In this article, we will look at the 13 Cheap Stocks with Huge Upside Potential.
On July 11, Jurrien Timmer, Fidelity Investments’ director of global macro, appeared on CNBC’s ‘Squawk Box’ to talk about the state of the equity market.
He stated that the episode of the last six months showed just how brutally efficient the price discovery process is, in any market but especially the US stock market. The market saw a right tail scenario after the election to a moderately left tail scenario in April, and back to a right tail scenario in July.
READ ALSO: 13 Best Healthcare Stocks to Buy Under $10 and 10 Cheap Large Cap Stocks to Buy According to Hedge Funds.
While he acknowledged that it is difficult to predict which shape the tariff tantrum will take, markets are overall adopting a wait-and-see attitude after the continuous back-and-forth lurching. Timmer further stated that there is a good chance for the earnings numbers to go back up again, and that the overall health of the market is pretty good.
With these positive trends in view, let’s look at the 13 cheap stocks with huge upside potential to add to your portfolio.
A view of a financial trading floor with multiple traders observing stock market performance.
Our Methodology
We used Finviz to make a list of stocks with a forward P/E below 15 and selected the top 13 with the highest analyst upside potential. We also added the number of hedge fund holders for each stock as of Q1 2025, sourcing the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of analyst upside potential.
Note: All data was recorded on July 11.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
13 Cheap Stocks with Huge Upside Potential
13. Novavax Inc. (NASDAQ:NVAX)
Analyst Upside: 40.85%
Forward P/E: 3.49
Number of Hedge Fund Holders: 26
Novavax Inc. (NASDAQ:NVAX) is one of the best cheap stocks with huge upside potential. On June 11, BTIG maintained a Buy rating on Novavax Inc. (NASDAQ:NVAX) with a $19 price target.
BTIG analyst Thomas Shrader told investors following the company’s announcement of the results of the initial cohort of its COVID-19-Influenza Combination and stand-alone trivalent hemagglutinin nanoparticle seasonal influenza Phase 3 trial that the primary goal was to exhibit that the immunogenicity of both the COVID-19 and Influenza vaccines was within the protective range with “interference” not being a strong factor.
He stated that the first CIC data “looks unremarkable – exactly what we hoped for,” adding that the “most positive signs from today’s data” were stronger immunogenicity for the Novavax flu vaccine for some antigens compared to the “gold-standard” flu vaccine FLUZONE-HD.
Novavax Inc. (NASDAQ:NVAX) is a biotechnology company that discovers, develops, and commercializes recombinant vaccines.
12. PRA Group, Inc. (NASDAQ:PRAA)
Analyst Upside: 41.63%
Forward P/E: 9.2
Number of Hedge Fund Holders: 22
PRA Group, Inc. (NASDAQ:PRAA) is one of the best cheap stocks with huge upside potential. On May 6, Citizens JMP lowered the firm’s price target on PRA Group, Inc. (NASDAQ:PRAA) to $23 from $30, keeping an Outperform rating on the shares.
The firm reasoned that the company’s positive directional and operational trends in fiscal Q1 2025 were very similar to its operations over the past year. This includes the considerable strength in Europe, strong purchase volumes, improving margins, double-digit collections, and cash earnings growth.
However, the firm also told investors in a research note that the lower-than-expected US collections resulted in a material earnings shortfall. Citizens JMP still believes that PRA Group, Inc. (NASDAQ:PRAA) is enjoying a “sweet spot” in the purchasing and collections cycle, which is characterized by stable employment and collections backdrop, increased supply of charge-offs, excess funding, and weakened competition overseas.
PRA Group, Inc. (NASDAQ:PRAA) is involved in the purchase, collection, and management of portfolios of nonperforming loans in two broad categories: Core and Insolvency. The company also provides fee-based services on class action claims recoveries.
11. EZCORP, Inc. (NASDAQ:EZPW)
Analyst Upside: 51.95%
Forward P/E: 10.32
Number of Hedge Fund Holders: 27
EZCORP, Inc. (NASDAQ:EZPW) is one of the best cheap stocks with huge upside potential. On July 10, Canaccord raised the firm’s price target on EZCORP, Inc. (NASDAQ:EZPW) to $25 from $24, keeping a Buy rating on the shares.
