On June 11, Jeff Richards, Notable Capital managing partner, joined ‘Closing Bell’ on CNBC to discuss the increasing appetite for IPOs and suggested that investors may soon have opportunities to directly invest in the next wave of companies. Richards highlighted recent IPO performance and noted that the average of the last 20 IPOs is up over 50%, with some exceeding 100% gains. He also noted a positive trend of 2-3 recent IPOs with market caps below $5 billion, which is a barrier that bankers were previously hesitant to cross.
Richards also addressed the trend of companies staying private for longer, which limits public market investors’ access to the next wave. In 1996, there were 7,000 public companies, compared to 4,000 today, despite significant GDP and economic growth (10x-15x). This concentration of market value in private assets benefits the venture capital industry. He noted that while venture capital faced liquidity challenges in recent years, an increase in IPO and M&A activity suggests a thaw. He suggested that public market investors can gain exposure to private companies by investing in private equity firms that lend capital to private companies and invest in AI infrastructure like power and data centers.
That being said, we’re here with a list of the 9 cheap new stocks to buy according to analysts.
An investor intently studying a diversified portfolio of stocks & bonds on a digital tablet.
Methodology
We first used the Finviz stock screener to compile a list of stocks with a forward P/E ratio of 15 or less, for companies that went public in the past 3 years. We then selected 9 stocks that had high average upside potential (over 15%) and were the most popular among elite hedge funds. The stocks are ranked in ascending order of their average upside potential. We’ve also added the hedge fund sentiment for each stock, which was sourced from Insider Monkey’s database.
Note: All data was recorded on June 13.
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).
9 Cheap New Stocks to Buy According to Analysts
9. Corebridge Financial Inc. (NYSE:CRBG)
Forward P/E Ratio as of June 13: 6.54
Number of Hedge Fund Holders: 32
Average Upside Potential as of June 13: 15.44%
Corebridge Financial Inc. (NYSE:CRBG) is one of the 11 cheap new stocks to buy according to analysts. Earlier this year in February, Corebridge Financial officially launched the next generation of its digital experience for retirement plan participants. The new platform is accessible via the company website and retirement app and aims to offer retirement savers clear, simple, and actionable information, along with effortless control and personalized guidance.
Terri Fiedler, President of Retirement Services at Corebridge Financial, highlighted that the new experience provides intuitive features to support financial wellness. Key new features of the Corebridge digital experience include a Personal Dashboard that centralizes account balance, performance, savings, and contributions. This allows users to even integrate outside assets for a comprehensive financial view.
The platform also integrates various built-in resources, such as a Retirement Outlook Tool, which helps employees estimate their future monthly income in retirement and offers the ability to directly adjust contributions or asset allocation. DALBAR, which is an independent market research firm, recently recognized the Corebridge website for its excellent mobile optimization.
Corebridge Financial Inc. (NYSE:CRBG) provides retirement solutions and insurance products in the US. It operates through Individual Retirement, Group Retirement, Life Insurance, and Institutional Markets segments.
8. Smithfield Foods Inc. (NASDAQ:SFD)
Forward P/E Ratio as of June 13: 10.63
Number of Hedge Fund Holders: 29
Average Upside Potential as of June 13: 18.87%
Smithfield Foods Inc. (NASDAQ:SFD) is one of the 11 cheap new stocks to buy according to analysts. Earlier on May 20, Smithfield Foods’ brand, called Farmland, launched its new campaign: Our Best for Your Best. The campaign emphasized Farmland’s long-standing commitment to quality since 1959. The campaign rolled out across digital platforms, in-store displays, and social media, with support from a refreshed website, and aimed to provide premium food options and recipe inspiration to consumers.
Accompanying the campaign are two new product offerings. The first is a Premium Ground Pork line, available in two varieties: Original and Taco Style. This 16-ounce product is designed for versatility and rich flavor, made from premium cuts of pork. The second new product is Julienne Turkey, a 12-ounce, fully-cooked, chef-inspired option that can easily enhance salads, wraps, and casseroles.
The brand manager of Farmland at Smithfield Foods, Kevin Hojnicki, noted that the campaign reaffirms that quality matters when feeding loved ones. Both the Premium Ground Pork and Julienne Turkey are now available at select retailers.
Smithfield Foods Inc. (NASDAQ:SFD) produces packaged meats and fresh pork internationally.
7. Ingram Micro Holding Corporation (NYSE:INGM)
Forward P/E Ratio as of June 13: 6.89
Number of Hedge Fund Holders: 13
Average Upside Potential as of June 13: 32.42%
Ingram Micro Holding Corporation (NYSE:INGM) is one of the 11 cheap new stocks to buy according to analysts. On June 10, Ingram Micro announced that it will host a webinar on July 17 at 11 am PT to discuss its Xvantage Digital Experience Platform. Sanjib Sahoo, President of the company’s Global Platform Group, will lead the discussion and delve into the platform’s foundational architecture, while previewing various components and explaining what it means for Ingram Micro to be a B2B platform company.
