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.
10. Sally Beauty Holdings, Inc. (NYSE:SBH)
1-Month Performance: 17.68%
P/E Ratio: 8.36
Number of Hedge Fund Holders: 30
Sally Beauty Holdings, Inc. (NYSE:SBH) ranks among the best cheap rising stocks to invest in now. On September 15, Canaccord Genuity maintained its Buy rating on Sally Beauty Holdings, Inc. (NYSE:SBH) and increased its price target from $15 to $19. The boost comes after Canaccord analysts held in-person meetings with Sally Beauty’s management team, which includes VP of Corporate Strategy and IR Jeff Harkins, CFO Marlo Cromier, and CEO Denise Paulonis.
According to Canaccord, Sally Beauty Holdings, Inc. (NYSE:SBH) has made strides in achieving its three main goals: increasing client centricity, fostering innovation and novelty, and boosting operational capabilities and efficiency.
The firm also identified several avenues for Sally Beauty’s growth, including new store formats like Happy Beauty Co., opportunities for distribution to aestheticians, and obtaining more professional distribution.
Sally Beauty Holdings, Inc. (NYSE:SBH) is a global specialty retailer that focuses on professional beauty products. It operates in two segments: Beauty Systems Group (BSG) and Sally Beauty Supply.
9. Upwork Inc. (NASDAQ:UPWK)
1-Month Performance: 35.70%
P/E Ratio: 11.53
Number of Hedge Fund Holders: 32
Upwork Inc. (NASDAQ:UPWK) ranks among the best cheap rising stocks to invest in now. With a $20 price target, JMP Securities reaffirmed its Market Outperform rating on Upwork Inc. (NASDAQ:UPWK) on September 12. The firm maintained its optimistic assessment of the freelance platform based on a number of continuous drivers of revenue growth and Gross Services Value (GSV) that are unaffected by macroeconomic factors.
JMP Securities lists several growth factors for the company, including Upwork’s updated variable freelancer fee structure, a redesigned enterprise approach, and an increase in AI-related job opportunities on the platform.
The firm also cites continuous momentum in advertising and monetization technologies, as well as increased acceptance of Upwork’s Business Plus tier as catalysts for growth.
Upwork Inc. (NASDAQ:UPWK) is a communication services company that runs a global freelancing platform, connecting businesses with individuals and agencies.
8. Vale S.A. (NYSE:VALE)
1-Month Performance: 10.70%
P/E Ratio: 9.03
Number of Hedge Fund Holders: 32
Vale S.A. (NYSE:VALE) ranks among the best cheap rising stocks to invest in now. On September 16, Scotiabank raised Vale S.A. (NYSE:VALE) from Sector Perform to Sector Outperform, with a $14 price target. The upgrade comes after Scotiabank recently visited Vale’s Brucutu and Capanema mines, where presentations and conversations with management revealed the company’s long-term strategy.
Scotiabank emphasized Vale’s capacity to expand its iron ore sales besides China while retaining excellent pricing conditions through improved product flexibility, an approach that is already increasing the company’s price realization.
Although the bank is still hesitant about the prospects for green steel in the immediate future, it believes Vale S.A. (NYSE:VALE) has the potential for profit when the decarbonization movement picks up speed.
Vale S.A. (NYSE:VALE), based in Rio de Janeiro, Brazil, and its subsidiaries produce and sell iron ore and iron ore pellets used as raw materials in steelmaking in Brazil and abroad.
7. APA Corporation (NASDAQ:APA)
1-Month Performance: 13.81%
P/E Ratio: 7.88
Number of Hedge Fund Holders: 33
APA Corporation (NASDAQ:APA) ranks among the best cheap rising stocks to invest in now. On September 12, Benchmark reaffirmed its $33 price target and Buy rating on APA Corporation (NASDAQ:APA), pointing to notable advancements in the company’s operations. According to the firm, APA’s performance has improved since issues that had previously hampered it last year have either stabilized or reversed.
Notably, over the past three months, APA Corporation (NASDAQ:APA) shares have increased significantly, surpassing the energy sector benchmarks XLE and XOP.
The company’s return-of-capital initiatives, exploration activities, Egyptian gas production growth, and operational expenditure savings are some of the elements that Benchmark believes could function as catalysts for APA’s ongoing expansion.
APA Corporation (NASDAQ:APA) is an independent energy company headquartered in Houston, Texas, that explores and produces natural gas, crude oil, and natural gas liquids.
6. Vornado Realty Trust (NYSE:VNO)
1-Month Performance: 15.26%
P/E Ratio: 10.32
Number of Hedge Fund Holders: 35
Vornado Realty Trust (NYSE:VNO) ranks among the best cheap rising stocks to invest in now. On September 12, Truist Securities maintained its Hold rating on Vornado Realty Trust (NYSE:VNO), and increased its price target from $38 to $40. The price target hike reflects improving leasing trends in New York City, as well as the positive impact of reduced interest rates.
Truist Securities expects Vornado’s portfolio occupancy to increase due to solid leasing activity, manageable near-term lease expirations, and what it refers to as “very strong rent spreads.”
While Vornado’s cash flow has been declining for a while, with negative funds available for distribution (FAD) reported in the second quarter of 2025,Truist Securities pointed out that future earnings growth might spike.
Vornado Realty Trust (NYSE:VNO) is a real estate investment trust that owns and develops high-quality office and retail assets in New York City, Chicago, and San Francisco.
