This article looks at the 10 best single digit stocks to buy now. We also discuss what to expect from the stock market in 2025.
The US markets had a blockbuster 2024, led by a strong show by the technology sector. The broader market grew by over 23% during the year after rising 24% in 2023. Two consecutive years of over 20% gains marked the market’s best performance in nearly three decades.
READ ALSO: 12 Best Long-Term Penny Stocks to Buy According to Hedge Funds and 10 Best Penny Stocks to Buy for 2025.
Stocks have benefited from a resilient American economy that steered clear of recession. Waning inflation and interest rate cuts also bolstered investor sentiment throughout last year. Research analysts anticipate continued growth in 2025 amid strong economic data and anticipation of a business-friendly Trump administration.
In a note on December 30, Wedbush Securities analyst, Dan Ives, said that he expects tech stocks to surge 25% this year with the incoming Trump administration focusing on slashing unnecessary regulations.
Todd Rosenbluth, the head of research at VettaFi, believes 2025 could be the year for small-cap stocks with solid underlying fundamentals. He expects ETFs specializing in small-caps to make gains as investors broaden their market exposure as interest rates ease.
Rosenbluth shared the following remarks while talking to CNBC in late November.
“Small caps are going to become more in favor in 2025. They started to perk up since the election and heading into the election as interest rates have been coming down.”
Fundstrat’s Tom Lee also shares similar sentiments. In an interview in November, he said that small-cap stocks could soar in the coming years under the new administration, driving monster returns.
“I do think there’s still a lot of upside. So I think small-caps could, over the next couple of years, outperform by more than 100%.”
On the other hand, some Wall Street analysts are cautious about the new year and have warned of potential downsides, with the incoming administration promising new tariffs. Following his election victory, President-elect Trump vowed to impose steep tariffs on imports from Canada, China, and Mexico, which could increase costs for manufacturers. Ongoing geopolitical tensions in different parts of the world could also hurt the stock market.
Jurrien Timmer, Director of Global Macro for Fidelity Management & Research Company wrote the following in a note on December 18.
“Personally, I am bullish on stocks for 2025, though with valuations high and the bull market maturing, I don’t think investors should expect quite such spectacular returns next year as we have seen this past year. And I think there are important risks from inflation, and the market’s concentration, to be aware of.”
With that said, let’s now shift focus to the best single digit stocks to buy now.
A financial planner analysis their portfolio and making decisions on stocks and assets.
Methodology
For this article, we sifted through screeners to get a list of stocks priced greater than $1 and less than $10, with a low forward price-earnings ratio (<15) and institutional ownership of over 70%. From there, we selected the 10 stocks with the highest number of hedge fund investors, based on Insider Monkey’s database of over 900 prominent hedge funds as of Q3 2024.
The 10 best single digit stocks to buy now have been ranked in ascending order based on the number of hedge funds holding stakes in them. Where two or more stocks were tied on hedge fund sentiment, we used a higher market cap as a tiebreaker between them. Please note that all data is as of the close of day on Friday, December 27, 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10 Best Single Digit Stocks To Buy Now
10. Bumble Inc. (NASDAQ:BMBL)
Share Price as of December 27: $8.02
Number of Hedge Fund Holders: 31
Bumble Inc. (NASDAQ:BMBL) provides online dating and social networking applications, servicing North America, Europe, and several other countries in different regions. It operates five apps – Bumble, Bumble for Friends, Badoo, Fruitz, and Official.
In April 2024, Bumble rolled out a new feature called ‘opening moves’, opening the doors for men to initiate conversations on the platform. This moved away from the decade-old model that allowed women to make the first move so that they could have more power over their dating lives. Analysts view the move as part of efforts by dating apps to maintain their relevance as an increasing number of singles feel burnt out on online dating platforms.
Under the new feature, female users can set a prompt for male daters to respond to start a conversation. The app’s new relaunch also includes badges that let users state their dating intentions by indicating whether, for instance, they are looking for a ‘life partner’ or a ‘casual relationship’.
Bumble Inc. (NASDAQ:BMBL) has also been focused on growth and expansion. Later in the year in May, the company announced that it had signed an agreement to acquire Geneva, an online platform for people to connect based on their shared interests. The move will help the company diversify its focus from one-to-one connections to groups and communities.