The Xvantage platform was launched in 2022 and is an award-winning, global, AI-powered digital experience. It is designed to streamline and expedite business processes for vendor partners and customers by automating key functions such as quote creation, order management, and real-time tracking. This automation enables companies using the platform to scale operations, enhance service delivery, and make data-driven decisions.
The platform currently operates in 20 of the 57 countries where Ingram Micro has a presence and continues to expand. Xvantage is built on a data mesh infrastructure and uses 300+ AI and ML models, along with 20 digital engines, based on patent-pending technology, to redefine the B2B experience and transform the entire technology value chain.
Ingram Micro Holding Corporation (NYSE:INGM) distributes IT products, cloud, and other services in North America, Europe, the Middle East, Africa, the Asia-Pacific, Latin America, and internationally.
6. Infinity Natural Resources Inc. (NYSE:INR)
Forward P/E Ratio as of June 13: 7.53
Number of Hedge Fund Holders: 21
Average Upside Potential as of June 13: 33.90%
Infinity Natural Resources Inc. (NYSE:INR) is one of the 11 cheap new stocks to buy according to analysts. On June 11, Raymond James raised its price target on Infinity Natural Resources to $28 from $26, while maintaining a Strong Buy rating. This adjustment followed the Q1 2025 earnings report released earlier on May 13, after which Raymond James noted a steady first quarter for the company.
Raymond James also highlighted positive implications from EOG’s acquisition of Encino, as this removed Infinity Natural Resources’ primary competition from a consolidation perspective. In Q1, Infinity placed 6 wells into sales on budget and ahead of schedule, which totaled ~83,000 lateral feet. This included 1 oil well in the Utica Shale in Ohio in early January and 5 natural gas wells in the Marcellus Shale in Pennsylvania in late March.
The company also accelerated a natural gas-weighted project by contracting a second drilling rig to drill 4 natural gas wells in the Marcellus Shale in Pennsylvania, which are expected to begin sales this summer. Infinity Natural Resources’ total net daily production for the quarter was 26.5 MBoe/d, which composed of ~31% oil and 55% liquids and showed a 13% sequential growth.
Infinity Natural Resources Inc. (NYSE:INR) acquires, explores, and develops properties to produce oil, natural gas, and natural gas liquids from underground reservoirs in the US.
5. Marex Group (NASDAQ:MRX)
Forward P/E Ratio as of June 13: 10.66
Number of Hedge Fund Holders: 22
Average Upside Potential as of June 13: 35.17%
Marex Group (NASDAQ:MRX) is one of the 11 cheap new stocks to buy according to analysts. On June 5, Marex Group announced its agreement to acquire Agrinvest Commodities, which is a Brazilian agricultural commodities business. This acquisition is set to expand Marex’s operations in the Americas, introduce new capabilities, and diversify its earnings by bringing in new clients.
Agrinvest Commodities specializes in connecting buyers and sellers in physical agricultural markets, specifically dealing with corn and soybeans. Agrinvest also provides consulting support to its clients and helps them understand hedging options and commercial strategies within these agricultural sectors. This acquisition will grant Marex physical commodities capabilities in Brazil and complement its existing derivatives operations in the region.
Agrinvest currently has ~1,300 clients and a team of 100 employees, which will augment Marex’s current Brazilian business. The CEO of Marex, Ian Lowitt, stated that Brazil is a crucial global commodity producer and a target for Marex’s expansion efforts. The financial details of the acquisition have not yet been publicly disclosed.
Marex Group (NASDAQ:MRX) is a financial services platform provider company with liquidity, market access, and infrastructure services for clients in the energy, commodities, and financial markets.
4. Worthington Steel Inc. (NYSE:WS)
Forward P/E Ratio as of June 13: 9.5
Number of Hedge Fund Holders: 13
Average Upside Potential as of June 13: 38.21%
Worthington Steel Inc. (NYSE:WS) is one of the 11 cheap new stocks to buy according to analysts. On June 3, Worthington Steel completed the acquisition of a controlling equity stake, ~52%, in Italy-based Sitem Group through its subsidiary called Tempel Steel Company, LLC. The acquisition includes Sitem Group’s subsidiaries Stanzwerk AG, Decoup S.A.S., and Sitem Slovakia spol. s.r.o., and grants Worthington Steel the option to increase its ownership in the future.
The move enhances Worthington Steel’s position in the European electric motor lamination market and strengthens its capacity to serve global automotive, industrial motor, and transformer customers. Worthington Steel’s President and CEO, Geoff Gilmore, emphasized that Sitem Group aligns with the company’s commitment to quality, innovation, and customer focus.
The transaction involved a combination of cash investment, the acquisition of shares from existing shareholders, and the contribution of Worthington Steel’s Nagold, Germany facility. The investment supports Worthington Steel’s long-term objective of expanding its presence in high-value electrical steel applications.
