5 Cheap Rising Stocks to Buy Now

2. Stagwell Inc. (NASDAQ:STGW)

Forward P/E: 6.21

1-Month Performance: 38.18%

Upside Potential: 32.40%

Number of Hedge Fund Holders: 16

Stagwell Inc. (NASDAQ:STGW) is one of the cheap rising stocks to buy now. On March 11, Benchmark reiterated a Hold rating on Stagwell Inc. (NASDAQ:STGW), buoyed by the company’s 2025 financial results. The company’s core business strengthened, resulting in a 3.6% increase in net revenue organically.

Earnings per share came in at $0.30, surpassing the consensus estimate of $0.27. Total revenue, on the other hand, came in at $807.44 million, up 2% year over year but below consensus estimates of $814.33 million. In addition, Stagwell embarked on a cost reduction drive. The company implemented cost actions totaling $50 million, as it targeted cost cuts of between $80 million and $100 million.

The solid financial result comes as Stagwell increasingly pivots towards artificial intelligence applications and services. The strategy is already paying off, as depicted by expanding margins and doubled free cash flow. The company is targeting revenue growth of 8% to 12% in 2026, with adjusted EBITDA of $475 million to $525 million. Adjusted earnings per share are expected to be between $0.98 and $1.12 a share.

Stagwell Inc. (NASDAQ:STGW) is a digital-first global marketing and communications network designed to transform marketing through technology, data, and creativity. It operates a portfolio of agencies offering digital transformation, performance media, research, and public relations services to B2B and B2C brands, aiming to drive business growth.