11 Cheap Rising Stocks to Invest in Now

In this article, we will take a look at the 11 Cheap Rising Stocks to Invest in Now.

September 23 saw the major US indexes close with losses after remarks made by Federal Reserve Chairman Jerome Powell suggesting stocks are “highly valued.” After advancing for three straight sessions, the tech-heavy Nasdaq composite closed down 1%, while the S&P 500 gave back 0.6%. The Russell 2000’s small cap stocks were also hit and gave up their gains to settle 0.2% down.

When asked about the “frothy” stock market at his conference on September 23, Powell admitted that markets are already pricing in the rate path for the next six months and that equity valuations seem excessive. According to him, “some prices are elevated relative to historical levels,” with AI stocks bearing the most of the load.

With the exception of Meta, a number of major tech companies witnessed drops. Nvidia and Amazon were down around 2%, indicating a general reluctance following recent robust advances in AI-driven stocks. On the other hand, as stocks faltered, gold soared to a new high, surpassing $3,800 per ounce during intraday trading before leveling off around $3,796.

Our Methodology

To come up with our list of cheap rising stocks to invest in, we went through a variety of online publications, ETFs, and stock screeners to note down equities with more than 10% returns over the last 30 days. Moreover, these stocks have PE ratios less than 15. We also used the number of hedge fund investors to rank the stocks, as of Q2 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. PagSeguro Digital Ltd. (NYSE:PAGS)

1-Month Performance: 25.89%

P/E Ratio: 8.55

Number of Hedge Fund Holders: 27

PagSeguro Digital Ltd. (NYSE:PAGS) ranks among the best cheap rising stocks to invest in now. Morgan Stanley reaffirmed its Underweight rating on the Brazilian payment processor PagSeguro Digital Ltd. (NYSE:PAGS) on September 19, while raising its price target from $5 to $7. The increase comes as a result of Morgan Stanley’s revised earnings per share projections and a decrease in the valuation model’s discount rate from 13.6% to 13.0%.

Morgan Stanley has also raised PagSeguro Digital Ltd. (NYSE:PAGS)’s 2025 GAAP net income expectation to R$2,369 million, up from R$2,029 million previously projected.

Meanwhile, PagSeguro Digital Ltd. (NYSE:PAGS)’s GAAP net income is expected to be R$2,476 million in 2026, up from R$2,012 million previously.

PagSeguro Digital Ltd. (NYSE:PAGS) is a Brazilian financial technology company that offers a fully integrated digital banking and payment platform.