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.
10. Netskope Inc. (NASDAQ:NTSK)
Market Capitalization as of December 26: $7.27 billion
Share Price as of December 26: $18.29
Number of Hedge Fund Holders: 44
Average Upside Potential as of December 26: 47.62%
Netskope Inc. (NASDAQ:NTSK) is one of the low priced stocks to buy with high upside potential. On December 12, Deutsche Bank analyst Brad Zelnick raised the firm’s price target on Netskope to $26 from $25, while maintaining a Buy rating on the shares. This sentiment was posted following the company’s FQ3 2025 earnings report.
A day prior to this, Netskope Inc. (NASDAQ:NTSK) reported that the company reached an Annual Recurring Revenue of $754 million in FQ3 2026, which was a 34% year-over-year increase. Quarterly revenue rose 33% to $184 million, driven by global demand for AI and cloud security. Geographically, growth was robust across the Americas (34%), EMEA (34%), and APJ (29%).
The company is now positioning itself at the center of the AI revolution. Management highlighted that over 1,000 customers already use Netskope to secure GenAI interactions. The Netskope One platform now includes over 20 products and holds more than 170 proprietary AI/ML models. Recent innovations include a Model Context Protocol server for secure data sharing with LLMs like Microsoft Copilot and Amazon Bedrock, as well as an expanded NewEdge network now covering 80 metropolitan areas via 120 data centers.
For FQ4, Netskope Inc. (NASDAQ:NTSK)projects revenue between $188 and $190 million. For the full FY2026, the company expects total revenue to fall between $701 and $703 million, which would represent ~30% annual growth.
Netskope Inc. (NASDAQ:NTSK) is a cybersecurity company that provides security, networking, and analytics solutions to the largest enterprises to mid-sized companies worldwide.
9. Freshworks Inc. (NASDAQ:FRSH)
Market Capitalization as of December 26: $3.50 billion
Share Price as of December 26: $12.40
Number of Hedge Fund Holders: 41
Average Upside Potential as of December 26: 49.19%
Freshworks Inc. (NASDAQ:FRSH) is one of the low priced stocks to buy with high upside potential. On December 17, BTIG initiated coverage of Freshworks with a Neutral rating, but without setting a price target on the shares. The firm observed that Freshworks spent the last few years streamlining its portfolio. By moving away from a broad SMB app stack, the company is now prioritizing its core Customer Experience/CX and Employee Experience/EX drivers while pushing into the enterprise market. While the firm views this shift positively, it also noted an increasing reliance on the EX segment for growth amid persistent concerns regarding the impact of GenAI on the broader customer support industry.
Additionally, on December 15, Freshworks announced a definitive agreement to acquire FireHydrant, which is an AI-native incident management and reliability platform. FireHydrant specializes in managing the full lifecycle of IT disruptions, offering advanced on-call management, structured response workflows, and AI-integrated retrospective analysis. The platform is currently used by major global brands, including Palo Alto Networks, BP, and Qlik.
The acquisition aims to bridge the gap between Freshservice’s IT Service Management and FireHydrant’s IT Operations Management. By merging these capabilities, Freshworks intends to create a unified AI-native ServiceOps solution. The integration is designed to provide teams with a single view of technology dependencies, reducing the manual chaos and siloed data that often lead to slow response times and financial instability during digital downtime.
The combined solution focuses on Unified Visibility, which connects service and operations management to reduce handoffs; Faster Response, which uses AI to filter alert noise and guide engineers through step-by-step resolution; and Proactive IT, which uses asset data from Freshservice and incident insights from FireHydrant to prevent recurring outages.
Freshworks Inc. (NASDAQ:FRSH) is a software development company that provides SaaS products in North America, Europe, the Middle East, Africa, Asia Pacific, and internationally.
8. Payoneer Global Inc. (NASDAQ:PAYO)
Market Capitalization as of December 26: $2.04 billion
Share Price as of December 26: $5.71
Number of Hedge Fund Holders: 42
Average Upside Potential as of December 26: 53.24%
Payoneer Global Inc. (NASDAQ:PAYO) is one of the low priced stocks to buy with high upside potential. On December 23, Benchmark lowered the firm’s price target on Payoneer Global to $10 from $12 and maintained a Buy rating on the shares. In a report following a meeting with Payoneer leadership, the firm detailed three primary areas of interest: the impact of US tariff policies on SMB trade strategies, the rapid scaling of B2B payment volumes, and the rollout of stablecoin-related projects.
