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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Our 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.
8. Fortrea Holdings Inc. (NASDAQ:FTRE)
Share Price: $7.67
Number of Hedge Fund Holders: 41
Fortrea Holdings Inc. (NASDAQ:FTRE) is included in our list of the 11 Best Single Digit Stocks to Buy According to Hedge Funds.
On August 8, 2025, Jefferies raised its price target on Fortrea Holdings Inc. (NASDAQ:FTRE) from $5.00 to $7.00, maintaining a ‘Hold’ rating. The price revision follows the company’s strong Q2 results, where revenue, EBITDA margin, and EPS all surpassed expectations.
However, bookings remained below expectations by over $100 million, driven by biotech client losses during the company’s leadership transition. The investment firm also pointed out higher pass-throughs during the quarter, which resulted in revenue gains, and expects moderate results in the second half.
This was followed by Truist Financial’s ‘Hold’ rating on Fortrea Holdings Inc. (NASDAQ:FTRE) on August 13.
Fortrea Holdings Inc. (NASDAQ:FTRE) serves pharmaceutical, biotechnology, and medical device sectors, providing them with its global clinical research services. It is included in our list of the Best Single Digit Stocks.
7. Geron Corporation (NASDAQ:GERN)
Share Price: $1.45
Number of Hedge Fund Holders: 41
With significant hedge fund interest and a share price under $10, Geron Corporation (NASDAQ:GERN) secures a spot on our list of the 11 Best Single Digit Stocks to Buy According to Hedge Funds.
Geron Corporation (NASDAQ:GERN) announced the grant of stock options on August 8, 2025. The options to purchase 11 million shares are offered to newly appointed President and CEO Harout Semerjian at an exercise price of $1.30, the company’s closing share price on August 8. Furthermore, the options incentivize long-term alignment with a 10-year term, along with structured vesting over four years.
This development takes place amid mixed Wall Street sentiment. On August 7, Scotiabank reiterated its ‘Hold’ rating on Geron Corporation (NASDAQ:GERN) with a $1.50 price target. Meanwhile, Barclays also maintained its ‘Buy’ rating, but with a higher $4.00 target. Previously, H.C. Wainwright maintained a ‘Hold’ rating on the company on July 29. The analyst sentiment appears divided around the company’s short-term outlook, awaiting the commercial rollout of its telomerase inhibitor RYTELO and the potential strategic direction under Semerjian’s leadership.
Geron Corporation (NASDAQ:GERN), a biopharmaceutical company, focuses on developing oncology therapeutics for transfusion-dependent anemia. It is included in our list of the Best Single Digit Stocks.
6. Amylyx Pharmaceuticals, Inc. (NASDAQ:AMLX)
Share Price: $8.24
Number of Hedge Fund Holders: 42
Amylyx Pharmaceuticals, Inc. (NASDAQ:AMLX) is included in our list of the 11 Best Single Digit Stocks to Buy According to Hedge Funds.
On August 8, 2025, H.C. Wainwright reaffirmed its ‘Buy’ rating on Amylyx Pharmaceuticals, Inc. (NASDAQ:AMLX) with a $16 price target. The near completion of Phase 3 recruitment for avexitide in post-bariatric hypoglycemia (PBH) boosted analyst sentiment. Previously, the Phase 2b results showed that the drug was shown to reduce hypoglycemic events significantly. Furthermore, the drug holds the potential to be priced at around $144,000 per patient annually, given its orphan drug and breakthrough therapy designations. Following the expected launch in 2027, the analyst expects sales to jump from $10 million in 2028 to $320 million by 2034.
Meanwhile, on August 7, Leerink Partners also reiterated its ‘Buy’ rating on Amylyx Pharmaceuticals, Inc. (NASDAQ:AMLX), preceded by TD Cowen’s ‘Buy’ rating on July 23.
Amylyx Pharmaceuticals, Inc. (NASDAQ:AMLX) develops treatments for neurodegenerative and endocrine diseases. It is included in our list of the Best Single Digit Stocks.
5. 89bio, Inc. (NASDAQ:ETNB)
Share Price: $9.08
Number of Hedge Fund Holders: 43
With significant hedge fund interest and a share price under $10, 89bio, Inc. (NASDAQ:ETNB) secures a spot on our list of the 11 Best Single Digit Stocks to Buy According to Hedge Funds.
On August 7, 2025, 89bio, Inc. (NASDAQ:ETNB) reported its Q2 2025 results. The company highlighted steady progress across three global Phase 3 trials for pegozafermin, a drug that aims to treat severe metabolic issues. ETNB expects to release the main results for the ENTRUST trial in severe hypertriglyceridemia (very high blood triglyceride levels) by Q1 2026; meanwhile, the company expects to deliver histology results for the ENLIGHTEN-Fibrosis and ENLIGHTEN-Cirrhosis MASH studies by 1H 2027 and 2028, respectively. Its development programs and a commercial-scale production facility build-out are supported well by its cash and marketable securities balance of $561.2 million as of the quarter-end.
Meanwhile, analyst sentiment remains mixed following the results. Leerink Partners, on August 7, and Citi, on August 8, kept their ‘Buy’ ratings on 89bio, Inc. (NASDAQ:ETNB) with $37 and $11 price targets, respectively. At the same time, RBC Capital maintained its ‘Hold’ rating on August 8 with an $11 target.
