On March 6, Reuters reported that US and European stock markets ended a volatile week with losses of over 1% as rising geopolitical tensions pushed oil prices higher. The US-Israeli war against Iran drove oil futures to levels not seen since 2023, which added to uncertainty in global markets.
At the same time, an unexpected drop in US jobs in February raised hopes that the Federal Reserve could cut interest rates. However, this did little to ease investor concerns about economic weakness. A new US government report showed that nonfarm payrolls declined by 92,000 jobs in February. This was far worse than the expectations of economists, who predicted an increase of about 59,000 jobs.
Market concerns grew further after Qatar’s energy minister told the Financial Times that Qatar expects all Gulf energy producers to shut down exports within weeks, which could drive oil prices as high as $150 per barrel.
Sahak Manuelian, managing director for global equities trading at Wedbush Securities in Pasadena, California, said that “stocks have been under pressure all day on the heels of the Qatar comments and the weak February jobs report.”
Jim Baird, chief investment officer at Plante Moran Financial Advisors, also pointed to “negative momentum in stocks in recent days on the geopolitical environment and concerns about a resurgence in inflation and rising oil prices.”
With this background in mind, let’s take a look at the 12 best under-the-radar stocks to buy according to hedge funds.
Stocks
Our Methodology
To compile our list of the 12 best under-the-radar stocks to buy according to hedge funds, we looked for “hidden gems” or “under-the-radar” stocks. We reviewed various online resources and financial media reports to compile a list of the best under-the-radar stocks. Next, we focused on the top 12 stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q4 2025 database of 1041 elite hedge funds. Finally, the 12 best under-the-radar stocks to buy were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q4 2025.
Why do we care about what hedge funds do? 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 Under-the-Radar Stocks to Buy According to Hedge Funds
12. Harmonic Inc. (NASDAQ:HLIT)
Harmonic Inc. (NASDAQ:HLIT) is one of the best under-the-radar stocks to buy according to hedge funds. On February 19, Needham increased its price target on Harmonic Inc. (NASDAQ:HLIT) from $15 to $17 and kept its Buy rating.
Needham pointed to the company’s broadband business unit, which exceeded consensus revenue estimates by about 8%. This segment also recorded its third straight quarter of growth. In the fourth quarter, Harmonic Inc. (NASDAQ:HLIT) reported a book-to-bill ratio of 3.5 times, doubling its backlog. Needham also noted that the company’s management was openly conservative when providing its fiscal 2026 guidance. The firm believes the guidance is easily beatable. Needham expects beats and raises through 2026.
On the same day, Rosenblatt also raised its price target on Harmonic Inc. (NASDAQ:HLIT) from $14 to $16 and kept its Buy rating. The firm pointed to the company’s Q4 results as proof that earlier challenges have reversed. Rosenblatt added that the company is driving the shift toward next-generation broadband technology. The research firm believes that the key elements are in place for the stock to perform well.
Harmonic Inc. (NASDAQ:HLIT) is a leading provider of virtualized broadband and video delivery solutions. It helps media companies and service providers to deliver ultra-high-quality video streaming and broadcast services to consumers around the world.
11. Mirion Technologies, Inc. (NYSE:MIR)
Mirion Technologies, Inc. (NYSE:MIR) is one of the best under-the-radar stocks to buy according to hedge funds. On February 13, Baird lowered its price target on Mirion Technologies, Inc. (NYSE:MIR) from $30 to $29 and kept its Outperform rating on the stock.
This update came after the company reported mixed results for the fourth quarter. The research firm updated its model following the report. Baird noted that strong performance in the nuclear segment was a key highlight.
A day earlier, on February 12, Goldman Sachs also cut its price target on Mirion Technologies, Inc. (NYSE:MIR) from $33 to $29 and maintained its Buy rating on the stock. The research firm noted that Mirion Technologies, Inc. (NYSE:MIR) reported Q4 adjusted EBITDA of $77.6 million, which is an increase of 11.5% from $69.6 million in the same period in 2024. This performance was supported by strong margins in its Medical segment. Goldman Sachs noted that the company recorded orders of more than $400 million for the first time.
However, the research firm noted that the stock declined after the company reported weaker organic growth and issued guidance that suggests improved performance in the second half of 2026. Despite this, Goldman Sachs believes the outlook for the Nuclear segment is still strong and this presents a potential buying opportunity.
