In this article, we explore the 8 Cheap Rising Stocks to Buy Now.

Optimism has taken a hold in the US equity markets. The geopolitical shock of the Iran war has ripped through the markets, fuelling concerns of an inflation spike and a potential slowdown in economic growth. The US Federal Reserve decision to leave interest rates unchanged is already signaling that all is not well, as policymakers and economists assess a string of headwinds.

Bank of America strategists have already warned of the heightened risk of stagflation as economic growth stagnates. While stagflation is the last thing that the markets would wish for, the strategists are of the opinion that small-cap stocks could be the ultimate winners. The sentiment echoes the ongoing rotation from large-cap tech stocks that had powered to all-time highs.

Volatility is already rising in the equity markets as investors tweak their portfolios after years of blockbuster gains. With the CBOE Volatility Index rising above 20, it affirms higher market uncertainty and investor fear. Amid the uncertainty, some stocks continue to outperform the broader market.

“High quality stocks and those returning cash to shareholders have historically been the best performing styles amid a rising VIX, and Value has fared better than Growth. And if stagflation risks rise if the oil shock is long-lasting, Quality and Cash Return have similarly been the top-performing styles (along with Momentum),” said Jill Carey Hall, equity and quantitative strategist at Bank of America Securities.

While the S&P 500 is down by about 4% over the past one month, some stocks continue to outperform. With that in mind, let’s take a look at some of the cheap rising stocks to invest in.

Our Methodology

To come up with our list of cheap rising stocks to invest in, we went through a variety of online publications, ETFs, and stock screeners to narrow stocks with more than 10% returns over the last 30 days. Moreover, these stocks have PE ratios less than 15. We picked out stocks with an average price upside potential of at least 30%. We also detailed the number of hedge funds holding stakes in them in the fourth quarter of 2025. Finally, we ranked the stocks in ascending order based on their return over the past month as of March 24, 2026.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows 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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).

Cheap Rising Stocks to Buy Now

8. DocuSign, Inc. (NASDAQ:DOCU)

Forward P/E: 10.38

1-Month Performance: 11.78%

Upside Potential: 36.42%

Number of Hedge Fund Holders: 48

DocuSign, Inc. (NASDAQ:DOCU) is one of the cheap rising stocks to buy now. On March 18, UBS lowered its price target on DocuSign Inc. (NASDAQ:DOCU) to $54 from $75 while keeping a Neutral rating. The firm noted that investors are watching for a rebound in application software stocks, with DocuSign currently trading at eight times CY26 free cash flow. UBS highlighted that most Q4 and January metrics were in line with expectations, including revenue growth of 8.2% over the past year and a strong gross margin of 79.4%.

Looking ahead, DocuSign’s fiscal 2027 outlook projects constant‑currency revenue growth of about 7%, slightly below its long‑term target of 10% or higher. UBS suggested that this deceleration is unlikely to shift investor sentiment, reinforcing its Neutral stance. The firm emphasized that while profitability remains solid, growth momentum appears constrained compared to earlier ambitions.

DocuSign reported Q4 FY2026 earnings per share of $1.01, beating forecasts of $0.95, with revenue of $837 million surpassing expectations. Piper Sandler lowered its price target on DocuSign Inc. to $52 from $75 while keeping a Neutral rating, noting strong fourth‑quarter results with top‑ and bottom‑line beats and stabilization in the core business.

The firm highlighted steady retention metrics and growing traction in Identity and Access Management, which is expected to reach an 18% revenue mix by fiscal 2027. While annual recurring revenue growth is projected to modestly accelerate, Piper Sandler said the risk‑reward profile remains balanced until DocuSign demonstrates consistent execution and a clear path to sustainable double‑digit growth.

DocuSign, Inc. (NASDAQ:DOCU) is an American software company that provides electronic signature solutions worldwide, supported by its AI‑powered Intelligent Agreement Management (IAM) platform that automates and analyzes the agreement lifecycle.

7. Pinterest, Inc. (NYSE:PINS)

Forward P/E: 10.46

1-Month Performance: 11.92%

Upside Potential: 30.25%

Number of Hedge Fund Holders: 66

Pinterest, Inc. (NYSE:PINS) is one of the cheap rising stocks to buy now. On March 4, Rosenblatt reiterated a Neutral rating on Pinterest, Inc. (NYSE:PINS) and set a $20 price target. The stance is in response to the company’s affirmation of its commitment to shareholder value through buybacks.

Affiliates of Elliot Investment Management are investing $1 billion in the company. Rosenblatt views the $1 billion investment by Elliott and its affiliates as a move to increase its stake in the company. Pinterest plans to use proceeds from the investment to repurchase its shares via a $1 billion accelerated share repurchase agreement.

The repurchase is to be conducted under a $3.5 billion share repurchase program approved by the board. The stock buyback push comes on the heels of the company delivering record revenue in 2025 on users reaching all-time highs for ten consecutive quarters. In addition, the company boasts more than 80 billion monthly searches on the platform as it continues to deliver strong innovation in visual search powered by AI.

Pinterest, Inc. (NYSE:PINS) is a technology company that operates a visual discovery engine where people go to find inspiration, plan projects, and shop. Unlike traditional social media focused on entertainment or news, Pinterest is designed to curate digital bulletin boards of ideas—ranging from home decor and fashion to recipes and travel.