2. Riot Platforms, Inc. (NASDAQ:RIOT)
Share Price as of January 9: $15.66
Average Upside Potential as of January 9: 67.53%
Number of Hedge Fund Holders: 57
Riot Platforms, Inc. (NASDAQ:RIOT) is one of the promising stocks to buy under $50. On December 22, Citi lowered the firm’s price target on Riot Platforms to $23 from $28, while maintaining a Buy rating on the shares. Despite updating its valuation models, Citi remained positive on digital assets heading into 2026. Citi still expects looming regulatory reforms to drive stock performance across the sector.
In Q3 2025, Riot Platforms, Inc. (NASDAQ:RIOT) generated a total revenue of $180.2 million, which more than doubled the $84.8 million reported in Q3 2024. The revenue surge was primarily fueled by a $93.3 million year-over-year increase in Bitcoin mining revenue, as the company produced 1,406 Bitcoin during the quarter.
Furthermore, while revenue grew, the company’s own hash rate deployment of 3% was outpaced by an 8% increase in global network competition. To mitigate energy costs, Riot effectively utilized its Power-First Strategy, earning $23 million in cumulative capital expenditure savings through its engineering business and significant power credits.
Riot Platforms, Inc. (NASDAQ:RIOT), together with its subsidiaries, operates as a Bitcoin mining company in the US.
1. UniQure (NASDAQ:QURE)
Share Price as of January 9: $25.59
Average Upside Potential as of January 9: 109.24%
Number of Hedge Fund Holders: 59
UniQure (NASDAQ:QURE) is one of the promising stocks to buy under $50. On December 11, Stifel lowered the firm’s price target on uniQure to $40 from $50, while maintaining a Buy rating on the shares. In its 2026 biotech sector outlook, Stifel conducted a comprehensive review of its coverage universe. This refreshed diligence resulted in several adjustments to financial models, earnings estimates, and price targets across the group.
Mizuho analyst Uy Ear also reduced the price target for UniQure (NASDAQ:QURE) to $33 from $60 earlier on December 8, while maintaining an Outperform rating on the shares. This adjustment followed a major regulatory shift: the FDA informed the company that current data from its Phase I/II studies for AMT-130 (a Huntington’s disease gene therapy) likely lacks the primary evidence required for a BLA.
Consequently, Mizuho lowered its projected probability of success and delayed the expected market launch of AMT-130 by one year. Despite these hurdles, the firm remained optimistic about the therapy’s long-term potential, noting that a follow-up Type A meeting with the FDA is scheduled for Q1 2026 to establish a new path forward.
UniQure (NASDAQ:QURE) develops treatments for patients suffering from rare and other devastating diseases in the US.
While we acknowledge the potential of QURE 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 QURE and that has 100x upside potential, check out our report about this cheapest AI stock.
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