12 Best Under-the-Radar Stocks to Buy According to Hedge Funds

1. Eaton Corporation plc (NYSE:ETN)

Eaton Corporation plc (NYSE:ETN) is one of the best under-the-radar stocks to buy according to hedge funds. On February 4, RBC Capital raised its price target on Eaton Corporation plc (NYSE:ETN) from $399 to $407 and maintained its Outperform rating on the stock.

RBC Capital said the company’s Q4 results were stronger than expected but the management provided conservative guidance for 2026. The research firm noted that strong orders and backlog momentum suggest that Eaton Corporation plc’s (NYSE:ETN) 2026 guidance has room for future “beat-and-raise” potential.

Also on February 4, Bernstein increased its price target on Eaton Corporation plc (NYSE:ETN) from $395 to $428 while keeping an Outperform rating. This update comes after the company’s Q4 results, which came in line with market expectations. However, guidance for 2026 and the first quarter was lower than what analysts had forecasted.

Despite this, Bernstein pointed out that the stock reacted minimally because the weaker guidance had already been “well-telegraphed” to investors. The research firm remains positive about Eaton Corporation plc’s (NYSE:ETN) future, pointing to positive factors like “growth broadening” and the company being “on the verge of ramping capacity to unlock it.”

Bernstein also expects to see “a meaningfully higher margin profile” and an upcoming “portfolio transformation,” which it believes could help improve Eaton Corporation plc’s (NYSE:ETN) long-term earnings potential.

Eaton Corporation plc (NYSE:ETN) is an intelligent power management company that manufactures a range of products for the data center, utility, industrial, commercial, machine building, residential, aerospace, and mobility markets.

While we acknowledge the potential of ETN as an investment, 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 ETN and that has a 100x upside potential, check out our report about the cheapest AI stock.

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Disclosure: None.