According to a report by Charles Schwab published on December 9, the U.S. economy and stock market are entering 2025 from a position of relative strength, but the risks of volatility, particularly those related to policy, are significantly higher compared to the previous year. This uncertainty is largely driven by the policy proposals of President-elect Donald Trump, whose unconventional governing style and fluid policy positions have made forecasting their impact on domestic and global conditions extremely challenging. The report highlights that Trump’s policy proposals, which include lower taxes and reduced regulations, are generally seen as growth-positive. However, these are offset by proposals for higher tariffs on imported goods and mass deportations of illegal immigrants, which are generally considered stagflationary, at least in the short term.
In terms of the stock market, the report suggests that while equities can perform well from the beginning to the end of the year, the volatility is likely to be higher in 2025 compared to 2024. The S&P 500 is currently above its 50 and 200-day moving averages, which historically has been a positive indicator for future performance. However, the report cautions that after a year with 57 record highs, the median gain in the following year has historically been around 5.8%, suggesting a potential for a step back in performance. The report also notes that the S&P 500’s 5-year normalized P/E ratio is quite stretched, indicating a product of market enthusiasm but not necessarily a near-term risk.
For small caps, the report notes that the Russell 2000 has struggled in the current bull market due to higher interest rates and weaker profit profiles. The report suggests that profitable small caps could perform well if economic growth holds and the Fed takes a gradual approach to rate cuts, but the index as a whole might continue to face challenges if earnings growth does not improve.
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U.S. Stocks in 2025: Growth, Risks, and Opportunities
In an interview with Bloomberg on December 24, Jonathan D. Corpina, Senior Managing Partner at Meridian Equity Partners, discussed his outlook for U.S. stocks in 2025. Corpina noted that the market is finishing the year strong, supported by a resilient economy and key events such as the election and rate cuts being out of the way. He believes that the market will continue to move higher in 2025, though it will take a few quarters for the new administration to implement new policies and procedures.
Corpina also addressed investor expectations for strong double-digit earnings growth for S&P 500 companies, suggesting that while the bar is set high, it’s important to manage expectations. He emphasized that the economy remains fragile, and companies are still adjusting to the new environment and administration. He advised a cautious approach, noting that there are many uncertainties that could impact the market in the coming year. On the U.S. financial sector, Corpina is optimistic. He anticipates a lot of M&A activity and IPOs in 2025, driven by a pro-business administration.
While the U.S. economy and stock market are entering 2025 with a foundation of relative strength, the landscape remains fraught with uncertainty. With that in context, let’s take a look at the 10 best low priced stocks to invest in now.
A stock market graph. Photo by Alesia Kozik on Pexels
Our Methodology
To compile our list of the 10 best low priced stocks to invest in now, we used Finviz and Yahoo stock screeners to find the 50 largest companies trading below the price of $10 as of December 24. We then used Insider Monkey’s Hedge Fund database to rank 10 stocks according to the largest number of hedge fund holders, as of Q3 2024. The list is sorted in ascending order of hedge fund sentiment.
Why do we care about what hedge funds do? 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10 Best Low Priced Stocks to Invest in Now
10. TAL Education Group (NYSE:TAL)
Number of Hedge Fund Investors: 29
Stock Price as of December 24: $9.88
TAL Education Group (NYSE:TAL) is a leading education technology company dedicated to providing high-quality, innovative learning solutions for students across China. The company offers tutoring services across various academic subjects for students from preschool to high school. With a strong focus on both online and offline enrichment programs, TAL Education Group (NYSE:TAL) has established itself as a pioneer in the education technology sector.
TAL Education Group (NYSE:TAL) is continuously refining and expanding its learning programs to deliver high-quality educational experiences. The company’s Peiyou small-class offerings, which have been a significant driver of revenue, are being enhanced through standardized lecturing approaches and interactive, student-centric learning experiences. TAL Education Group (NYSE:TAL) is also investing in the recruitment and training of lecturers to ensure consistent service quality. Despite the growing market competition, TAL Education Group (NYSE:TAL) remains focused on maintaining a balance between growth and operational efficiency, carefully managing its learning center network and optimizing key metrics such as utilization, refund, and retention rates.
TAL Education Group (NYSE:TAL) has launched several new AI-powered devices, including the Xbook, a lower ASP device designed for daily practice and learning needs. These devices feature advanced AI capabilities, such as MathGPT for accurate feedback on handwritten answers and a comprehensive content library. TAL Education Group (NYSE:TAL) is also exploring value-added services to enhance user engagement and monetize its growing user base while ensuring that these services do not compromise the user experience. The company’s investment in R&D is not limited to hardware and software but extends to content development, aligning with new curriculum standards to provide up-to-date and relevant learning materials.
