In this article, we will take a detailed look at the best low priced growth stocks to invest in.
Low priced stocks usually fall under the small to mid-cap size category. This growth criteria, often proxied through high double-digit revenue growth rate, helps narrow down the stock universe to a sample of relatively cheap stocks but with explosive growth potential that tend to perform well in periods of macroeconomic stability, low interest rates, and positive economic growth. The performance of value vs. growth stocks has been studied for decades, and most studies agree that value tends to outperform growth factors over long periods of time. For instance, Vanguard Research in a 2021 publication showed that value stocks in the US have outperformed growth in almost every single year since 1936 until the early 2010s, when a major shift occurred.
Vanguard Research argued that during the 10 years preceding the publication date, US growth stocks have outperformed US value stocks by an average of 7.8% per year, which is a significantly high difference. Such findings can be attributed to several technological developments in consumer electronics, media & communications, semiconductors, and AI, which fueled unprecedented productivity improvements and growth in new markets that generally fall under the growth category. This hypothesis is confirmed by Arnott et al. (2021) study, which claims that the success of growth stocks is primarily attributed to the technology companies that benefit from platform effects and the “winner-take-all” economics. Among other factors that drove the increasing outperformance of growth stocks are low inflation and prolonged periods of low interest rates during the 2010s and early 2020s.
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The last 3 years presented a very mixed picture in the growth vs. value dilemma. The year 2022 brought significant outperformance of value as rising interest rates and inflation slashed the potential of growth stocks. However, 2023 and the emergence of the AI megatrend brought a new growth frontier across the semiconductor and technology sectors, which sparked an unprecedented rise in stock market concentration and the relative outperformance of growth stocks. This rally lasted for exactly 2 years and ended just recently with the inauguration of the Trump 2.0 administration and its subsequent actions that shook the global markets. The US stock market is now down 20% from its February 2025 peak, meaning that growth stocks ceded back almost half of their gains made since 2023. This has been primarily driven by Trump 2.0 actions such as tariffs and public spending cuts that could fuel inflation, keep rates high, and limit GDP growth. This is an unfavorable environment for growth stocks.
However, despite the widespread fears, we believe that the stock market is at or near its bottom, and several potential developments in the following weeks could push stock prices higher and favor the low priced growth stocks again. First, there have been widespread news that the European Union and countries like India are actively seeking the possibility of negotiating free trade agreements with the USA, which points towards the scenario that Trump’s tariffs will be cancelled at some point, at least for the major trade partners. Second, any substantial economic slowdown that could be triggered by tariffs will very likely lead to the FED cutting interest rates and the US administration playing out some of their strong cards, such as corporate tax cuts. Third, the tariff threats will lead to a (partial) move of manufacturing back into the US, which is already slowly happening, as evidenced by total manufacturing employees increasing sequentially in both February and March. This argument is further reinforced by confirmed news that large foreign semiconductor fabs are seeking to expand their presence in the US and build several fabs. All in all, the key takeaway for the reader is that once the current correction is over, the growth factor will become favored again, and the best possible move for investors under such circumstances is to seek exposure to low priced growth stocks that we discuss below.
A businessperson giving a presentation on a graph demonstrating the growth of a mid-capitalization equity market.
Our Methodology
We screened the market and selected companies with a share price below $10.00 that achieved a revenue at a compound annual growth rate (CAGR) of at least 20% in the last 5 years. Then we compared the list with Insider Monkey’s proprietary database of hedge funds’ ownership and included in the article the top 10 companies with the largest number of hedge funds that own the stock as of Q4 2024.
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).
10. Payoneer Global Inc. (NASDAQ:PAYO)
Revenue CAGR last 5 years: 25.68%
Stock price as of April 7th close: $6.18
Number of Hedge Fund Holders: 35
Payoneer Global Inc. (NASDAQ:PAYO) is a financial technology company that provides payment solutions for freelancers, online sellers, and small businesses specializing in ecommerce. The company’s competitive advantage consists of establishing a strong presence at lower volume brackets (the typical freelancer receiving his pay online), which may have difficulties with cross-border payments. PAYO’s platform supports transactions in more than 200 countries and also offers solutions for working capital management to help businesses grow.
