10 Best Under-the-Radar Stocks to Buy Now

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1. Enact Holdings, Inc. (NASDAQ:ACT)

Institutional Ownership: 18.98%

No. of Hedge Funds: 26

Based in North Carolina, Enact Holdings, Inc. (NASDAQ:ACT) provides private mortgage insurance for U.S. lenders and mortgage originators. Formerly, Genworth Mortgage Insurance, Enact Holdings, Inc. (NASDAQ:ACT) reduces lender risk on low-down-payment loans and supports homeownership. The company leverages risk analytics and capital strength to enhance credit quality and operational efficiency, thus gaining a competitive advantage over its peers. Supportive housing market trends and the company’s exposure to regulatory capital frameworks strengthen its position in mortgage finance.

The company achieved a record-high operating income of $718 million for 2024. However, Enact Holdings, Inc. (NASDAQ:ACT) also experienced an increase in delinquencies of 6% in the fourth quarter. Due to hurricanes, the company expects a decline in delinquencies in future quarters. It also surpassed its capital return guidance by returning $354 million to shareholders in 2024. In addition, the company completed issuing $750 million in senior notes, marking its first investment-grade debt issuance as a public company. The issuance has saved the company $2 million in annual interest expense. For 2025, the company targets revenue growth of 5%.

With just 18.98% institutional ownership, Enact Holdings, Inc. (NASDAQ:ACT) is favored by 26 hedge funds in the Insider Monkey database at the end of Q4 2024. With such modest institutional interest, the company continues to operate under the radar, earning a place among the strongest underappreciated picks in niche financial sectors.

Overall, Enact Holdings, Inc. (NASDAQ:ACT) ranks first among the best under-the-radar stocks. While we acknowledge the potential of ACT, 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 ACT but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks To Invest In According to Billionaires.

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