This article will look into the 10 best under-the-radar stocks that investors may consider adding to their portfolios.
The market environment is currently dominated by headlines about mega-cap tech stocks and the volatility induced by tariffs. The recent trade war ignited by the U.S. President’s new tariffs has sent ripples throughout the globe, affecting all the listed major stocks. Savvy investors, however, are increasingly turning towards comparatively less famous equities that offer significant growth potential. Though the market indices have experienced a modest decline owing to the tariff war between the U.S. and China, a few under-the-radar stocks have shown resilience.
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Recent market fluctuations and their resulting impact on the market indices stress the need to explore beyond the usual suspects. We cannot always look up to the value stocks, as the reports from the past three decades have shown that growth stocks outperform them. The changing trends point towards substantial opportunities outside the traditional investments in sectors and stocks that are yet to be covered by the financial media headlines.
On the other hand, the overgrown influence of a few large caps has increased the concerns regarding market concentration and the long-term sustainability of such below-the-radar stocks. According to Barron’s, a university-conducted study revealed that a few disproportionately small subsets of publicly listed companies had been responsible for the total net wealth creation in the U.S. equity market since 1926. Median stock, meanwhile, has historically underperformed risk-free assets. The revelation necessitates identifying emerging companies with traits of future market leadership before they get flooded with institutional capital.
Though the recent economic shifts hurt many large caps, they also offer a favorable backdrop for identifying emerging stocks. For instance, the Federal Reserve’s change in interest rate cuts has reduced borrowing costs, increased credit availability, and contributed to a conducive climate for some companies to thrive in the market.
Undercoverage of these high-potential companies leads to informational inefficiencies, which retail and institutional investors perceive as opportunities. Many of these companies maintain a strong growth potential within their respective industries that aligns with the long-term shareholder value creation.
Sometimes, the sectoral shifts can also favor the distribution of growth opportunities for a few stocks over others. For instance, after retaliation from China, the biggest importer of technologies and related materials, the U.S. gave tariff exemptions to electronics. This led to growth in the value of many large-cap tech stocks. However, the subsequent announcement from President Trump that these exemptions are only temporary has caused investors to rethink their investment decisions. It underscores the need to look for under-the-radar stocks that combine growth potential and not-yet-exploited quality.
In this regard, we have compiled a list of 10 under-the-radar stocks guided by fundamental screening and long-term earnings potential. In addition to financial stability, the stocks on our list demonstrate attributes common in past outperformers before their breakout phases.
Stick with us as we unveil these stocks from 10 to 1 if you want to diversify your portfolio. The top 5 might just earn a position in your portfolio.
Our Methodology
Our article employs a screening methodology to identify the best under-the-radar stocks with strong fundamentals. Primarily, our criteria include market capitalization below $10 billion to limit our search between micro, small, and mid-cap classifications. We also included only those stocks with positive earnings per share (EPS) growth over the past five years, reflecting consistency in profit-making. We have set the institutional ownership cap to 30% to pick those stocks with limited analyst coverage and more significant discovery potential. Our article further excluded stocks with a forward price-to-earnings (P/E) ratio of more than 20 to target relatively undervalued equities. Additionally, all the stocks have a debt-to-equity ratio under 1 to ensure a conservative capital structure, thereby ensuring financial stability. We compiled a list of 25 stocks and then listed 10 stocks that were most popular among hedge funds, according to Insider Monkey’s database of Q4 2024.
All the data in the article was taken from financial databases and analyst reports, with all information updated as of April 15, 2025.
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. FirstSun Capital Bancorp (NASDAQ:FSUN)
Institutional Ownership: 22.98%
No. of Hedge Funds: 6
FirstSun Capital Bancorp (NASDAQ:FSUN), headquartered in Colorado, is a regional bank holding company that offers commercial and retail banking services. The company operates through its subsidiary, Sunflower Bank. Its services include loans, deposits, treasury management, and wealth services. The client base comprises individuals, small businesses, and middle-market clients. Though regional players like Prosperity Bancshares and Independent Financial pose tough competition, FirstSun Capital Bancorp (NASDAQ:FSUN) gains a competitive edge by prioritizing localized service delivery and disciplined credit management.
FirstSun Capital Bancorp (NASDAQ:FSUN) reported a net income of $16.4 million in the fourth quarter of 2024, comparatively less than the net income generated during the same period in the previous year. However, the average deposit has grown by 5%. Additionally, the company gained recognition from the Kroll Bond Rating Agency, and its debt ratings were affirmed. Affirmation was also provided to the debt and deposit rating of the subsidiary, Sunflower Bank. FirstSun Capital Bancorp (NASDAQ:FSUN) also plans to establish two new depository branches, one in San Diego and the other in Los Angeles, with the necessary application submitted to the regulators. It indicates that the company’s footprint continues to grow amid regional banking consolidation.
Institutional stock ownership amounts to 22.98%, with six hedge funds having stakes in the company at the end of Q4 2024. With such moderate institutional interest in this potentially overlooked stock, FirstSun Capital Bancorp (NASDAQ:FSUN) is among the best under-the-radar stocks for interested investors.
9. United States Antimony Corporation (NYSE:UAMY)
Institutional Ownership: 19.01%
No. of Hedge Funds: 8
Montana-based company, United States Antimony Corporation (NYSE:UAMY) mines, produces, and sells antimony and zeolite products. The company has many clients from sectors like flame retardants, ammunition, and ceramics. The extraction and refining operations within North America reduce their reliance on Chinese supply chains, giving them a competitive edge over companies dependent on Chinese supply. Additionally, the focus on strategic minerals has positioned United States Antimony Corporation (NYSE:UAMY) as a critical supplier amid the rising demand for domestic sources in the defense and clean energy industries.
United States Antimony Corporation (NYSE:UAMY) recorded a revenue of $14.9 million in Q4 2024, a 72% increase compared to the fourth quarter prior year. The company has reopened its Mexico operations with increased market demand and antimony prices. These operations were closed in the first quarter of 2024. Delays in operations were noted, particularly in the transportation of antimony from Alaska to Montana. However, the expansion of the facility in the Montana region, alongside the reopening of the Mexico operations, is expected to increase the company’s value as 2025 progresses.
With institutional ownership standing at 19.01% and eight hedge funds from the Insider Monkey Q4 2024 database backing it, United States Antimony Corporation (NYSE:UAMY) quietly draws selective interest. The low profile combined with niche appeal earns the stock a place among the top under-the-radar stocks for income-seeking investors.