Payoneer Global Inc. (NASDAQ:PAYO) delivered a record-breaking performance in 2024, with revenue growth excluding interest income accelerating to 20% (vs. 5% in the previous year). B2B volume grew 42% YoY, significantly outpacing the initial guidance of 25%. The company achieved three consecutive quarters of positive adjusted EBITDA, excluding interest income, demonstrating improved profitability if compared to the past. Customer adoption of 3 or more products reached 53% of total usage in Q4 2024, representing a 30% increase in less than 3 years.
Going forward, Payoneer Global Inc. (NASDAQ:PAYO) is focused on delivering sustained growth and profitability by refining its strategy, enhancing acquisition efficiency, increasing cross-selling, improving retention, and optimizing pricing. PAYO expanded its financial stack with the acquisition of Skuad, positioning itself to capture a share in global workforce management. For 2025, management expects 15% growth in revenue, excluding interest income, aligning with their previous medium-term targets. With an explosive 25.68% revenue CAGR in the last 5 years, PAYO is one of the best low priced stocks to consider.
9. Amicus Therapeutics, Inc. (NASDAQ:FOLD)
Revenue CAGR last 5 years: 24.32%
Stock price as of April 7th close: $7.15
Number of Hedge Fund Holders: 40
Amicus Therapeutics, Inc. (NASDAQ:FOLD) is a biotechnology company engaged in developing treatments for rare diseases. Its primary products include “migalastat”, an oral therapy for adults with Fabry disease and amenable genetic variants, as well as drugs for adults with late-onset Pompe disease. FOLD’s advantage consists of extensive focus on R&D and the utilization of proprietary biotechnologies. With a global presence, the company is aiming to address unmet medical needs in the rare disease community.
Amicus Therapeutics, Inc. (NASDAQ:FOLD) delivered strong financial results in 2024, with total revenue reaching $528 million, representing 32% growth YoY or 33% on a constant currency basis. Galafold product achieved revenue of $458 million with 18% growth YoY, while Pombiliti & Opfolda generated over $70 million globally. The company ended 2024 with more than 2,700 people taking Galafold for Fabry disease and 220 people being treated or scheduled for treatment with Pombiliti & Opfolda, which represents a significant expansion on a YoY basis.
Looking ahead, Amicus Therapeutics, Inc. (NASDAQ:FOLD) projects 17% to 24% total revenue growth at constant exchange rates for 2025, driven by Galafold’s growth of 10-15% and Pombiliti & Opfolda’s growth of 65-85%. Management anticipates that the company is well-positioned to surpass $1 billion in total sales in 2028, supported by geographic expansion with launches planned in up to 10 new markets next year. The company also achieved its goal of full-year non-GAAP profitability in 2024 and expects to deliver positive GAAP net income during 2H 2025. The company’s strong growth and potential to boost profitability in the years ahead secured its place on our list of best low priced stocks.
8. Snap Inc. (NYSE:SNAP)
Revenue CAGR last 5 years: 27.73%
Stock price as of April 7th close: $7.73
Number of Hedge Fund Holders: 44
Snap Inc. (NYSE:SNAP) is a technology company that runs the famous Snapchat platform, which represents a visual messaging application that competes with Instagram and TikTok. Beyond Snapchat, the company also offers products like Spectacles (smart glasses that capture video content) and Bitmoji (personalized avatars used on digital platforms). Like other media companies, SNAP generates its revenue primarily through advertising services but also has the potential to monetize AR and AI capabilities across its platform.
Snap Inc. (NYSE:SNAP) reported revenue of $1.56 billion in Q4 2024, representing 14% YoY growth, with daily active users (DAU) reaching 453 million, a strong increase of 39 million vs. last year. The company generated $276 million in adjusted EBITDA and $182 million in free cash flow for Q4. For the full year 2024, SNAP grew its revenues by 16% YoY. Snapchat+ subscribers doubled from 7 million to 14 million in 2024, with other revenue growing 131% YoY, which illustrates the company’s success in diversifying its revenue sources.
Snap Inc. (NYSE:SNAP) is focusing on key initiatives to build on its 2024 momentum, including new ad placements like Sponsored Snaps and Promoted Places, improving go-to-market strategies, and simplifying the Snapchat experience. The company is advancing its machine learning infrastructure to drive higher-quality ad interactions and expanding its AR developer ecosystem. SNAP’s strong growth momentum and focus on diversifying revenue sources makes it one of best low priced growth stocks to invest in.
