In this article, we’ll look at the 10 Best S&P 500 Stocks With Highest Upside Potential.
US stocks fell broadly on February 11. This came on the back of the release of the January jobs report on that day. The report showed a stronger-than-expected labor market.
According to the Bureau of Labor Statistics, the US added 130,000 jobs in January, exceeding 70,000 jobs expected by economists polled by Reuters.
Additionally, the unemployment rate was slightly lower at 4.3%, compared to 4.4% expected. Of note is that this was the lowest jobless rate since August 2025.
The Dow lost 66.74 points, representing a 0.13% decline, to close at 50,121.40. This snapped the blue-chip index’s three-day winning streak.
The S&P 500 index’s drop was muted in comparison to the Dow. The broad-based market index retreated less than a point to finish the day at 6,941.47. The Nasdaq Composite fell 0.16% to close at 23,066.47.
Only the NYSE Composite bucked the trend, advancing 0.35% to end at 23,479.72.
About the January jobs report, CNBC quoted Brad Smith, portfolio manager at Janus Henderson Investors, as saying:
“After a long period of prognosticators offering a tepid outlook for the economy based on a weakening labor market, this print provides a solid datapoint on the side of robust economic growth, an improving labor market and wage growth that can support consumer spending.”
Also, CNBC quoted Heather Long, chief economist at Navy Federal Credit Union, as saying: “That’s an encouraging sign to start the year, especially after the hiring recession in 2025.”
Market experts see the stock decline as a sign of investors thinking a stabilizing job market would temper with Fed rate cuts. In a note cited by Reuters, Oren Klachkin, financial market economist at Nationwide, observed that an extended pause in rate cuts seemed likely.
Periods of market volatility and macro-driven pullbacks often reshape investor sentiments, creating attractive entry points for several stocks. With that in mind, let’s dive into the 10 best S&P 500 stocks with highest upside potential.
Source: Pexels
Our Methodology
To pick the 10 Best S&P 500 Stocks With Highest Upside Potential, we used the stock screener to filter for S&P 500 index stocks with market capitalizations above $10 billion. We further limited the selection to stocks with Moderate to Strong Buy ratings on Wall Street and more than 50% upside potential. We then analyzed Q3 2025 13F filings from Insider Monkey’s database and shortlisted 10 companies that had the highest number of hedge fund investors. Finally, we ranked the stocks in ascending order by the number of hedge funds holding positions in them as of Q3 2025.
Note: The data is of February 15
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows 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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Best S&P 500 Stocks With Highest Upside Potential
10. Fidelity National Information Services (NYSE:FIS)
Number of Hedge Fund Holders: 57
Stock’s Upside Potential: 60.59%
Fidelity National Information Services Inc (NYSE:FIS) is among the best S&P 500 stocks with highest upside potential. On February 6, the investment research firm Stephens named Fidelity National Information Services Inc (NYSE:FIS) among its top stocks for 2026. This list includes companies that the firm believes stand to benefit from accelerating AI adoption.
Regarding Fidelity, Stephens analysts note that the company is poised to benefit from the growing demand for real-time transaction processing and banking modernization. The firm also pointed out that Fidelity has stabilized following restructuring efforts. Consequently, the company has improved margins and strong free cash-flow generation. Expanding fintech partnerships is another positive. Taken together, these make Fidelity one of the best-balanced risk-reward stocks in the sector.
On January 27, Cantor Fitzgerald initiated coverage of Fidelity stock with an Overweight rating and assigned it a price target of $72. FIS has faced a loss of investor trust, but analysts believe it can recover over time with reset expectations. Management has shown confidence by buying back shares and continuing its 23‑year streak of dividend payments, which currently yield 2.7%. Cantor Fitzgerald noted FIS’s wide reach across business lines, calling it an important part of the financial ecosystem.
Looking ahead, fiscal 2026 is expected to be an investment year as FIS works to reposition its business, but warn that a weak economy and reduced bank IT spending could hurt growth. The firm also flagged risks from FIS’s low current ratio of 0.53, showing short‑term obligations outweigh liquid assets. Shares have already fallen 27% in the past six months, making execution of its turnaround plan critical.
