On January 27, Matt Stucky of Northwestern Mutual appeared on CNBC’s ‘Closing Bell Overtime’ to discuss the shifting landscape of the 2026 stock market with a focus on the broadening of investor interest beyond mega-cap tech names. Tech earnings unfolded against a backdrop marked by the Russell 2000 outperforming the S&P 500 over the past several months, driven by valuations and rate cut expectations.
This shift was overdue. Between 2023 and 2025, the market was narrow and only 20% to 30% of S&P 500 constituents outperformed the aggregate index, whereas the norm is in the mid-to-upper 40s. Stucky attributed this narrowness to a monetary policy environment where high rates suppressed cyclical parts of the economy while growth was limited to infrastructure build-outs. As rates begin to decline, cyclical sectors and small-cap companies are seeing improved earnings revisions.
Stucky clarified that while he is shifting toward mid-caps, small-caps, international stocks, and investment-grade fixed income, he remains respectful of the quality and impressive earnings growth of the MAG7 names. However, he warned that current market concentration increases risk should those names face disappointment.
He posits that the next leg in the trade involves companies that use AI products designed by the tech giants. Since small and mid-cap companies are more labor-intensive than mega-cap tech, they stand to benefit more from AI-driven productivity gains. Stucky concluded that if these technologies prove to be major productivity enhancers, the earnings leverage will reside with the companies successfully deploying them.
That being said, we’re here with a list of the 12 best single digit stocks to buy according to analysts.
Our Methodology
We sifted through the Finviz stock screener to compile a list of stocks with share prices over $1 and under $10. We then selected 12 stocks that had an upside potential of over 50%. The stocks are ranked in ascending order of their upside potential. We have also added the hedge fund sentiment for each stock, as of Q3 2025, which was sourced from Insider Monkey’s database.
Note: All data was sourced on February 16.
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).
12 Best Single Digit Stocks to Buy According to Analysts
12. ACV Auctions Inc. (NYSE:ACVA)
Number of Hedge Fund Holders: 39
Average Upside Potential: 51.29%
ACV Auctions Inc. (NYSE:ACVA) is one of the best single digit stocks to buy according to analysts. On January 21, Barclays raised the firm’s price target on ACV Auctions to $8 from $7 and kept an Equal Weight rating as part of a Q4 2025 auto retail group outlook. Although the firm broadly lowered sector estimates due to pressure on auto sales units, it noted that trade checks indicate the used vehicle market currently possesses good momentum.
In Q3 2025, ACV Auctions Inc. (NYSE:ACVA) made revenue of $200 million, which represented 16% year-over-year growth, with vehicle sales increasing 10% to 218,000 units. Key growth drivers included a 70% increase in ACV Capital revenue and expanded dealer network penetration, which reached 35% for franchised rooftops. Management highlighted strong performance in emerging regions like Southern California and the Midwest, where unit growth exceeded 20%, supported by ongoing investments in AI tech and transportation margin expansion.
Despite these records, the company noted several headwinds, including dealer wholesale price depreciation and increased arbitration costs. ACV adjusted its Q4 2025 revenue guidance to $180 to $184 million to reflect a more challenging market environment and reduced exposure to high-risk segments following the bankruptcy of a former customer. For the full year 2025, the company expects revenue between $756 and $760 million.
ACV Auctions Inc. (NYSE:ACVA) provides a wholesale auction marketplace to facilitate business-to-business used vehicle sales between a selling and buying dealership.
11. Mobileye Global Inc. (NASDAQ:MBLY)
Number of Hedge Fund Holders: 43
Average Upside Potential: 52.34%
Mobileye Global Inc. (NASDAQ:MBLY) is one of the best single digit stocks to buy according to analysts. Entering 2026, Mobileye appears well-positioned, supported by new program wins and partnership expansions. The company recently highlighted its new high-volume Surround ADAS program win with a major U.S. OEM alongside progress on its robotaxi services with Volkswagen.
More recently, on February 10, Mahindra & Mahindra Ltd. selected Mobileye’s SuperVision and Surround ADAS platforms for at least six future vehicle models, with production slated to begin in 2027. This collaboration positions Mobileye as a Tier 1 supplier, integrating its EyeQ6 High system-on-chip technology to consolidate perception, driving functions, and occupant monitoring into a single electronic control unit.
The SuperVision system will use 11 cameras and optional radars powered by two EyeQ6H chips to provide point-to-point navigate-on-pilot capabilities and advanced parking. Meanwhile, the Surround ADAS system will employ five cameras and multiple radars to enable hands-off, eyes-on highway driving under specific conditions. Both platforms are designed to enhance driving comfort and safety while streamlining vehicle architecture through the consolidation of multiple control units.
India is currently the third-largest automotive market globally, seeing a rise in ADAS adoption due to consumer demand and new regulatory standards like the Bharat New Car Assessment Program. Mobileye Global Inc. (NASDAQ:MBLY) CEO noted that this program establishes a foundation for advanced solutions in a key growth market.
Mobileye Global Inc. (NASDAQ:MBLY) develops and deploys advanced driver assistance systems/ADAS and autonomous driving technologies and solutions in the US, Europe, China, and internationally. It operates through two segments: Mobileye and Moovit.
