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.
8. Montauk Renewables, Inc. (NASDAQ:MNTK)
Institutional Ownership: 15.68%
No. of Hedge Funds: 10
Headquartered in Pennsylvania, Montauk Renewables, Inc. (NASDAQ:MNTK) extracts and converts biogas from landfills and agricultural waste into renewable natural gas (RNG). With clients from the utility sector and transportation fleets raising the demand for its products, the company stays focused on decarbonization. Montauk Renewables, Inc. (NASDAQ:MNTK) distinguishes itself from its competitors through an RNG-focused infrastructure and long-term client supply contracts. Circular waste-to-energy solutions offered by the company stand parallel to the new regulatory shifts towards low-carbon fuels, thus slowly building a stronger customer base.
The company noted a slight increase in revenue in 2024. On the other hand, the successful sales of all the 2024 vintage D3 RINs have reduced the company’s exposure to market volatility. Montauk Renewables, Inc. (NASDAQ:MNTK) further intends to diversify the revenue stream by engaging in a new swine waste energy project in North Carolina. The project is expected to commence in 2026. The company also plans to set up its second Apex facility and convert its Tulsa, Oklahoma, facility to renewable natural gas. The company could produce between 5 and 8.6 million MMBTU of RNG in 2025 with these facilities.
Montauk Renewables, Inc. (NASDAQ:MNTK) has attracted 10 hedge funds at the end of Q4 2024 despite the institutional ownership standing low at 15.68%. This reflects the company’s niche value in the renewable energy sector, making it an overlooked best-performing stock for investors intending to diversify their portfolios.
7. Outbrain Inc. (NASDAQ:OB)
Institutional Ownership: 17.02%
No. of Hedge Funds: 13
Outbrain Inc. (NASDAQ:OB) is a leading recommendation platform for the open web. Headquartered in New York, the company enables publishers to monetize content through personalized advertising. The company delivers native ad units across mobile and desktop platforms, serving digital media outlets and global advertisers. Against tough competitors like Taboola and Google Ads, Outbrain Inc. (NASDAQ:OB) raises its market share with the help of its AI-driven content targeting and premium publisher partnerships. The company integrates the demand-side with the supply-side to support scalable monetization without compromising user experience.
The company’s revenue decreased by 5% year-over-year in 2024, inducing a fall under the radar of income-seeking investors. Meanwhile, the record free cash flow for Q4 2024 suggests financial management and operational efficiency growth. Outbrain Inc. (NASDAQ:OB) has also completed the acquisition of Teads. Through the synergy, the company anticipates a notable rise in its branding and performance capabilities over various channels. The AI-based technology introduced by the firm gets broad appreciation, with more than 70% of the company’s customers employing the tools. Further increase in adoption could lead to a rise in the company’s market share in 2025.
The 17.02% institutional backing alongside 13 hedge fund holding positions indicates subtle confidence in Outbrain Inc. (NASDAQ:OB)’s digital ad model. The modest exposure positions the stock as a leading under-the-radar investment for speculative investors looking for tech stocks.
6. TaskUs, Inc. (NASDAQ:TASK)
Institutional Ownership: 19.01%
No. of Hedge Funds: 17
A Texas-based company, TaskUs, Inc. (NASDAQ:TASK) provides outsourced digital services to high-growth technology companies. Its portfolio includes content moderation, customer support, and AI operations. The company serves a wide range of customers from the social media, e-commerce, fintech, and healthcare sectors. TaskUs, Inc. (NASDAQ:TASK) earns its competitive advantage by focusing on agile delivery and digital fluency. Specializing in content safety and trust & safety services, the company gains a strong foothold amid rising platform accountability demands.
TaskUs, Inc. (NASDAQ:TASK) saw a 17.1% year-over-year increase in its revenue in 2024. However, the adjusted EBITDA margin fell short of its guidance of 21.1% by 1.5%. However, the decline was due to various investments in AI technologies and generative AI services. The company anticipates revenue growth and expanded margins in 2025 with these investments. Specifically, the company projects total revenue between $1.095 billion and $1.125 billion for 2025, accelerating year-over-year growth across all three service lines: digital customer experience, content security, and AI operations.
TaskUs, Inc. (NASDAQ:TASK) boasts 19.01% institutional ownership and garners the attention of 17 hedge funds, as per Insider Monkey’s Q4 2024 database. The growing institutional interest represents the stock’s consistently gaining traction in the list of best under-the-radar stocks with long-term growth potential.
5. DLocal Limited (NASDAQ:DLO)
Institutional Ownership: 12.62%
No. of Hedge Funds: 19
DLocal Limited (NASDAQ:DLO), located in Uruguay, provides cross-border payment solutions connecting global merchants to emerging market consumers. The company serves digital platforms; hence, its customer base comprises sectors like e-commerce, travel, and streaming. It offers a single API for collections and disbursements across Latin America, Asia, and Africa. The company distinguishes itself from its competitors using its local payment network coverage and rapid integration capabilities. With a scalable infrastructure, the company’s growth continues to increase in underbanked regions alongside emerging digital commerce users.