In other news, on December 11, Oscilar announced a strategic partnership with Payoneer Global Inc. (NASDAQ:PAYO) to modernize the financial technology giant’s fraud and risk intelligence systems. Payoneer will integrate Oscilar’s AI Risk Decisioning platform to incorporate predictive analytics and ML into its core payment infrastructure. This transition to AI-driven operations is designed to strengthen threat detection and accelerate model iteration, allowing Payoneer to adapt in real time to the rapidly evolving fraud patterns found in the global digital payments landscape.
Payoneer Global Inc. (NASDAQ:PAYO) currently supports millions of small and medium-sized businesses/SMBs, marketplaces, and freelancers, facilitating tens of billions of dollars in volume across more than 7,000 trade corridors worldwide. By using Oscilar’s advanced signal processing and agentic AI, Payoneer can orchestrate complex risk strategies that address the specific challenges of cross-border digital commerce and high-variation environments.
In Q3 2025, the company reported making $271 million in quarterly revenue, which was a 9% increase year-over-year. A driver of this performance was revenue excluding interest income, which rose 15% to $211.4 million. The growth was fueled by a 27% surge in B2B revenue and a 49% increase in Checkout revenue. Additionally, Average Revenue Per User excluding interest saw a 22% increase, rising to over $470 as the company moved upmarket toward larger and higher-value customers.
Payoneer Global Inc. (NASDAQ:PAYO) operates as a financial technology company. It offers customers a multi-currency account to serve their accounts receivable and accounts payable needs through a payment infrastructure platform.
7. Primo Brands Corporation (NYSE:PRMB)
Market Capitalization as of December 26: $6.07 billion
Share Price as of December 26: $16.61
Number of Hedge Fund Holders: 62
Average Upside Potential as of December 26: 56.53%
Primo Brands Corporation (NYSE:PRMB) is one of the low priced stocks to buy with high upside potential. On December 18, JPMorgan lowered the firm’s price target on Primo Brands to $21 from $23, while keeping an Overweight rating. As part of its 2026 outlook, JPMorgan noted that while the fundamental environment for the beverages, household, and personal care sectors remains difficult, the firm anticipates an improvement as 2025’s hurdles are surpassed.
Earlier on November 26, Barclays analyst Lauren Lieberman lowered the firm’s price target on Primo Brands to $24 from $25, while maintaining an Overweight rating on the shares. The firm believes that the current rate of customer attrition and the specific composition of revenue will create more hurdles for direct delivery in 2026 than earlier projections suggested.
On the same day, Mizuho also lowered the price target on Primo Brands to $28 from $35 with an Outperform rating on the shares. According to Mizuho, Nielsen scanner data covering the period ending November 15 indicates a decline in retail sales volume alongside an increase in promotional discounting.
Furthermore, Goldman Sachs analyst Bonnie Herzog cut the price target on Primo Brands to $18 from $21 with a Neutral rating on November 25. The firm expressed concern regarding emerging challenges for Primo Brands Corporation (NYSE:PRMB) over the coming months and warned that sales may decline more rapidly and for a longer duration than originally anticipated.
Primo Brands Corporation (NYSE:PRMB) operates as a branded beverage company in North America. It distributes to direct-to-consumer, retail, residential, eCommerce, on-premise, and commercial channels.
6. Peloton Interactive Inc. (NASDAQ:PTON)
Market Capitalization as of December 26: $2.53 billion
Share Price as of December 26: $6.06
Number of Hedge Fund Holders: 62
Average Upside Potential as of December 26: 61.72%
Peloton Interactive Inc. (NASDAQ:PTON) is one of the low priced stocks to buy with high upside potential. On December 17, Telsey Advisory lowered the firm’s price target on Peloton to $8 from $9 and kept a Market Perform rating on the shares. In its 2026 outlook, Telsey Advisory Group noted that it expects the company to remain focused on prioritizing profitability. The firm commended CEO Peter Stern for his strategic leadership and highlighted the company’s significantly strengthened financial position.
Earlier on December 9, Guggenheim analyst Simeon Siegel initiated coverage of Peloton with a Neutral rating but set no price target on the shares. While the retail industry is still often viewed as structurally impaired, Guggenheim noted that the holiday season provided a significant boost. Despite broader economic concerns, the impact of tariffs has remained under control.
In FQ1 2026, Peloton Interactive Inc. (NASDAQ:PTON) generated $551 million in total revenue for the quarter, largely supported by $398 million in subscription revenue, while Connected Fitness products contributed $152 million. Although paid subscriptions fell 6% year-over-year to 2.732 million, Peloton improved its average net monthly churn to 1.6%, which was a 20-basis point enhancement from the previous year.
