In this piece, we discuss the 10 Stocks Under $1 That Will Explode.
U.S. equity markets are beginning their 2026 journey without taking a major break from existing trends, according to Morgan Stanley CIO and chief U.S. equity strategist Mike Wilson, who joined CNBC’s “Squawk Box” on January 8, 2026. He believes dynamics from the last year are still playing out, with fewer major headwinds weighing on investors.
One of the key positive drivers Wilson noted was the Federal Reserve’s highly proactive stance on liquidity, which includes renewed asset purchases to stabilize funding markets. The move has brought major ease to the market, reinforcing investor confidence that monetary policy is now supportive rather than restrictive.
While he acknowledged that policy changes and midterm election dynamics could cause periodic pullbacks, he believes they are unlikely to affect the broader trend. Accordingly, he suggests a 10% correction could occur. According to Wilson, economic growth is expected to remain stable, corporate earnings visibility remains relatively strong, and seemingly weak labor data may allow the Fed to cut rates further as we move into the year. At the same time, he dismissed short-term fears regarding an AI-driven bubble, as he believes current credit conditions and funding cycles do not indicate the caution seen ahead of past market excesses.
Amid this macro environment marked by improving liquidity, policy support, and selective optimism, we will turn our attention to interesting opportunities outlined in our list of the 10 Stocks Under $1 That Will Explode.
Phone with stocks chart
Our Methodology
To curate our list of the Stocks Under $1 That Will Explode, we relied on screeners to identify stocks currently trading under $1. Next, we filtered out stocks with meaningful analyst coverage, selecting those with at least 50% upside potential and ranking them accordingly. Furthermore, we used Insider Monkey’s database to assess hedge fund sentiment surrounding each stock. The database tracks 978 elite hedge fund managers as of Q3 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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Note: The analysis was run using data as of market close on January 8, 2026.
10. Kosmos Energy Ltd. (NYSE:KOS)
Share Price (As of January 8, 2026): $0.91
Upside Potential: 92.90%
Number of Hedge Fund Holders: 20
Kosmos Energy Ltd. (NYSE:KOS) is included in our list of stocks under $1 that will explode.
On January 5, 2026, Kosmos Energy Ltd. (NYSE:KOS) saw Bernstein reduce its price target from $1.70 to $0.80, while reiterating a ‘Market Perform’ rating. The update comes as the firm frames 2026 with a balanced oil outlook, expecting short-term price volatility. However, in the longer term, the investment bank projects strength.
Bernstein’s stance comes as the company looks to accelerate its operational momentum. On January 5, 2026, Kosmos Energy Ltd. (NYSE:KOS) shared a detailed operational and financial update, where it highlighted significant progress across its portfolio. Management discussed the second Jubilee producer well (J-74) in Ghana, which has been drilled and completed. The well hit approximately 50 meters of net pay (oil-bearing rock), which translates to a potential output of over 10,000 bopd. The discovery lifts gross Jubilee output to nearly 70,000 bopd at the start of 2026.
Additionally, management talked about license extensions for Jubilee and TEN oilfields to 2040, which were approved in late December. The company believes that extensions will support higher 2P reserves and up to 20 additional wells. On the other hand, management confirmed the GTA LNG project hit its nameplate capacity in December 2025, with cargo liftings expected to nearly double in 2026. At the same time, debt actions are expected to improve the company’s leverage.
Kosmos Energy Ltd. (NYSE:KOS), an independent oil and gas company, focuses on offshore exploration, development, and production. Its core assets are in Ghana, Mauritania/Senegal LNG, Equatorial Guinea, and the U.S. Gulf of Mexico.
9. Blink Charging Co. (NASDAQ:BLNK)
Share Price (As of January 8, 2026): $0.78
Upside Potential: 156.40%
Number of Hedge Fund Holders: 9
Blink Charging Co. (NASDAQ:BLNK) is one of the stocks under $1 that will explode.
By market close on January 8, 2026, Blink Charging Co. (NASDAQ:BLNK) was seen gaining strong share price momentum, recording approximately a 17% return over the past five days.
This follows the company’s December 11 update, where it reported that Blink Charging Co. (NASDAQ:BLNK) priced a public offering of 26,666,666 shares at $0.75 per share. With this offering, the company raised roughly $20 million in gross proceeds before fees, providing incremental capital to fund capital expenditures related to its owned and operated DC fast-charging network expansion. Furthermore, it will also support the company’s working capital and general corporate needs.
Meanwhile, Blink Charging Co. (NASDAQ:BLNK) reported a strategic commercial win earlier in November, bagging a Sourcewell contract effective through September 18, 2029, with potential one-year extensions. This agreement will enable over 50,000 government, education, and nonprofit agencies to procure the company’s Level 2 and DC fast chargers, software, installation, and maintenance through a streamlined purchasing process. Looking ahead, the company stands well-positioned to pursue public-sector demand while scaling its fast-charging footprint nationwide.
Blink Charging Co. (NASDAQ:BLNK) focuses on operating and providing EV charging equipment and networked charging services. The company’s offerings include Level 2 and DC fast chargers, software, and support solutions to commercial, residential, and public-sector customers.
8. Canaan Inc. (NASDAQ:CAN)
Share Price (As of January 8, 2026): $0.81
Upside Potential: 270.10%
Number of Hedge Fund Holders: 10
Canaan Inc. (NASDAQ:CAN) is included in our list of the stocks under $1 that will explode.
On January 6, 2026, Canaan Inc. (NASDAQ:CAN) announced a 3.0 MW proof-of-concept (PoC) project with Bitforest Investment in Manitoba, Canada. The move is a strategic step to monetize waste heat from crypto mining through agricultural applications. The 24-month pilot will see the company deploy 360 Avalon A1566HA-460T liquid-cooled servers and four cooling modules. Meanwhile, recovered heat will be used to preheat water for greenhouse operations. According to management projections, approximately 90% of the electricity consumed by the computing servers could potentially be captured and reused, with a targeted 95% uptime.
The development bolsters the company’s growth narrative by helping Canaan Inc. (NASDAQ:CAN) reposition high-density computing as an energy-efficient infrastructure asset rather than a pure bitcoin-mining cost center. The project’s highlighted features include a low all-in power cost of $0.035 per kWh, elimination of the need for industrial cooling towers, and potential upside through shared economics if surplus power is sold back to the grid. Furthermore, the project could be extended in the long term by replicating it across colder regions facing carbon pricing pressures.
Canaan Inc. (NASDAQ:CAN) is focused on the development and sale of Bitcoin mining machines and related services.
