In this article, we will be looking at the 10 Best Performing Stocks of Q1 2026 to Watch for Q2.
On April 3, Reuters reported that in the coming week, upcoming inflation data and initial company earnings could begin to show how the Middle East war is affecting the US economy and corporate America. Investors are waiting for signs that markets can start moving beyond the uncertainty caused by the conflict, which has been a major focus in recent weeks.
The S&P 500 has already felt the pressure as it closed its worst quarter since 2022. Since late February, the index has been weighed down by the war and a sharp rise in energy prices.
Matthew Miskin, co-chief investment strategist at Manulife John Hancock Investments, said that it will be “hard to get the market’s attention off the Middle East, oil prices and the risks that have emerged.” He added that the markets “have been so myopically focused on geopolitical risk and … how all this is going to shake out.”
Stocks have struggled so far this year, with multiple concerns adding to uncertainty. Alongside the Middle East conflict, concerns about disruptions from AI and private credit weakness have also played a role.
With this background in mind, let’s take a look at the 10 best-performing stocks of Q1 2026 to watch for Q2.
Our Methodology
To compile our list of the 10 best-performing stocks of Q1 2026 to watch for Q2, we used the Finviz stock screener to look for stocks with a market capitalization of more than $2 billion and sorted our results based on their share price performance in Q1 2026. Finally, we ranked the 10 best-performing stocks in ascending order based on their performance. These stocks are also popular among elite hedge funds.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10 Best Performing Stocks of Q1 2026 to Watch for Q2
10. Venture Global, Inc. (NYSE:VG)
Q1 2026 Performance: 123.86%
Venture Global, Inc. (NYSE:VG) is one of the best-performing stocks of Q1 2026 to watch for Q2. On March 27, JPMorgan increased its price target for Venture Global, Inc. from $11 to $19 and maintained its Neutral rating on the stock.
The research firm updated its model for the company to reflect current strip pricing. A few days prior, on March 25, UBS also increased its price target on Venture Global, Inc. from $19 to $21 while keeping a Buy rating on the stock. These updates come after the company reported record-breaking performance for Q4 2025. Venture Global, Inc. exported 128 cargos and sold 478 trillion British thermal units (TBtu) of liquified natural gas (LNG), which is a new record for the company and an increase of 95 cargos and 351 TBtu sold, or 275%, compared to Q4 2024. The company’s revenue also surged to $4.4 billion, up 192% year-over-year, while income from operations climbed to $1.7 billion, up 189% year-over-year.
Another firm optimistic on VG is RBC Capital. On March 13, RBC Capital lifted its price target on Venture Global, Inc. from $11 to $14 and maintained an Outperform rating on the stock. The research firm revised its estimates after the company reported Q4 2025 results.
RBC pointed out that about 31% of Venture Global, Inc.’s cargoes remain unsold. The firm said that the company can “benefit from higher global LNG prices given ~31% of 2026 cargoes are unsold, and could drive results above guidance and our estimates if able to lock in higher rates.”
Venture Global, Inc. is an American company that produces and exports liquefied natural gas (LNG).
9. Ultra Clean Holdings, Inc. (NASDAQ:UCTT)
Q1 2026 Performance: 127.60%
Ultra Clean Holdings, Inc. (NASDAQ:UCTT) is one of the best-performing stocks of Q1 2026 to watch for Q2. On February 24, Oppenheimer raised its price target on Ultra Clean Holdings, Inc. from $35 to $85 and maintained an Outperform rating on the stock.
The research firm said the company provided strong guidance for the first quarter along with a solid outlook for 2026, which suggests revenue growth of 15% to 20%. Although the fourth quarter of 2025 was mixed, Oppenheimer believes that it is backward-looking as James Xiao, the new CEO, rolls out the “UCT 3.0” plan during a solid market cycle and possibly an AI- and memory-driven “ultra” cycle.
On the same day, Needham also increased its price target on Ultra Clean Holdings, Inc. from $50 to $70 and kept a Buy rating on the stock after the company’s Q4 results.
Needham pointed out that customer forecasts for 2026 are improving on a weekly basis. The firm also expects to see wafer fabrication equipment (WFE) growth of 15% to 20% in 2026, with a stronger increase in the third quarter.
Ultra Clean Holdings, Inc. is a leading developer and supplier of critical subsystems, components, parts, and ultra-high purity cleaning and analytical services, primarily serving the semiconductor industry.
8. Sandisk Corporation (NASDAQ:SNDK)
Q1 2026 Performance: 130.83%
Sandisk Corporation (NASDAQ:SNDK) is one of the best-performing stocks of Q1 2026 to watch for Q2. A recent pullback in major memory stocks made investors nervous but Mizuho tech specialist Jordan Klein believes it may be a good buying opportunity rather than an indication of a major downturn.
On March 26, Klein said in a note that the strong rally seen throughout 2025 and early 2026 is now losing some momentum and the “memory long trade [is] starting to wobble big time.”
However, Klein pointed out that such violent cycles are not unusual in the memory sector and the recent pullback fits a familiar pattern. He noted that “these sell-offs happen every few months… Not a signal of peak nor any reason to dump. Actually you make money buying these dips.” Klein is positive on memory stocks and said he sees upside for Sandisk Corporation.