Fidelity National Information Services (NYSE:FIS) is a multinational financial technology provider. Among other areas, its solutions are used in banking, investing, and payment processing. Founded in 1968, the company is headquartered in Jacksonville, Florida.
9. Axon Enterprise Inc (NASDAQ:AXON)
Number of Hedge Fund Holders: 61
Stock’s Upside Potential: 90.59%
Axon Enterprise Inc (NASDAQ:AXON) is among the best S&P 500 stocks with highest upside potential. On February 11, Piper Sandler released its latest rankings of top digital infrastructure and connectivity software companies. Among the five standouts, Axon Enterprise Inc (NASDAQ:AXON) ranked third thanks to its strong position in public safety with TASERs and body cameras. The firm sees more growth ahead from new drone rules, AI features, and its Officer Safety Plan, while Axon’s recurring revenue model adds stability and strengthens its long‑term outlook.
Axon plans to release its Q4 2025 results on February 24. On February 3, William Blair reaffirmed its Outperform rating on Axon Enterprise after the Department of Homeland Security announced plans to expand the use of body‑worn cameras.
On February 2, the Department of Homeland Security said agents in Minnesota will start wearing body cameras right away, with plans to expand nationwide as more funding becomes available. This is a big opportunity for Axon since many DHS agencies still don’t have enough cameras for their officers.
William Blair called the move a major policy shift and believes it could boost demand for Axon’s products. The firm sees the initial $20 million funding as just the beginning, with more upside possible through Axon’s Evidence ecosystem, which includes cloud storage and digital tools. Axon’s strong profit margins support this view, though its stock is currently trading at high valuations.
Axon Enterprise Inc (NASDAQ:AXON) is a global provider of public safety technology solutions. Its products include body-worn cameras, which it supplies to customers such as US law enforcement agencies. Headquartered in Scottsdale, Arizona, Axon was founded in 1993. The company was formerly known as TASER International.
8. Workday Inc (NASDAQ:WDAY)
Number of Hedge Fund Holders: 64
Upside Potential as of January: 80.97%
Workday Inc (NASDAQ:WDAY) is among the best S&P 500 stocks with highest upside potential. On February 9, Workday announced that its CEO Carl Eschenbach had stepped down, and that the company’s co-founder, Aneel Bhusri, was replacing him immediately. Between 2009 and 2024, Bhusri served as either the sole CEO or co-CEO of Workday. Beginning in 2024, he transitioned to the executive chairman role until now, when he returns as the CEO again.
Although Eschenbach stepped down both as CEO and as a member of Workday’s board, the company said he would continue to support Bhusri as a strategic advisor.
According to Mark Hawkins, vice chair and lead independent director at Workday, no one is better than Bhusri to lead the company as it enters the next chapter shaped by AI.
“His vision, conviction, and deep connection to Workday’s culture will position the company to continue to lead in a changing landscape,” Hawkins said of Bhusri.
On February 9, Needham kept its Buy rating on Workday with a $300 price target, saying the leadership change was driven by the need to move faster in an AI‑focused market rather than sales issues. Workday confirmed its fourth‑quarter results will match earlier guidance, except for a restructuring charge that will lower GAAP operating income. Needham expects sales to be in line or muted, noting the timing of the transition at the start of the new fiscal year.
On February 9, Stifel cut its price target on Workday to $175 from $235 but kept a Hold rating. The change followed news that co-founder Aneel Bhusri returned as CEO, replacing Carl Eschenbach, as the stock trades near its 52‑week low.
Stifel said Eschenbach’s exit wasn’t surprising given the challenges since he became Co‑CEO in 2022. The firm expects Workday’s fiscal 2027 guidance could come in below current forecasts and flagged risks from weak operations, though it praised CFO Zane Rowe’s role in recent efficiency gains.
Workday Inc (NASDAQ:WDAY) is an American multinational provider of cloud-based software. It offers enterprises a platform to manage people, money, and agents. The company was founded in 2005 and is headquartered in Pleasanton, California.
7. Coinbase Global Inc (NASDAQ:COIN)
Number of Hedge Fund Holders: 73
Stock’s Upside Potential: 108.79%
Coinbase Global Inc (NASDAQ:COIN) is among the best S&P 500 stocks with highest upside potential. Coinbase Global Inc (NASDAQ:COIN) released its Q4 2025 results on February 12 after markets closed.
