On January 12, Victoria Greene, Founding Partner and CIO at G Squared Private Wealth, joined CNBC to discuss her current market outlook, selecting ‘Fundamentals’ as her word of the day. She explained that she is eager to move past the current headline risk and headline news, particularly regarding recent Fed announcements, to focus on actual company performance as financial earnings season begins. Greene emphasized that getting back to the core fundamentals of earnings is key to the market’s direction. She expects higher volatility this year and noted that while the market has been unaffected by headline news until now, these new developments could change that. Greene advised investors to avoid knee-jerk reactions to headlines and suggested that the current volatility might present dip-buying opportunities.
Additionally, on January 10, Julian Emanuel of Evercore ISI joined CNBC’s ‘Power Lunch’ to explain his bullish target of 7,750 for the S&P 500. He argued that the leadership seen over the past 3 years in communication services, consumer discretionary, and IT (driven primarily by AI) will continue. Emanuel noted that he remains happy to hold a non-consensus view that the AI trade is far from over. He pointed to a recent increase in capital markets activity as a precursor to further growth and noted that, as a percentage of overall market capitalization, this activity still has significant room to expand based on historical bull market patterns.
Emanuel also addressed the observation that the broader NASDAQ has traded sideways for four months. He remains optimistic about the upcoming earnings season, asserting that “beat rates” have been consistently high throughout this cycle. He is particularly focused on how hyperscalers and enablers describe their future plans. Discussing potential risks, Emanuel revealed an unconventional concern: that the Fed may be overstimulative. He estimates a 30% chance of an actual bubble forming, which he defines as the S&P 500 reaching 9,000. Longer term, his primary concern is a rise in long-term interest rates acting as a punitive discount factor.
That being said, we’re here with a list of the 9 overlooked growth stocks to buy.
Our Methodology
We went through several financial media reports to compile a list of overlooked stocks with an EPS growth rate (TTM) and a forward EPS diluted growth rate (1-year estimate) of at least 15% each. We then selected 9 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q3 2025.
Note: All data was sourced on January 15.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
9 Overlooked Growth Stocks to Buy
9. Jade Biosciences Inc. (NASDAQ:JBIO)
Number of Hedge Fund Holders: 12
Jade Biosciences Inc. (NASDAQ:JBIO) is one of the overlooked growth stocks to buy. On January 7, H.C. Wainwright initiated coverage of Jade Biosciences with a Buy rating and $25 price target. The firm identified the company as being strategically positioned to secure a leadership role within the autoimmune market. The firm projects that JADE101, specifically for the treatment of immunoglobulin A nephropathy, could generate $926 million in risk-adjusted revenue by 2037.
In Q3 2025, Jade Biosciences Inc. (NASDAQ:JBIO) highlighted major progress for its lead candidate, JADE101, and the introduction of a new development program, JADE201. Backed by a successful $135 million private placement completed in October, Jade extended its cash runway into H1 2028, positioning itself to hit several upcoming clinical milestones.
Jade Biosciences is currently advancing JADE101, a selective anti-APRIL monoclonal antibody designed for patients with IgA nephropathy. The company presented preclinical data showing that JADE101 was well-tolerated in non-human primates, establishing a no-observed-adverse-effect level that supports its current Phase 1 trial. The drug demonstrated reversible reductions in serum immunoglobulins without broad immune suppression.
Jade Biosciences Inc. (NASDAQ:JBIO) operates as a biotech company that develops therapies for inflammation and immunology indications in patients living with autoimmune diseases.
8. Biomea Fusion Inc. (NASDAQ:BMEA)
Number of Hedge Fund Holders: 12
Biomea Fusion Inc. (NASDAQ:BMEA) is one of the overlooked growth stocks to buy. On January 14, Rodman & Renshaw initiated coverage of Biomea Fusion with a Buy rating and $8 price target.
In Q3 2025, Biomea announced that the company was shifting its strategy to focus on its two primary assets: icovamenib, a menin inhibitor for type 2 diabetes/T2D, and BMF-650, an oral GLP-1 receptor agonist for obesity. Icovamenib is an oral small molecule designed to partially inhibit menin, a protein that acts as a brake on pancreatic beta-cell growth. By inhibiting menin, the therapy aims to regenerate and reactivate healthy, insulin-producing beta cells, potentially offering a disease-modifying treatment for diabetes rather than just managing symptoms.
During the quarter, Biomea Fusion Inc. (NASDAQ:BMEA) reported durable 52-week data from its Phase II COVALENT-111 study. In patients with severe insulin-deficient T2D, a short 12-week course of icovamenib resulted in a sustained 1.5% mean reduction in HbA1c nine months after dosing ended. Additionally, patients who had failed to reach glycemic targets on GLP-1 therapies saw a 1.3% reduction in HbA1c. These results are particularly notable because they suggest a legacy effect where benefits continue long after the medication is stopped.
Biomea Fusion Inc. (NASDAQ:BMEA) is a clinical-stage diabetes and obesity medicines company that discovers and develops oral covalent small molecule drugs to treat patients with metabolic diseases in the US.
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