In this article, we discuss the 11 Best Single Digit Stocks to Buy According to Hedge Funds.
The winning streak of U.S. stocks extended on Wednesday, August 13, 2025, with the S&P 500 and Nasdaq reaching fresh record highs for the second day in a row. This momentum builds around optimism over lower Federal Reserve rates, fueling investor confidence. Driven by a nearly 100% market-implied probability of a September rate cut, the market rallied: the Dow surged 463.66 points, while the S&P 500 and Nasdaq closed at historic highs.
Additionally, a surprisingly strong second-quarter earnings season has driven the ongoing momentum. Baird and Wolfe Research highlighted the resilience of corporate America, recording ‘very strong’ results, despite the uncertain macroeconomic environment. Chris Senyek, Wolfe Research’s chief investment strategist, made the following comment:
“While tariff volatility depressed the earnings outlook for the S&P 500 after the Trump Administration’s Liberation Day, estimates have bounced back as companies continue to beat expectations and provide solid forward guidance. Though we expect seasonal volatility to pick up in the weeks ahead, the fundamental picture for stocks continues to be strong, especially as strong secular tailwinds, such as the AI Spending Narrative, remain intact.”
Meanwhile, the Russell 2000 climbed 2% on Wednesday, with small-cap stocks, which are the biggest beneficiaries of lower borrowing costs, dominating the index. Thus, single-digit stocks with strong fundamentals hold promising returns amid this upbeat market backdrop.
With this context in mind, let’s now move on to our list of the 11 Best Single Digit Stocks to Buy According to Hedge Funds.
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Methodology
To curate our list of the 11 Best Single Digit Stocks to Buy According to Hedge Funds, we used the Finviz screener to extract a list of companies trading with a share price under $10. Next, we assessed hedge fund sentiment surrounding each stock using Insider Monkey’s hedge fund database, which tracks over 1,000 hedge funds. Finally, we ranked the stocks in ascending order based on the number of hedge funds holding stakes in each stock as of Q1 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
11. Day One Biopharmaceuticals, Inc. (NASDAQ:DAWN)
Share Price: $6.18
Number of Hedge Fund Holders: 39
With significant hedge fund interest and a share price under $10, Day One Biopharmaceuticals, Inc. (NASDAQ:DAWN) secures a spot on our list of the 11 Best Single Digit Stocks to Buy According to Hedge Funds.
On August 6, 2025, H.C. Wainwright reiterated its ‘Buy’ rating on Day One Biopharmaceuticals, Inc. (NASDAQ:DAWN) with a $25 price target. Meanwhile, on the same day, JPMorgan also maintained its ‘Buy’ rating, citing the strong growth trajectory of Ojemda for recurrent or refractory pediatric low-grade glioma (r/r pLGG). The U.S. peak sales for the medicine are projected to surpass $500 million.
Furthermore, the investment firm highlighted the company’s guidance for 2025 of $140-150 million in sales, underpinned by robust patient starts, persistence rates, and stable gross-to-net (GTN) ratios, which are expected to remain steady despite the recent price increase. Meanwhile, Day One Biopharmaceuticals, Inc. (NASDAQ:DAWN)’s sequential quarterly growth in patient volume continues. Lastly, the analyst cited the awaited update from the FIREFLY-1 Cohort 1 study on Ojemda’s long-term safety and efficacy. Positive results from the study could further strengthen confidence in the drug’s market potential.
Day One Biopharmaceuticals, Inc. (NASDAQ:DAWN) develops targeted therapies for childhood and adult cancers. It is included in our list of the Best Single Digit Stocks.
10. Amcor plc (NYSE:AMCR)
Share Price: $8.71
Number of Hedge Fund Holders: 40
Amcor plc (NYSE:AMCR) is included in our list of the 11 Best Single Digit Stocks to Buy According to Hedge Funds.
Amcor plc (NYSE:AMCR) posted strong fiscal Q4 results on August 14, 2025, driven by the April 30 all-stock acquisition of Berry Global, a manufacturer of plastic packaging products. The company’s net sales for the quarter reached $5.08 billion, recording a 43% growth year-over-year (YoY). Meanwhile, adjusted EBITDA rose 43% to $789 million, while adjusted EBIT grew 34%. Furthermore, the quarter recorded $15.01 billion in net sales, $0.71 in adjusted EPS, and $926 million in free cash flow.
Amcor plc (NYSE:AMCR)’s CEO considers the Berry deal a “significant milestone,” driving the company’s fiscal 2026 adjusted EPS growth of 12-17% and free cash flow of $1.8-$1.9 billion, supported by $260 million of first-year synergy benefits. The company intends to focus on its core consumer packaging and dispensing business for nutrition and health, which they value at $20 billion. Meanwhile, the company plans to optimize $2.5 billion in non-core businesses. Amcor plc also raised the quarterly dividend to 12.75 cents, taking the annual payout to 51 cents per share.
Amcor plc (NYSE:AMCR) develops and produces responsible packaging solutions for food, beverage, pharmaceutical, medical, home, and personal-care segments. It is included in our list of the Best Single Digit Stocks.
9. Rocket Pharmaceuticals, Inc. (NASDAQ:RCKT)
Share Price: $3.06
Number of Hedge Fund Holders: 40
With significant hedge fund interest and a share price under $10, Rocket Pharmaceuticals, Inc. (NASDAQ:RCKT) secures a spot on our list of the 11 Best Single Digit Stocks to Buy According to Hedge Funds.
On August 8, 2025, Jefferies increased its price target on Rocket Pharmaceuticals, Inc. (NASDAQ:RCKT) from $2.50 to $3.00, maintaining a ‘Hold’ rating. The price revision is driven by multiple potential catalysts through 2026, including the anticipated FDA decision on approving RP-A501, the company’s AAV9-based gene therapy for Danon heart disease. This potential breakthrough could unlock a market opportunity for RCKT that exceeds $500 million.
Furthermore, the analyst also highlighted the planned resubmission of a Biologics License Application for Kresladi, a lentiviral therapy for LAD-I, by the end of 2025. This potential opportunity is valued at over $100 million if monetized. At the same time, ongoing progress in gene therapies for inherited cardiomyopathies, including PKP2 and BAG3 programs, holds the potential to drive further growth. Despite the positives, the analyst views the company’s rapid cash burn as a concern, which drives the ‘Hold’ rating.
Rocket Pharmaceuticals, Inc. (NASDAQ:RCKT), based in the U.S., develops gene therapies for rare and life-threatening diseases. It is included in our list of the Best Single Digit Stocks.