DLocal Limited (NASDAQ:DLO) recorded a 45% year-over-year increase in its total payment volume in 2024. However, this was followed by a decline in gross profit in its largest markets, Brazil and Mexico. Currency devaluations in some regions, like Nigeria, further made an impact on the company’s revenue growth. On the other hand, there is a notable expansion in the team, with 194 new talents recruited into the company. Technology and product development are receiving increased attention from this expansion, as the company sees them as necessary to move forward. Twenty new payment methods for pay-ins and seven for payouts were introduced by the company, and securing nine new licenses globally has increased projections for 2025 revenue to $1 billion.
Institutional ownership for DLocal Limited (NASDAQ:DLO) stands at 12.62%, with 19 hedge funds showing interest in the stock, as per Insider Monkey’s Q4 2024 database. Such low visibility suggests that the stock could be one of the more promising quiet picks for investors today.
4. Central Garden & Pet Company (NASDAQ:CENT)
Institutional Ownership: 19.31%
No. of Hedge Funds: 20
Central Garden & Pet Company (NASDAQ:CENT) manufactures and distributes branded and private-label products across the pet and lawn & garden markets. Well-known brands like Kaytee, Pennington, and Amdro form part of the company’s portfolio. Operating from its headquarters in California, the company serves retailers and specialty outlets nationwide. Integrated distribution, innovation in natural products, and a diversified revenue base set the company apart from its competitors, like Spectrum Brands. Central Garden & Pet Company (NASDAQ:CENT) also enjoys resilience from a balanced exposure to pet care and outdoor living trends.
Sales have decreased by 3% in the fiscal year 2024. The decline was primarily due to the significant challenges faced by the Garden segment, including a notable impairment of grass seed inventory. On the other hand, the company noted substantial profits in the Pet segment. Additionally, with the help of its Cost and Simplicity program, Central Garden & Pet Company (NASDAQ:CENT) consolidated operations, optimized transportation, and achieved a record high cash flow of $395 million. For 2025, the company aims to achieve a 3% increase in net sales in the first quarter.
Insider Monkey database noted that 20 hedge funds invested in the company at the end of Q4 2024. Yet with the institutional ownership amounting to only 19.31%, Central Garden & Pet Company (NASDAQ:CENT) operates under the mainstream radar and falls into the low-profile stocks with strong hidden potential category.
3. Reynolds Consumer Products Inc. (NASDAQ:REYN)
Institutional Ownership: 27.13%
No. of Hedge Funds: 23
Reynolds Consumer Products Inc. (NASDAQ:REYN), an Illinois-based company, produces household essentials like aluminum foil, trash bags, and disposable tableware. Operating via Reynolds Wrap and Hefty brands, the company serves North American retail and commercial customers across mass, club, and grocery channels. The company faces heavy competition from Glad and store brands but continues to thrive by leveraging its brand equity, manufacturing efficiency, and strong retail relationships. Consistent demand contributes to stable revenue for the company in the consumer-packaged goods sector.
Though the company has slightly declined in its revenue in 2024, the net income has grown by $54 million, reaching $352 million in 2024. For 2025, according to Scott Huckins, President and Chief Executive Officer, Reynolds Consumer Products Inc. (NASDAQ:REYN) intends to increase its value by introducing new programs and executing the existing programs more efficiently. In his own words, the statement goes as follows:
“Reynolds and Hefty are very strong brands, and we enter 2025 committed to executing new and existing programs to realize even more of RCP’s potential.”
Backed by 27.13% institutional ownership, Reynolds Consumer Products Inc. (NASDAQ:REYN) is part of 23 hedge fund portfolios at the end of Q4 2024. The comparatively low institutional interest indicates that the stock remains relatively unnoticed despite its household reach, thus quietly fitting into the best lesser-known investment opportunities.
2. United States Lime & Minerals, Inc. (NASDAQ:USLM)
Institutional Ownership: 27.88%
No. of Hedge Funds: 23
Headquartered in Texas, United States Lime & Minerals, Inc. (NASDAQ:USLM) supplies lime and limestone products for construction, steel, environmental, and oil & gas applications. Business operations primarily focus on the south-central U.S., serving industrial clients who need calcium-based materials for water treatment and emissions control. United States Lime & Minerals, Inc. (NASDAQ:USLM) benefits from proximity to key end markets against competitors like Carmeuse and Graymont. Apart from the regional focus, the low-cost production also enables the company to establish a strong position in the cyclical industrial supply chains.
United States Lime & Minerals, Inc. (NASDAQ:USLM) saw an upward trend in its revenue by 21.9% in the fourth quarter, compared to the same quarter the previous year. Increased sales volumes to construction, environmental, and industrial customers and the higher average selling prices enabled the company to drive up its revenue. However, it is not all positive since the company also noted a decline in sales volume induced by a fall in demand from the Company’s construction customers. On the other hand, the compound annual growth rate (CAGR) of 7.5% for the limestone market from 2025 to 2030, with an estimated revenue of $15.1 billion by 2030, poses an opportunity for the company.
With 27.88% institutional backing, United States Lime & Minerals, Inc. (NASDAQ:USLM) gains support from 23 hedge funds, as per Insider Monkey’s database of Q4 2024. High operational performance with quiet consistency makes it a top candidate for investors looking for high-quality, under-the-radar stocks.
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.
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