Bumble Inc. (NASDAQ:BMBL) continues to deliver on key financial objectives. During its Q3 2024 earnings call on November 6, the company reported a total revenue of $274 million, down 1% from last year, largely due to an unfavorable impact from FX of approximately $1 million. Total paying users grew 11% to 4.3 million. Adjusted EBITDA improved to $82.6 million, or 30.2% of revenue, from $75.3 million, or 27.3% of revenue, during the same period in 2023.
Bumble is also generating solid cash flow. It ended the quarter with $252 million in cash and cash equivalents and generated a free cash flow of $92 million. The strong balance sheet has enabled the company to return significant cash to its shareholders this quarter. It has repurchased $120 million in stock since August.
BMBL is one of the best single digit stocks to buy now, with 31 hedge funds having a stake in the company, as per Insider Monkey’s database for Q3 2024.
9. Uniti Group Inc. (NASDAQ:UNIT)
Share Price as of December 27: $5.35
Number of Hedge Fund Holders: 31
Uniti Group Inc. (NASDAQ:UNIT) is a real estate investment trust providing wireless infrastructure solutions for the communications industry in the United States and Latin America. It is one of the best single digit stocks to buy now.
Nearly a decade after their split, Uniti and Windstream are set to merge back to better compete in the market. The merger is set to close during the second half of 2025 and will offer the combined company a strong presence in the Midwest and Southeast United States, with over 1.1 million customers.
Uniti Group Inc. (NASDAQ:UNIT)’s share price barely increased 1% in 2024, significantly underperforming against the broader market, due to a challenging market environment with high interest rates affecting the real estate sector. Despite that, the company’s financial performance remains resilient as it delivered strong third-quarter results.
During its recent Q3 2024 earnings call on October 31, Uniti Group Inc. (NASDAQ:UNIT) reported consolidated revenues of $292 million, aided by a 3% growth in the strategic fiber business. Adjusted EBITDA stood at $235.3 million, with a margin of approximately 81%. Net income for the quarter was recorded at $12.2 million. UNIT ended Q3 with $529.1 million of unrestricted cash and cash equivalents.
The planned merger with Windstream is likely to strengthen the company’s position in the market further and boost its financials. Wall Street analysts are bullish on UNIT with a consensus Buy rating and an average share price upside potential of 32%. Hedge fund sentiment around the stock has improved as well. According to Insider Monkey’s database for Q3 2024, 31 hedge funds had investments in Uniti Group, up from 22 at the end of Q2.
8. Herbalife Ltd. (NYSE:HLF)
Share Price as of December 27: $6.70
Number of Hedge Fund Holders: 32
Herbalife Ltd. (NYSE:HLF) is a leading nutrition company that offers health and wellness products in approximately 95 markets worldwide. Its offerings include weight management, targeted nutrition, energy, sports, and fitness products.
The company is trusted by some of the world’s top sportsmen, including football star, Cristiano Ronaldo. Individual athletes and teams sponsored by Herbalife during the 2024 Olympics and Paralympics returned home with 11 medals. It also sponsored six Olympic committees, belonging to India, Israel, Greece, Vietnam, Italy, and Mexico.
On October 30, the company reported financial results for the third quarter of 2024. Net sales were posted at $1.2 billion, down 3.2% year-over-year, driven primarily by FX headwinds. Adjusted EBITDA stood at $167 million, with a margin of 13.4%, and exceeded the guidance range of $125 million to $155 million. Reported EPS for the quarter was 57 cents, beating expectations of 35 cents.
Herbalife Ltd. (NYSE:HLF) has made great strides in reducing its debt, aided by strong cash generation. In Q3, the company had an operating cash flow of $100 million, of which $85 million was used to pay down debt, reducing the total leverage ratio to 3.3x. The move is part of HLF’s overall strategy to lower its debt by $1 billion within five years.
The company is also seeing substantial growth in new distributor members, a 14% increase from last year. This was the second consecutive quarter of year-over-year improvement. The surge has been aided by successful new initiatives to expand the brand’s market reach. HLF’s overall outlook is promising. Wall Street analysts are bullish on the stock, with a consensus Buy rating and an average share price upside potential of 48%.
