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.
7. EverCommerce Inc. (NASDAQ:EVCM)
Number of Hedge Fund Holders: 13
EverCommerce Inc. (NASDAQ:EVCM) is one of the overlooked growth stocks to buy. On January 6, Raymond James downgraded EverCommerce to Market Perform from Outperform without setting a price target on the shares. This decision was made as the firm noted that after a strong run and the stock gaining 15% over the last six months, the potential for further growth is likely capped. The firm cited the company’s liquidity profile and substantial insider ownership as primary headwinds.
On the same day, RBC Capital analyst Matthew Hedberg also shifted his rating on EverCommerce Inc. (NASDAQ:EVCM) from Outperform to Sector Perform, while maintaining a $12 price target on the shares. Following a 50% rally from its November lows, RBC Capital now views the stock as fairly valued. The firm expects limited short-term growth and noted that the company’s internal optimization strategies will require more time to produce measurable results.
Earlier for Q3 2025, EverCommerce reported a total revenue of $147.5 million, which was a 5.3% year-over-year growth, landing within the company’s projected guidance. This performance was driven by the company’s core SaaS revenue, which grew by over 8%. Subscription and transaction revenue specifically accounted for $142.2 million of the total, which marked a 4.4% increase compared to the previous year.
EverCommerce Inc. (NASDAQ:EVCM), together with its subsidiaries, provides integrated SaaS solutions for service-based small and medium-sized businesses in the US and internationally.
6. Tenaya Therapeutics Inc. (NASDAQ:TNYA)
Number of Hedge Fund Holders: 17
Tenaya Therapeutics Inc. (NASDAQ:TNYA) is one of the overlooked growth stocks to buy. On January 8, Morgan Stanley lowered the firm’s price target on Tenaya Therapeutics to $2 from $5 and kept an Overweight rating on the shares. In a sector outlook note, the firm predicted that the US small-to-mid cap biotech stocks will continue to outperform in 2026. This bullish view is driven by commercial-stage companies transitioning from capital consumers to producers and a looming patent cliff that is currently threatening the revenue of large-cap biopharma.
Earlier on December 16, Canaccord Genuity recently lowered its price target for Tenaya Therapeutics to $4 from $6, while maintaining a Buy rating. This adjustment reflected the impact of a recent $60 million capital raise (completed in December 2025), which caused some shareholder dilution but extended the company’s cash runway into mid-2027.
On December 12, H.C. Wainwright also lowered its price target for Tenaya Therapeutics Inc. (NASDAQ:TNYA) to $3 from $5 while maintaining a Buy rating. This reduction was also primarily due to the share dilution resulting from the company’s $60 million public offering. This capital raise, priced at $1.20 per unit, was essential for extending Tenaya’s cash runway through mid-2027, as mentioned previously, and also for supporting its key gene therapy programs.
Tenaya Therapeutics Inc. (NASDAQ:TNYA) is a clinical-stage biotech company that discovers, develops, and delivers therapies for heart disease in the US.
5. Sezzle Inc. (NASDAQ:SEZL)
Number of Hedge Fund Holders: 22
Sezzle Inc. (NASDAQ:SEZL) is one of the overlooked growth stocks to buy. On January 8, TD Cowen lowered the firm’s price target on Sezzle to $82 from $83 and maintained a Hold rating on the shares. The firm revised its price target to align with its latest Specialty Finance outlook, accounting for broader macroeconomic pressures alongside secular growth trends. This updated valuation considers the evolving landscape across credit cards, auto and student lending, non-prime credit, Buy-Now-Pay-Later/BNPL, and lease-to-own markets.
In Q3 2025, Sezzle reported that its quarterly revenue increased by a 67% year-over-year to generate $116.8 million. EPS totaled $0.71, which beat Street estimates by $0.06. The company’s GMV grew 58.7% and surpassed $1 billion for the first time in a single quarter. Management made a decisive move to deemphasize its on-demand product in favor of its subscription model. While the on-demand feature was intended to transition users into long-term subscribers, it underperformed in conversion at the POS.
Sezzle Inc. (NASDAQ:SEZL) raised its full-year 2025 guidance and now expects GAAP EPS of $3.52 and adjusted EPS of $3.38. The company also issued preliminary 2026 guidance and forecasted an adjusted EPS of $4.35. This target reflects a projected 29% growth over 2025, driven by continued subscription expansion, cost efficiencies, and the rising consumer preference for BNPL services over traditional credit cards.
Sezzle Inc. (NASDAQ:SEZL) operates as a technology-enabled payments company primarily in the US and Canada.
4. Intuitive Machines Inc. (NASDAQ:LUNR)
Number of Hedge Fund Holders: 25
Intuitive Machines Inc. (NASDAQ:LUNR) is one of the overlooked growth stocks to buy. On January 12, Canaccord raised the firm’s price target on Intuitive Machines to $22.50 from $15.50, while keeping a Buy rating on the shares. This sentiment was posted following a review of the 2026 landscape, where the firm adjusted its targets for the aerospace and defense sector.
In other news, on January 8, Stifel downgraded Intuitive Machines from Buy to Hold, even as it increased its price target to $20 from $18. While the firm expects NASA to announce the Lunar Terrain Vehicle/LTV contract winner imminently, it warns that an unpredictable political climate could create uncertainty regarding whether the contract is awarded solely based on the most qualified bid.