9. NexGen Energy Ltd. (NYSE:NXE)
Number of Hedge Fund Investors: 32
Stock Price as of December 24: $6.91
NexGen Energy Ltd. (NYSE:NXE) is a Canadian uranium exploration and development company, primarily focused on advancing its flagship Rook I Project in Saskatchewan’s Athabasca Basin, one of the world’s richest uranium districts. The company has established itself as a key player in the global nuclear energy sector.
NexGen Energy Ltd. (NYSE:NXE) is making substantial progress on the Rook 1 Project, which is advancing through detailed engineering, procurement, training, and development. The company has successfully completed the installation and commissioning of a solar power plant at its existing camp. The mine hoist equipment, which transports people and materials between the surface and the underground mine has been ordered, and the shaft award is progressing. Additionally, NexGen Energy Ltd.’s (NYSE:NXE) exploration activities at Patterson Corridor East (PCE) have delivered exceptional results, with multiple high-grade intersections confirming the potential for significant new discoveries.
NexGen Energy Ltd. (NYSE:NXE) is well-positioned to capitalize on the growing global demand for uranium, driven by the critical role of uranium in meeting the energy demands of data centers and AI workloads along with the increasing need for reliable energy to support the transition to a low-carbon economy. This new and exponential growth in demand is further compounded by the fragility of existing uranium supply chains, with 70% of the world’s mine supply hosted by countries or influenced by those in military conflict.
8. Walgreens Boots Alliance, Inc. (NASDAQ:WBA)
Number of Hedge Fund Investors: 33
Stock Price as of December 24: $9.19
Walgreens Boots Alliance, Inc. (NASDAQ:WBA) is a leading global pharmacy-led health and wellbeing company, with a presence in over 11 countries including the United States, Europe, and Latin America. The company serves millions of customers through retail pharmacies, healthcare services, and pharmaceutical wholesale operations.
Walgreens Boots Alliance, Inc. (NASDAQ:WBA) is reorienting its business to focus on its core strength as a retail pharmacy-led company. Management believes that the company’s trust is built on millions of daily face-to-face interactions with pharmacy personnel, and aims to maintain this trust by being the first choice for retail pharmacy and health services. To ensure this, Walgreens Boots Alliance, Inc. (NASDAQ:WBA) is investing in its approximately 6,000 profitable stores. The company is also accelerating the closure of underperforming stores, with plans to close approximately 1,200 stores over the next three years and reduce the fixed costs associated with them.
Walgreens Boots Alliance, Inc. (NASDAQ:WBA) is focusing on a selective merchandising strategy, with categories such as health and wellness and women’s health. The company has already launched over 300 new owned brand SKUs this year and plans to launch more in the coming year. Walgreens Boots Alliance, Inc. (NASDAQ:WBA) is also focusing on improving operating cash flows through cost and working capital management, with a goal of $500 million in working capital initiatives and $150 million in further CapEx Reduction in fiscal 2025. Additionally, the company is exploring opportunities to monetize non-core assets, such as VillageMD, to generate cash and reduce net debt.
7. Peloton Interactive, Inc. (NASDAQ:PTON)
Number of Hedge Fund Investors: 35
Stock Price as of December 24: $9.36
Peloton Interactive, Inc. (NASDAQ:PTON) is a leading connected fitness company known for its premium exercise equipment, including stationary bikes and treadmills, and subscription-based digital fitness content. The company’s clients range from fitness enthusiasts to professional athletes who value convenience and immersive workout experiences. Peloton Interactive, Inc.’s (NASDAQ:PTON) flagship products include the Peloton Bike, Bike+, Tread, and various fitness accessories.
Peloton Interactive, Inc. (NASDAQ:PTON) is investing in marketing, product, and content innovation to drive long-term growth. The company is focusing on improving customer acquisition costs (CAC) and lifetime value by enhancing customer engagement through personalized plans and social features. Recent software updates, such as personalized workout plans and private teams, are designed to drive higher engagement and retention. Peloton Interactive, Inc. (NASDAQ:PTON) is also testing new app offerings, such as Strength+, and game-inspired fitness experiences to keep the content fresh and engaging. These innovations are crucial for attracting new audiences and retaining existing members.
Peloton Interactive, Inc. (NASDAQ:PTON) is exploring strategic partnerships and new market opportunities to expand its reach and enhance its offerings. The company is also testing new hardware and software features, such as the used equipment activation fee, to increase the lifetime value of customers who join through the secondary market.
6. BGC Group, Inc. (NASDAQ:BGC)
Number of Hedge Fund Investors: 38
Stock Price as of December 24: $9.04
BGC Group, Inc. (NASDAQ:BGC) is a leading global brokerage company that specializes in electronic and voice brokerage. The company specializes in services including fixed income, currencies, commodities, and equities. BGC Group, Inc.’s (NASDAQ:BGC) primary clients include institutional investors, banks, and financial intermediaries.
