Investing in under-the-radar stocks can be a savvy move for those looking to diversify their portfolios and potentially reap significant rewards. These lesser-known companies often fly under the radar of mainstream investors, which can result in undervalued stock prices. Under-the-radar stocks can be found in various sectors, from emerging technologies to niche industries, and are often characterized by their small market capitalization, limited analyst coverage, and low trading volumes.
According to Business Insider, several lesser-known hedge funds have outperformed the market, Glen Kacher’s Light Street and David Rogers’ Castle Hook, for instance, returned 60% last year, outpacing many of their more prominent peers. Jason Mudrick’s firm also had a strong year, with returns of over 31%. Meanwhile, the largest hedge funds in the world, such as Citadel, D.E. Shaw, and Millennium, had good years, although most failed to match the S&P 500’s 23% gain.
The impressive returns achieved by lesser-known hedge funds can be attributed to their bold investment strategies, which included a focus on under-the-radar stocks. By investing in these hidden gems, these funds were able to capitalize on undervalued opportunities and reap significant rewards. As a result, these under-the-radar stocks proved to be a key factor in the funds’ success.
Read Also: 12 Cheapest Stocks with Biggest Upside Potential and Top 10 Undervalued Tech Stocks to Buy According to Hedge Funds.
In an interview with Bloomberg on January 18, David Kostin, Chief US Equity Strategist at Goldman Sachs, shared his outlook for US equities, forecasting an 11% upside for the S&P 500 index, based on the expectation that earnings per share will grow around 11% in calendar 2025 and 7% in calendar 2026. Kostin emphasized that equity investors are already looking ahead, with the fourth-quarter earnings season about to kick off, Kostin noted that earnings growth for the quarter is expected to be around 8%, but the strong dollar may lead to fewer positive surprises than in previous years.
Kostin highlighted that the US stock market is trading at a high multiple, around 22-23 times forward earnings, which is historically high. As a result, earnings will be the primary driver of the market, rather than multiple expansion. He expects the S&P 500 index to rise to around 6,500, driven by earnings growth. Kostin also cautioned that a higher bond yield environment is a concern, as it has been a headwind for equities in the past. However, Kostin expects that inflation will come down slowly, and bond yields will fall to around 4.25% over the rest of the year.
Kostin suggested that portfolio managers should focus on owning US companies with domestically driven revenues, rather than those with high export exposure. This is because companies with high domestic sales are less likely to be affected by retaliatory tariffs. Kostin also mentioned that the Magnificent Seven companies have significant sales outside the US, and may face potential risks due to their high export exposure.
Kostin acknowledged that the Magnificent Seven companies have had fantastic stock performances in 2023 and 2024. However, he expects their premium earnings growth to narrow substantially in 2025 and 2026, leading to a narrowing excess return. As a result, Kostin favors mid-cap stocks, which trade at lower multiples and have similar growth rates to large-cap stocks. He believes that mid-cap US equities, with a market capitalization of between $5 billion to $20 billion, offer a better risk-reward profile.
Lesser-known, under-the-radar companies are often overlooked by mainstream investors, but present a unique potential for growth, particularly in sectors poised for innovation and transformation. With that in context, let’s take a look at the 10 under-the-radar stocks with massive upside for 2025.
A person with stock market data on a laptop. Photo by Anna Nekrashevich on Pexels
Our Methodology
To compile our list of the 10 under-the-radar stocks with massive upside for 2025, we sifted through internet rankings to find 30 under-the-radar stocks. From that list, we narrowed our choices to the 10 stocks that analysts see the most upside to. The list is sorted in ascending order of analysts’ average upside potential, as of January 17. We also included their stock price as of January 17 and their hedge fund sentiment, which was taken from Insider Monkey’s Hedge Fund database of 900 elite hedge funds as of Q3 of 2024.
Why do we care about what hedge funds do? 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 Under-the-Radar Stocks with Massive Upside for 2025
10. GitLab Inc. (NASDAQ:GTLB)
Upside Potential: 25.79%
Stock Price as of January 18: $63.67
Number of Hedge Fund Investors: 40
GitLab Inc. (NASDAQ:GTLB) is a leading DevOps platform that provides end-to-end software development solutions for enterprises and developers. The company’s products help streamline project planning, source code management, and application monitoring. GitLab Inc. (NASDAQ:GTLB) generates revenue through subscriptions and by offering premium features tailored for large-scale teams.