Mirion Technologies, Inc. (NYSE:MIR) is a global leader in radiation safety and science and medicine. The company provides radiation detection, measurement, analysis, and monitoring solutions to the nuclear, medical, defense, and research end markets.
10. Enova International, Inc. (NYSE:ENVA)
Enova International, Inc. (NYSE:ENVA) is one of the best under-the-radar stocks to buy according to hedge funds. On January 29, Maxim raised its price target on Enova International, Inc. (NYSE:ENVA) from $150 to $191 and kept a Buy rating on the stock. The research firm told investors in a research note that Enova International, Inc.’s (NYSE:ENVA) earnings beat was supported by a growth of 15% in loan originations along with solid credit quality.
Other analysts have also grown optimistic on the stock following ENVA’s robust quarter. On January 28, Citizens increased its price target on Enova International, Inc. (NYSE:ENVA) from $180 to $182 and kept an Outperform rating on the stock. The firm noted that the company continues to trade at an attractive valuation after another strong quarter. The company reported strong growth of more than 30% in originations. Enova International, Inc.’s (NYSE:ENVA) management highlighted healthy demand from both consumers and small and medium-sized businesses.
The company also reiterated that it expects meaningful growth and funding benefits from its pending acquisition of Grasshopper Bancorp, Inc., which is expected to close in the second half of 2026.
Enova International, Inc. (NYSE:ENVA) is a financial technology company that provides online financial services to non-prime consumers and businesses through a suite of market-leading products powered by analytics, machine learning algorithms, and proprietary technology.
9. Corcept Therapeutics Incorporated (NASDAQ:CORT)
Corcept Therapeutics Incorporated (NASDAQ:CORT) is one of the best under-the-radar stocks to buy according to hedge funds. On February 25, H.C. Wainwright reduced its price target on Corcept Therapeutics Incorporated (NASDAQ:CORT) from $67 to $60 and maintained its Buy rating on the stock.
The company reported Q4 2025 revenue of $202.1 million, which fell short of the consensus estimate of $254.9 million. For the full year 2025, Corcept Therapeutics Incorporated (NASDAQ:CORT) reported a revenue of $761.4 million, which was below the company’s revised guidance range of $800 million to $850 million.
Corcept Therapeutics Incorporated (NASDAQ:CORT) said that new prescriptions increased 61% year-over-year in 2025. However, this growth resulted in only a 37% increase in actual tables sold. According to the company, this gap was because of capacity constraints at its previous specialty pharmacy.
Sales of Korlym were also affected as Corcept Therapeutics Incorporated (NASDAQ:CORT) transitioned to a new specialty pharmacy, Curant Rare. The transition started in November 2025 and was completed in January 2026.
The company provided full-year 2026 revenue guidance of $900 million to $1 billion, which suggests about 25% year-over-year growth at the midpoint. H.C. Wainwright said the lower price target reflects a more cautious pricing outlook for the Korlym franchise. The firm estimates Corcept Therapeutics Incorporated’s (NASDAQ:CORT) total revenue for 2026 at around $910 million, which is near the lower end of the company’s guidance.
Corcept Therapeutics Incorporated (NASDAQ:CORT) is a commercial-stage pharmaceutical company focused on developing treatments for a wide range of serious disorders through cortisol modulation.
8. SiTime Corporation (NASDAQ:SITM)
SiTime Corporation (NASDAQ:SITM) is one of the best under-the-radar stocks to buy according to hedge funds. On February 5, Needham increased its price target on SiTime Corporation (NASDAQ:SITM) from $400 to $450 and kept its Buy rating on the stock.
The research firm noted that the company delivered another strong quarter, posting a solid beat and raise. SiTime Corporation (NASDAQ:SITM) saw strength across all segments and the overall demand environment remains solid. Needham also noted the book-to-bill ratio was above 1.5 by the end of the quarter.
On February 5, Roth Capital also raised its price target on SiTime Corporation (NASDAQ:SITM) from $350 to $450 and kept a Buy rating on the stock. Roth Capital noted that SiTime Corporation (NASDAQ:SITM) reported significant upside during the quarter, supported by strong growth in the Communications, Enterprise, and Datacenter (CED) segment. The firm also pointed out that the company expects continued strength in the CED segment, which should help offset broader seasonality.