Worthington Steel Inc. (NYSE:WS) is a steel processor in North America. It offers carbon flat-rolled steel and tailor-welded blanks, as well as automotive and electrical steel lamination stampings, along with aluminum tailor-welded blanks.
3. NCR Atleos Corporation (NYSE:NATL)
Forward P/E Ratio as of June 13: 6.7
Number of Hedge Fund Holders: 30
Average Upside Potential as of June 13: 40.79%
NCR Atleos Corporation (NYSE:NATL) is one of the 11 cheap new stocks to buy according to analysts. On June 5, NCR Atleos announced the extension of its collaboration with Morrisons Daily, which is a prominent convenience retailer operating 900 stores across England, Scotland, and Wales. This continued partnership ensures that Morrisons Daily customers will have reliable and secure access to cash through Atleos’ Cashzone Network, which supplies over £100 million in cash to shoppers monthly.
The Trading Director for Morrisons Daily, Michael Weightman, noted that NCR Atleos has been a dependable provider for over 25 years and that the company’s modern technology enables Morrisons Daily to participate in the UK’s Cash Access initiatives, which reinforces its commitment to local communities.
The Executive Vice President at Global Sales for Atleos, Diego Navarrete, highlighted that the Cashzone Network ATMs will be present in 900+ Morrisons Daily convenience stores across the UK. He also noted that this partnership allows leading retailers like Morrisons Daily to offer a secure and high-availability network and quickly implement the latest self-service innovations.
NCR Atleos Corporation (NYSE:NATL) is a financial technology company that provides self-directed banking solutions to financial institutions, merchants, manufacturers, retailers, and consumers.
2. GigaCloud Technology Inc. (NASDAQ:GCT)
Forward P/E Ratio as of June 13: 6.9
Number of Hedge Fund Holders: 10
Average Upside Potential as of June 13: 45.99%
GigaCloud Technology Inc. (NASDAQ:GCT) is one of the 11 cheap new stocks to buy according to analysts. Earlier on May 6, GigaCloud Technology announced that it won two Gold Stevie Awards at the 23rd annual American Business Awards. The company was honored in the categories of ‘Fastest Growing Company of the Year’ (for companies with up to 2,500 employees) and ‘Achievement in Growth.’
This marks the third consecutive year GigaCloud has received recognition at the American Business Awards. In 2024, the company earned a Silver Stevie Award for ‘Achievement in Growth,’ and in 2023, a Bronze Stevie Award for ‘Fastest Growing Company of the Year.’ The latter acknowledges GigaCloud’s pace in revenue and operational expansion, while ‘Achievement in Growth’ highlights the initiatives behind the company’s sustainable and innovation-led growth.
The American Business Awards, recognized as the nation’s premier business honors program, received over 3,600 nominations this year. A panel of more than 250 professionals worldwide selected the winners. Judges lauded GigaCloud Technology for its rapid ascent in B2B e-commerce, while citing key achievements such as $1 billion in annual revenue, a global fulfillment footprint exceeding 10 million square feet, and the company’s forward-thinking Branding-as-a-Service initiative.
GigaCloud Technology Inc. (NASDAQ:GCT) provides end-to-end B2B ecommerce solutions for large parcel merchandise in the US and internationally.
1. Flowco Holdings Inc. (NYSE:FLOC)
Forward P/E Ratio as of June 13: 12.69
Number of Hedge Fund Holders: 21
Average Upside Potential as of June 13: 72.79%
Flowco Holdings Inc. (NYSE:FLOC) is one of the 11 cheap new stocks to buy according to analysts. Earlier on May 13, Flowco announced its results for Q1 2025, which later prompted Piper Sandler analyst Derek Podhaizer to lower Flowco’s price target to $33 from $34 on May 14, while maintaining an Overweight rating on the shares. The revision followed a slight earnings miss and an underperformance in stock price, contrasting with a flat performance in the broader oil services ETF (OIH).
In Q1, Flowco reported a revenue of $192.4 million, which is higher than the Q4 2024 revenue of $186 million. Flowco operates in two segments, called Production Solutions and Natural Gas Technologies. The Production Solutions segment generated revenues of $116 million in Q1, which was a 2.3% sequential increase. While the Natural Gas Technologies segment reported revenues of $76.4 million, which was up 5.1%.
However, at the same time, the President and CEO, Joe Bob Edwards, acknowledged the challenging US upstream outlook due to evolving tariff policies, OPEC+ commentary that suggests accelerated production, and economic uncertainty. He believes that these factors may have led many customers to modestly reduce capital spending.
Flowco Holdings Inc. (NYSE:FLOC) provides production optimization, artificial lift, and methane abatement solutions for the oil & natural gas industry in the US.
While we acknowledge the potential of FLOC 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 FLOC and that has 100x upside potential, check out our report about this cheapest AI stock.
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Disclosure: None.
