In this article, we will list the 5 Cheap Rising Stocks to Buy Now. Please visit 8 Cheap Rising Stocks to Buy Now if you would like to see the extended list and the methodology behind it.
5. First Advantage Corporation (NASDAQ:FA)
Forward P/E: 8.90
1-Month Performance: 19.14%
Upside Potential: 43.41%
Number of Hedge Fund Holders: 15
First Advantage Corporation (NASDAQ:FA) is one of the cheap rising stocks to buy now. On March 12 at the BofA Securities 2026 Information & Business Services Conference, First Advantage Corporation (NASDAQ:FA) affirmed its transition from a background screening service to a comprehensive capital risk management solution. Consequently, it’s targeting to become a $2 billion company by 2028.
The transition saw the company achieve 17% top-line growth in the fourth quarter and 12% overall, as revenue hit $1.6 billion. Looking ahead, artificial intelligence is seen as an enabler rather than a disruptor in the industry, as the company maintains a high retention rate of about 97%.
In the fourth quarter, revenue was up 36.8% on a reported basis to $420 million, while full-year revenue rose 2.4% to $1.66 billion. Non-GAAP profit was 13.7% above analysts’ estimates at $0.30. For 2026, First Advantage expects revenue to range between $1.625 billion and $1.7 billion, with adjusted EBITDA between $460 million and $480 million. The company has also approved a $100 million share repurchase, affirming confidence in long-term growth.
First Advantage Corporation (FA) is a global provider of comprehensive background screening, identity verification, and compliance solutions for employers. It offers services such as criminal record checks, drug testing, and employment verification to help businesses hire safely and efficiently, leveraging automated technology for rapid, scalable results across industries.
4. Dave Inc. (NASDAQ:DAVE)
Forward P/E: 14.73
1-Month Performance: 26.71%
Upside Potential: 49.89%
Number of Hedge Fund Holders: 56
Dave Inc. (NASDAQ:DAVE) is one of the cheap rising stocks to buy now. On March 13, William Blair reiterated an Outperform rating on Dave Inc (NASDAQ:DAVE) following a meeting with the company’s CFO, Kyle Beilman.
The research firm remains confident in the company’s outlook, as it has differentiated itself through a data-driven, algorithmic, credit-first approach. Its solutions address a total addressable market of 185 million accounts.
Consequently, the research firm expects the company to achieve mid- to high-20% organic growth, driven by existing and new products. The growth would be driven by low double-digit member growth and mid-teens average revenue per user compounding.
Earlier, on March 10 at the Wolfe FinTech Forum, Dave outlined its ambitious plans for 2026. The company is pushing for significant revenue growth and emphasizing its focus on AI-driven innovation and customer engagement.
Last year, revenue was up 60% year over year to $550 million, and the company plans to achieve 25% to 28% revenue growth in 2026 amid heightened focus on AI and new product launches.
Dave Inc. (NASDAQ:DAVE) is a U.S.-based financial technology (fintech) company and digital-first neobank that offers banking services, cash advances, and financial management tools to replace traditional overdraft fees.
3. The Baldwin Insurance Group Inc. (NASDAQ:BWIN)
Forward P/E: 10.24
1-Month Performance: 30.60%
Upside Potential: 49.90%
Number of Hedge Fund Holders: 18
The Baldwin Insurance Group Inc. (NASDAQ:BWIN) is one of the cheap rising stocks to buy now. On February 27, Raymond James upgraded The Baldwin Insurance Group Inc. (NASDAQ:BWIN) to a strong Buy from Outperform and raised the price target to $30 from $20.
The upgrade came against the backdrop of strong fourth-quarter and full-year 2025 results that showed significant progress in the Baldwin Insurance Group. The company delivered its sixth consecutive year of top industry organic growth, expanded margins, and robust growth in adjusted diluted earnings per share.
Full-year revenue was up 8% year over year to $1.5 billion, driven by a 7% growth in organic revenue. Adjusted EBITDA grew 9% to $341.5 million as adjusted EPS grew 11% to $1.67. The company posted adjusted earnings per share of $0.31 in the fourth quarter, better than the $0.28 a share that Raymond James expected. Revenue in the quarter grew 5%, driven by 3% organic growth.
In addition to the strong fourth quarter and full year results, Baldwin Insurance Group approved the repurchase of up to $250 million in outstanding shares over the next 12 months.
The Baldwin Insurance Group Inc. (NASDAQ:BWIN) is an independent advisory firm providing insurance, risk management, employee benefits, and wealth management solutions to clients nationwide. It offers tailored commercial and personal insurance, with specialized expertise across industries such as construction, hospitality, aviation, and healthcare.
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.
1. Clarivate Plc (NYSE:CLVT)
Forward P/E: 3.36
1-Month Performance: 48.21%
Upside Potential: 38.96%
Number of Hedge Fund Holders: 21
Clarivate Plc (NYSE:CLVT) is one of the cheap rising stocks to buy now. On March 10, at the Wolfe FinTech Forum, Chief Financial Officer Jonathan Collins reiterated that Clarivate Plc (NYSE:CLVT) is experiencing growth in recurring revenue as it also integrates artificial intelligence.
The company’s Annual Contract Value was up by 2% in 2025, an improvement from 1% growth in 2024. In return, the company is eyeing 2% to 3% growth in 2026. While organic recurring revenue rose 0.5% in 2025, Clarivate expects 1% to 2% growth in 2026. Adjusted EBITDA surpassed the $1 billion mark in 2025, with a projected 200 basis-point margin expansion this year.
The projected growth aligns with heightened AI integration as the company continues to enhance its product offering and customer engagement. Clarivate is also enhancing its focus on subscription-based models as it eyes leadership changes to boost performance. The company is also focusing on partner renewals and AI-driven innovation.
Clarivate Plc (NYSE:CLVT) is a global information services company that accelerates the innovation lifecycle by providing trusted data, analytics, and software to organizations. They focus on academic research, intellectual property (IP) management, and life sciences, helping clients discover, protect, and commercialize new ideas.
While we acknowledge the potential of CLVT 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 CLVT and that has 100x upside potential, check out our report about the cheapest AI stock.
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