7. Roivant Sciences Ltd. (NASDAQ:ROIV)
Revenue CAGR last 5 years: 29.37%
Stock price as of April 7th close: $9.26
Number of Hedge Fund Holders: 44
Roivant Sciences Ltd. (NASDAQ:ROIV) is a biopharmaceutical company that develops innovative medicines and technologies in such therapeutic areas as oncology, immunology, hematology, and dermatology. ROIV has some notable product candidates for dermatomyositis and non-infectious uveitis, and inflammatory disorders like sarcoidosis. The company has formed strategic partnerships with other major biotech firms like Pfizer and Roche to further boost its R&D and accelerate innovation.
Roivant Sciences Ltd. (NASDAQ:ROIV) entered calendar 2025 with several significant milestones ahead, including imminent data readouts and a registrational readout in dermatomyositis expected mid-year that could set the stage for the commercial launch of “brepocitinib”, a promising medicine. The company maintains a strong financial position with $5.2 billion in cash and marketable securities as of 2024 end, which makes it well-positioned to withstand any short-term slowdown in demand as well as rapidly allocate capital if new opportunities arise.
Roivant Sciences Ltd. (NASDAQ:ROIV) is expanding its pipeline with new initiatives, including a proof-of-concept study for “brepocitinib” in cutaneous sarcoidosis, targeting 30,000 to 50,000 patients with no approved therapies. Additionally, Immunovant’s development program is advancing rapidly, positioning the company for potential multi-blockbuster launches. The company also anticipates significant developments in its litigation against Moderna and Pfizer/BioNTech, with a jury trial scheduled for September and a summary judgment phase in the second to third quarter of 2025. We include ROIV in 7th place on our list of best low priced stocks as we believe it has substantial potential upside from its current R&D pipeline.
6. Patterson-UTI Energy, Inc. (NASDAQ:PTEN)
Revenue CAGR last 5 years: 29.52%
Stock price as of April 7th close: $5.69
Number of Hedge Fund Holders: 47
Patterson-UTI Energy, Inc. (NASDAQ:PTEN) is a provider of drilling and completion services for oil & gas exploration and production in the US and some international markets. PTEN offers several core services, such as contract drilling, integrated well completion, and directional drilling, which are crucial for the exploration process. Additionally, the company provides specialized drill bit solutions that help with exploration in difficult areas within the US, the Middle East, and other regions. The Houston-based company ranked 8th on our recent list of 12 Best Oil and Gas Dividend Stocks According to Billionaires.
Patterson-UTI Energy, Inc. (NASDAQ:PTEN) delivered value-accretive results and strong free cash flow in 2024, reducing their share count by over 6% through buybacks while paying dividends equal to 4% of market cap and reducing net debt by almost $100 million. Management announced a strategy focused on three key pillars: monetizing value-based solutions, managing cost structure, and strategic capital allocation with a commitment to return at least 50% of adjusted free cash flow to shareholders. Their integrated drilling and completion arrangements have shown success, delivering wells significantly faster than historical averages while earning performance bonuses.
Looking ahead to 2025, Patterson-UTI Energy, Inc. (NASDAQ:PTEN) expects steady drilling activity with supportive oil commodity prices, while natural gas activity could potentially increase later in the year and into 2026. The company is well-positioned in both drilling and completions, with approximately 80% of its active fleet capable of being powered by natural gas. The company is also strategically positioned to capitalize on the growing power demand in the Permian Basin, where estimates suggest a need for 4 gigawatts of off-grid power over the next 10 years. PTEN is not only a reliable executor and capital allocator with stable cash flows but also a high growth company with strong guidance ahead, which makes us include it on our list of the best low priced stocks to consider.
5. Peloton Interactive, Inc. (NASDAQ:PTON)
Revenue CAGR last 5 years: 36.70%
Stock price as of April 7th close: $5.15
Number of Hedge Fund Holders: 49
Peloton Interactive, Inc. (NASDAQ:PTON) is a global fitness technology company offering internet-connected exercise equipment such as bikes, treadmills, rowers, and others, which stream live and on-demand fitness classes through a subscription service. The company’s competitive advantage is based on serving a subcategory of sports lovers who are tech-savvy and prefer smart workouts at home. PTON also provides a digital app that offers paid access to various workout classes, which makes it easier to train at home without fitness coaches.