One of the key strategies BGC Group, Inc. (NASDAQ:BGC) is employing to drive future growth is through strategic acquisitions. Recently, the company agreed to acquire OTC Global Holdings, the largest independent energy and commodities broker, and completed the acquisition of Sage Energy Partners. These acquisitions are expected to be immediately accretive and will add more than $450 million in annual revenues to the company’s top line. These moves are part of BGC Group, Inc.’s (NASDAQ:BGC) broader strategy to strengthen its position in the energy and commodities markets, which are significant and growing segments of the financial landscape.
BGC Group, Inc. (NASDAQ:BGC) is also focusing on innovation and technology to drive growth and maintain its competitive edge. In September, the company launched the FMX Futures Exchange, which provides clients with much-needed innovation, superior pricing, and improved capital efficiencies. Since its launch, FMX Futures has already connected five of the largest FCMs (Futures Commission Merchants) including Goldman Sachs, JPMorgan, Marex, RBC, and Wells Fargo. The company aims to connect an additional five to ten of the largest FCMs over the next couple of quarters.
5. Grab Holdings Limited (NASDAQ:GRAB)
Number of Hedge Fund Investors: 39
Stock Price as of December 24: $4.94
Grab Holdings Limited (NASDAQ:GRAB) is a leading Southeast Asian super app offering a diverse range of on-demand services, including ride-hailing, food delivery, and financial services. The company’s acquisition of Uber’s Southeast Asian operations in 2018 solidified its position as the market leader. Grab Holdings Limited (NASDAQ:GRAB) operates in multiple countries such as Singapore, Malaysia, Thailand, Vietnam, and Indonesia.
One of the most exciting growth areas for Grab Holdings Limited (NASDAQ:GRAB) is its Digital Financial Services division. Southeast Asia is home to a significant unbanked population, which presents a vast market opportunity for the company. Grab Holdings Limited (NASDAQ:GRAB) recently introduced its FlexiLoan product, which offers flexible repayment terms. Unlike traditional banks, Grab Holdings Limited (NASDAQ:GRAB) leverages non-traditional data points such as spending habits, ride-hailing history, and location data to create more accurate and inclusive financial models. This approach not only helps in identifying creditworthy individuals who would otherwise be overlooked by traditional financial institutions but also builds trust and loyalty among users who have a strong affinity for the company’s brand.
To further strengthen its position, Grab Holdings Limited (NASDAQ:GRAB) is investing in technology to enhance user experience, optimize logistics, and reduce operational costs. For instance, the integration of AI and machine learning in route optimization and demand prediction has significantly improved service efficiency and customer satisfaction, driving higher user retention and more frequent usage of the app.
4. Cleveland-Cliffs Inc. (NYSE:CLF)
Number of Hedge Fund Investors: 40
Stock Price as of December 24: $9.46
Cleveland-Cliffs Inc. (NYSE:CLF) is a US-based vertically integrated steel manufacturing and mining company, specializing in producing flat-rolled steel, stainless steel, and other related products. The company owns and operates mines, pellet plants, and steel mills, which makes it a key player in the domestic steel industry. The company’s clients include automotive manufacturers, construction firms, and industrial customers.
Cleveland-Cliffs Inc. (NYSE:CLF) is actively pursuing several strategic initiatives to grow its business and enhance its market position. One of the most significant moves is the acquisition of Stelco, a leading steel producer in Canada. This acquisition, completed in November, has added significant flexibility to the company’s operations, particularly in serving non-automotive markets. Stelco’s lower fixed costs and nimble operations make it well-suited to thrive in both strong and weak market conditions, thereby diversifying Cleveland-Cliffs Inc.’s (NYSE:CLF) revenue streams and improving its overall cost structure.
Cleveland-Cliffs Inc. (NYSE:CLF) is also investing in several strategic growth projects that are expected to drive future performance. These include efficiency projects at the Middletown and Butler plants, which have received Phase 1 funding approvals from the Department of Energy. These projects aim to enhance operational efficiency and reduce energy costs. Additionally, Cleveland-Cliffs Inc. (NYSE:CLF) is developing a transformer plant at Weirton, which is expected to begin production in late 2025 or early 2026. This plant will leverage the company’s internal supply of oriented electrical steels from its Butler, Pennsylvania plant, ensuring a stable and high-quality material source.
3. Alight, Inc. (NYSE:ALIT)
Number of Hedge Fund Investors: 40
Stock Price as of December 24: $6.84
Alight, Inc. (NYSE:ALIT) is a global cloud-based human capital and business solutions provider, helping companies manage their workforce, benefits, and payroll processes. The company’s client base includes Fortune 500 companies, mid-sized enterprises, and public sector organizations. Alight, Inc.’s (NYSE:ALIT) services encompass a wide range of solutions, including health care administration, wealth management, and employee assistance programs, designed to support the day-to-day needs of large enterprises and their employees.
