10 Best Low Priced Stocks to Invest in Now

4) BGC Group, Inc. (NASDAQ:BGC)

Stock Price as of February 22: $9.23

Number of Hedge Fund Holders: 33

BGC Group, Inc. (NASDAQ:BGC) operates as a financial brokerage and technology company. The company saw strong Q4 2024 and FY 2024 revenues, increasing by 11% and 12%, respectively. Its robust revenue growth was fueled by its ECS, Rates, and Foreign Exchange businesses, which have been outperforming the market. BGC Group, Inc. (NASDAQ:BGC) highlighted that this momentum continued into 2025, with trading volumes currently exceeding last year’s first-quarter records.

The company has a healthy track record of successful M&A integration and growth. Sage and OTC can add $450 million of annual ECS revenue. Notably, ECS brokerage diversifies the macroeconomic drivers that fuel trading volumes across BGC Group, Inc. (NASDAQ:BGC)’s global platform. For Q1 2025, the company expects revenues in the range of $610 million – $660 million and pre-tax adjusted earnings of between $145 million – $161 million.  BGC Group, Inc. (NASDAQ:BGC) announced that it has agreed to acquire OTC Global Holdings, LP.  With the help of this acquisition, the company plans to further expand and diversify its global ECS business.

O’keefe Stevens Advisory, an investment advisory firm, released its Q3 2024 investor letter. Here is what the fund said:

“BGC Group, Inc. (NASDAQ:BGC) – After a long-awaited arrival, the FMX Futures Exchange launched on September 24th. Years of expenses flowing through BGC’s financials without offsetting revenue are reversing. While we are keenly aware of the ramp-up period from 0 volume to market share gains provided by the CME, FMX’s compelling offerings are anticipated to gain market share slowly. In addition, per BGC’s standard practice, announced revenue and pre-tax income will come in at the high end of management’s guidance.

Uncertainty is BGC’s best friend. Entering 2024, rate cut expectations of 150bps reflected optimism around the aggressive and dramatic decline of rates. In September, a 50bps cut marked the first rate cut since 2020 and the reversal after 2.5 years of interest rate hikes. Officials target a range of 4.25-4.50% by the end of this year, which signals two quarter-point rate cuts or one half-point cut. For 2025, they expect to cut four more times, bringing their Fed Funds rate to 3.25-3.5%. We are unconvinced the higher inflation experienced in recent years is over, putting these rate-cut expectations at risk. For BGC, whether we experience 50 bps cuts or 150 bps, conflicting economic data points will continue driving record volumes. With one sell-side analyst covering the name, this stock continues to trade under the radar and remains a core holding.”