In this article, we will look at the 10 Best Growth Stocks to Buy With Highest Upside Potential.
On April 9, Tom Lee, Head of Research at Fundstrat, appeared on a CNBC Television interview to discuss market conditions as the war between the US and Iran had started to cool down. Lee believes that the stock market has reached its bottom and is now in the process of recovering, likely to return to all-time highs.
He noted that last week the war was escalating and oil prices were going up, but the stock market didn’t decline. Lee noted this to be a good market pre-position for a rebound. He added that as the war has started to cool down, markets are expected to rebound and reach the 7,300 points target he has been expecting for the year.
Lee told CNBC that this crisis has already resulted in roughly an 8% decline in the S&P 500, and a lot of investors were ready to get defensive. Lee believes that this is a good sign for a rebounding market and expects the summer lows to be less deep as the market has already corrected itself in the first few months of the year.
With that, let’s take a look at the Best Growth Stocks to Buy With Highest Upside Potential.
Our Methodology
We used screeners to identify US-listed stocks with market caps over $2 billion and expected EPS growth of at least 30% over the next 5 years. These stocks are also popular among analysts and elite hedge funds.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10 Best Growth Stocks to Buy With Highest Upside Potential
10. American Airlines Group Inc. (NASDAQ:AAL)
Number of Hedge Fund Holders: 49
Analyst Upside Potential: 29.51%
American Airlines Group Inc. (NASDAQ:AAL) is one of the Best Growth Stocks to Buy With Highest Upside Potential.
As of April 8, 61% of the 28 analysts covering American Airlines Group Inc. (NASDAQ:AAL) had a Buy rating. The 12-month median price target of the analysts suggests more than 29.5% upside from the current level.
Recently, on April 2, TD Cowen lowered the firm’s price target on the stock from $17 to $15, while maintaining a Buy rating on the stock. The firm said in a research note that they lowered price targets within the airline group as part of its Q1 2026 earnings preview. The firm noted that investors seem to be concerned about the resilience of travel demand due to the prolonged period of higher energy prices and decelerating credit card data. TD Cowen’s estimates for six major airlines are below the consensus estimates as these companies get close to their fiscal Q1 2026 earnings.
American Airlines Group Inc. (NASDAQ:AAL) is expected to release its fiscal Q1 2026 results on April 22. Wall Street anticipates GAAP EPS to be negative $0.41 with revenue for the quarter around $13.75 billion. These estimates are significantly below AAL’s fiscal Q4 2025 performance, where the company posted $0.15 GAAP EPS and $14 billion in revenue.
American Airlines Group Inc. (NASDAQ:AAL) is a Fort Worth-based airline holding corporation that uses American Airlines to transport passengers and cargo throughout the Atlantic, Pacific, Latin America, and domestic regions.
9. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders:
Analyst Upside Potential: 35.42%
Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the Best Growth Stocks to Buy With Highest Upside Potential.
As of April 8, 45 of the 56 analysts covering Advanced Micro Devices, Inc. (NASDAQ:AMD) had a Buy rating on the stock, with no Sell ratings. The analyst’s 12-month median price target of $300 reflects more than 35.42% upside from the current level.
Recently, on April 6, Citi lowered the firm’s price target on the stock from $260 to $248 and maintained a Neutral rating on the shares. The firm added an upside 30-day catalyst watch on Advanced Micro Devices ahead of the company’s fiscal Q1 2026 earnings report, expected to be released on April 28. Citi said in a research note that they expect upside to the company’s consensus estimates due to increased demand for central processing units driven by agentic AI use.
Earlier, on April 2, Erste Group had upgraded Advanced Micro Devices, Inc. (NASDAQ:AMD) from Hold to a Buy rating. The firm noted that they also expect the company to post further growth during the first quarter of 2026, driven by increased demand for CPUs and GPUs in data centers and Agentic AI. Erste Group projects the company to post 32% year-over-year growth during the fiscal Q1 2026.
Advanced Micro Devices Inc. (NASDAQ:AMD) is a multinational semiconductor company that designs high-performance computing, graphics processing units, and visualization technologies. The company also offers AI accelerators, microprocessors, embedded processors, and SoC products. The business is structured around three segments, i.e., Data Center, Client & Gaming, and Embedded.
8. Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY)
Number of Hedge Fund Holders:132
Analyst Upside Potential: 39.90%
Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) is one of the Best Growth Stocks to Buy With Highest Upside Potential. Wall Street has a positive view on Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) as 71% of the 28 analysts covering the stock have a Buy rating. Moreover, the 12-month median price target of the Street reflects more than 36.9% upside from the current level.
On April 1, Barclays analyst Eliana Merle maintained a Buy rating on Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) with a price target of $527. The rating comes after the company presented clinical data on its cardiovascular portfolio at the American College of Cardiology’s Annual Scientific Session. At the conference, the company shared HELIOS-B study results for Vutrisiran, its ATTR-CM therapy.
Management noted that analyses covered quality-of-life gains, subgroup efficacy, and real-world adherence over 613.8 days, where 93.8% of patients stayed on treatment. In a post hoc analysis, 8.0% of Vutrisiran patients progressed to advanced disease versus 10.7% on placebo during the double-blind phase.
That said, the company posted strong gains in fiscal Q4 2025 results. It posted a revenue of $1.10 billion, up 84.95% year-over-year. The EPS for the quarter came in at $0.82.
Alnylam Pharmaceuticals Inc. (NASDAQ:ALNY) is a biopharmaceutical company that develops and commercializes novel therapeutics based on ribonucleic acid interference.
7. Alaska Air Group, Inc. (NYSE:ALK)
Number of Hedge Fund Holders: 45
Analyst Upside Potential: 46.22%
Alaska Air Group, Inc. (NYSE:ALK) is one of the Best Growth Stocks to Buy With Highest Upside Potential. On April 2, TD Cowen lowered the firm’s price target on Alaska Air Group, Inc. (NYSE:ALK) from $66 to $45. The firm noted reducing price targets in the airline group as part of its sector Q1 earnings preview.
TD Cowen highlighted that investors are skeptical of the resilience of global travel due to the prolonged fuel price hike and also noted decelerating credit card data. The analysts said in a research note that the firm’s estimates for the group are below the consensus estimates before the Q1 earnings.
Earlier, on March 23, BMO Capital had initiated an Outperform rating on Alaska Air Group, Inc. (NYSE:ALK) with a price target of $50. The analysts said in a research note that they see a long-term profit improvement opportunity for the airline, mainly driven by its execution of a clear strategic framework. The firm likes that the company is integrating Hawaiian Airlines, reducing leverage, and transitioning towards a more international approach.
Alaska Air Group, Inc. (NYSE:ALK) is a U.S. airline holding company that operates Alaska Airlines, Hawaiian Airlines, and Horizon Air, providing passenger and cargo services across North America, Latin America, Asia, and the Pacific.
6. AppLovin Corporation (NASDAQ:APP)
Number of Hedge Fund Holders: 108
Analyst Upside Potential: 58.37%
AppLovin Corporation (NASDAQ:APP) is one of the Best Growth Stocks to Buy With Highest Upside Potential. Wall Street is Bullish on AppLovin Corporation (NASDAQ:APP) as 88% of the 32 analysts covering the stock have a Buy rating. Moreover, the analyst’s 12-month median price target suggests more than 58.37% upside from the current level.
Recently, on April 7, Jason Bazinet from Citi maintained a Buy rating on the stock with a price target of $710. Citi’s price target is significantly higher than the average estimates of the Street, which sits at $655. The analyst said in a research note that the Buy rating is driven by the company’s Axon-driven growth. He mentioned his research on Store Leads data, which points to a steady increase in e-commerce clients and increased penetration among Shopify merchants. The analyst highlighted that this data suggests that AppLovin’s Axon is gaining traction, despite an overall low penetration rate among Shopify merchants.
Bazinet also highlighted that the low penetration rate suggests a long growth runway for Axon. He sees encouraging trends, including an improvement in geographical diversification, and noted Hong Kong to be an emerging international growth contributor.
AppLovin Corporation (NASDAQ:APP) operates as an end-to-end artificial intelligence-powered advertising solutions provider for businesses in the United States and around the world. The company operates in the Apps and Advertising segments. It provides MAX, Axon Ads Manager, Adjust, and Wurl tools.
While we acknowledge the potential of APP to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than APP and that has 100x upside potential, check out our report about the cheapest AI stock.
Click to continue reading and see the 5 Best Growth Stocks to Buy With Highest Upside Potential.
Disclosure: None. Follow Insider Monkey on Google News.
