In this article, we will look at the 13 Best Growth Stocks Under $25 to Buy Right Now.
Recently, there have been concerns around the surge of fraudulent loans and private credit quality issues in the US. This comes as several US regional banks disclosed exposure to potentially fraudulent loans. Jamie Dimon, CEO of JPMorgan Chase, has expressed caution, noting that this could signal deeper systemic stress that may impact the broader financial system.
However, on October 17, Marc Pinto, Head of Global Private Credit at Moody’s, noted that there’s little evidence of any systematic problem. He acknowledged that there are some concerns regarding loose lending standards; however, he does not think that issues like these can trigger broader financial crises.
On October 18, Tom Lee from Fundstrat Joined CNBC Television to discuss the latest headlines related to private credit quality issues and their impact on the market. Lee noted that he is inclined more towards Jamie Dimon’s camp and believes that there is opacity in the private credit, and investors would have to grapple with this problem. He noted that this new headline, along with the trade tensions and the increase in VIX, is causing investors to stay cautious.
Regardless, Lee remains bullish and noted that these new headlines do not change the fact that the market has a lot of tailwinds into year-end. He believes a part of this tailwind is due to the accelerating demand for AI, along with a lot of cash sitting on the sidelines. Lee noted that in addition to these tailwinds, institutional investors have had a troubled year with only a 22% return, hardly beating their benchmark, which puts them at a chasing position. Therefore, Lee believes that despite the mounting pressure from these headlines, the market is still set to rally into the end of the year.
With that, let’s take a look at the 13 Best Growth Stocks Under $25 to Buy Right Now.
Our Methodology
To curate the list of 13 Best Growth Stocks Under $25 to Buy Right Now, we used the Finviz Stock Screener, Yahoo Finance, and Insider Monkey’s Q2 2025 database as our sources. Using the screener, we aggregated a list of growth stocks trading below $25, sorted by market capitalization. Next, we cross-checked the stock prices from Yahoo Finance and ranked the stocks in ascending order of the number of hedge fund holders sourced from Insider Monkey’s database. Please note that the data was recorded on October 17, 2025.
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).
13 Best Growth Stocks Under $25 to Buy Right Now
13. Takeda Pharmaceutical Company Limited (NYSE:TAK)
Price: $13.95
Number of Hedge Fund Holders: 18
Takeda Pharmaceutical Company Limited (NYSE:TAK) is one of the Best Growth Stocks Under $25 to Buy Right Now. On October 14, Reuters reported that Takeda Pharmaceutical Company Limited (NYSE:TAK) and US biotechnology company Nabla Bio signed a major research partnership. The partnership is focused on deepening the use of AI to accelerate drug delivery.
This partnership builds on an earlier collaboration, which was launched between the two companies in 2022. As part of this partnership, Nabla will use its proprietary AI platform called the Joint Atomic Model (JAM) to design protein-based treatments for Takeda Pharmaceutical Company Limited’s (NYSE:TAK) early-stage pipeline.
As per the report, the company will pay an upfront payment in double-digit millions to Nabla, whereas Nabla would also be eligible for success-based payments worth more than $1 billion. The CEO of Nabla, Surge Biswas, noted that JAM would respond to molecular queries similar to how ChatGPT answers questions.
Takeda Pharmaceutical Company Limited (NYSE:TAK) is a Japanese biotech company that specializes in the research, development, and sale of pharmaceuticals. The company focuses on gastrointestinal, rare, immune, cancer, and neuropsychiatric diseases.
12. SoundHound AI, Inc. (NASDAQ:SOUN)
Price: $19.75
Number of Hedge Fund Holders: 19
SoundHound AI, Inc. (NASDAQ:SOUN) is one of the Best Growth Stocks Under $25 to Buy Right Now. On October 13, SoundHound AI, Inc. (NASDAQ:SOUN) announced partnering with Apivia Courtage, which is part of AEMA Group.
The partnership is aimed at the launch of Amelia 7 across Apivia’s contact centers. Amelia 7 is SoundHound AI, Inc.’s (NASDAQ:SOUN) latest agentic AI platform. Using the company’s latest platform, Apivia will automate its inbound calls with AI agents.
Management noted that Amelia 7 integrates the company’s speech recognition with the Agentic+ framework, which is powered by LLM. This allows the new platform to have natural language understanding and combines this feature with the traditional workforce, along with allowing human escalation when required.
SoundHound AI, Inc. (NASDAQ:SOUN) develops conversational intelligence solutions that enable businesses to create voice-activated experiences for customers across various industries.
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