SiTime Corporation (NASDAQ:SITM) is a leading “Precision Timing” company that is known for its semiconductor MEMS programmable solutions. Its products are designed to deliver higher performance, smaller size, lower power, and better reliability.
7. Freshworks Inc. (NASDAQ:FRSH)
Freshworks Inc. (NASDAQ:FRSH) is one of the best under-the-radar stocks to buy according to hedge funds. On February 11, Citizens lowered its price target on Freshworks Inc. (NASDAQ:FRSH) from $27 to $16 and kept its Market Outperform rating on the stock.
This update came after the company reported Q4 results, which beat market expectations with non-GAAP earnings per share of $0.14 compared to the consensus estimate of $0.12. Citizens also noted that Freshworks Inc.’s (NASDAQ:FRSH) Freddy AI annual recurring revenue reached $25 million in the quarter, up from $20 million in the previous quarter.
Also on February 11, Oppenheimer cut its price target on Freshworks Inc. (NASDAQ:FRSH) from $18 to $15 and maintained its Outperform rating on the stock. Oppenheimer said the company reported “good” Q4 results, with support from momentum across its EX business and AI products.
However, the research firm reduced its price target because of “lower peer group multiples.” Oppenheimer pointed to steady revenue growth, profit margins, and cash generation. The research firm pointed to “low multiples and strong balance sheet” and said this could support increased capital returns to shareholders.
Freshworks Inc. (NASDAQ:FRSH) provides enterprise-grade, AI-assisted business software solutions for customer and employee experiences.
6. TransMedics Group, Inc. (NASDAQ:TMDX)
TransMedics Group, Inc. (NASDAQ:TMDX) is one of the best under-the-radar stocks to buy according to hedge funds. On February 25, Baird raised its price target on TransMedics Group, Inc. (NASDAQ:TMDX) from $154 to $168 and kept its Outperform rating on the stock. Baird updated its model after the company reported fourth-quarter results that surpassed expectations and provided a 2026 outlook that was also above expectations.
On February 25, Oppenheimer also raised its price target on TransMedics Group, Inc. (NASDAQ:TMDX) from $150 to $175 and maintained an Outperform rating after the company’s quarterly results. Oppenheimer pointed out that the company continues to invest in strengthening its clinical position across heart and lung, while kidney is expected to become the next area of focus.
On the same day, Piper Sandler increased its price target on TransMedics Group, Inc. (NASDAQ:TMDX) from $140 to $160 and maintained its Overweight rating on the stock. The firm said that the company reported Q4 results that exceeded its key financial targets.
Piper Sandler noted that the company’s guidance for the year looked solid, particularly for revenue, where it believes there could still be potential upside.
TransMedics Group, Inc. (NASDAQ:TMDX) is a medical technology company that specializes in portable extracorporeal warm perfusion and assessment of donor organs for transplantation. The company has developed technologies to preserve organ quality, assess organ viability prior to transplant, and potentially increase the utilization of donor organs for the treatment of end-stage heart, lung, and liver failure.
5. Century Aluminum Company (NASDAQ:CENX)
Century Aluminum Company (NASDAQ:CENX) is one of the best under-the-radar stocks to buy according to hedge funds. On February 24, B. Riley raised its price target on Century Aluminum Company (NASDAQ:CENX) from $64 to $68 and kept its Buy rating on the stock.
The research firm said the company guided for a strong Q1, with adjusted EBITDA expected to be between $215 million and $235 million. B. Riley noted that Century Aluminum Company (NASDAQ:CENX) is positioned to generate significant EBITDA and cash flow before the initial spending begins at its new smelter project with Emirates Global Aluminium in Oklahoma.
Earlier, on February 20, BMO Capital also raised its price target on Century Aluminum Company (NASDAQ:CENX) from $52 to $61 and kept its Outperform rating. These updates came after the company reported Q4 2025 results.
Century Aluminum Company (NASDAQ:CENX) posted EBITDA of $171 million for the quarter, which came at the lower end of the company’s guidance but was mostly in line with expectations. The restart of the company’s Mt. Holly facility is expected to help improve results.
BMO Capital added that EBITDA and free cash flow are likely to improve in the first quarter of 2026 based on current spot prices. Century Aluminum Company’s (NASDAQ:CENX) Grundartangi smelter is also expected to return to near full operations by the end of July.