According to Insider Monkey’s database for Q3 2024, 32 hedge funds had investments in HLF, up from 29 at the end of the second quarter. It is among the best single digit stocks to buy now.
7. Hawaiian Electric Industries, Inc. (NYSE:HE)
Share Price as of December 27: $9.94
Number of Hedge Fund Holders: 32
Hawaiian Electric Industries, Inc. (NYSE:HE) is a holding company, headquartered in Honolulu, that is engaged in electric utility, banking, and sustainable infrastructure businesses through its subsidiaries. It is the largest supplier of electricity in the state of Hawaii.
On December 31, the company announced that it would sell 90.1% of the stake in its bank subsidiary, American Savings Bank, to individual investors for $450 million. The bank would keep its current management and branches. It retained 9.9% of the common stock. No other investor owns a greater share.
The bank’s sale would allow the company to enhance its focus on the utility side of the business as it strives to recover from the 2023 Maui wildfires and improve its financial position. Hawaiian Electric Industries, Inc. (NYSE:HE) was hit with a series of lawsuits after investigators stated the wildfires, which killed more than 100 people, resulted from a downed power line.
On November 8, the company announced financial results for the third quarter of 2024. It reported a consolidated net loss of $104.4 million, or 91 cents per share. Two one-time losses occurred during the quarter. The first was a $203 million pretax loss related to wildfire liabilities, while the second was a $35.2 million pretax asset impairment at Pacific Current.
During Q3, Hawaiian Electric Industries, Inc. (NYSE:HE) entered into a definitive $1.99 billion settlement agreement with plaintiffs in the Maui wildfire tort litigation, a significant step toward financial recovery. The company ended the quarter in an improved cash position, with the holding company and the utility having $678 million and $148 million of cash on hand, respectively.
While Wall Street analysts have a consensus Hold rating for the stock, they anticipate an average share price upside potential of 14%. According to Insider Monkey’s database for Q3 2024, 32 hedge funds held a stake in the company, making HE one of the best single digit stocks to buy now.
6. Genworth Financial, Inc. (NYSE:GNW)
Share Price as of December 27: $6.97
Number of Hedge Fund Holders: 33
Genworth Financial, Inc. (NYSE:GNW) is a financial services company that provides life insurance, long-term care insurance, mortgage insurance, and annuities. It is one of the best single digit stocks to buy now.
The company is making substantial gains on its strategic objectives. During its recent Q3 2024 earnings call on November 6, GNW announced that it had expanded the CareScout Quality Network to 49 states, covering over three-fourths of the population aged 65 and above. It was confident of achieving around 85% of geographic coverage of people belonging to this age group by the end of 2024.
GNW also made great progress on the LTC multi-year rate action plan (MYRAP). It secured $124 million in gross premium approvals during the quarter, with an average premium increase of 53%. The cumulative progress stood at nearly $30 billion on a net present value basis since 2012.
Genworth Financial, Inc. (NYSE:GNW) reported a net income of $85 million, or 19 cents per share, in Q3, driven by a robust performance by its mortgage insurance division, Enact, which had an adjusted operating income of $148 million. GNW ended the quarter with $369 million of cash and liquid assets, reflecting solid liquidity.
According to Insider Monkey’s database for Q3 2024, 33 hedge funds had investments in the company. As of September 30, 2024, the largest stake in Genworth Financial, Inc. (NYSE:GNW) was held by D.E. Shaw, valued at over $28.36 million.
5. Garrett Motion Inc. (NASDAQ:GTX)
Share Price as of December 27: $8.96
Number of Hedge Fund Holders: 34
Garrett Motion Inc. (NASDAQ:GTX) is an automotive technology company based in Switzerland. It specializes in turbocharging and electric boosting technologies for light and commercial vehicle OEMs and the aftermarket.
The company has numerous R&D centers, engineering facilities, and factories worldwide. It also boasts a large distribution network. Moreover, GTX maintains strong partnerships with global and Chinese automakers through its diverse range of turbocharging solutions for gasoline, diesel, natural gas, hybrid, and zero-emission battery electric vehicles.
In September 2024, Garrett Motion Inc. (NASDAQ:GTX) announced that it had signed a letter of intent with SinoTruk to enhance cooperation on electric commercial vehicles. Both companies aim to jointly co-develop a leading next-generation electric powertrain and mass-produce e-trucks equipped with this next-gen E-powertrain by 2027. This alliance is expected to expand the adoption of zero-emission technologies in China’s commercial vehicle market.