The company reported a loss of $2.49 per share, missing Wall Street expectations for a profit of $0.55 per share. Revenue was down 22% YoY to $1.78 billion, but was largely in-line with the Wall Street estimates.
Coinbase’s performance was hurt by the broad weakness in the crypto market, where the prices of Bitcoin and other crypto assets have dropped sharply. The company also recorded a drop in trading volumes during the quarter.
Following Coinbase’s Q4 report, Needham analysts moved to update their views on the stock. They maintained a Buy rating on Coinbase stock but reduced the price target to $230 from $290.
On the negative side, the firm cited weakness in the crypto market, potential adverse impact of the Clarity Act, and the company’s spending plans in challenging market conditions. On the positive side, the firm applauds Coinbase’s revenue diversification efforts, prediction markets rollout, and share repurchases. Needham pointed to growth in derivatives and international markets as positives and said Coinbase could benefit further by moving into tokenization of real‑world assets.
Coinbase Global Inc (NASDAQ:COIN) operates an online platform for trading, transferring, and storing crypto assets. It serves more than 100 million users globally, including institutional and retail clients. The company says its mission is to create economic freedom for over 1 billion people.
6. Robinhood Markets Inc (NASDAQ:HOOD)
Number of Hedge Fund Holders: 77
Stock’s Upside Potential: 88.73%
Robinhood Markets Inc (NASDAQ:HOOD) is among the best S&P 500 stocks with highest upside potential. On February 10, Robinhood Markets Inc (NASDAQ:HOOD) released earnings results that showed the company achieved record revenue in both Q4 and full-year 2025.
Revenue for the quarter increased 27% YoY to $1.28 billion, buoyed by a 109% YoY growth in the Other Revenues segment. This is the segment that houses the Robinhood Gold subscription service, which finished with 4.18 million subscribers, a 1.5 million subscriber increase YoY.
Growth in the Transaction-Based Revenues segment was weighed down by a 38% YoY drop in crypto revenues. Diluted EPS came to $0.66, compared to $1.01 in the same period the prior year. Something to note here is that in the prior year, the EPS was boosted by some tax benefits.
Robinhood finished the quarter with $4.3 billion in cash and cash equivalents after spending $100 million on share repurchases. Since launching the share buyback program in Q3 2024, the company has returned $910 million to shareholders while mopping up 22 million shares.
Following Robinhood’s earnings report, Bernstein SocGen Group maintained its Outperform rating on Robinhood stock with a price target of $160 on February 10.
In reaffirming this bullish outlook for Robinhood stock, Bernstein SocGen Group strategists pointed to the future of the crypto and prediction markets businesses. They are of the view that the weakness in the crypto business seen in Q4 was temporary, and that the business would recover in Q2 2026. For the prediction markets, they say it could become “ a billion-dollar annual business” for the company this year.
Robinhood Markets Inc (NASDAQ:HOOD) operates a financial services platform used by millions to trade stocks, options, crypto, and a variety of other investment products. It also offers banking services, credit cards, and wealth management. The company is headquartered in Menlo Park, California.
5. Autodesk Inc (NASDAQ:ADSK)
Number of Hedge Fund Holders: 83
Stock’s Upside Potential: 53.84%
Autodesk Inc (NASDAQ:ADSK) is among the best S&P 500 stocks with highest upside potential. Autodesk Inc (NASDAQ:ADSK) has sued Google over trademark infringement, Reuters reported on February 9. According to the report, the issue is the word “Flow,” which Autodesk says it has been using to market its products since at least September 2022.
In the suit, Autodesk points out that Google adopted “Flow” as the name of its new AI-powered software that competes with Autodesk products on the market. According to Autodesk, Google had assured it that it would not commercialize its Flow software. Autodesk is seeking damages in this suit.
This legal battle with Google comes at a time when Autodesk has sought to invest more in cloud and AI platforms. As part of this effort, the company announced on January 22 a strategy shift that would see it slash 7% of its global workforce as it directs more resources toward cloud and AI.