5. Western Alliance Bancorporation (NYSE:WAL)
1-Month Performance: 11.70%
P/E Ratio: 11.96
Number of Hedge Fund Holders: 36
Western Alliance Bancorporation (NYSE:WAL) ranks among the best cheap rising stocks to invest in now. On September 15, Keefe, Bruyette & Woods reaffirmed its $95 price target and Outperform rating on Western Alliance Bancorporation (NYSE:WAL). The bank recently announced a $300 million share buyback program, which represents about 3% of its market market cap. KBW sees the buyback as “an opportunistic tool” that may be used during times of market instability.
The firm made clear that Western Alliance’s primary capital allocation strategy remains organic expansion, even with the buyback authorization. The bank consistently prioritizes growing its core business activities over returning capital to shareholders.
Western Alliance Bancorporation (NYSE:WAL), according to KBW, is “a good vehicle for investors to gain exposure to among banks that benefit from lower rates,” suggesting that the bank is in a strong position as interest rates continue to decline.
Western Alliance Bancorporation (NYSE:WAL) is a bank holding company for Western Alliance Bank, which primarily operates in Arizona, California, and Nevada. The company’s operations are separated into three categories: commercial, consumer-related, and corporate/other.
4. Weatherford International plc (NASDAQ:WFRD)
1-Month Performance: 11.20%
P/E Ratio: 9.80
Number of Hedge Fund Holders: 41
Weatherford International plc (NASDAQ:WFRD) ranks among the best cheap rising stocks to invest in now. Weatherford International plc (NASDAQ:WFRD) announced on September 16 that it had signed a $147 million, three-year contract with Petróleo Brasileiro S.A. (Petrobras) to supply tubular running services in Brazil.
Awarded after an open tender process, the contract will deploy a number of Weatherford technologies, including the Vero auto make-up and evaluation system, Multi Slip System, and the Flush Joint Elevator.
With features like being capable of running mixed casing strings without changing slips and removing the requirement for lift plugs in tubular handling, these technologies are intended to improve the safety and efficiency drilling operations.
Weatherford International plc (NASDAQ:WFRD) offers services and equipment to the natural gas and oil exploration and production industries. The company operates in three segments: Drilling and Evaluation (DRE), Well Construction and Completion (WCC), and Production and Intervention (PRI).
3. Brighthouse Financial, Inc. (NASDAQ:BHF)
1-Month Performance: 24.06%
P/E Ratio: 6.22
Number of Hedge Fund Holders: 45
Brighthouse Financial, Inc. (NASDAQ:BHF) ranks among the best cheap rising stocks to invest in now. In response to rumors of a possible acquisition, Raymond James reaffirmed its Strong Buy rating and $72 price target on Brighthouse Financial, Inc. (NASDAQ:BHF) on September 19. According to Bloomberg, discussions are underway for Aquarian and other investors to acquire Brighthouse Financial, Inc. (NASDAQ:BHF) for $65-70 per share, which could value the company’s equity at close to $4 billion.
The report claims that Aquarian is in talks with the Qatar Investment Authority and Mubadala Capital regarding the investment. These partners can provide at least half of the equity capital required for the deal.
Meanwhile, a recent report by The Financial Times states that Aquarian is raising about $3 billion in equity for the transaction. According to FT, Aquarian is raising its debt, which would complement Brighthouse Financial’s current financial structure.
Brighthouse Financial, Inc. (NASDAQ:BHF) is a financial services company that offers annuities and life insurance. Its Life division provides term, universal, whole, and variable life insurance to policyholders.
2. California Resources Corporation (NYSE:CRC)
1-Month Performance: 14.37%
P/E Ratio: 7.51
Number of Hedge Fund Holders: 44
California Resources Corporation (NYSE:CRC) ranks among the best cheap rising stocks to invest in now. UBS boosted its price target for California Resources Corporation (NYSE:CRC) to $70 from $63 on September 16, retaining a Buy rating on the company’s shares. The upgrade comes after California Resources Corporation (NYSE:CRC) acquired BRY, which UBS said was a solid move showing the company’s dedication to upstream activities in California.
The purchase follows California Resources’ acquisition of Aera last year, which made CRC “the natural consolidator” for BRY’s assets by doubling the company’s upstream reach and creating substantial synergies.
In addition to giving California Resources Corporation (NYSE:CRC)’s production and asset base significant size, UBS sees the BRY transaction as accretive across key metrics.
California Resources Corporation (NYSE:CRC) is an independent energy and carbon management company dedicated to energy transition.
1. UnitedHealth Group Incorporated (NYSE:UNH)
1-Month Performance: 10.99%
P/E Ratio: 14.58
Number of Hedge Fund Holders: 159
UnitedHealth Group Incorporated (NYSE:UNH) ranks among the best cheap rising stocks to invest in now. UBS maintained its $378 price target and Buy rating on UnitedHealth Group Incorporated (NYSE:UNH) on September 19 as the healthcare giant manages developments in its Medicare Advantage division. UnitedHealth made no adjustments to its second-half cost trends projections across core business lines, with Medicaid and Commercial segments staying in line with earlier statements.
With almost 200,000 full market departures, the company disclosed plans to withdraw from Medicare Advantage plans that impact 600,000 people in PPO packages. The remaining 400,000 members’ retention expectations have been decreased by management, implying that the 600,000 affected members might be a total loss for the insurance segment.
According to UnitedHealth Group Incorporated (NYSE:UNH), its decision to pull commissions on specific Medicare Advantage plans mainly impacted PPO plans, for which the company has no expansion ambitions.
UnitedHealth Group Incorporated (NYSE:UNH) is a renowned US multinational corporation that provides managed healthcare and insurance services. The company operates through four main segments: UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx.
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