Also on March 26, Morgan Stanley reaffirmed its Overweight rating on Sandisk Corporation. The research firm noted that the recent drop in memory stocks is linked to factors like capital spending, demand slowdown, and productivity. Despite these worries, Morgan Stanley believes the strength in the memory stocks is more durable than the market currently expects.
Sandisk Corporation is an American computer technology company that designs and manufactures flash solutions and advanced memory technologies, including SSDs, memory cards, and USB Flash Drives.
7. Tango Therapeutics, Inc. (NASDAQ:TNGX)
Q1 2026 Performance: 134.27%
Tango Therapeutics, Inc. (NASDAQ:TNGX) is one of the best-performing stocks of Q1 2026 to watch for Q2. On March 9, Stifel increased its price target on Tango Therapeutics, Inc. from $15 to $24 while keeping a Buy rating on the stock.
The firm pointed to recent progress in PRMT5 inhibitors and RAS(ON) combinations, which the firm believes lowers the risk for the company’s first-line pancreatic ductal adenocarcinoma opportunity. Stifel also included risk-adjusted first-line pancreatic ductal adenocarcinoma credit into its financial model for Tango Therapeutics, Inc..
Earlier, on March 5, Jefferies also increased its price target on Tango Therapeutics, Inc. from $14 to $18 and maintained its Buy rating on the stock.
Jefferies pointed to the company’s supply agreement with ERAS for pan-RAS. The research firm pointed out that upcoming topline data from Revolution Medicines on daraxonrasib, expected in the first half of 2026 for second-line pancreatic ductal adenocarcinoma, could set a new standard of care.
Tango Therapeutics, Inc. is a clinical-stage biotechnology company focused on the discovery of novel drug targets and the delivery of precision medicine for the treatment of cancer.
6. Alumis Inc. (NASDAQ:ALMS)
Q1 2026 Performance: 145.87%
Alumis Inc. (NASDAQ:ALMS) is one of the best-performing stocks of Q1 2026 to watch for Q2. On March 30, Raymond James reaffirmed its Strong Buy rating on Alumis Inc. with a price target of $46 after the company presented Phase 3 trial data at the American Academy of Dermatology meeting.
Raymond James pointed out that full Phase 3 data was presented for both the company’s envu and competitor Takeda Pharmaceutical Company Limited’s (NYSE:TAK) zasocitinib in adults with moderate to severe plaque psoriasis.
The research firm noted that there is meaningful differentiation in safety profiles between the two drugs. Zasocitinib showed higher rates of treatment-emergent adverse events, serious adverse events and acne. It also had about twice the rate of upper respiratory tract infections and diarrhea compared to Alumis Inc.’s envu. Raymond James believes envu emerged with a strong advantage over zasocitinib.
On the same day, Guggenheim also reiterated its Buy rating on Alumis Inc. with a price target of $32 on the stock after the company’s Phase 3 psoriasis trials presented at the 2026 American Academy of Dermatology Annual Meeting.
Alumis Inc. is a late-stage biopharma company focused on leveraging its proprietary data analytics platform and precision approach and developing next-generation targeted therapies for a range of immune-mediated diseases.
5. Enliven Therapeutics, Inc. (NASDAQ:ELVN)
Q1 2026 Performance: 152.25%
Enliven Therapeutics, Inc. (NASDAQ:ELVN) is one of the best-performing stocks of Q1 2026 to watch for Q2. On March 26, H.C. Wainwright increased its price target on Enliven Therapeutics, Inc. from $48 to $56 and kept its Buy rating on the stock.
This increase in valuation came after Merck & Co., Inc. entered into a definitive agreement under which it will acquire Terns Pharmaceuticals, Inc. (NASDAQ:TERN), Enliven Therapeutics, Inc.’s competitor, through a subsidiary for approximately $6.7 billion.
Stocks
Earlier, on March 24, Mizuho also lifted its price target on Enliven Therapeutics, Inc. from $41 to $45 and maintained its Outperform rating on the stock.
The research firm pointed to recent Phase 1b data for ELVN-001 as the key factor for this increase in the price target. Mizuho sees Enliven Therapeutics, Inc. as an under-rated asset in the chronic myeloid leukemia market. The firm added that it expects more data from ELVN-001’s Phase 1a/b trial in mid-year.
Enliven Therapeutics, Inc. is a clinical-stage biopharmaceutical company focused on the discovery and development of small molecule kinase inhibitors for cancer treatment.
4. Fastly, Inc. (NASDAQ:FSLY)
Q1 2026 Performance: 185.18%
Fastly, Inc. (NASDAQ:FSLY) is one of the best-performing stocks of Q1 2026 to watch for Q2. On March 2, Fastly, Inc. presented at the 47th Annual Raymond James Institutional Investor Conference, where it shared details about a strategic shift that has helped the company through significant financial and operational improvements.
Supported by a revamped go-to-market strategy and a focus on high-performance edge solutions, the company achieved record gross margins and steady profitability in 2025. Fastly, Inc. reported gross margins of 64% and said it was profitable throughout 2025. It also generated positive free cash flow in all of 2025. In the fourth quarter of 2025, revenue growth re-accelerated to 23%, supported by its security, compute, and observability businesses.