Through its store checks, the firm found that business is steady in the summer. The company’s core customers are still experiencing pressure, while the new, higher-income customers seek value when coming into the stores.
The firm also believes that the recent range-bound performance in EZCORP, Inc.’s (NASDAQ:EZPW) share price is because of the retirement of its 2025 convertible notes being more dilutive than market expectations.
EZCORP, Inc. (NASDAQ:EZPW) provides pawn services. The company’s operations are divided into the following segments: US Pawn, Latin America Pawn, and Other Investments. The US Pawn segment covers EZPAWN, Value Pawn, Jewelry, and other branded pawn operations.
10. Navios Maritime Partners L.P. (NYSE:NMM)
Analyst Upside: 55.08%
Forward P/E: 4.12
Number of Hedge Fund Holders: 8
Navios Maritime Partners L.P. (NYSE:NMM) is one of the best cheap stocks with huge upside potential. Navios Maritime Partners L.P. (NYSE:NMM) undertook the delivery of Nave Dorado, a newly built Aframax/LR2 tanker vessel, in April, boosting its operational capacity.
In addition, the company announced in May an agreement to sell a 2009-built containership for $35.5 million. The transaction for this deal is expected to be completed in the second half of 2025.
These strategic moves mark the company’s ongoing efforts for fleet optimization and financial performance improvement, potentially affecting stakeholder interests and its market positioning.
Navios Maritime Partners L.P. (NYSE:NMM) reported $304.1 million in revenue in fiscal Q1 2025, while net income for the quarter reached $41.7 million.
Navios Maritime Partners L.P. (NYSE:NMM) is a shipping and logistics company that owns and manages dry cargo and container vessels. The company’s focus is on the transport and transhipment of dry bulk commodities, which include coal, iron ore, and grain.
9. PG&E Corporation (NYSE:PCG)
Analyst Upside: 55.10%
Forward P/E: 9.0
Number of Hedge Fund Holders: 76
PG&E Corporation (NYSE:PCG) is one of the best cheap stocks with huge upside potential. On June 11, Bank of America Securities analyst Ross Fowler maintained a Buy rating on PG&E Corporation (NYSE:PCG) and set a price target of $24.00.
The company’s fiscal Q1 2025 earnings showed GAAP earnings of $0.28 per share, compared to earnings of $0.34 per share in fiscal Q1 2024. Non-GAAP core earnings for the quarter were $0.33 per share compared to $0.37 per share for the same period last year.
PG&E Corporation (NYSE:PCG) also constructed 26 miles of strengthened poles and covered power lines and 24 miles of underground power lines in areas with high wildfire risks. Between 2025 and 2026, the Utility has plans for the construction of around 500 miles of other wildfire safety system upgrades and 700 miles of underground power lines.
PG&E Corporation (NYSE:PCG) generates, transmits, and distributes natural gas and electricity to customers. The company specializes in utility, electricity, energy, power, solar, gas, and sustainability.
8. Deluxe Corporation (NYSE:DLX)
Analyst Upside: 56.90%
Forward P/E: 5.05
Number of Hedge Fund Holders: 17
Deluxe Corporation (NYSE:DLX) is one of the best cheap stocks with huge upside potential. On June 10, Deluxe Corporation (NYSE:DLX) announced a strategic partnership with Chargent, the leading payment solution built natively on Salesforce.
The partnership aims to deliver seamless end-to-end payment integration within Salesforce. The collaboration would allow businesses to accept payments, automate billing, and gain real-time transaction insights within the Salesforce environment.
The new offering would combine Deluxe’s secure and scalable merchant processing infrastructure with the powerful, Salesforce-native tools at Chargent, helping businesses reduce manual work, accelerate cash flow, and enhance financial visibility.
Deluxe Corporation (NYSE:DLX) provides marketing products and services. Its operations are divided into the following segments: Merchant Services, B2B Payments, Data Solutions, and Print.
