In this article, we will discuss the 10 Best New Stocks to Buy With the Huge Upside Potential.
On June 15, Ed Yardeni, Yarden Research President, appeared on CNBC’s ‘Squawk Box’ to discuss the latest market trends. Yardeni explained that while his firm suggested the possibility of a June swoon on June 3, and the market did drop over 2.5% on June 5 following stronger-than-expected payroll employment data, the subsequent decline in oil prices and the successful SpaceX IPO suggest that the swoon may have been limited to that single day. He confirmed that the market appears clear for further upside in July.
On the influence of the SpaceX IPO, Yardeni suggested it is a positive sign for investor sentiment and may pave the way for future offerings from companies like Anthropic, signaling a healthy appetite for AI-related investments. He noted that while Elon Musk has a unique reach and connection with retail investors, he remains generally optimistic. Yardeni reiterated his long-standing thesis on the Roaring 2020s, which he has discussed since August 2020. He expressed confidence in this seven-year trend and maintains his long-term target of 10,000 for the market by the end of 2029, though he admitted that his annual targets have not been bullish enough to keep pace with actual market performance.
Yardeni attributes the current market strength to what he terms FEMO, Fabulous Earnings Momentum, rather than FOMO. He noted that S&P 500 companies are expected to deliver 20% earnings growth over the next seven quarters. He explained that the US economy’s resilience is supported by the significant wealth of baby boomers, who are retiring with a collective $89 trillion in net worth and remain active participants in the market.
Regarding concerns of an earnings bubble, he expressed a preference for an earnings-led melt-up over one driven by valuation multiples. He noted that while valuation multiples are currently around 20 to 21, the market’s rise is primarily driven by stronger-than-expected earnings rather than an expansion of those multiples. Although he remains open to the possibility that analysts could be showing irrational exuberance regarding earnings, he currently views the data as solid.
Our Methodology
We used screeners to identify stocks that have gone public or started trading independently in the last 5 years and have an average upside potential of at least 50%. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among elite hedge funds and are ranked in ascending order of their upside potential.
Note: All data was sourced on June 15.
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. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
10 Best New Stocks to Buy With the Huge Upside Potential
10. Caris Life Sciences Inc. (NASDAQ:CAI)
Average Upside Potential: 54.02%
Caris Life Sciences Inc. (NASDAQ:CAI) is one of the best new stocks to buy with the huge upside potential. On June 8, Caris Life Sciences announced that its Board of Directors authorized a program to repurchase up to $100 million of its outstanding common stock. As a prominent precision medicine and AI TechBio company, Caris aims to utilize this initiative to manage its capital structure effectively.
Caris Life Sciences Inc. (NASDAQ:CAI) plans to execute these repurchases through various methods, such as open market purchases, private negotiations, or trading plans compliant with Rule 10b5-1. These activities will adhere to federal securities laws, including the specific volume and pricing regulations mandated by Rule 10b-18.
Management will determine the timing and scale of these repurchases based on factors like market conditions, stock price, and overall financial health, utilizing existing cash reserves. This program carries no expiration date and does not require the company to acquire a specific amount of shares, allowing the Board to modify or suspend the effort at any time without notice.
Caris Life Sciences Inc. (NASDAQ:CAI) is an AI-driven precision medicine company that uses large-scale clinico-genomic data and molecular profiling to guide cancer diagnosis and treatment. Its platforms apply machine learning to predict therapy response and improve personalized oncology outcomes.
9. Atour Lifestyle Holdings Limited (NASDAQ:ATAT)
Average Upside Potential: 54.90%
Atour Lifestyle Holdings Limited (NASDAQ:ATAT) is one of the best new stocks to buy with the huge upside potential. On May 13, Atour Lifestyle reported strong Q1 2026 financial results, highlighted by net revenues of RMB2.8 billion, a 47.5% year-over-year increase. Net income rose by 90.3% to RMB463 million, while adjusted net income grew by 42.0% to RMB490 million. Additionally, the company saw substantial growth in profitability, with EBITDA reaching RMB689 million and adjusted EBITDA hitting RMB716 million.
Operational expansion continued as the company operated 2,088 hotels with 232,298 rooms as of March 31, marking year-over-year increases of 20.9% and 19.4%, respectively. During the quarter, the average daily room rate reached RMB427, with an occupancy rate of 70.6% and a RevPAR of RMB312. The retail business also showed robust performance, generating RMB1.07 billion in revenue, a 54.4% increase compared to the previous year.
CEO Haijun Wang emphasized that the company’s “quality-first” strategy led to the opening of 110 new hotels, while the Atour Planet retail segment maintained strong innovation-driven growth. Moving forward, Atour Lifestyle Holdings Limited (NASDAQ:ATAT) intends to focus on its “Chinese Experience, Brand-Led Excellence” strategy to capitalize on industry transformation and secure sustainable, long-term growth.