GitLab Inc. (NASDAQ:GTLB) is at the forefront of integrating AI into its DevSecOps platform, with the introduction of GitLab Duo Pro and GitLab Duo Enterprise. These AI-powered tools are designed to enhance developer productivity by automating repetitive tasks and providing real-time code assistance. One of the key innovations is the development of agentic AI, which aims to create autonomous agents that can proactively manage the entire software development lifecycle. This agentic AI, known as GitLab Duo Workflow, is expected to revolutionize the industry by reducing the time developers spend on mundane tasks and allowing them to focus more on strategic, value-added work.
GitLab Inc. (NASDAQ:GTLB) is actively forming strategic partnerships with hyperscalers such as AWS and system integrators. These partnerships are crucial for expanding the company’s reach and ensuring that customers can leverage the company’s platform in conjunction with other leading technologies. The company recently announced a partnership with AWS to offer a bundled solution with Amazon Q and GitLab Duo to help developers create and deploy high-quality, secure code faster on the AWS cloud. Additionally, GitLab Inc. (NASDAQ:GTLB) is working with system integrators to help customers fully utilize the extensive features of the GitLab platform, ensuring that they achieve maximum return on investment.
9. Sabre Corporation (NASDAQ:SABR)
Upside Potential: 31.74%
Stock Price as of January 18: $3.34
Number of Hedge Fund Investors: 25
Sabre Corporation (NASDAQ:SABR) is a leading technology solutions provider for the global travel and tourism industry. The company offers software and services that help airlines, hotels, and travel agencies manage booking, ticketing, and operations. Sabre Corporation (NASDAQ:SABR) generates revenue by licensing its solutions and charging transaction fees for bookings made through its platform.
Sabre Corporation (NASDAQ:SABR) is actively pursuing several strategic initiatives to drive future growth and enhance its market position. One of the key areas of focus is the development and commercialization of SabreMosaic, an AI-powered technology platform designed to modernize travel retailing. SabreMosaic is an open, modular, and flexible platform that enables intelligent and personalized offers and orders, extending beyond seat and fare class to include a wide variety of ancillary and third-party service options. This platform is designed to work with both Sabre and non-Sabre Passenger Service System (PSS) platforms to provide airlines with the flexibility to choose solutions that best fit their needs. The company has already secured significant commercial partnerships with leading airlines such as Virgin Australia and Riyadh Air, which are adopting SabreMosaic to modernize their retailing capabilities.
In addition to SabreMosaic, Sabre Corporation (NASDAQ:SABR) is building out its multisource platform, which seamlessly integrates NDC (New Distribution Capability), low-cost carrier, and traditional EDIFACT content. This platform uses intelligent algorithms and efficient workflow integration to provide a comprehensive and competitive offering to travel agencies. This new multisource platform is currently in production with an early adopter program with plans for a broader rollout in the coming quarters.
8. Origin Materials, Inc. (NASDAQ:ORGN)
Upside Potential: 38.89%
Stock Price as of January 18: $1.08
Number of Hedge Fund Investors: 10
Origin Materials, Inc. (NASDAQ:ORGN) is a leading sustainable materials company dedicated to proprietary technologies that enable the production of high-performance, cost-effective, and sustainable materials. The company’s primary focus is on the production of premium PET caps and closures, which are designed to be fully recyclable and circular. This technology is designed to address challenges in the packaging industry.
Origin Materials, Inc. (NASDAQ:ORGN) is aggressively scaling its CapFormer Systems to meet the growing demand for sustainable PET caps and closures. The company has successfully completed the Factory Acceptance Test of its initial CapFormer System, which demonstrated the system’s ability to produce fully functional PET caps with over 98% efficiency. This milestone is a critical step in the company’s plan to bring eight or more CapFormer Systems into production by the end of 2025. These systems are expected to produce between 8 billion and 12 billion caps annually.