7. Photronics, Inc. (NASDAQ:PLAB)
Analyst Upside: 59.21%
Forward P/E: 11.55
Number of Hedge Fund Holders: 25
Photronics, Inc. (NASDAQ:PLAB) is one of the best cheap stocks with huge upside potential. In a report released on July 1, Christian Schwab from Craig-Hallum maintained a Buy rating on Photronics, Inc. (NASDAQ:PLAB).
The company also recently announced a transition in leadership, with Dr. Frank Lee stepping down from his role as the company’s CEO while retaining his position as Chairman and President of Photronics’ PDMC subsidiary in Taiwan. Mr. George Macricostas took the role of the new CEO of Photronics, Inc. (NASDAQ:PLAB) while remaining Chairman of the Board.
The company reported $211.0 million in revenue in fiscal Q2 2025, down 3% year-over-year and 1% sequentially. Photronics, Inc. (NASDAQ:PLAB) expects revenue for fiscal Q3 to be in the $200 million and $208 million range, and net income attributable to shareholders to be between $0.35 and $0.41 per diluted share.
Photronics, Inc. (NASDAQ:PLAB) provides photomasks, which are glass or quartz plates with microscopic images of electronic circuits and are used for the fabrication of flat-panel displays and integrated circuits.
6. Acadia Healthcare Company, Inc. (NASDAQ:ACHC)
Analyst Upside: 62.01%
Forward P/E: 9.31
Number of Hedge Fund Holders: 42
Acadia Healthcare Company, Inc. (NASDAQ:ACHC) is one of the best cheap stocks with huge upside potential. On June 17, Cantor Fitzgerald analyst Sarah James reiterated a Hold rating on Acadia Healthcare Company, Inc. (NASDAQ:ACHC) and set a price target of $40.00.
The company reported $770.5 million in revenue in fiscal Q1 2025, down from $768.1 million from the same quarter last year.
However, the same facility revenue for the quarter rose 2.1% compared to Q1 2024, including a growth in patient days of 2.2%. Management reported that patient day growth and same facility revenue both experienced an unfavorable year-over-year impact of approximately 1.1% from the leap year.
Acadia Healthcare Company, Inc. (NASDAQ:ACHC) provides behavioral healthcare services across the US. It offers services to its patients in a range of settings, including specialty treatment facilities, inpatient psychiatric hospitals, outpatient clinics, and residential treatment centers.
5. Embecta Corp. (NASDAQ:EMBC)
Analyst Upside: 67.75%
Forward P/E: 3.75
Number of Hedge Fund Holders: 29
Embecta Corp. (NASDAQ:EMBC) is one of the best cheap stocks with huge upside potential. On May 23, BTIG analyst Marie Thibault lowered the firm’s price target on Embecta Corp. (NASDAQ:EMBC) to $25 from $26, keeping a Buy rating on the shares. The rating followed its Investor Day presentation.
The analyst told investors in a research note that Embecta Corp. (NASDAQ:EMBC) reaffirmed its FY2025 guidance, with long-range targets offered through fiscal year 2028.
In addition, Embecta Corp.’s (NASDAQ:EMBC) lower margin outlook compared to fiscal year 2025 reflects pricing pressure, inflationary headwinds, and incremental tariffs. The firm added that these factors are partially offset by cost improvement programs.
Embecta Corp. (NASDAQ:EMBC) provides medical devices used to treat diabetes. The company’s offerings include syringes, pen needles, and safety devices fitted with a digital application.
4. LexinFintech Holdings Ltd. (NASDAQ:LX)
Analyst Upside: 70.10%
Forward P/E: 3.84
Number of Hedge Fund Holders: 26
LexinFintech Holdings Ltd. (NASDAQ:LX) is one of the best cheap stocks with huge upside potential. On March 21, UBS raised the firm’s price target on LexinFintech Holdings Ltd. (NASDAQ:LX) to $13.60 from $9.60, keeping a Buy rating on the shares.
The analyst told investors in a research note that it has considerable confidence in LexinFintech Holdings Ltd.’s (NASDAQ:LX) turnaround trajectory in 2025 after Q4 2024 results.
LexinFintech Holdings Ltd. (NASDAQ:LX) reported a notable 113% year-over-year growth in net income in fiscal Q1 2025, reaching RMB430 million and highlighting its successful transformation to a data-driven business model.