On February 2, JPMorgan upgraded Autodesk to Overweight from Neutral with a price target of $319. According to the firm, Autodesk is the go-to building information modeling software for engineers, architects, and contractors. Integration of cloud and AI into Autodesk’s platform is only going to make it a more valuable tool in streamlining workflow and driving operational efficiency, the firm argues. Additionally, the firm sees Autodesk benefiting from rising regulatory compliance reporting demands.
Autodesk Inc (NASDAQ:ADSK) provides software products and services used by architects, engineers, contractors, and manufactures. It also serves the media, entertainment, and education industries. Autodesk has offices globally but is headquartered in San Francisco, California.
4. Adobe Inc (NASDAQ:ADBE)
Number of Hedge Fund Holders: 88
Stock’s Upside Potential: 67.63%
Adobe Inc (NASDAQ:ADBE) is among the best S&P 500 stocks with highest upside potential. On February 11, Bloomberg reported that Adobe Inc (NASDAQ:ADBE) had been hit with a lawsuit alleging that the company willfully used pirated books to train its AI models. The suit, which the report said was filed on February 9 in the US District Court for the Northern District of California, cites infringement of hundreds of thousands of books. This suit joins a similar one that was brought against the company in December, according to the report.
The latest suit comes on the back of Adobe announcing a strategic AI collaboration with Cognizant Technology Solutions (CTSH) on January 30. Among other things, this collaboration is meant to help enterprises address accelerating content demand and rising cost pressures, the company’s said in a press release. They’re targeting regulated and high-growth industries, where they also see a rising need for brand governance.
According to a survey of marketers that Adobe carried out, 96% of respondents reported that their content demand doubled over the past two years. Looking ahead, the survey found that 71% of marketers expect content demand to increase more than five times between now and 2027.
Commenting on the Cognizant partnership, Adobe’s chief revenue officer for enterprise, Stephen Frieder, said:
“As AI reshapes customer expectations, Adobe is helping brands stand out with exceptional, personalized experiences, powered by an AI-driven content supply chain…Cognizant’s deep industry expertise and ability to operationalize complex transformations make them a natural strategic partner.”
On January 12, Goldman Sachs downgraded ADBE’s stock rating to a Sell from a Buy. It has a price target of $290 on the stock. In taking this action, Goldman Sachs pointed to its valuation that indicates Adobe stock is trading at a 15× price-to-earnings multiple to forward earnings estimates.
Best known for its image editing tool, Photoshop, Adobe Inc. (NASDAQ:ADBE) is an American multinational software company. It offers a wide range of products used in a variety of industries, including media, marketing, and document management.
3. ServiceNow Inc (NYSE:NOW)
Number of Hedge Fund Holders: 104
Stock’s Upside Potential: 90.10%
ServiceNow Inc (NYSE:NOW) is among the best S&P 500 stocks with highest upside potential. On February 10, Oppenheimer named ServiceNow Inc (NYSE:NOW) among its top US software stocks to watch. While acknowledging that the software industry has lagged behind other IT segments in monetizing AI, Oppenheimer believes companies like ServiceNow have potential to regain momentum. It sees this momentum coming from areas like improved execution and strategic initiatives.
On February 5, Truist cut its price target on ServiceNow to $175 from $240 but kept a Buy rating. The firm said the sector pullback is mostly about long‑term value concerns, not near‑term fundamentals, making AI adoption more important.
Truist noted that companies relying on seat‑based models have been the weakest performers since 2025. It sees AI use cases and a shift away from seat‑based deployments as key strategies for software vendors going forward.
On January 28, ServiceNow released its Q4 2025 results that showed both revenue and earnings surpassed Wall Street expectations. Revenue jumped 20.5% YoY to $3.57 billion, beating the consensus estimate of $3.53 billion. The EPS of $0.92 topped $0.88 expected. The quarter was buoyed by strong growth in the subscription business, which accounts for the bulk of the company’s revenue, with sales in this segment rising 21% YoY to $3.47 billion.
ServiceNow expects growth in its subscription business to accelerate in Q1 2026. It guided subscription sales for the quarter in the range of $3.65 billion to $3.66 billion, suggesting a growth of 21.5% YoY at the midpoint. ServiceNow expects its acquisition of Moveworks to boost subscription revenue by 100 basis points in Q1 as well as full-year 2026.