Looking ahead, the company aims to raise its remaining performance obligation (RPO) commitments to about 70% to 80% of revenue. Fastly, Inc. also sees short-term monetization opportunities from AI traffic and is looking at security mechanisms to manage agentic traffic. Managing AI traffic is becoming a key focus, and the company is developing tools like Bot Mitigation.
Additionally, Fastly, Inc. has more than $350 million in cash on its balance sheet and is open to strategic mergers and acquisitions.
Fastly, Inc. operates a programmable, high-performance edge cloud platform that delivers faster, safer, and more scalable sites and apps to customers.
3. AXT, Inc. (NASDAQ:AXTI)
Q1 2026 Performance: 239.98%
AXT, Inc. (NASDAQ:AXTI) is one of the best-performing stocks of Q1 2026 to watch for Q2. On March 18, B. Riley said it is “incrementally cautious” on AXT, Inc. after seeing negative data points in the indium phosphide (InP) supply chain.
According to the research firm, one major company rejected the idea that there is an InP bottleneck, while another confirmed a seven-year supply deal with Sumitomo, AXT, Inc.’s main competitor. B. Riley has a Neutral rating on AXT, Inc..
This news follows a disappointing fourth quarter in 2025 for the company. AXT, Inc. said that it did not receive as many export permits in the quarter as it had hoped. However, it pointed out that it has already received some permits in 2026 and believes it is in a strong position to achieve sequential revenue growth in the first quarter of 2026. This growth is expected to be driven mainly by growth in indium phosphide used in building AI infrastructure.
Additionally, AXT, Inc. said it is notably expanding its customer base to include Tier-1 companies to which it had limited exposure previously. The company is also on track to double its indium phosphide manufacturing capacity in 2026.
AXT, Inc. is a material science company that develops and manufactures semiconductor substrate wafers. The company’s wafers are made up of indium phosphide (InP), gallium arsenide (GaAs), and germanium (Ge).
2. ImmunityBio, Inc. (NASDAQ:IBRX)
Q1 2026 Performance: 279.70%
ImmunityBio, Inc. (NASDAQ:IBRX) is one of the best-performing stocks of Q1 2026 to watch for Q2. On March 24, BTIG maintained its Buy rating on ImmunityBio, Inc. with a price target of $13 after a recent regulatory action by the Food and Drug Administration (FDA).
The FDA’s Office of Prescription Drug Promotion sent a warning letter about promotional communications for ImmunityBio, Inc.’s ANKTIVA. The agency believes promotional messages were false or misleading and lacked adequate risk presentation. The company has 15 days to respond and explain what steps it will take.
BTIG sees this as mainly a compliance and promotion matter that can likely be resolved. Based on the precedent set by the Office of Prescription Drug Promotion, the research firm does not expect legal action or product withdrawal. BTIIG also pointed out that the recent drop in the stock price presents a potential buying opportunity ahead of BCG-naïve bladder cancer data expected in the second half of 2026.
Earlier, on March 4, Piper Sandler increased its price target on ImmunityBio, Inc. from $7 to $12 and kept an Overweight rating on the stock. The research firm forecasts US ANKTIVA net revenues to reach $195 million in 2026 after rising about 700% to $113 million in 2025.
ImmunityBio, Inc. is a biotechnology company that is focused on developing and commercializing next-generation immunotherapies for cancer and infectious diseases.
1. Erasca, Inc. (NASDAQ:ERAS)
Q1 2026 Performance: 350.70%
Erasca, Inc. (NASDAQ:ERAS) is one of the best-performing stocks of Q1 2026 to watch for Q2. On March 12, H.C. Wainwright increased its price target on Erasca, Inc. from $15 to $20 and kept its Buy rating on the stock.
The research firm pointed to Erasca, Inc.’s clinical progress with its lead pan-RAS asset, ERAS-0015. As of January 2026, the drug showed encouraging results, with two confirmed partial responses and one unconfirmed partial response in patients with different tumor types and RAS mutations. These results were seen at doses above 8 mg once daily. The drug also showed consistent behavior across doses, with no dose-limiting toxicities observed.
Earlier, on March 10, Stifel also lifted its price target on Erasca, Inc. from $10 to $20 and maintained its Buy rating on the stock. The research firm expects the company to generate about $3.2 billion in global revenue by 2035.
This update comes after Erasca, Inc. announced the exercise of its option to expand its licensing agreement with Joyo Pharmatech to include China, Hong Kong, and Macau. This move gives the company full access to Joyo’s data, as well as global control over development and future data releases.
According to Erasca, Inc., the number of patients treated in China so far is likely meaningfully higher than in the US. Stifel believes the company paid around $50 million for these expanded rights, although the exact figure was not disclosed. The firm sees this step as a strong indication of internal enthusiasm at Erasca, Inc..
Erasca, Inc. is a clinical-stage precision oncology company focused on discovering, developing, and commercializing therapies for patients with RAS/MAPK pathway-driven cancers.
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