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.
9. Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE)
Number of Hedge Fund Holders: 55
Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE) is one of the most promising low-cost stocks to buy now. On February 3, Ultragenyx Pharmaceutical announced positive long-term data for UX111, which is an investigational AAV9 gene therapy for Sanfilippo syndrome Type A (MPS IIIA). This demonstrates sustained reductions in cerebrospinal fluid heparan sulfate (CSF-HS) and significant improvements in clinical function.
With up to 8.5 years of follow-up, the study showed that treated children achieved a median 63.98% reduction in CSF-HS and exhibited unprecedented separation from natural history data, specifically regarding cognitive, communication, and motor skills.
Younger patients and those with earlier-stage disease showed the most robust treatment effects, while older children retained critical functional abilities, such as verbal communication and independent ambulation, far beyond the typical age of decline seen in untreated peers. The safety profile of UX111 remains favorable and well-tolerated.
Following these encouraging results, Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE) resubmitted its BLA to the US FDA in January 2026, seeking accelerated approval for UX111. The submission includes the latest long-term functional and biomarker data to support the clinical benefit of the gene therapy across various patient ages and disease severities. The company anticipates a review period of up to six months per FDA guidelines, with a PDUFA action date expected in Q3 2026.
Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE) is a biopharmaceutical company that identifies, acquires, develops, and commercializes novel products for the treatment of rare and ultra-rare genetic diseases in North America, Latin America, Europe, the Middle East, Africa, and the Asia-Pacific.
8. Syndax Pharmaceuticals Inc. (NASDAQ:SNDX)
Number of Hedge Fund Holders: 56
Syndax Pharmaceuticals Inc. (NASDAQ:SNDX) is one of the most promising low-cost stocks to buy now. On February 3, Bank of America analyst Jason Zemansky raised the firm’s price target on Syndax to $28 from $27 and kept a Buy rating. Zemansky noted that due to the volume of pre-announcements, upcoming Q4 2025 earnings may not have the same impact as in prior years.
Earlier on January 7, Syndax Pharmaceuticals partnered with the World Orphan Drug Alliance to launch a Managed Access Program for Revuforj (revumenib), its first-in-class menin inhibitor. This initiative will provide a pathway for physicians to prescribe the medication to patients in regions where it is not yet commercially available, including parts of Eurasia, Central and Southeast Europe, the Middle East, Israel, Turkey, Latin America, and Africa. The program is designed to operate within local regulatory frameworks and requires secured funding for patients with rare and life-threatening blood cancers.
In the US, Revuforj is already FDA-approved for treating adult and pediatric patients with relapsed or refractory acute leukemia involving a KMT2A translocation or NPM1 mutation. These conditions are typically associated with a poor prognosis and limited treatment options. The collaboration aims not only to bridge the current access gap for innovative oncology treatments but also to allow international physicians to gain firsthand clinical experience with the drug.
Syndax Pharmaceuticals Inc. (NASDAQ:SNDX) is a commercial-stage biopharmaceutical company that develops therapies for the treatment of cancer.
7. Toast Inc. (NYSE:TOST)
Number of Hedge Fund Holders: 56
Toast Inc. (NYSE:TOST) is one of the most promising low-cost stocks to buy now. On January 20, Truist lowered the price target on Toast to $42 from $43 while keeping a Buy rating. This sentiment was posted as part of the firm’s broader FinTech sector preview for Q4 2025 earnings.
While the firm anticipates solid quarterly results, it noted that a difficult year-over-year comparison could limit volume-driven beats. Looking ahead to 2026, Truist remains optimistic about the sector’s recovery but suggested that some management teams might provide conservative initial guidance to reset market expectations.
On the same day, Evercore ISI upgraded Toast Inc. (NYSE:TOST) to Outperform from In Line with a $40 price target. It noted that the stock’s valuation now discounts slower near-term US additions following a 44% decline in its EV/EBITDA multiple since August. While the firm anticipates 2026 will be a transition year, it maintains a positive long-term thesis supported by field checks that confirm the company’s strong competitive position and inherent operating leverage.
Toast Inc. (NYSE:TOST) operates a cloud-based digital technology platform for the restaurant industry in the US, Ireland, India, and internationally.
6. Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH)
Number of Hedge Fund Holders: 58
Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) is one of the most promising low-cost stocks to buy now. On February 11, Stifel analyst Steven Wieczynski lowered the firm’s price target on Norwegian Cruise Line to $31 from $32 and maintained a Buy rating.
On the same day, Barclays downgraded Norwegian Cruise Line to Equal Weight from Overweight with its price target at $23 and noted a more balanced risk/reward profile at the stock’s current levels. The downgrade is primarily based on valuation, as the shares have risen 24% over the past three months. Furthermore, the firm warned that Q1 yields are expected to be weak, suggesting there is more potential downside than upside to the recently lowered market consensus.
JPMorgan analyst Matthew Boss lowered the firm’s price target on Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) to $28 from $40 with an Overweight rating. In addition to the target reduction, the firm removed Norwegian from its Analyst Focus List and lowered its Q1 net yield estimate to a level below the market consensus. Boss noted that internal research indicates an increase in promotional intensity for the company from the beginning of January through the present.
Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH), together with its subsidiaries, operates as a cruise company in North America, Europe, the Asia-Pacific, and internationally. It operates the Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises brands.
5. UniQure (NASDAQ:QURE)
Number of Hedge Fund Holders: 59
UniQure (NASDAQ:QURE) is one of the most promising low-cost stocks to buy now. On February 6, UniQure reported positive updated data from its Phase I/IIa trial of AMT-191, which is a gene therapy for Fabry disease. All 11 patients across three different dose levels showed increased enzyme activity, with the longest-treated patient maintaining these high levels for over a year. Notably, the enzyme levels were significantly above normal ranges, showing a clear relationship between the dose received and the amount of enzyme produced.
The treatment allowed 6 out of the 11 patients to stop their regular enzyme replacement therapy/ERT after meeting specific clinical criteria. Even after stopping ERT, patients maintained stable levels of lyso-Gb3, the toxic substance that typically builds up in Fabry disease. This suggests that the one-time gene therapy could potentially replace the need for lifelong, bi-weekly infusions for some patients.
While the therapy shows promise, UniQure has paused new dosing in the mid- and high-dose groups to evaluate some safety findings. Two patients in the middle dose group experienced high liver enzyme levels that were classified as dose-limiting toxicities, though both responded to steroid treatment. Other previously reported serious events in the high-dose group included chest pain and a stroke, though some were determined to be unrelated to the study drug.
UniQure (NASDAQ:QURE) develops treatments for patients suffering from rare and other devastating diseases in the US.
4. Primo Brands Corporation (NYSE:PRMB)
Number of Hedge Fund Holders: 62
Primo Brands Corporation (NYSE:PRMB) is one of the most promising low-cost stocks to buy now. On January 8, Mizuho lowered its price target on Primo Brands to $24 from $28 with an Outperform rating. This adjustment was made as part of the firm’s 2026 food producers sector outlook.
The firm expects growth in the healthy living segment to lead the market in 2026. However, Mizuho noted that increased competition has already begun to weigh on stock valuations. It noted that because of weak underlying fundamentals and ongoing macroeconomic uncertainty, there are currently limited chances for a broad recovery in company valuations across the space.
On January 5, Morgan Stanley analyst Eric Serotta lowered the firm’s price target on Primo Brands to $26 from $28 with an Overweight rating. The firm reduced its FY 2026-2027 estimates by ~3%, reflecting expectations that improvements in Primo’s direct delivery business will be weighted toward H2 2026. Serotta described the company as a show-me story, suggesting that while execution is still required, the current valuation offers an attractive risk/reward profile for investors willing to be patient.
Primo Brands Corporation (NYSE:PRMB) operates as a branded beverage company in North America. It offers solutions through water dispensers, direct delivery of refillable/reusable bottles, a pre-filled Water exchange program, and water filtration appliances, as well as operates self-service water refill stations.
3. QXO Inc. (NYSE:QXO)
Number of Hedge Fund Holders: 65
QXO Inc. (NYSE:QXO) is one of the most promising low-cost stocks to buy now. On February 11, QXO Inc. entered into a definitive agreement to acquire Kodiak Building Partners from Court Square Capital Partners for ~$2.25 billion. The deal consists of $2.0 billion in cash and 13.2 million shares, though QXO retains the right to repurchase those shares at $40 each. Expected to close early in Q2 2026, the acquisition is projected to be highly accretive to QXO’s earnings for the year and expand its addressable market to over $200 billion.