Peloton Interactive, Inc. (NASDAQ:PTON) demonstrated strong financial improvements in the latest Q2 2025, with adjusted EBITDA reaching $58 million, representing a whopping $140 million improvement YoY. The company achieved a double-digit Connected Fitness Products gross margin of 12.9% for the first time in over 3 years, driven by a favorable premium product mix and disciplined discount alignment. Consolidated free cash flow reached $106 million, marking the fourth consecutive quarter of positive FCF and showing a $143 million improvement on a YoY basis. The company also successfully reduced net debt by 30% YoY, demonstrating significant progress in deleveraging efforts and positioning itself to withstand any potential economic slowdown.
Member engagement showed strong metrics with over 2 million unique members completing Strength training, bootcamp, Pilates, or yoga workouts in Q2. Peloton Interactive, Inc. (NASDAQ:PTON) achieved meaningful improvements in member happiness with Net Promoter Scores exceeding 70 across all Bike and Tread products. Churn rates remained exceptionally low with an average net monthly Paid Connected Fitness Subscription churn of 1.4% in Q2, with churn being 60% lower for subscriptions where members engage with 2 or more disciplines per month versus just one. The company is on track to exceed $200 million of run-rate cost savings by the end of fiscal year 2025 while maintaining a focus on innovation and member experience. PTON ranks 5th on our list of best low priced stocks to buy.
4. Cleveland-Cliffs Inc. (NYSE:CLF)
Revenue CAGR last 5 years: 90.00%
Stock price as of April 7th close: $7.34
Number of Hedge Fund Holders: 49
Cleveland-Cliffs Inc. (NYSE:CLF) is a vertically integrated steel manufacturer and iron ore producer, primarily serving the North American metals market. The company operates across the entire steel production value chain, from mining iron ore and producing iron ore pellets to manufacturing flat-rolled steel, including hot-rolled, cold-rolled, coated, stainless, electrical, and specialty steel products. Its products are predominantly used by automotive manufacturers, construction firms, appliance makers, and other industrial sectors that rely on metal sourcing for their operations. CLF ranked 1st on our recent list of 12 Stocks That Are About to Explode.
Cleveland-Cliffs Inc. (NYSE:CLF) faced challenging market conditions in 2024, with steel demand at its weakest level since 2010, outside of the COVID pandemic period. The company experienced particularly weak demand from the automotive sector, lagging construction activity, and reduced industrial production in the second half of 2024, leading to the idling of its C6 blast furnace. However, the company’s order book has shown substantial improvement in the recent quarter, with hot-rolled steel lead times extending from 3 weeks to 7 weeks, indicating the strongest position in nearly a year.
Cleveland-Cliffs Inc. (NYSE:CLF)’s strategic acquisition of Stelco has been progressing smoothly, with expected synergies of $120 million to be achieved by the end of 2025. CLF is well-positioned to benefit from recent trade policy changes, including the implementation of 25% tariffs on steel imports from all countries. The company expects improved performance in 2025, driven by stronger automotive demand, better pricing, and cost reductions of approximately $40 per net ton with Stelco in the mix. Management has prioritized debt reduction and will use 100% of free cash flow toward this goal until reaching their target leverage ratio. We include CLF on our list of best low priced stocks to invest in as it demonstrates the potential to withstand any economic turmoil arising from tariffs and from a potential recession in the US.
3. ZoomInfo Technologies Inc. (NASDAQ:ZI)
Revenue CAGR last 5 years: 35.41%
Stock price as of April 7th close: $7.76
Number of Hedge Fund Holders: 51
ZoomInfo Technologies Inc. (NASDAQ:ZI) developed a cloud-based intelligence platform designed for sales, marketing, operations, and recruiting professionals. Its platform delivers comprehensive business data and analytics, enabling users to engage with customers and other stakeholders effectively across a diverse range of industries, including software, business services, manufacturing, financial services, and others. The company’s main product is a search engine for contact and business information, which allows users to connect with potential clients, suppliers, and partners.
ZoomInfo Technologies Inc. (NASDAQ:ZI) delivered better-than-expected results in the recent Q4 2024, with revenue of $309 million and an adjusted operating income of $116 million, representing a 37% margin. The company achieved its first sequential improvement in net revenue retention since Q1 2022, increasing to 87% in Q4 2024. Notably, Copilot exceeded expectations with over $150 million in ACV, while the Operations business grew 27% YoY.