During its recent Q3 2024 earnings call on October 24, Garrett Motion Inc. (NASDAQ:GTX) announced robust financial results despite a challenging environment in the market. Net sales were posted at $826 million, down 14% from last year, due to industry softness and competitive pressures on global OEMs. However, it delivered a strong adjusted EBITDA margin of 17.4%, which was a notable year-over-year improvement driven by the successful implementation of sustainable fixed-cost actions and investments in new technologies.
Garrett Motion Inc. (NASDAQ:GTX) is seeing accelerating momentum in zero-emission vehicle technologies; it directed more than half of all its R&D spending in 2024 toward it. This has resulted in a general bullish sentiment among both Wall Street analysts and investors for the stock. According to Insider Monkey’s database for Q3 2024, 34 hedge funds had investments in the company, up from 32 at the end of the second quarter. It is one of the best single digit stocks to buy now.
4. Hudbay Minerals Inc. (NYSE:HBM)
Share Price as of December 27: $8.20
Number of Hedge Fund Holders: 35
Hudbay Minerals Inc. (NYSE:HBM) is a Canadian mining company that primarily focuses on copper production. It operates several exploration and extraction properties in North and South America. HBM owns 75% of the Copper Mountain Mine, located south of Princeton, British Columbia.
The company is strategically positioning itself for future growth through a series of promising agreements. During the first quarter of 2024, it extended the expected life of its Constancia mine by three years to 2041. The integration of the Copper Mountain Mine is also projected to significantly boost the company’s financial performance.
In January 2025, Hudbay Minerals Inc. (NYSE:HBM) secured an air quality permit for the development of its Copper World project in Arizona, United States. Located 50 km southeast of Tucson, the project is expected to produce 85,000 tonnes of copper per annum, with a mine life of 20 years.
In addition to these projects, the company maintains a solid financial outlook. During its recent Q3 2024 earnings call on November 13, Hudbay Minerals Inc. (NYSE:HBM) reported a significant increase in copper and gold production. HBM is also seeing impressive cash flow generation, which has enabled it to reduce overall debt by more than $500 million over the past year.
Wall Street analysts have a consensus Buy rating for the stock and anticipate a 32% uptick, on average, in its share price. According to Insider Monkey’s database for Q3 2024, 35 hedge funds had investments in the company, making it one of the best single digit stocks to buy now.
3. Array Technologies, Inc. (NASDAQ:ARRY)
Share Price as of December 27: $6.03
Number of Hedge Fund Holders: 36
Array Technologies, Inc. (NASDAQ:ARRY) specializes in round-mounting tracking systems used in solar energy projects. The company collaborates with large-scale developers and has established itself as a trusted partner for solar developers worldwide.
ARRY has been investing in product innovation to stay ahead of the market and meet consumer demand. In September 2024, the company announced the development of 77-degree stow capabilities for its tracker systems, which will offer unprecedented protection from extreme weather conditions such as hail and wind.
Earlier in the year in August, Array Technologies, Inc. (NASDAQ:ARRY) unveiled SkyLink, an eight-row string-powered solution that builds on the capabilities of DuraTrack and OmniTrack. It features DC motors, ZigBee wireless communications, and a suite of SmarTrack features.
On November 7, Array Technologies, Inc. (NASDAQ:ARRY) announced financial results for the third quarter of 2024. Revenue was recorded at $231.4 million, which fell within the upper half of the guidance, but was down 34% year-over-year, driven by project pushouts and declining volume and ASPs compared to last year.
Adjusted gross margin stood at 35.4%, improving 900 basis points year-over-year. Adjusted EBITDA was at $46.7 million, or 20.2% of the revenue. Net loss for the quarter was $155.4 million, largely due to a non-cash goodwill impairment charge. ARRY ended Q3 with a strong cash balance of $332 million, with $43.9 million of free cash flow generated during the quarter. Its order book remained consistent at $2 billion.
Array Technologies, Inc. (NASDAQ:ARRY) is expanding its international presence. It is seeing success in Brazil and has set eyes on targeting growth in Europe. Wall Street analysts are bullish on the stock, with a consensus Buy rating and an average share price upside potential of 87%. According to Insider Monkey’s database for Q3 2024, 36 hedge funds held a stake in the company, making it one of the best single digit stocks to buy now.