Kodiak is a major US distributor of construction supplies, including lumber, roofing, and windows, generating roughly $2.4 billion in revenue in 2025. The company maintains a strong presence in the Sun Belt and Mountain states, with 40% of its 2025 revenue coming from the high-growth markets of Florida and Texas. By integrating Kodiak’s structural and exterior product lines, QXO aims to increase its market share among large homebuilders and support the full lifecycle of major development projects.
QXO Chairman and CEO Brad Jacobs noted that the acquisition will drive margin expansion through scaled procurement, AI-powered inventory management, and other tech-enabled efficiencies. The company remains active in its pursuit of further acquisitions, supported by recent equity financings from Apollo and Temasek. This move aligns with QXO’s long-term goal of reaching $50 billion in annual revenue within the next decade through a combination of organic growth and strategic mergers.
QXO Inc. (NYSE:QXO) distributes roofing, waterproofing, and other building products in the US. It serves contractors, distributors, and suppliers to streamline operations.
2. DraftKings Inc. (NASDAQ:DKNG)
Number of Hedge Fund Holders: 68
DraftKings Inc. (NASDAQ:DKNG) is one of the most promising low-cost stocks to buy now. On February 3, Canaccord Genuity analyst Michael Graham lowered the firm’s price target on DraftKings to $50 from $54 with a Buy rating.
The adjustment followed a sell-off in digital gambling stocks driven by investor concerns over state reports showing decelerating handle trends in December and January. Despite these trends, the firm noted that recent data points to Q4 2025 results remaining broadly in line with expectations, as stronger hold and a rebound in iGaming growth helped offset the weaker handle.
The firm believes that the current environment creates a favorable setup for DraftKings, as lowered market expectations and reset valuations provide an attractive entry point for investors. While acknowledging short-term volatility, analysts suggested that the fundamental outlook remains positive for those willing to hold the shares through the current fluctuations.
On January 30, Rothschild & Co Redburn lowered its price target on DraftKings Inc. (NASDAQ:DKNG) to $35 from $37 with a Neutral rating. The firm reduced its estimates across the gambling sector and noted that Q4 state data indicates a likely revenue miss for operators. While the firm expects revenue growth to moderate in 2026, it believes that the World Cup will provide a necessary boost to online sports betting growth.
DraftKings Inc. (NASDAQ:DKNG) operates as a digital sports entertainment and gaming company in the US and internationally. It provides online sports betting, daily fantasy sports, media, digital lottery courier, and other products.
1. Pfizer Inc. (NYSE:PFE)
Number of Hedge Fund Holders: 84
Pfizer Inc. (NYSE:PFE) is one of the most promising low-cost stocks to buy now. On February 10, Bernstein maintained its Market Perform rating and $30 price target for Pfizer following a Q4 2o25 earnings report that exceeded expectations with $17.6 billion in revenue and $0.66 EPS. Despite strong financial results and a raised 2025 EPS guidance of $3.22, the firm remains cautious as Pfizer navigates a transitional period.
Bernstein particularly highlighted that the company made some big bets, positioning 2026 as a critical year of waiting to determine if these strategic choices will ultimately yield the intended results. Throughout 2026, the market will closely monitor Pfizer’s clinical development progress, specifically focusing on key decisions regarding dosing, frequency, and trial design.
While Pfizer continues to outperform consensus estimates and manage declining COVID-related sales, its long-term valuation remains tied to how these significant investments and clinical milestones play out over the coming year.
In other news, the FDA granted Priority Review to Pfizer’s sBLA for HYMPAVZI (marstacimab), seeking to expand its indication to include hemophilia A or B patients aged 6 and older with inhibitors, as well as pediatric patients aged 6 to 11 without inhibitors. Currently approved in the US for patients 12 and older without inhibitors, HYMPAVZI would become the first non-factor prophylactic treatment for children aged 6 to 11 with hemophilia B if approved.
Pfizer Inc. (NYSE:PFE) discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products in the US and internationally.
While we acknowledge the potential of PFE 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 PFE and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.
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