Origin Materials, Inc. (NASDAQ:ORGN) is actively engaging with multiple potential customers, including several large beverage companies, whose total cap consumption is in excess of 100 billion caps per year. These customers are currently in the qualification phase, testing and qualifying the company’s caps for their own use. Once the qualification period is complete, Origin Materials, Inc. (NASDAQ:ORGN) expects to sign definitive purchase agreements with these customers. The company is confident in its ability to sell every cap it can produce, driven by the strong demand from its prospective customers.
7. Coty Inc. (NYSE:COTY)
Upside Potential: 39.28%
Stock Price as of January 18: $7.18
Number of Hedge Fund Investors: 26
Coty Inc. (NYSE:COTY) is a global beauty company specializing in cosmetics, fragrances, and skincare products. The company owns popular brands such as CoverGirl and Sally Hansen and collaborates with high-profile celebrities for product launches.
Coty Inc. (NYSE:COTY) has been at the forefront of digital transformation, recognizing the growing importance of online channels in the beauty industry. The company has made significant strides in expanding its e-commerce presence. This growth is driven by a robust omnichannel approach, where online and offline channels work in harmony to enhance customer engagement and drive sales. Coty Inc.’s (NYSE:COTY) strong partnerships with platforms like Amazon and its own retail websites have been instrumental in this success. The company continues to invest in digital marketing, advocacy marketing, and retail.com marketing to convert online advocacy into sales, particularly among younger consumers who are increasingly connected through social media and influencer ecosystems.
Coty Inc. (NYSE:COTY) has been actively repositioning its brands to align with current consumer trends and preferences. The company has revitalized its heritage brands such as Rimmel and CoverGirl, which have been repositioned with a focus on creating products that resonate with younger consumers and have the potential to go viral. Additionally, Coty Inc. (NYSE:COTY) is investing in agile beauty, a new approach that accelerates the innovation process and allows the company to bring new products to market more quickly and efficiently. This strategy is particularly important in the Consumer Beauty division, where Coty Inc. (NYSE:COTY) aims to diversify into other categories such as mass fragrances and skincare.
Furthermore, Coty Inc. (NYSE:COTY) has been expanding its presence in growth engine regions, such as Latin America and Southeast Asia, to tap into emerging markets with high potential. Coty Inc. (NYSE:COTY) has been diversifying its portfolio beyond fragrances into cosmetics and skincare. The company has launched new brands and products, such as Gucci makeup and Marc Jacobs beauty, as a part of this strategy to capture new market segments and drive growth.
6. Skillz Inc. (NYSE:SKLZ)
Upside Potential: 41.05%
Stock Price as of January 18: $6.26
Number of Hedge Fund Investors: 6
Skillz Inc. (NYSE:SKLZ) is a leading mobile gaming platform that operates on a unique skill-based gaming model, connecting millions of players through competitive gaming experiences. The company’s platform allows developers to monetize their games by enabling players to compete in tournaments and win real prizes.
Skillz Inc. (NYSE:SKLZ) is actively working on enhancing its platform to improve customer and developer engagement and retention. The company is developing a robust new product pipeline, with several products currently in development. These efforts are aimed at providing a more engaging and diverse gaming experience for users, which is crucial for attracting and retaining a loyal player base. By continuously innovating and adding new features, Skillz Inc. (NYSE:SKLZ) aims to keep its platform fresh and competitive, ultimately driving user satisfaction and increasing the lifetime value (LTV) of its paying users.
As the platform continues to improve and retention metrics strengthen, Skillz Inc. (NYSE:SKLZ) plans to scale its user acquisition efforts to drive growth. The company is particularly focused on investing in high-performing games such as Blackout Bingo and Solitary Cube, as well as new content and publishing deals with developers.
Skillz Inc. (NYSE:SKLZ) is also scaling its teams in strategic locations such as Las Vegas and Bangalore. This move is designed to optimize product development, marketing, and data analytics resources while reducing reliance on expensive third-party contractors and remote workers. By centralizing these functions, Skillz Inc. (NYSE:SKLZ) can enhance efficiency and cost-effectiveness, allowing the company to reinvest savings into growth opportunities.