The company’s net income also rose 19% quarter-over-quarter, along with a 27 basis point growth in net profit take rate.
LexinFintech Holdings Ltd. (NASDAQ:LX) leverages its proprietary platform and mobile application to match consumers with credit card needs to its financial institution partners.
3. Criteo S.A. (NASDAQ:CRTO)
Analyst Upside: 73.12%
Forward P/E: 5.56
Number of Hedge Fund Holders: 15
Criteo S.A. (NASDAQ:CRTO) is one of the best cheap stocks with huge upside potential. On May 5, JPMorgan lowered the firm’s price target on Criteo S.A. (NASDAQ:CRTO) to $27 from $39, keeping a Neutral rating on the shares.
The firm told investors in a research note that Criteo S.A. (NASDAQ:CRTO) reported a “modest” CexT upside and a “healthy” adjusted EBITDA profit in fiscal Q1 2025.
However, it added that the company slashed its 2025 CexT guidance primarily because of a shift in retail media strategy from two clients and limited macro visibility.
The firm also supported the rating by stating that Uber Eats will no longer partner with Criteo S.A. (NASDAQ:CRTO) in the US following Q3, and that the company’s largest retail media partner is discontinuing managed services and curtailing the rest of the brand demand sales services in November.
Criteo S.A. (NASDAQ:CRTO) is a France-based company that specializes in digital performance marketing. Its solution comprises its data assets, the Criteo Engine, its advertiser and publisher platforms, and access to inventory.
Criteo Engine delivers advertisements through various marketing formats and channels, including native advertising banners, display advertising banners, and more. It operates in around 90 countries and has more than 30 international offices across the Americas, Europe, and the Asia-Pacific regions.
2. Centene Corporation (NYSE:CNC)
Analyst Upside: 96.80%
Forward P/E: 10.55
Number of Hedge Fund Holders: 64
Centene Corporation (NYSE:CNC) is one of the best cheap stocks with huge upside potential. On July 10, Morgan Stanley downgraded Centene Corporation (NYSE:CNC) to Equal Weight from Overweight, bringing the price target down to $33 from $70.
The firm told investors in a research note that unexpected near-term challenges are currently outweighing the long-term upside levers that were referenced in the firm’s initiation. It also cited Health Insurance Exchange and Medicaid pressure.
Morgan Stanley further said that the latest preannouncement by Centene Corporation (NYSE:CNC) underscored increased utilization in its Medicaid book, while also highlighting that the MA Prescription Drug and Medicare Advantage Plans performed better than expected in Q2.
Centene Corporation (NYSE:CNC) is a healthcare enterprise that provides programs and services to government-sponsored healthcare programs. The company’s operations are divided into the following segments: Medicaid, Medicare, Commercial, and Other.
1. DoubleDown Interactive Co., Ltd. (NASDAQ:DDI)
Analyst Upside: 98.41%
Forward P/E: 4.73
Number of Hedge Fund Holders: 4
DoubleDown Interactive Co., Ltd. (NASDAQ:DDI) is one of the best cheap stocks with huge upside potential. On July 8, Roth Capital analyst Eric Handler stated that the $65M acquisition of WHOW Games undertaken by DoubleDown Interactive Co., Ltd. (NASDAQ:DDI) on the same day is a strategic and positive move.
According to him, WHOW Games presents DoubleDown Interactive Co., Ltd. (NASDAQ:DDI) with a path to raise profits and reverse recent revenue declines.
The analyst further stated that the German-based social casino developer has a strong Western European footprint and creates geographic diversity while also providing opportunities for enhanced marketing and operational synergies.
The firm added that plenty of dry powder remains for additional M&A and/or capital returns, maintaining a Buy rating on DoubleDown Interactive Co., Ltd. (NASDAQ:DDI) with a price target of $16.
DoubleDown Interactive Co., Ltd. (NASDAQ:DDI) is involved in the gaming entertainment business and operates through the Gaming and iGaming business divisions. The Gaming business division undertakes the development and publishing of social casinos and casual games, while the iGaming business division manages the development and operation of license-based online casinos.
While we acknowledge the potential of DDI 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 DDI and that has 100x upside potential, check out our report about this cheapest AI stock.
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