Alight, Inc. (NYSE:ALIT) is working on continuous improvement and modernization of its Alight Worklife platform. This has resulted in a more streamlined, agile, and efficient operating model that is better equipped to meet the evolving needs of clients. The platform has been integrated with various solutions to create a differentiated value proposition, making the company a leader in the employee benefits and well-being services market. The company is committed to further enhancing the user experience by leveraging technology to drive greater efficiency and client satisfaction.
Alight, Inc. (NYSE:ALIT) is placing a strong emphasis on growing its Alight Worklife platform through Annual Recurring Revenue (ARR) services and long-term contracts with high retention. The company has seen significant momentum in this area, with key wins in Q3, with Hewlett Packard Enterprise, Nokia, and Siemens. The company expects double-digit ARR bookings growth and a 60% increase in the pipeline. This momentum is driven by the company’s focus on better field coverage, larger deal sizes, and improved win rates.
Furthermore, Alight, Inc. (NYSE:ALIT) is actively deepening its relationships with clients, brokers, and third-party evaluators. This includes a comprehensive listening tour, where the company engages with clients, their advisers, and the investor community to better understand their needs and expectations.
2. Vale S.A. (NYSE:VALE)
Number of Hedge Fund Investors: 41
Stock Price as of December 24: $8.94
Vale S.A. (NYSE:VALE) is one of the world’s largest miners and processors of iron ore and nickel, headquartered in Brazil. The company supplies raw materials to industries such as steelmaking, construction, and electronics manufacturing. Vale S.A.’s (NYSE:VALE) competitive advantage comes from its vast resource reserves, efficient logistics infrastructure, and sustainable mining practices.
Vale S.A. (NYSE:VALE) is actively expanding and optimizing its iron ore portfolio to enhance its commercial flexibility and value creation. The company is making significant progress on its projects, with the recent successful startup of the Vargem Grande project, with the implementation of new assets. The Vargem Grande project is expected to add 15 million tons per year of iron ore production capacity. The next major project, Capanema, is 91% complete and is scheduled to start up in the first half of 2025, adding another 15 million tons of capacity. These projects are critical for the company to achieve its goal of structurally producing about 350 million tons of iron ore annually, with 80% to 90% being high-quality products such as Brazilian Blend Fines (BRBF), a product produced after blending fines from Carajas mine, along with other agglomerated products.
Vale S.A. (NYSE:VALE) is also committed to growing its Energy Transition Metals (ETM) business, which includes copper and nickel production. The company has seen strong year-on-year production performance in both metals, driven by the successful implementation of asset review initiatives. The company has recently revised its 2024 all-in cost guidance for copper downward to between $2,900 and $3,300 per ton, reflecting improved operational efficiency and higher unit by-product revenues.
1. Kinross Gold Corporation (NYSE:KGC)
Number of Hedge Fund Investors: 41
Stock Price as of December 24: $9.43
Kinross Gold Corporation (NYSE:KGC) is a prominent Canadian gold mining company with operations and projects across the United States, Brazil, Mauritania, Chile, and Russia. The company is well-regarded for its responsible mining practices and strong dedication to sustainability.
Kinross Gold Corporation (NYSE:KGC) is also heavily focused on exploration to expand its resource base and support long-term growth. At Round Mountain in the United States, the company is advancing Phase X, which has shown promising results with multiple high-grade intercepts and substantial widths. Exploration drilling has successfully extended mineralization into deeper areas of the resource, suggesting potential for higher-margin mining operations. Similarly, exploration efforts at the Curlew Basin have identified zones with significant mining widths and strong grades.
Kinross Gold Corporation (NYSE:KGC) is advancing several key projects that are set to drive future growth. A notable example is the Great Bear project in Ontario, Canada. According to the Preliminary Economic Assessment (PEA) released on September 10, the project is expected to produce approximately 500,000 ounces of gold annually at an impressive all-in-sustaining cost of around $800 per ounce during the first eight years. The company is also making progress on the Lobo-Marte project in Chile, which has the potential to become a long-life, low-cost asset with significant production capacity. This project stands out for its high heap leach grade and low strip ratio, with baseline studies currently underway to further evaluate its feasibility.
Furthermore, the company has made meaningful progress in reducing debt, repaying $650 million of a $1 billion term loan in 2024. This initiative has significantly strengthened the balance sheet, lowering the net debt to EBITDA ratio from 1.7 times to 0.5 times by the end of Q3 2024.
While we acknowledge the potential of Kinross Gold Corporation (NYSE:KGC) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than KGC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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