Periods of high market volatility can make cheap stocks attractive because sharp price swings may undervalue fundamentally strong growth companies in the short run. This allows selective long-term investors to buy them at a discount and benefit when stability returns and prices recover. On April 17, AB’s Jim Tierney and Charles Schwab’s Kathy Jones appeared together on CNBC’s ‘Power Lunch’ to discuss how long-term investors should move in the current market. Kathy Jones recommended neglecting the current marked noise and emphasized the importance of sticking to fundamental investment principles during such uncertainty. She advised investors to remain diversified, while keeping in mind their personal risk tolerance and capacity. She says that the current environment is one of considerable uncertainty and volatility, making a conservative, credit-quality-focused fixed income portfolio suitable. Jones thinks that long-term investors seeking income, capital preservation, and diversification from stocks should focus on higher credit quality bonds with a duration of about 5 to 7 years. She believes that this duration can balance earning a fair amount of interest income while minimizing credit risk, volatility, and interest rate risk.
Given the current market uncertainty, Jim Tierney encouraged equity investors to seek and be selective about opportunities available to them right now. He’s optimistic that attractive investment opportunities still exist despite the challenging environment. Tierney also addressed whether the recent market rebound should prompt investors to sell. He argued that for long-term investors, slightly lower prices amid a market that has risen about 90% over 5 years present a better entry point. He cautioned against expecting annual gains of 20% every year, noting that such consistently high returns are unrealistic. He highlighted the potential for companies capable of double-digit growth over the next 5 years to perform well despite tariff uncertainties. He advised focusing on firms that manufacture locally in different countries, so that tariff risks can be avoided. He even thinks that the companies with pricing power would be better off if tariffs were implemented in some form.
In this environment, careful stock selection becomes essential. With that acknowledged, we’re here with a list of the 10 cheap hot stocks to buy right now.
A portfolio manager studying various stocks and other securities on a tablet.
Our Methodology
We first sifted through the Finviz stock screener to compile a list of the top cheap stocks with a forward P/E ratio under 15 as of April 16. Then we picked the 10 hot stocks with highest gains over the past 1 month (over 15%), that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey’s database, which tracks the moves of over 900 elite money managers.
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 Cheap Hot Stocks to Buy Right Now
10. Journey Medical Corporation (NASDAQ:DERM)
Forward P/E Ratio as of April 16: 14.16
Gain Over the Past 1 Month: 16.95%
Number of Hedge Fund Holders: 3
Journey Medical Corporation (NASDAQ:DERM) develops and commercializes pharmaceutical products for the treatment of dermatological conditions. Its marketed products include Qbrexzafor the treatment of primary axillary hyperhidrosis, Accutane for severe recalcitrant nodular acne, and Amzeeq for inflammatory lesions of non-nodular moderate to severe acne vulgaris.
The company’s near-term revenue depends on the launch and market adoption of MROSI, which is its newly FDA-approved oral treatment for rosacea. This product has already entered a $1 billion-plus treatment category. MROSI showed superior Phase 3 clinical results when compared head-to-head against the current oral standard of care (ORATIA) and placebo on both co-primary endpoints with high statistical significance.
To bring MROSI to this stage, Journey Medical Corporation (NASDAQ:DERM) made one-time payments that totaled $22 million in FDA filing fees and milestone payments to Dr. Reddy Labs in 2024. Following FDA approval, Journey immediately initiated market access efforts, which resulted in coverage for ~20% of the 188 million commercial lives and 4% of the 58 million Medicare lives. MROSI has the potential to achieve $200 million in annual sales in the US and $100 million internationally in 2025.
9. Contango Ore Inc. (NYSEAMERICAN:CTGO)
Forward P/E Ratio as of April 16: 10.17
Gain Over the Past 1 Month: 38.65%
Number of Hedge Fund Holders: 4
Contango Ore Inc. (NYSEAMERICAN:CTGO) is an exploration-stage company that explores and develops mineral properties in Alaska in the US. It explores for gold, silver, and copper ores. The company’s primary financial engine is its 30% stake in the Peak Gold Joint Venture, which operates the Manh Choh gold mine.
