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. (NYSE:VG) 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. (NYSE:VG) 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. (NYSE:VG) 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. (NYSE:VG) 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 (NYSE:VG) 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. (NYSE:VG) 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. (NASDAQ:UCTT) 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. (NASDAQ:UCTT) 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. (NASDAQ:UCTT) 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 (NASDAQ:SNDK).
Also on March 26, Morgan Stanley reaffirmed its Overweight rating on Sandisk Corporation (NASDAQ:SNDK). 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 (NASDAQ:SNDK) 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. (NASDAQ:TNGX) 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. (NASDAQ:TNGX).
Earlier, on March 5, Jefferies also increased its price target on Tango Therapeutics, Inc. (NASDAQ:TNGX) 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. (NASDAQ:TNGX) 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. (NASDAQ:ALMS) 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 (NASDAQ:ALMS) 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. (NASDAQ:ALMS) 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. (NASDAQ:ALMS) 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.
While we acknowledge the potential of ALMS 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 ALMS and that has 100x upside potential, check out our report about the cheapest AI stock.
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