2. CommScope Holding Company, Inc. (NASDAQ:COMM)
Share Price as of December 27: $5.51
Number of Hedge Fund Holders: 38
CommScope Holding Company, Inc. (NASDAQ:COMM) is a global leader in network connectivity. The company provides infrastructure solutions for communication, data centers, and entertainment networks. It is among the best single digit stocks to buy now.
In July 2024, COMM announced the sale of its Outdoor Wireless Networks (OWN) segment and Distributed Antenna Systems (DAS) business unit to Amphenol for $2.1 billion. The deal is expected to close during the first half of 2025. Analysts believe that by selling two of its mobile-focused divisions, the company has decided to focus on its fixed-line operations.
On November 7, CommScope Holding Company, Inc. (NASDAQ:COMM) announced encouraging financial results for the third quarter of 2024. Net sales increased 3% from last year to $1.082 billion, driven by an impressive show from the Connectivity and Cable Solutions (CCS) segment. Adjusted EBITDA from operations totaled $204 million, up 30% year-over-year. Adjusted EPS was -$0.05 per share, but increased by 58%.
The CCS segment had net sales of $737 million, up 17% from the same quarter last year. The success was attributed to its enterprise business, especially hyperscale and cloud data centers. COMM’s cash balance increased by $110 million in Q3. It ended the quarter with $456 million in global cash and total available cash and liquidity of over $1 billion.
CommScope Holding Company, Inc. (NASDAQ:COMM) is continuing to invest in capacity expansion that will put it on track to support demand in 2025. CEO Chuck Treadway believes CommScope Holding Company, Inc. (NASDAQ:COMM)’s future outlook is strong, with customers signaling robust growth in data centers over the coming years.
Hedge fund sentiment around the stock is improving as well. According to Insider Monkey’s database for Q3 2024, 38 hedge funds had investments in the company, up from 28 at the end of the second quarter. FPR Partners has the largest stake in COMM, valued at over $81.6 million, as of September 30, 2024.
1. Alight, Inc. (NYSE:ALIT)
Share Price as of December 27: $6.91
Number of Hedge Fund Holders: 40
Alight, Inc. (NYSE:ALIT) is a global technology company that provides cloud-based human capital management solutions. It offers services like employee benefits, healthcare navigation, and financial well-being, which empower organizations to enhance employee satisfaction and productivity.
ALIT is trusted by some of the world’s leading organizations, as it partners with over 50% of Fortune 500 and 70% of Fortune 100 companies. It administers employee benefits for over 35 million people and dependents and manages around $1.2 trillion in assets.
In February 2024, Alight, Inc. (NYSE:ALIT) launched its next-generation artificial intelligence (AI) engine, LumenAI, which has significantly bolstered the capabilities of its Alight Worklife platform, by allowing for personalized content delivery, automated decision support, and improved data analytics.
Alight, Inc. (NYSE:ALIT) also made some other crucial strategic decisions during last year. This included the sale of its Payroll & Professional Services business to an affiliate of H.I.G. Capital for a transaction value of $1.2 billion. The company stated that it would use a majority of the proceeds to reduce its debt. Later in the year in August, it announced the successful completion of its cloud migration program, which will result in a more simplified and efficient Alight Worklife and yield $75 million in annualized savings.
Alight, Inc. (NYSE:ALIT)’s focus on investing in modern technology and strategic restructuring has made ALIT an attractive stock for investors. According to Insider Monkey’s database for Q3 2024, 40 hedge funds had investments in the company. Wall Street analysts are also bullish on the stock, with a consensus Strong Buy rating and an average share price upside potential of 60%.
During its recent Q3 2024 earnings call on November 12, the company raised its full-year revenue guidance to between $2.338 billion to $2.358 billion, reflecting confidence in the business’s future outlook. ALIT also announced the initiation of its dividend program, declaring a quarterly dividend of $0.04 per share commencing in Q4.
Overall, Alight, Inc. (NYSE:ALIT) ranks first among the 10 Best Single Digit Stocks To Buy Now. While we acknowledge the potential of human capital technology companies, 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 ALIT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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