ZoomInfo Technologies Inc. (NASDAQ:ZI) is strategically focusing on the upmarket segment, which comprises more than two-thirds of the business, and is on a path to mid-single-digit growth. ZI is making progress in becoming the de facto provider of data and AI in the enterprise, with particular success in their Operations business, which serves as the data foundation for customers’ internal systems and AI initiatives. The company has implemented a more selective approach to the downmarket segment, which represents less than one-third of the business and declined 9% in 2024, as they focus on maintaining a smaller but healthier portion of the business. With 51 hedge funds owning the stock as of Q4 2024, ZI is one of the best low priced stocks to invest in.
2. Grab Holdings Limited (NASDAQ:GRAB)
Revenue CAGR last 5 years: 78.98%
Stock price as of April 7th close: $3.48
Number of Hedge Fund Holders: 57
Grab Holdings Limited (NASDAQ:GRAB) is a Singapore-based technology company operating an online platform that offers a wide range of services, including ride-hailing, food delivery, and digital financial services, across several countries in South East Asia (Thailand, Vietnam, Philippines, Singapore, Malaysia, Indonesia, Cambodia, and Myanmar). GRAB’s competitive innovation consists of continuous innovation, such as partnerships with OpenAI to integrate AI capabilities into the app, to improve customer support and accessibility.
Grab Holdings Limited (NASDAQ:GRAB) delivered its strongest quarter ever in Q4 2024, with on-demand gross merchandise value (GMV) accelerating to 20% YoY growth. The company achieved its first full year of positive group adjusted EBITDA of $313 million, reaching the upper end of upgraded guidance, along with positive full year adjusted free cash flow of $136 million, representing a $370 million improvement YoY. The strong performance was driven by product and tech initiatives that improved the affordability and reliability of services, resulting in a new record of transacting users.
Grab Holdings Limited (NASDAQ:GRAB) has achieved strong product market fit with features such as Saver Rides and Priority Deliveries across all markets, with Saver accounting for one-third of deliveries and 26% of mobility transactions. Looking ahead to 2025, management expects to maintain its on-demand GMV growth momentum while taking a balanced approach to drive continued expansion of adjusted EBITDA and adjusted free cash flow, maintaining high discipline on cash usage. The company sees significant room for growth, currently serving only 1 in 20 Southeast Asians, with 44 million monthly users, representing 17% growth YoY. We include GRAB on our list of best low priced stocks to invest in due to its strong revenue growth momentum and long runway for further expansion.
1. Warner Bros. Discovery, Inc. (NASDAQ:WBD)
Revenue CAGR last 5 years: 40.98%
Stock price as of April 7th close: $8.09
Number of Hedge Fund Holders: 64
Warner Bros. Discovery, Inc. (NASDAQ:WBD) is a global media and entertainment conglomerate formed through the merger of WarnerMedia and Discovery in 2022. The company operates film and television production under brands like Warner Bros Pictures, New Line Cinema, and Warner Bros Television Group. The company also owns a diverse portfolio of television channels (Discovery Channel, Cartoon Network, and Animal Planet, among others) and focuses on streaming services through Max and Discovery+ platforms.
Warner Bros. Discovery, Inc. (NASDAQ:WBD) ended 2024 with approximately 117 million subscribers across more than 70 countries, adding 6.5 million subscribers in Q4 and nearly 20 million subscribers in less than a year. The company’s direct-to-consumer business demonstrated significant profitability improvement, contributing almost $700 million in EBITDA, representing a $3 billion improvement in just 2 years, with expectations to nearly double in 2025. The company successfully secured multiyear renewal agreements with 5 of the 6 largest pay-TV providers in America, commanding overall rate increases and providing stability to their linear business.
Looking ahead, Warner Bros. Discovery, Inc. (NASDAQ:WBD) has set clear strategic targets, including a path to at least 150 million subscribers by the end of 2026 (vs. 117 million currently). The Studios segment is showing positive momentum, particularly in Warner Bros Television, which is positioned as the highest quality and largest maker of TV content globally. Management remains focused on getting their Studios back to generating $3 billion or more in EBITDA and has an overall positive outlook on the market growth, with little to no expected impact from tariffs or from a potential economic/industrial slowdown.
Overall, Warner Bros. Discovery, Inc. (NASDAQ:WBD) ranks first on our list of the 10 best low priced growth stocks to invest in. While we acknowledge the potential of WBD to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than WBD but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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