In 2024, the Peak Gold Joint Venture produced ~42,000 ounces of gold and exceeded expectations by 25%. This performance has carried into 2025, with the first mining campaign yielding ~65,000 ounces of recovered gold (on a 100% basis). In this, Contango’s share is ~19,500 ounces, which exceeded its 15,000 to 18,000 ounces target. As gold prices near $2,800 per ounce, Contango anticipates making~$40 million in revenue from its projected 60,000-ounce share of the Joint Venture’s 2025 output.
The company is also focused on replicating its efficient direct shipping ore (DSO) model with other high-grade deposits. Projects like Lucky Shot and Johnson Tract represent the possibility of doubling or tripling Contango’s overall gold production within the next 3 to 5 years, with an annual output of 100,000 to 200,000 ounces of gold equivalent. The Johnson Tract project is also currently in the permitting and infrastructure development phase, with PEA expected in April 2025.
8. Nexxen International Ltd. (NASDAQ:NEXN)
Forward P/E Ratio as of April 16: 9.85
Gain Over the Past 1 Month: 18.79%
Number of Hedge Fund Holders: 8
Nexxen International Ltd. (NASDAQ:NEXN) provides an end-to-end and video-first platform that engages advertising campaigns for brands, agencies, media groups, and content creators worldwide. It serves ad buyers, such as brands and agencies, and digital publishers. It was formerly known as Tremor International Ltd. until January 2024.
Nexxen’s programmatic advertising segment made a record revenue of $98.7 million in Q4 2024, which was a 15% year-over-year improvement. For the full year, programmatic revenue reached an all-time annual record of $324.5 million, which was also up by 9%. Programmatic revenue made up a substantial 88% of the total revenue in Q4 and 89% for the full year. Within this segment, CTV advertising is particularly experiencing rapid growth.
CTV advertising contributed 38% to the total programmatic revenue in Q4. In this period, CTV revenue hit a quarterly record of $37.0 million, which showed 86% year-over-year growth. Nexxen’s 2025 guidance projects programmatic revenue to represent ~90% of the total revenue. Management also plans to make further investments in technology, data, and GenAI in 2025.
7. Centerra Gold Inc. (NYSE:CGAU)
Forward P/E Ratio as of April 16: 10.65
Gain Over the Past 1 Month: 17.56%
Number of Hedge Fund Holders: 16
Centerra Gold Inc. (NYSE:CGAU) acquires, explores, develops, and operates gold and copper properties in North America, Turkey, and internationally. It also explores for molybdenum deposits. Its principal assets include the Mount Milligan gold-copper mine located in British Columbia in Canada, and the Öksüt gold mine located in Türkiye.
Centerra’s Mount Milligan generated $77 million in cash from operations and $65 million in free cash flow in FQ4 2024. Mount Milligan yielded ~38,000 ounces of payable gold and 12.8 million pounds of payable copper. For the full year 2024, the mine produced more than 167,000 ounces of gold and 54 million pounds of copper. This mine is expected to produce between 165,000 and 185,000 ounces of gold and 50 million to 60 million pounds of copper in 2025.
Centerra is working to enhance the long-term value of this asset. Technical studies are progressing well, leading to a decision to move directly to a pre-feasibility study, anticipated to be completed in FQ3 2025. The mine life was also to 2036 due to improved waste storage. Centerra Gold Inc. (NYSE:CGAU) is also optimistic about the potential for increased annual mill throughput by ~10% through upgrades.
6. Eldorado Gold Corp. (NYSE:EGO)
Forward P/E Ratio as of April 16: 11.96
Gain Over the Past 1 Month: 29.50%
Number of Hedge Fund Holders: 19
Eldorado Gold Corp. (NYSE:EGO) mines, explores, develops, and sells mineral products primarily in Turkey, Canada, and Greece. It produces gold, silver, lead, and zinc. It holds a 100% interest in the Kisladag & Efemçukuru mines located in Turkey; the Lamaque complex located in Canada; and the Olympias, Stratoni, Skouries, Perama Hill, and Sapes gold mines located in Greece.