5. Celsius Holdings, Inc. (NASDAQ:CELH)
Upside Potential: 45.86%
Stock Price as of January 18: $27.32
Number of Hedge Fund Investors: 29
Celsius Holdings, Inc. (NASDAQ:CELH) is a leading innovator in the energy drink category, known for its unique combination of great taste, functional benefits, and a commitment to healthier living. The company’s flagship product, Celsius Energy Drink, is designed to provide a natural energy boost and support weight management, making it a preferred choice for health-conscious consumers.
Celsius Holdings, Inc. (NASDAQ:CELH) is focusing on bringing new consumers into the energy drink category through innovative marketing and product development. The company is introducing new and exciting flavors that resonate with a wide range of consumers, such as the recently launched On-The-Go Powdered Vibe line, Sparkling Watermelon, Lemonade, and Cherry Cola. These products are being rolled out nationwide due to strong consumer demand. Additionally, Celsius Holdings, Inc. (NASDAQ:CELH) has announced new flavors such as Grape Slush and Watermelon Ice, along with innovations in its 2025 Vibe and Core line, which were showcased at the NACS trade show. By focusing on premium marketing and better-for-you formulations, Celsius Holdings, Inc. (NASDAQ:CELH) aims to attract new consumers who are looking for healthier and tastier energy drink options.
Celsius Holdings, Inc. (NASDAQ:CELH) is focusing on expanding product availability, and the company is making significant strides in this area. The company is leveraging its partnership with PepsiCo to accelerate share growth through incentive programs and aligned resources. Beyond traditional retail channels, Celsius Holdings, Inc. (NASDAQ:CELH) is expanding its presence in food service, with strong results in workplace, restaurant, recreational, lodging, and gaming sales.
4. BioMarin Pharmaceutical Inc. (NASDAQ:BMRN)
Upside Potential: 57.29%
Stock Price as of January 18: $61.77
Number of Hedge Fund Investors: 54
BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) is a biopharmaceutical company specializing in treatments for rare genetic diseases. The company’s portfolio includes a robust portfolio of commercial products and a strong pipeline of potential therapies across various therapeutic areas, including skeletal conditions, enzyme therapies, and gene therapy.
BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) is expanding its portfolio through the development of new therapies and the exploration of novel indications for existing products. The company recently started the CANOPY clinical program to evaluate and expand the potential of VOXZOGO, a drug for the treatment of achondroplasia, in other genetic skeletal conditions such as hypochondroplasia, idiopathic short stature, Noonan syndrome, Turner syndrome, and SHOX deficiency. This strategic focus on broadening the therapeutic applications of VOXZOGO aims to enhance the company’s leadership in the skeletal conditions market. The Phase 3 study for VOXZOGO in hypochondroplasia is also on track, with pivotal data expected in 2026 and a potential approval in 2027.
Furthermore, BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) is strengthening its global commercial capabilities. The company has established a strong presence in key markets and is actively expanding into new geographies, particularly in regions outside the U.S. where approximately 90% of the global achondroplasia total addressable patient population resides.
3. AST SpaceMobile, Inc. (NASDAQ:ASTS)
Upside Potential: 69.29%
Stock Price as of January 18: $21.23
Number of Hedge Fund Investors: 18
AST SpaceMobile, Inc. (NASDAQ:ASTS) is pioneering satellite-based mobile broadband that aims to provide high-speed internet access directly to smartphones from anywhere on the planet. The company’s innovative technology aims to bridge the connectivity gap in underserved areas. AST SpaceMobile, Inc. (NASDAQ:ASTS) generates revenue through partnerships with mobile network operators.
AST SpaceMobile, Inc. (NASDAQ:ASTS) has made significant strides in deploying its BlueBird satellites, the largest commercial phase-array ever launched into low Earth orbit. The company successfully launched and deployed its first five Block 1 BlueBird satellites, which are now ready to become operational. These satellites are designed to provide cellular broadband coverage on a non-continuous basis, initially targeting close to 100% nationwide coverage in the United States. The company has also secured additional launch capacity for up to 60 Block 2 BlueBird satellites, which are expected to support up to 10,000 MHz of processing bandwidth, a tenfold improvement over the current Block 1 satellites. This expanded network will enable AST SpaceMobile, Inc. (NASDAQ:ASTS) to deliver continuous service coverage in key markets, including the United States, Europe, Japan, and strategic markets.
