On December 27, Michael Farr of Farr Miller & Washington appeared on CNBC’s ‘Closing Bell Overtime’ to talk about his market predictions for 2026. Farr believes that a market pullback is imminent despite a generally positive long-term outlook. He attributed his caution to his extensive experience and noted that after three consecutive years of market gains, a pullback would be a normal occurrence. He specifically identifies February as a typical time for a case of the nerves and explained that once the excitement and headlines of the January earnings season subside, the colder, darker days often lead to increased selling. Despite this anticipated dip, Farr does not believe the overall upward trend is ending and noted that the economy is still growing and the Fed remains attentive.
As the S&P 500 is set to finish 2025 with nearly 18% growth, marking its third straight year of double-digit percentage increases, Farr acknowledged that while this streak is unusual, history shows that such trends can persist. He referenced 1996, when then-Fed Chairman Alan Greenspan warned of irrational exuberance during the dot-com boom. Despite that warning, the markets continued to climb for three more years. Farr suggests that expensive can become more expensive and that while a fourth year of massive gains is possible, a safer expectation for 2026 would be a return to the long-term average of around 10%.
The market has also shown signs of broadening, a shift from the heavy concentration in the MAG7 and AI trades that dominated much of the year. Farr points out that the concentration of these top names in the S&P 500 has dropped from 38% to 35%, allowing cyclical sectors like financials, materials, consumer discretionary, and industrials to take the lead over the past month. He views this broadening as a very healthy sign, as it provides a pause for the crazy, successful stocks and allows investors an opportunity to reallocate and diversify away from riskier, highly concentrated positions.
That being said, we’re here with a list of the 12 low priced stocks to buy with high upside potential.
Our Methodology
We sifted through the Finviz stock screener to compile a list of companies with a market cap of at least $2 billion and a share price under $20. We then selected 12 stocks that had an upside potential of over 30%. 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 December 26.
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 Low Priced Stocks to Buy with High Upside Potential
12. Energy Fuels Inc. (NYSE:UUUU)
Market Capitalization as of December 26: $3.47 billion
Share Price as of December 26: $14.64
Number of Hedge Fund Holders: 38
Average Upside Potential as of December 26: 43.44%
Energy Fuels Inc. (NYSE:UUUU) is one of the low priced stocks to buy with high upside potential. On December 19, Texas Capital initiated coverage of Energy Fuels with a Buy rating and $20 price target. The firm highlighted Energy Fuels as a key player in the critical minerals sector, focusing on uranium, vanadium, and rare earth elements. Texas Capital emphasized that the company’s White Mesa Mill in Blanding, Utah, stands as the only operational conventional uranium mill in the US, supporting a licensed annual capacity of 8.0 million pounds.
Energy Fuels Inc. (NYSE:UUUU) announced that its US-produced dysprosium/Dy oxide successfully passed initial purity and QA/QC benchmarks for use by a major South Korean automotive manufacturer. This high-purity material, produced at the White Mesa Mill in Utah, is a critical heavy rare earth element/REE used to improve the durability and performance of neodymium-iron-boron/NdFeB permanent magnets. These magnets are essential for EVs, robotics, and sophisticated defense systems like missiles, drones, and naval reactors.
This achievement marks Energy Fuels Inc. (NYSE:UUUU) as the first US company to have both its light and heavy REEs qualified for permanent magnet applications, following the qualification of its NdPr oxide on September 9. The company is filling a critical gap in the domestic supply chain, especially as China has maintained export controls on seven rare earths (including dysprosium, terbium, and samarium) since April this year. To date, the company has produced ~29 kilograms of dysprosium oxide at a pilot scale with 99.9% purity, significantly exceeding the standard automotive requirement of 99.5%.
Energy Fuels Inc. (NYSE:UUUU), together with its subsidiaries, explores, recovers, recycles, operates, develops, permits, evaluates, and sells uranium mineral properties in the US.
11. Genius Sports Limited (NYSE:GENI)
Market Capitalization as of December 26: $2.76 billion
Share Price as of December 26: $10.88
Number of Hedge Fund Holders: 40
Average Upside Potential as of December 26: 47.06%
Genius Sports Limited (NYSE:GENI) is one of the low priced stocks to buy with high upside potential. On December 4, BTIG analyst Clark Lampen raised the firm’s price target on Genius Sports to $16 from $14 and kept a Buy rating on the shares. The firm highlighted that Genius Sports’ move to shed its image as a rights-heavy business with limited upside. Management is now framing the company as a critical infrastructure provider for sports data. By using superior data accuracy and integrated distribution tools, Genius Sports aims to prove its technology is essential to the entire sports industry.
On the same day, Guggenheim raised the firm’s price target on Genius Sports to $17 from $16 with a Buy rating on the shares. Following the company’s investor day, the firm updated its financial model to align with management’s new multi-year projections. The adjustment comes in response to a three-year outlook for revenue, adjusted EBITDA, and free cash flow that exceeded market consensus.
Additionally, Goldman Sachs also raised the price target on Genius Sports to $16 from $14 with a Buy rating on the shares. The company’s Investor Day highlighted its expanding data and technology platform, multiple monetization avenues, and above-expected 2028 financial targets that point to sustained revenue growth, margin expansion, and improving free cash flow. The event underscored Genius Sports Limited’s (NYSE:GENI) positioning amid secular industry tailwinds, its increasing cost-structure visibility, its durable technology-led competitive advantage, and its growing financial flexibility.
Genius Sports Limited (NYSE:GENI) develops and sells technology-led products and services to the sports, sports betting, and sports media industries.
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