15 Small Cap Financial Stocks Hedge Funds Are Buying

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1. TransUnion (NYSE:TRU)

Market Capitalization: $14.224 Billion

Number of Hedge Fund Holders: 58

TransUnion (NYSE:TRU) is an international financial information and insights company that operates through two business segments namely, the US Markets and International segment. Its key services include credit risk management, fraud mitigation, customer marketing, identity verification, and financial inclusion.

On April 10, Jefferies analyst Surinder Thind maintained a Buy rating on the stock with a price target of $90. During the fiscal fourth quarter of 2024, TransUnion (NYSE:TRU) exceeded revenue and adjusted EBITDA guidance. Its revenue grew by 6% led by the International segment which grew 12% on a constant currency basis. Moreover, the company also executed several strategic initiatives such as prepaying $45 million in debt and refinancing over $2.3 billion in term loans. It also relocated over 1,000 roles to global capability centers to improve productivity and enable more services from diverse geographies.

TransUnion (NYSE:TRU) expects 3.5% to 5% revenue growth and 3% to 6% adjusted EBITDA growth in 2025, along with optimizing its global operating model and technology transformation to accelerate innovation. It is the best small-cap financial stock hedge funds are buying.

While we acknowledge the potential of TRU to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than TRU but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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