With the stock currently trading near the new price target and market anxiety rising over the LTV award, Stifel believes that the risk/reward profile for Intuitive Machines Inc. (NASDAQ:LUNR) is now balanced. Consequently, the firm suggested shifting to the sidelines until there is more clarity on the outcome and the impact of the current political environment.
Intuitive Machines Inc. (NASDAQ:LUNR) designs, manufactures, and operates space products and services in the US.
3. Amylyx Pharmaceuticals Inc. (NASDAQ:AMLX)
Number of Hedge Fund Holders: 37
Amylyx Pharmaceuticals Inc. (NASDAQ:AMLX) is one of the overlooked growth stocks to buy. On January 8, Amylyx Pharmaceuticals (NASDAQ: AMLX) announced the nomination of AMX0318 as its newest development candidate. Identified through a strategic collaboration with Gubra A/S, AMX0318 is a novel, long-acting glucagon-like peptide-1/GLP-1 receptor antagonist designed to treat post-bariatric hypoglycemia/PBH and other rare diseases.
The development of AMX0318 utilized Gubra’s proprietary streaMLine platform, which is an AI-driven technology used to optimize peptide candidates. Amylyx plans to initiate IND-enabling studies for AMX0318 later in 2026, with a target of filing an IND application in 2027. This new program complements Amylyx’s existing lead candidate, avexitide, which is currently being evaluated in the pivotal Phase 3 LUCIDITY trial for PBH. The company expects to finish recruitment for the LUCIDITY trial in Q1 2026 and anticipates a topline data readout in Q3 2026.
Earlier on December 19, Bank of America lowered the firm’s price target on Amylyx to $15 from $16, while keeping a Buy rating on the shares. Following Amylyx’s Q3 2025 earnings report, the firm highlighted that recent financing secured the company’s cash runway through 2028. BofA noted that the stock’s primary catalyst remains the Phase 3 LUCIDITY trial for avexitide. Data from this pivotal study, which targets post-bariatric hypoglycemia, is expected in Q3 2026.
Amylyx Pharmaceuticals Inc. (NASDAQ:AMLX) is a clinical-stage pharmaceutical company that discovers and develops treatment options for neurodegenerative diseases and endocrine conditions in the US.
2. Remitly Global Inc. (NASDAQ:RELY)
Number of Hedge Fund Holders: 38
Remitly Global Inc. (NASDAQ:RELY) is one of the overlooked growth stocks to buy. On January 6, Goldman Sachs analyst Will Nance lowered the firm’s price target on Remitly Global to $17 from $19 and maintained a Buy rating on the shares.
Earlier on December 11, Citizens reaffirmed its Market Outperform rating and $20 price target for Remitly Global and identified the company as a leader in the digital remittance sector. The firm suggested that the stock experienced an excessive sell-off before the company’s Investor Day due to negative headlines regarding immigration, a projected slowdown in revenue growth, and investor apprehension concerning the launch of new small-dollar lending products.
In Q3 2025, Remitly Global Inc. (NASDAQ:RELY) scaled its new product categories. Remitly Business expanded into the UK and Canada, significantly broadening the company’s TAM from $2 trillion to $22 trillion. By the end of Q3, ~10,000 businesses were active on the platform, with transaction sizes averaging twice those of traditional consumers. Additionally, the Flex product reached ~100,000 active users, with its revenue ~doubling sequentially. The company also saw a 40% increase in send volume from high-value customers, who now represent a larger portion of the total customer mix.
Remitly Global Inc. (NASDAQ:RELY) provides digital financial services in the US, Canada, and internationally. It offers cross-border remittances and complementary financial services through a mobile application and website.
1. Rubrik Inc. (NYSE:RBRK)
Number of Hedge Fund Holders: 52
Rubrik Inc. (NYSE:RBRK) is one of the overlooked growth stocks to buy. On January 12, KeyBanc analyst Eric Heath lowered the firm’s price target on Rubrik to $95 from $113 with an Overweight rating on the shares. The firm’s updated view reflects a slight contraction in peer valuation multiples, rising concerns over competitive pressure, and a more cautious outlook on enterprise security spending.
On January 5, Barclays also lowered the firm’s price target on Rubrik to $100 from $120, while maintaining an Overweight rating on the shares.
On the same day, Piper Sandler also adjusted its outlook for Rubrik Inc. (NYSE:RBRK) and cut the price target to $99 from $118 while maintaining an Overweight rating. The firm revised its valuation multiple to 11x, down from 13x, citing year-over-year comparisons and minor estimate tweaks following Rubrik’s 10-Q filing. Despite the lower target, Piper Sandler reaffirmed the stock as its top overall pick, reflecting continued confidence in the company’s 48% year-over-year revenue growth and its leadership in AI-driven cyber resilience.
Earlier on December 29, Stephens analyst Todd Weller initiated coverage of Rubrik with an Overweight rating and a $105 price target, highlighting the company’s strong growth potential in the data protection and security markets. The firm noted that Rubrik’s expected margin expansion should effectively balance its top-line gains, while its unified platform represents a disruptive departure from traditional legacy architectures.
Rubrik Inc. (NYSE:RBRK) provides data security solutions to individuals and businesses worldwide.
While we acknowledge the potential of RBRK 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 RBRK and that has 100x upside potential, check out our report about this cheapest AI stock.
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