We recently published a list of 8 Best Low Float Stocks to Invest in Now. In this article, we are going to take a look at where Graham Holdings Company (NYSE:GHC) stands against other best low float stocks to invest in now.

Stocks with low public float refer to shares of a company that are available for trading by the public, but in relatively small quantities. The public float is the portion of a company’s shares that are not held by insiders, such as company executives, or major institutional shareholders who are usually long-term passive investors. When a stock has a low float, it can be more volatile because the smaller supply of shares means that even small changes in demand can significantly impact the stock price. For investors, this can present both opportunities and risks. While low float stocks may see large price movements, they can also be harder to trade, leading to higher spreads and less liquidity, which may be particularly painful when seeking to liquidate the investment. Consequently, investors need to be cautious with low float stocks and only buy them strategically with very high conviction.

READ ALSO: 12 Stocks with Heavy Insider Buying in 2025

We believe that low float stocks become particularly attractive during times of heightened volatility, which usually happens amid pronounced geopolitical challenges or regime changes, when investors don’t know how to react to rapidly evolving circumstances. With the US stock market officially in correction territory and the implied volatility index more than 75% above the year-to-date lows, the current times perfectly fit our description of uncertainty. First, the markets have negatively reacted to the realization that tariffs will soon become a reality rather than a negotiation tool used by the new administration; the President further announced 50% tariffs on Canadian steel and aluminum, which caused some havoc among investors. On the positive side, some progress on the tariff-avoiding deal between the US and Canada, as well as the ongoing peace negotiations related to Ukraine in Saudi Arabia, provided some optimism and a boost for the stock market. Still, the picture remains dull for many investors who became accustomed to the high-growth 2023-2024 period, fueled by the AI megatrend.

A key piece of the puzzle to keep in mind when picking the right low float stock to invest in is the near- and mid-term outlook for the sector it operates in. It is well known that macroeconomic headwinds in the end market may mute even the most exceptional growth story, regardless of how strong the company’s moat is. We clearly see sluggish conditions in the construction sector, as new data shows a pronounced slowdown in both residential and commercial starts. With tariffs on construction materials kicking in, as well as the new administration being a headwind for immigration, we see this sector potentially remaining pressured for the near future. The consumer discretionary space could see slow growth as well in the upcoming quarters, as recent layoffs, as well as a tanking stock market, are very likely to make consumers more cautious with their spending. Finally, some niches in the industrial sector could also be pressured due to lower federal spending and the deteriorating Capex outlook reported by business surveys. The outlook on every other sector remains unchanged and could potentially nest some exceptional low float stocks to invest in right now.

Our Methodology

To compile our list of low float stocks, we used a Finviz screener to filter for companies that have less than 10 million shares floating for purchase. We then compare the sample with our proprietary list of hedge fund ownership and include the top 8 stocks with the highest number of hedge funds that own the stock.

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).

Graham Holdings Company (NYSE:GHC)

Number of Hedge Fund Holders: 27

Graham Holdings Company (NYSE:GHC) is a diversified conglomerate with operations in education, media, manufacturing, healthcare, and hospitality. It owns Kaplan, a global education services provider, as well as local television stations, print and digital media businesses, and industrial manufacturing companies. The company also has investments in healthcare services, restaurants, and automotive dealerships. GHC generates revenue across multiple industries, operating through a mix of wholly owned subsidiaries and strategic investments. Its diverse portfolio spans both consumer and business-facing markets in the US and internationally. The Virginia-based company ranked seventh on our recent list of 12 Best Education Stocks to Buy in 2025.

Graham Holdings Company (NYSE:GHC)’s primary goal is to grow cash flow on a per share basis over the long term, while maintaining a focus on returning capital to shareholders through dividends and share repurchases. The company has demonstrated significant success with its share repurchase program, spending $580 million to acquire more than 1 million shares through September 2024, resulting in approximately a 25% ownership increase for existing shareholders. Operationally, the company generated $307 million in adjusted operating cash flow through Q3, up $52 million from the prior year, driven by strong performance at Kaplan, Graham Healthcare Group, and political advertising at Graham Media Group. The company also maintains a robust balance sheet, with $1.1 billion in cash and securities offset by $765 million in debt, yielding a net position of approximately $343 million.

Across its business segments, Graham Holdings Company (NYSE:GHC) has shown notable progress. In the healthcare segment, GHC achieved exceptional growth, with adjusted operating cash flow increasing from $34 million to $54 million year-to-date, supplemented by $10 million in joint venture income. Kaplan continues to evolve successfully, focusing on service provision to higher education institutions globally, while leveraging AI and LLM models to enhance products and efficiency. The broadcast segment outperformed expectations, with political revenues driving a 28% increase in adjusted operating cash flow during the first nine months of the year. Though the manufacturing segment faced some cyclical downturns, it still provided solid returns for shareholders. Looking ahead, GHC is committed to organic growth opportunities, strategic acquisitions, and efficient capital allocation, while continuing to assess share repurchases based on intrinsic value considerations. With a share float of only 3.15 million, GHC is one of the best low float stocks to invest in now.

Overall, GHC ranks 5th on our list of best low float stocks to invest in now. While we acknowledge the potential of GHC as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GHC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.