To ensure the seamless integration of its technology into existing cellular networks, AST SpaceMobile, Inc. (NASDAQ:ASTS) has formed strategic partnerships with major mobile network operators (MNOs). The company has filed for Special Temporary Authority (STA) with the Federal Communications Commission (FCC) to begin beta testing in the United States with partners such as AT&T and Verizon. This testing phase is crucial for validating the performance and reliability of the BlueBird satellites and for ensuring that they can effectively integrate with the core networks of MNOs. Additionally, AST SpaceMobile, Inc. (NASDAQ:ASTS) is in ongoing discussions with over 45 MNOs globally, representing approximately 2.8 billion existing subscribers, to select initial coverage markets and expand its commercial reach.
2. Sensus Healthcare, Inc. (NASDAQ:SRTS)
Upside Potential: 72.67%
Stock Price as of January 18: $6.66
Number of Hedge Fund Investors: 8
Sensus Healthcare, Inc. (NASDAQ:SRTS) is a leading medical technology company specializing in the development and distribution of innovative, non-invasive solutions for the treatment of non-melanoma skin cancer and keloid scars. The company’s flagship product, the SRT-100 Vision, is an image-guided SRT system that offers a cost-effective and clinically proven alternative to more invasive procedures such as the Mohs surgery.
Sensus Healthcare, Inc. (NASDAQ:SRTS) is actively expanding into new markets to diversify its revenue streams and increase its market presence. The company has made significant inroads into the radiation oncology market, with a recent sale to Swedish Hospital in Seattle, part of the prestigious Providence Health and Services network. This sale represents a valuable entry point into hospital oncology departments, where SRT is seen as a cost-effective and clinically proven alternative to more expensive linear accelerators and electron beam radiation systems.
Sensus Healthcare, Inc. (NASDAQ:SRTS) is also exploring international markets, particularly in Asia and the Middle East. The company shipped a system to a hospital in Israel and has made a sale to a veterinary specialist referral center in Tel Aviv. The veterinary market is an incremental growth opportunity, with institutions such as Colorado State University’s College of Veterinary Medicine using Sensus Healthcare, Inc.’s (NASDAQ:SRTS) SRT systems to treat a variety of animal tumors. Furthermore, Sensus Healthcare, Inc. (NASDAQ:SRTS) is actively developing new products and technologies to expand its offerings and maintain its competitive edge. One such initiative is the Transdermal Infusion Product (TBI), which is being developed with feedback from key opinion leaders and pharmaceutical companies.
1. Novavax, Inc. (NYSE:NVAX)
Upside Potential: 88.46%
Stock Price as of January 18: $8.49
Number of Hedge Fund Investors: 25
Novavax, Inc. (NYSE:NVAX) is a leading biotechnology company dedicated to the discovery, development, and commercialization of innovative vaccines to prevent serious infectious diseases. The company uses proprietary protein and nanoparticle technologies, along with its Matrix-M adjuvant to develop vaccines that have the potential to address significant unmet medical needs.
Novavax, Inc. (NYSE:NVAX) has recently entered into a strategic partnership with Sanofi, a global leader in vaccine development and commercialization. This partnership, which includes a license and collaboration agreement, is a cornerstone of the company’s growth strategy. Sanofi will take the lead in co-commercializing Novavax, Inc.’s (NYSE:NVAX) COVID-19 vaccine starting in 2025, allowing the company to monetize its existing vaccine program through royalties and potential milestone payments.
Novavax, Inc. (NYSE:NVAX) is actively advancing its late-stage pipeline, which includes the development of a COVID-19 Influenza Combination (CIC) vaccine and a standalone influenza vaccine. The CIC vaccine represents a significant market opportunity, as combination vaccines can provide broader protection and convenience for patients. The company has recently received clearance from the U.S. FDA to proceed with a Phase 3 immunogenicity trial for both the CIC and standalone influenza vaccine candidates.
While we acknowledge the potential of Novavax, Inc. (NYSE:NVAX) to grow, 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 NVAX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
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