In 2024, the company’s Lamaque Complex achieved a record production of 196,538 ounces of gold. This output contributed to Eldorado’s overall 2024 gold production of 520,293 ounces, which was a 7% year-over-year increase. In Q4 2024 alone, Lamaque produced 63,742 ounces of gold. The total cash costs at Lamaque were $615 per ounce sold in this quarter, which was a slight improvement year-over-year, fueled by increased production costs but largely offset by the higher volume of ounces sold.
The production from Lamaque, particularly the additional ore from the Ormaque bulk sample, coupled with higher throughput rates and grades, directly impacts Eldorado Gold Corp.’s (NYSE:EGO)gold sales and revenue generation. The completion of the Ormaque bulk sample in December 2024 increases confidence in the development of a second mine within the Lamaque Complex.
5. Gold Fields Ltd. (NYSE:GFI)
Forward P/E Ratio as of April 16: 11.93
Gain Over the Past 1 Month: 19.47%
Number of Hedge Fund Holders: 24
Gold Fields Ltd. (NYSE:GFI) operates as a gold producer with reserves and resources in Australia, South Africa, Ghana, Peru, Chile, and Canada. It also explores for copper and silver deposits. It has a diverse portfolio of gold-producing assets, but the most prominent is the Salares Norte project in Chile.
Salares Norte delivered a strong Q4 2024 in line with the guidance, despite facing some challenges in its ramp-up phase, which contributed to lower overall production in H1 2024. The CEO, Michael Fraser, noted that the plant is expected to reach steady-state monthly production by Q4 2025, transitioning into full-year nameplate production in 2026.
The long-term grade forecast for the project is around 10% to 11%. Detailed insights into future spending levels are still to come, with a final investment decision expected in Q1 2026. But the successful ramp-up and better-than-expected recoveries position Salares Norte as a crucial asset for Gold Fields Ltd. (NYSE:GFI) to maintain a significant production level into the mid-2030s. On March 3, Josh Wolfson from RBC Capital maintained a Buy rating on the stock with a price target of $22.
4. H&R Block Inc. (NYSE:HRB)
Forward P/E Ratio as of April 16: 11.99
Gain Over the Past 1 Month: 20.91%
Number of Hedge Fund Holders: 27
H&R Block Inc. (NYSE:HRB) provides assisted and DIY tax return preparation services to the general public. It offers assisted income tax return preparation and related services through in-person visits. This is done through a system of retail offices operated directly by the company or its franchisees, as well as online and mobile applications, and virtual and desktop software.
The company’s Assisted tax preparation services utilize a network of ~9,000 company and franchise offices across the US, which are located within 5 miles of most Americans. It’s supported by ~60,000 expert tax professionals who average 10 years of experience with the brand, as of FQ2 2025. The Assisted segment offers clients transparent pricing, flexible filing options, and personalized advice from experienced tax professionals.
H&R Block Inc. (NYSE:HRB) has improved its Tax Pro matching algorithm to connect clients with the best-suited expert. To remove price as a barrier for new clients, H&R Block offers a price match guarantee and matches the price paid to a previous tax preparer by up to 50%. It also offers the Second Look service free of charge as a value differentiator. This service reviews the past 3 years of a new client’s tax returns for missed refunds
Conventum – Alluvium Global Fund stated the following regarding H&R Block, Inc. (NYSE:HRB) in its Q4 2024 investor letter:
“H&R Block, Inc. (NYSE:HRB) (down 16.3%), reported first quarter earnings largely in line with our expectations, and re-affirmed its FY25 guidance. We were also pleasantly surprised to hear its mobile banking platform, Spruce, has now grown to more than USD 1b in customer deposits. But the share price fell 6.6% on the day. Then a few days later media reports suggested that Musk’s DOGE was considering creating a mobile app for tax returns. It seems that on that news its share price fell 8.2% (and peer Intuit fell 5.1%). H&R Block already offers free tax returns, and we can’t see any new US government provided mobile app as having any material implications to its business. With the business being even better priced, and with it offering an 8.0% earnings yield and being at a small discount to our valuation, we are happy holders at 4.3% of the Fund.”