The company is leaning heavily into technological innovation and retail expansion to offset a 5% drop in equipment sales. New initiatives include Peloton IQ, an AI-powered personalized coaching tool, and the launch of the Cross-Training and Pro Series hardware featuring computer vision for movement tracking. To broaden distribution, Peloton Interactive Inc. (NASDAQ:PTON) established a partnership with Johnson Fitness and Wellness and opened 10 micro-stores in the US.
Peloton Interactive Inc. (NASDAQ:PTON) provides fitness and wellness products and services in North America and internationally.
5. Crescent Energy Company (NYSE:CRGY)
Market Capitalization as of December 26: $2.71 billion
Share Price as of December 26: $8.25
Number of Hedge Fund Holders: 38
Average Upside Potential as of December 26: 69.70%
Crescent Energy Company (NYSE:CRGY) is one of the low priced stocks to buy with high upside potential. On December 16, Evercore ISI resumed coverage of Crescent Energy with an Outperform rating and $13 price target. With the Vital Energy acquisition finalized, the company has ascended to the ranks of the top ten independent US E&P players. The firm described the deal as a step change that supports the firm’s geographic footprint and ensures the long-term sustainability of its free cash flow.
Earlier on December 3, Crescent Energy Company (NYSE:CRGY) announced a further expansion of its non-core divestiture program with the sale of its non-operated DJ Basin assets to a private buyer. The transaction was valued at $90 million in cash (subject to standard adjustments) and involves assets primarily located in Weld County, Colorado. These assets currently produce approximately 7 Mboe/d, with an oil composition of roughly 20%.
The sale represents the company’s sixth accretive asset divestiture of the year. To date in 2025, Crescent has signed agreements for non-core sales totaling more than $900 million. The company confirmed it has already finalized the previously announced sales of its conventional Rockies and Barnett assets, and it expects all remaining announced divestitures to be completed before the end of the year.
Crescent Energy Company (NYSE:CRGY) is an energy company that explores and produces crude oil, natural gas, and natural gas liquids in the US.
4. Mobileye Global Inc. (NASDAQ:MBLY)
Market Capitalization as of December 26: $8.48 billion
Share Price as of December 26: $10.42
Number of Hedge Fund Holders: 43
Average Upside Potential as of December 26: 72.74%
Mobileye Global Inc. (NASDAQ:MBLY) is one of the low priced stocks to buy with high upside potential. On December 16, Mizuho lowered the firm’s price target on Mobileye to $12 from $15 with a Neutral rating on the shares. This decision was made as the firm recalibrated price targets across the semiconductor and capital equipment sectors to reflect a shifting demand landscape.
Mizuho highlighted a significant downturn in the US EV market, where sales plummeted 20% to 50% month-over-month through October and November, creating a difficult environment compounded by the cancellation or delay of several 2026 vehicle launches. Consequently, the firm maintains a mixed view of the industry, and therefore cut the price target on Mobileye Global Inc. (NASDAQ:MBLY).
Earlier on December 8, Morgan Stanley analyst Andrew Percoco assumed coverage of Mobileye Global Inc. (NASDAQ:MBLY) with an Equal Weight rating and $13 price target. As part of its 2026 outlook and a recent change in analyst leadership, the firm updated ratings across the automotive and shared mobility sectors. Morgan Stanley is adopting a more guarded stance for the upcoming year, predicting that the EV winter will persist through 2026. However, Percoco noted that this caution is partially offset by an increasingly optimistic view of internal combustion engines and hybrid vehicles.
Mobileye Global Inc. (NASDAQ:MBLY) develops and deploys advanced driver assistance systems/ADAS and autonomous driving technologies and solutions worldwide.
3. Wave Life Sciences Ltd. (NASDAQ:WVE)
Market Capitalization as of December 26: $3.25 billion
Share Price as of December 26: $17.77
Number of Hedge Fund Holders: 38
Average Upside Potential as of December 26: 74.45%
Wave Life Sciences Ltd. (NASDAQ:WVE) is one of the low priced stocks to buy with high upside potential. On December 8, Wave Life Sciences announced positive interim results from its Phase 1 INLIGHT trial evaluating WVE-007, which is an investigational RNA medicine for obesity. The data from the 240 mg single-dose cohort revealed that the drug improved body composition over 3 months.
Unlike traditional GLP-1 therapies, which often cause muscle loss alongside fat reduction, WVE-007 achieved a 9.4% reduction in visceral fat and a 4.5% reduction in total body fat while simultaneously resulting in a 3.2% increase in lean mass (~4.0 lbs).