Atour Lifestyle Holdings Limited (NASDAQ:ATAT) is a Chinese hospitality and lifestyle company that operates a rapidly expanding network of hotels. It is also the first Chinese hotel chain to develop a scenario-based retail business.
8. Crescent Energy Company (NYSE:CRGY)
Average Upside Potential: 63.34%
Crescent Energy Company (NYSE:CRGY) is one of the best new stocks to buy with the huge upside potential. On May 4, Crescent Energy reported Q1 2026 earnings, driven by record production of 341 MBoe/d and the accelerated integration of its Permian assets. By optimizing operational planning and reducing well costs through service contract rebidding and improved facility designs, the company captured $120 million in synergies. These efficiencies, combined with high oil realizations linked to international pricing, helped generate $192 million in levered free cash flow.
The company now anticipates generating ~$1 billion in levered free cash flow for the full year, with production and capital expenditures trending toward the higher end of its guidance. Crescent Energy plans to prioritize a disciplined investment strategy, focusing on increased lateral lengths and the expansion of simul-frac completions to 50% of its Permian wells.
To manage potential risks, Crescent Energy Company (NYSE:CRGY) has implemented hedges to protect against gas price volatility and is shifting its completion fleets to dual-fuel units to lower costs. While the company expects to maintain its current momentum, it remains focused on long-term sustainability, including testing new formations in the Uinta Basin and maintaining a leverage ratio of 1.5x or below for its minerals business.
Crescent Energy Company (NYSE:CRGY) is an energy company with a portfolio of oil and gas assets in Texas and the Rocky Mountain region. The company is based in Houston, Texas.
7. Telix Pharmaceuticals Limited (NASDAQ:TLX)
Average Upside Potential: 68.79%
Telix Pharmaceuticals Limited (NASDAQ:TLX) is one of the best new stocks to buy with the huge upside potential. On June 2, Telix Pharmaceuticals and United Imaging Healthcare signed an MoU to establish a strategic research collaboration in the US. This partnership aims to advance integrated theranostics by combining United Imaging’s advanced scanner platforms, software, and AI capabilities with Telix’s portfolio of molecular imaging products and clinical protocols.
The collaboration will initially focus on TLX101-Px (Pixclara), a PET imaging candidate currently under FDA review for the characterization of recurrent or progressive glioma. Through this initiative, the companies intend to explore workflow efficiencies, standardize imaging performance, and develop data-driven clinical decision support tools to improve treatment planning and patient management.
Both organizations view this alignment as a critical step toward scaling personalized cancer care. By integrating high-tech imaging systems with radiopharmaceutical innovation, they aim to streamline routine clinical workflows. Future efforts may expand to include additional markets and other product candidates within Telix Pharmaceuticals Limited’s (NASDAQ:TLX) pipeline, supported by pilot programs designed to enhance clinical outcomes.
Telix Pharmaceuticals Limited (NASDAQ:TLX) is a biopharmaceutical company that specializes in therapeutic and diagnostic radiopharmaceuticals and associated medical technologies. The company is focused on developing clinical and commercial-stage products to address significant unmet medical needs in oncology and rare diseases.
6. Netskope Inc. (NASDAQ:NTSK)
Average Upside Potential: 70.26%
Netskope Inc. (NASDAQ:NTSK) is one of the best new stocks to buy with the huge upside potential. On June 3, Netskope reported a strong start to FY27, with Q1 revenue rising 28% year-over-year to $202 million and Annual Recurring Revenue/ARR increasing 29% to $845 million. While the company posted a GAAP operating loss, management highlighted that its AI-native platform uniquely positions it to capitalize on the growing demand for enterprise-grade AI security.
Operationally, the company launched its “AgentSkope” framework and AI Command Center to help businesses autonomously manage security and networking workflows. These innovations aim to close the “AI Security Gap” by providing semantic context for autonomous agent usage without hindering performance.
Netskope Inc. (NASDAQ:NTSK) also strengthened its ecosystem through an expanded partnership with Deloitte and new collaborations with Anthropic and OpenAI. These initiatives, alongside a new AI guardrails solution powered by Google Cloud, are designed to integrate security directly into AI workflows and accelerate the adoption of secure, high-performance generative AI at scale.
Netskope Inc. (NASDAQ:NTSK) specializes in cloud-native security, protecting data, users, and applications. It enables secure digital transformation and safe cloud usage from any location or device.
While we acknowledge the potential of NTSK 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 NTSK and that has 100x upside potential, check out our report about the cheapest AI stock.
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