3. Anglogold Ashanti (NYSE:AU)
Forward P/E Ratio as of April 16: 10.91
Gain Over the Past 1 Month: 38.28%
Number of Hedge Fund Holders: 31
Anglogold Ashanti (NYSE:AU) is a gold mining company in Africa, Australia, and the Americas. It explores for gold, as well as by-products such as silver and sulphuric acid. Its flagship property includes 100% ownership of the Geita mine located in the Lake Victoria goldfields of the Mwanza region in north-western Tanzania.
In 2024, the company produced 2,660 thousand troy ounces of gold, which was slightly higher than the 2,640 thousand troy ounces produced in 2023. This generated the majority of the company’s $5.79 billion in revenue for the full year, which was a 26% year-over-year increase due to favorable gold prices. On April 15, Scotiabank raised the stock’s price target to $42 from $34 while maintaining a Sector Perform rating.
Anglogold is actively pursuing strategies to enhance its gold production. The company’s $2.5 billion acquisition of Centamin in September 2024 is a key instance here. This move includes Centamin’s flagship Sukari gold mine in Egypt and is projected to boost Anglogold’s annual gold production above 3 million ounces. This could potentially position the company as the world’s fourth-largest gold producer.
2. Avis Budget Group Inc. (NASDAQ:CAR)
Forward P/E Ratio as of April 16: 3.39
Gain Over the Past 1 Month: 22.79%
Number of Hedge Fund Holders: 35
Avis Budget Group Inc. (NASDAQ:CAR) provides car and truck rentals, car sharing, and ancillary products & services to businesses and consumers. It operates the Avis brand, which offers vehicle rental and other mobility solutions to the premium commercial & leisure segments of the travel industry. It also offers the Zipcar brand for car sharing, and the Budget brand for supplying several mobility solutions.
In Q4 2024, the Americas generated over $2.1 billion in revenue for the company. Avis‘ total revenue for 2024 was $2.7 billion. Vehicle utilization in the region was strong in Q4 at over 67%, which was more than 2 points higher year-over-year. This comes from maximizing revenue during peak leisure periods, with Christmas in the US being a record. Pricing was down 2% in Q4 year-over-year, but it showed sequential improvement throughout the quarter.
The company started Q1 2025 with substantially fewer cars than in 2024 and will continue to exit older vehicles while rotating in the more cost-effective 2025 models. This rotation resulted in a non-cash impairment in Q4 2024 and is expected to have lingering effects on fleet costs in Q1 2025, with an expected all-in fleet cost per unit per month of ~$400 for the total company. Avis expects a drop in these costs to under $350 in Q2 and around $300 by year-end.
1. Newmont Corporation (NYSE:NEM)
Forward P/E Ratio as of April 16: 9.05
Gain Over the Past 1 Month: 17.74%
Number of Hedge Fund Holders: 69
Newmont Corporation (NYSE:NEM) produces and explores gold properties. It also explores for copper, silver, zinc, lead, and other metals. It has operations and/or assets in the US, Canada, Mexico, Dominican Republic, Peru, Suriname, Argentina, Chile, Australia, Papua New Guinea, Ecuador, Fiji, and Ghana, and internationally.
In 2024, Newmont’s gold production from its go-forward core portfolio, which is around 85% of total output, contributed to the company exceeding its overall production guidance by delivering 6.8 million ounces of gold. This gold production helped generate $2.9 billion in free cash flow for 2024 and a record $1.6 billion in free cash flow in Q4.
Newmont has a clear strategy to optimize its gold production and profitability from its core Tier 1 assets. It anticipates producing ~6 million ounces of gold on average each year over the next decade from this portfolio. Newmont Corporation (NYSE:NEM) anticipates ~1.4 million ounces of gold in 2025 from its non-managed joint ventures, with expectations of a 20% increase from these ventures by 2027 compared to 2024.
While we acknowledge the growth potential of Newmont Corporation (NYSE:NEM), our conviction lies in the belief that AI stocks hold great promise for delivering high 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 NEM 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 Buy Now According to Billionaires.
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