On February 7, Richard Bernstein, CEO of Richard Bernstein Advisors, joined ‘The Exchange’ on CNBC to discuss the state of equity markets, assessing which stocks are growing fast and trading cheaply. Bernstein particularly highlighted a significant and healthy broadening of the market that has been occurring since late October 2025.
He attributed this shift to the unexpected strength of the overall economy and noted that nominal GDP reached over 8% last quarter. Bernstein emphasized that, excluding the immediate post-pandemic period, the US has not seen a nominal GDP quarter exceeding 8% since 2006. In light of such powerful growth, he finds the previous narrowness of the market (where only a few stocks led the way) to be mind-boggling.
Talking about the MAG7 stocks, Bernstein declined to pick individual winners and explained that his firm focuses strictly on macro trends rather than micro-level comparisons. He asserted that while the MAG7 are fine companies, they are not unique in their growth profiles. He posed a rhetorical question to investors, asking why one would pay 40x earnings for 20% growth in a famous tech name when they can find many companies globally offering the same 20% growth for only 20x earnings.
That being said, we’re here with a list of the 11 most promising low-cost stocks to buy now.
Our Methodology
We sifted through the Finviz stock screener to compile a list of promising, low-cost stocks that had share prices between $10 and $30. We then selected 11 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q3 2025.
Note: All data was sourced on February 13.
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).
11 Most Promising Low-Cost Stocks to Buy Now
11. Roivant Sciences Ltd. (NASDAQ:ROIV)
Number of Hedge Fund Holders: 54
Roivant Sciences Ltd. (NASDAQ:ROIV) is one of the most promising low-cost stocks to buy now. On February 10, Citi raised its price target for Roivant Sciences to $35 from $26 while maintaining a Buy rating. The firm cited encouraging Phase 2 data for brepocitinib in cutaneous sarcoidosis, an inflammatory condition affecting the skin. The drug’s growth potential prompted the firm to integrate revenue projections into its financial model.
H.C. Wainwright also raised the firm’s price target on Roivant Sciences to $33 from $26 and kept a Buy rating. The firm characterized the Phase 2 data for brepocitinib in cutaneous sarcoidosis reported last week as impressive and added this indication to its valuation model.
A day before, Bank of America raised the firm’s price target on Roivant Sciences Ltd. (NASDAQ:ROIV) to $26 from $22 with a Neutral rating. The firm noted that the FQ3 2026 results were in line and highlighted the positive Phase 2 topline results of brepocitinib in cutaneous sarcoidosis, with the higher target reflecting an increased sales forecast for brepocitinib based on these findings.
Roivant Sciences Ltd. (NASDAQ:ROIV) is a clinical-stage biopharmaceutical company that discovers, develops, and commercializes medicines and technologies.
10. News Corporation (NASDAQ:NWSA)
Number of Hedge Fund Holders: 55
News Corporation (NASDAQ:NWSA) is one of the most promising low-cost stocks to buy now. On February 9, Citi lowered its price target on News Corporation to $39 from $40 and kept a Buy rating. Earlier on February 6, Morgan Stanley lowered its price target on the stock to $32.40 from $38 while maintaining an Overweight rating. Following the company’s first-half FY 2026 results, the firm updated its estimates but noted there is no change to its fundamental positive thesis.
NWSA recently released its FQ2 2026 earnings report, reporting a 6% revenue increase to $2.4 billion and a 9% expansion in total segment EBITDA to $521 million. While net income from continuing operations fell 21% to $242 million, driven by an absence of a one-time $87 million gain from the prior year; adjusted EPS rose to $0.40, and profitability margins improved to 22.1%.
Performance was led by the Dow Jones and Digital Real Estate segments, with both segments witnessing double-digit profit growth. This included record digital advertising revenue of $87 million at Dow Jones and a 10% revenue increase at Realtor.com. Conversely, the News Media segment saw flat revenues and a 5% decline in EBITDA due to a challenging print advertising market. Book Publishing grew 6% to $633 million but was impacted by a $16 million one-time inventory charge at HarperCollins.
News Corporation (NASDAQ:NWSA) is a media and information services company that creates and distributes authoritative and engaging content, and other products and services. It has five segments: Digital Real Estate Services, Dow Jones, Book Publishing, News Media, and Other.