WVE-007 operates by silencing the INHBE gene using a proprietary SpiNA siRNA design. This approach is rooted in human genetics; individuals with natural loss-of-function variants in the INHBE gene typically possess lower visceral fat and a reduced risk of type 2 diabetes and cardiovascular disease. By targeting Activin E, the protein product of INHBE, WVE-007 aims to treat the root causes of metabolic dysfunction.
The safety profile of the drug appears favorable, with no serious or severe treatment-emergent adverse events reported across doses up to 600 mg. All treatment-related side effects were characterized as mild, and there were no clinically meaningful changes in liver function tests or lipid profiles. Wave Life Sciences Ltd. (NASDAQ:WVE) is currently planning Phase 2 trials to evaluate WVE-007 as a monotherapy, as an add-on to incretins (like GLP-1s), and as a maintenance therapy to prevent weight regain after stopping other treatments.
Wave Life Sciences Ltd. (NASDAQ:WVE) is a clinical-stage biotechnology company that designs, develops, and commercializes ribonucleic acid/RNA medicines through PRISM, which is a discovery and drug development platform.
2. SM Energy Company (NYSE:SM)
Market Capitalization as of December 26: $2.12 billion
Share Price as of December 26: $18.51
Number of Hedge Fund Holders: 44
Average Upside Potential as of December 26: 89.09%
SM Energy Company (NYSE:SM) is one of the low priced stocks to buy with high upside potential. On December 10, KeyBanc lowered the firm’s price target on SM Energy to $28 from $36, while keeping an Overweight rating on the shares. This sentiment was driven by a newfound confidence in the Civitas Resources Inc. (NYSE:CIVI) merger.
While Keybanc was initially skeptical of the deal, an analysis of the financial model and direct discussions with management have validated the merger’s strategic value. The firm’s conviction on SM Energy Company (NYSE:SM) now rests on three pillars: robust free cash flow generation, a rapid deleveraging schedule, and a disciplined debt management plan.
In Q3 2025, SM Energy Company (NYSE:SM) reported a net income of $155.1 million, or $1.35 per diluted common share. This earnings figure surpassed analyst estimates of $1.30 per share. Total revenue for the quarter reached $846 million, which met market expectations. Additionally, total net daily production increased 26% year-over-year in Q3. Oil production was a primary driver and surged 47%. Total net production volumes for the quarter reached 19.7 MMBoe, with oil accounting for more than 53% of that total. These results highlight the company’s successful acquisition and development strategies in its core Texas and Utah operating areas.
SM Energy Company (NYSE:SM) is an independent energy company that acquires, explores, develops, and produces oil, gas, and natural gas liquids in the state of Texas.
1. Ocular Therapeutix Inc. (NASDAQ:OCUL)
Market Capitalization as of December 26: $2.68 billion
Share Price as of December 26: $12.56
Number of Hedge Fund Holders: 44
Average Upside Potential as of December 26: 91.08%
Ocular Therapeutix Inc. (NASDAQ:OCUL) is one of the low priced stocks to buy with high upside potential. On December 12, Bank of America raised the firm’s price target on Ocular Therapeutix to $21 from $18 and maintained a Buy rating on the shares. After hosting CEO Pravin Dugel to review upcoming corporate milestones, the firm highlighted the development strategy for AXPAXLI, supported by pivotal trials in both wet AMD and diabetic retinopathy. BofA remains optimistic about the drug’s unique competitive advantages and the possibility of a faster regulatory path.
On December 8, Ocular Therapeutix Inc. (NASDAQ:OCUL) announced a major acceleration of its regulatory strategy for AXPAXLI (OTX-TKI), which is an investigational treatment for wet age-related macular degeneration (wet AMD). The company now plans to submit an NDA shortly after receiving one-year data from its SOL-1 Phase 3 trial, provided the results are positive. These topline results remain on track for release in Q1 2026.
The accelerated timeline is supported by recent FDA guidance suggesting that a single, well-powered registrational trial may suffice for approval, rather than the traditional requirement of two studies. Ocular Therapeutix Inc. (NASDAQ:OCUL) believes SOL-1 meets these high standards because it is a superiority trial and is conducted under a Special Protocol Assessment agreement. The SOL-1 study itself completed randomization in December 2024 with 344 treatment-naïve subjects. It compares AXPAXLI against a 2 mg dose of aflibercept, with a primary endpoint measuring the proportion of patients who maintain visual acuity at week 36.
Ocular Therapeutix Inc. (NASDAQ:OCUL) is a biopharmaceutical company that develops and commercializes therapies for retinal diseases and other eye conditions using its bioresorbable hydrogel-based formulation technology in the US.
While we acknowledge the potential of OCUL 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 OCUL 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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