Headquartered in Santa Clara, California, ServiceNow Inc (NYSE:NOW) offers enterprises the platform they need to streamline their workflow. It provides a cloud-based computing platform enhanced with AI that enables businesses to create and manage automated processes more effectively.
2. Applovin Corp (NASDAQ:APP)
Number of Hedge Fund Holders: 110
Stock’s Upside Potential: 63.12%
Applovin Corp (NASDAQ:APP) is among the best S&P 500 stocks with highest upside potential. Jefferies said on February 9 that the recent 37% drop in Applovin Corp (NASDAQ:APP) stock is a buying opportunity. The firm kept its Buy rating and $860 price target, pointing to strong growth potential and noting that short‑term worries have pushed the valuation below fundamentals.
Analysts argued that risks tied to CloudX, Meta Audience Network, and Google Genie are overstated. They expect AppLovin’s tools, including AI in gaming, to strengthen its position and see more upside through strong revenue growth and high margins, making the pullback an attractive entry point.
Applovin released its Q4 2025 results on February 11. It posted a 66% YoY jump in revenue to $1.66 billion, exceeding $1.61 billion that Wall Street anticipated. EPS came in at $3.24, surpassing the $2.96 forecasted. Free cash flow jumped 88% to $1.31 billion, lifting total cash on hand to $2.5 billion. These strong results came amid the company’s continued expansion on self-service e-commerce and AI platforms.
Applovin returned $481.7 million to investors through share repurchases in Q4 and $2.58 billion in full-year 2025.
“The combination of growth, profitability, Free Cash Flow, and capital returns we’re delivering is extraordinarily rare,” Applovin CEO Adam Foroughi commented.
In Q1 2026, AppLovin is shooting for revenue in the range of $1.745 billion and $1.775 billion, which indicates sequential growth of 5% to 7%. It sees adjusted EBITDA coming in the band of $1.465 billion to $1.495 billion with margin of 84%.
Following earnings, Jefferies cut its price target on the stock to $700 from $860, while maintaining a Buy rating. Separately, citing AppLovin’s robust Q4 results, Benchmark reaffirmed its Buy rating on the stock with a price target of $775.
Applovin Corp (NASDAQ:APP) is a provider of marketing technology. It helps businesses attract customers, boost revenue, and track how ads are performing on multiple platforms. The company was founded in 2012 and is headquartered in Palo Alto, California.
1. Oracle Corp (NYSE:ORCL)
Number of Hedge Fund Holders: 122
Stock’s Upside Potential: 84.28%
Oracle Corp (NYSE:ORCL) is among the best S&P 500 stocks with highest upside potential. The company has won a contract to help the Centers for Medicare & Medicaid Services (CMS) modernize its systems. This deal was announced on February 11, and it involves provision of cloud services to support the federal health agency’s mission-critical systems.
Specifically, Oracle Corp (NYSE:ORCL) will consolidate and migrate certain CMS on-premise workloads to the cloud. Oracle will deliver this contract through its Oracle Cloud Infrastructure arm, enabling CMS to leverage a platform that meets stringent security and compliance requirements.
In another federal deal, Oracle announced on February 12 that the US Air Force had picked it for an $88 million contract to provide cloud services. Oracle noted that this deal extends its role as a key partner in Pentagon’s cloud modernization efforts.
On February 15, DA Davidson upgraded Oracle to Buy from Neutral with a $180 target, saying worries about its OpenAI ties are easing. Analyst Gil Luria believes OpenAI is stabilizing with fresh funding, which should support Oracle’s data center work. He noted the market has overreacted, weighing on Oracle, Nvidia, and Microsoft, but sees fundraising as a catalyst for Oracle’s stock. Luria also pointed to strength in Oracle’s core software and new opportunities like TikTok USA, though he cautioned that heavy debt and lease commitments remain a challenge.
Oracle Corp (NYSE:ORCL) is an American multinational IT company. It offers a wide range of enterprise-oriented products and services, including database management systems and cloud infrastructure. Founded in 1977, Oracle is headquartered in Santa Clara, California.
While we acknowledge the potential of Oracle Corp (NYSE:ORCL) as an investment, 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 ORCL and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 10 Best NYSE Stocks to Buy for the Long Term and 10 Best Medical Technology Stocks to Invest In.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email below.