Century Aluminum Company (NASDAQ:CENX) is a global metals and mining company focused on bauxite, alumina, and aluminum. The company has operations in the US, Iceland, Jamaica, and the Netherlands.
4. Oscar Health, Inc. (NYSE:OSCR)
Oscar Health, Inc. (NYSE:OSCR) is one of the best under-the-radar stocks to buy according to hedge funds. On February 12, Raymond James upgraded its rating on Oscar Health, Inc. (NYSE:OSCR) from Market Perform to Outperform with a price target of $18 on the stock.
Raymond James said the stock’s valuation now looks appealing as margins across the Affordable Care Act (ACA) exchange market start to recover. The research firm noted that issues related to ACA subsidies and integrity rules appear to be largely reflected in the market, creating a more stable environment that could allow Oscar Health, Inc. (NYSE:OSCR) to modestly expand its margins in 2027.
According to Raymond James, Oscar Health, Inc. (NYSE:OSCR) is the “best house in a tough neighborhood.” The firm said the company’s weaker Q4 results reflect past challenges and the forward-looking outlook for the company is “more supportive.”
The research firm expects the company to report an EBIT margin of about 2% in 2026, with expectations for it to improve to around 4% in 2027. This improvement is expected to come from lower medical costs through repricing and better administrative efficiency as the business grows.
In other news, on February 11, UBS lowered its price target on Oscar Health, Inc. (NYSE:OSCR) from $17 to $15 and maintained its Neutral rating on the stock.
Oscar Health, Inc. (NYSE:OSCR) is an American health insurance and healthcare technology company. Through its +Oscar platform, the company offers health insurance plans to individuals and families and health technology solutions to support the healthcare industry.
3. SM Energy Company (NYSE:SM)
SM Energy Company (NYSE:SM) is one of the best under-the-radar stocks to buy according to hedge funds. On February 19, Stephens increased its price target on SM Energy Company (NYSE:SM) from $48 to $49 and maintained an Overweight rating on the stock.
According to Stephens, the company’s decision to divest 61,000 net acres and production of 38 MBoepd in the Eagle Ford region for $950 million is a positive step. This deal is expected to close in the second quarter of 2026. SM Energy Company (NYSE:SM) said it plans to use the proceeds mainly to reduce debt. The firm also noted that the company has nearly reached its $1 billion divestiture target in less than half the time it initially expected.
Separately, on February 18, Roth Capital also raised its price target on SM Energy Company (NYSE:SM) from $23 to $24 and kept its Buy rating on the stock. Roth Capital’s analyst told investors in a research note that the firm remains optimistic about SM Energy Company (NYSE:SM), pointing to its discounted valuation compared with peers and potential upside from the Austin Chalk and Uinta plays.
SM Energy Company (NYSE:SM) is an independent American energy company focused on the acquisition, exploration, development, and production of crude oil, natural gas, and natural gas liquids.
2. QXO, Inc. (NYSE:QXO)
QXO, Inc. (NYSE:QXO) is one of the best under-the-radar stocks to buy according to hedge funds. On February 20, Benchmark reiterated its Buy rating on QXO, Inc. (NYSE:QXO) with a price target of $50. This update comes after the company agreed to acquire Kodiak Building Partners.
Benchmark analyst Reuben Garner met with the company’s CEO, Brad Jacobs, at the Builders’ Show, along with several other public and private industry participants. Benchmark expects this transaction to be accretive to earnings. However, it decided to update its model for QXO, Inc. (NYSE:QXO) after the transaction is completed. The deal is expected to close early in the second quarter of 2026. According to Benchmark, QXO, Inc. (NYSE:QXO) has up to $6 billion or more in capital available to deploy.
Earlier, on February 11, Reuters reported that QXO, Inc. (NYSE:QXO) has agreed to acquire smaller private distributor Kodiak Building Partners for around $2.25 billion. This is the company’s second acquisition and comes after the company acquired Beacon Roofing Supply for $11 billion last year. The report by Reuters mentions that Kodiak Building Partners generates about $2.4 billion in annual revenue, operates 110 locations across 26 states, and has around 5,500 employees.
QXO, Inc. (NYSE:QXO) is a major distributor of roofing, waterproofing, and complementary building products in North America.
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.
READ NEXT: 15 AI Stocks With Explosive Growth Potential and 40 Most Popular Stocks Among Hedge Funds Heading Into 2026.
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