89bio, Inc. (NASDAQ:ETNB), a biopharmaceutical company, treats liver and cardiometabolic diseases. It is included in our list of the Best Single Digit Stocks.
4. Patterson-UTI Energy, Inc. (NASDAQ:PTEN)
Share Price: $5.52
Number of Hedge Fund Holders: 45
Patterson-UTI Energy, Inc. (NASDAQ:PTEN) is included in our list of the 11 Best Single Digit Stocks to Buy According to Hedge Funds.
On July 25, 2025, Stifel reduced its price target on Patterson-UTI Energy, Inc. (NASDAQ:PTEN) from $12 to $10, maintaining a ‘Buy’ rating. The company’s positive Q3 guidance, alongside in-line Q2 performance, boosted analyst sentiment, supported by the resilience of the company’s high-quality equipment despite industry headwinds. However, the investment firm’s revised valuation through sum-of-the-parts analysis, along with ongoing uncertainty, prompted its reduction of 2026 forecast.
Meanwhile, on July 29, Barclays trimmed its price target on Patterson-UTI Energy, Inc. (NASDAQ:PTEN) from $8 to $7, maintaining an ‘Overweight’ rating. The investment firm noted softening activity and pricing pressures in the North American market, which will impact the company’s Q3 performance.
Patterson-UTI Energy, Inc. (NASDAQ:PTEN) offers drilling and completion services to oil and natural gas exploration and production companies globally. It is included in our list of the Best Single Digit Stocks.
3. Gossamer Bio, Inc. (NASDAQ:GOSS)
Share Price: $1.92
Number of Hedge Fund Holders: 45
With significant hedge fund interest and a share price under $10, Gossamer Bio, Inc. (NASDAQ:GOSS) secures a spot on our list of the 11 Best Single Digit Stocks to Buy According to Hedge Funds.
On August 7, 2025, H.C. Wainwright reiterated its ‘Buy’ rating on Gossamer Bio, Inc. (NASDAQ:GOSS) with a $10 price target. The investment firm highlighted the strong potential of seralutinib, which is an inhaled tyrosine kinase inhibitor that targets vascular remodeling rather than traditional vasodilation.
Furthermore, the analyst noted that the company is well-positioned as its Phase 3 PROSERA trial is fully enrolled, expecting topline results in February 2026. Meanwhile, the SERABATA trial in PH-ILD (pulmonary hypertension associated with interstitial lung disease) is also progressing. At the same time, the analyst applauded the company’s $212.9 million cash position and its strategic partnership with Chiesi, which are boosting investor confidence.
On the previous day, Leerink Partners also maintained its ‘Buy’ rating on Gossamer Bio, Inc. (NASDAQ:GOSS) with a $6 target.
Gossamer Bio, Inc. (NASDAQ:GOSS), a clinical-stage biopharmaceutical company, aims to commercialize seralutinib for pulmonary arterial and interstitial lung disease-related hypertension. It is included in our list of the Best Single Digit Stocks.
2. Vestis Corporation (NYSE:VSTS)
Share Price: $4.56
Number of Hedge Fund Holders: 48
Vestis Corporation (NYSE:VSTS) is included in our list of the 11 Best Single Digit Stocks to Buy According to Hedge Funds.
On July 31, 2025, William Blair reiterated its ‘Hold’ rating on Vestis Corporation (NYSE:VSTS), following the company’s fiscal Q3 results. While the overall quarterly performance was in line, its top-line revenue, which was at the low end of guidance, prompted a cautious stance. The investment firm also highlighted the company’s margins, which were impacted by significant adjustments. William Blair also cited uncertainty stemming from new management, the absence of Q4 guidance, and a net leverage ratio that is close to its credit agreement limit.
Following William Blair’s commentary, Barclays and JPMorgan reaffirmed their ‘Sell’ ratings on Vestis Corporation (NYSE:VSTS) on August 7, with price targets of $5.00 and $5.50, respectively.
Operating across the U.S. and Canada, Vestis Corporation (NYSE:VSTS) offers uniform rentals and workplace supplies. It is included in our list of the Best Single Digit Stocks.
1. Dun & Bradstreet Holdings, Inc. (NYSE:DNB)
Share Price: $9.09
Number of Hedge Fund Holders: 49
With significant hedge fund interest and a share price under $10, Dun & Bradstreet Holdings, Inc. (NYSE:DNB) secures a spot on our list of the 11 Best Single Digit Stocks to Buy According to Hedge Funds.
On August 11, 2025, Dun & Bradstreet Holdings, Inc. (NYSE:DNB) filed its Form 10-Q for Q2 ended June 30, 2025. The company’s revenue climbed from $576.2 million in Q2 2024 to $585.2 million, driven by continued demand for its data and analytics solutions. However, the company noted an increase in its operating costs from $539.1 million a year earlier to $572.4 million.
Meanwhile, Dun & Bradstreet Holdings recorded a drop in EBITDA from $37.1 million to $12.8 million, widening its net loss to $33.7 million compared to $16.4 million last year. Yet the company closed the quarter with cash reserves of $278.7 million, representing an increase from $205.9 million at the end of 2024.
Dun & Bradstreet Holdings, Inc. (NYSE:DNB), which is based in the U.S., delivers business-to-business data and analytics solutions across the globe. It is included in our list of the Best Single Digit Stocks.
While we acknowledge the potential of DNB 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 DNB and that has 100x upside potential, check out our report about this cheapest AI stock.
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