In this article, we will look at the best stocks that recently issued new debt and currently offer attractive upside potential for investors. On March 27, CNBC shared insights into potential opportunities for Wall Street Banks to regain market share as private credit comes under pressure. The firm highlighted that the private credit space currently faces certain challenges related to liquidity and default, having undergone a fallout because of highly aggressive lending trends.
The firm highlighted that this situation creates a “long-awaited” opportunity for Wall Street banks to elevate their share in this market, which had been dominated by private credit players for over a decade. The firm also acknowledged a more favorable regulatory landscape for banks at present, which would serve the purpose well.
Mark Zandi, Chief Economist at Moody’s, also reflected on these structural challenges faced by private credit. He anticipates more issues to emerge for the sector in the coming months amid ongoing geopolitical conflicts, elevated financing costs, and certain industry-specific hurdles across consumer, software, and healthcare segments.
Speaking of opportunities for banks in this scenario, CNBC referred to comments made by Shannon Saccocia, CIO at Neuberger Berman, who stated:
“Our anticipation of deregulation from the Trump administration includes a likely weakening of the Basel III Endgame implementation, with the U.S. Treasury explicitly aims to redirect business lending back into the banking sector.”
With such developments, there will be lucrative opportunities for listed companies to raise debt capital without altering their optimal capital structures or incurring high borrowing costs. With that background, let’s explore our 10 Best Stocks That Recently Issued New Debt.
Our Methodology
To identify relevant stocks for this article, we conducted a sector-agnostic screening of U.S.-listed companies with market capitalizations above $2 billion that have recently issued debt. We narrowed our search further by selecting only companies with a debt-to-equity ratio below 100%.
Also, we shortlisted only stocks with at least 30% upside potential according to consensus as of the March 26 closing. Finally, we selected 10 stocks with the highest upside and ranked them in ascending order.
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. Omnicom Group Inc. (NYSE:OMC)
Omnicom Group Inc. (NYSE:OMC) is one of the 10 best stocks that recently issued new debt.
As of the March 26 closing, consensus sentiment for Omnicom Group Inc. (NYSE:OMC) remained moderately bullish. The stock received coverage from 7 analysts, 4 of whom assigned Buy ratings and 2 gave Hold calls. With 1 Sell rating, it has a projected median 1-year price target of $98.57, resulting in an upside potential of almost 34% at the prevailing level.
On March 20, Omnicom Group Inc. (NYSE:OMC) was subject to an upward revision in its target price, from $108 to $114 by UBS. The firm also reiterated its Buy rating on the stock, which currently yields an adjusted upside potential of more than 52%.
Back on February 23, Barclays also increased its target price for Omnicom Group Inc. (NYSE:OMC) from $82 to $90. The firm maintained an Equal Weight rating on the stock, which offers a revised potential upside of more than 20% at the current level. The revision in the price target came on the back of the company’s fourth-quarter results, which appeared to be in line with consensus estimates.
Omnicom Group Inc. (NYSE:OMC) is a media, communications, sales, and marketing company that operates through its various subsidiaries. They deliver services such as advertising, branding, precision marketing, content marketing, CSR consulting, public relations support, and more. They integrate their technical expertise with data management and analytics to deliver superior value to customers.
9. Thermo Fisher Scientific Inc. (NYSE:TMO)
Thermo Fisher Scientific Inc. (NYSE:TMO) is one of the 10 best stocks that recently issued new debt.
On March 16, Jefferies analyst Tycho Peterson highlighted potential risks across life sciences tools companies. The firm noted rising helium prices, driven by Middle East tensions, could create selective headwinds, noting that Thermo Fisher Scientific Inc. (NYSE:TMO) faces more limited risk. This is because the company’s helium exposure is predominantly relegated to gas chromatography. However, Jefferies remains constructive on select names in the group, and is currently ‘Restricted’ on Thermo Fisher.
Back on March 3, Thermo Fisher Scientific Inc. (NYSE:TMO) attended the 47th Annual Raymond James Institutional Investor Conference. The company’s situation and prospects for 2026 were discussed with investors by CEO and Chairman Marc Casper. Casper claims that the business had a strong year in 2025 with strong earnings growth and financial success, and it concluded the year with a lot of momentum.
With strong client relationships and a steady increase in market share in 2026, the company is positioned as a leader in its sector. Casper added that although the industry was more predictable last year due to the volatility brought on by COVID, it is now on a healthy path. Casper stated:
“We delivered a little bit over 2 percent organic growth last year. We’re expecting 3 percent to 4 percent growth this year on the way to ultimately longer term in the 5 percent, 6 percent range and then eventually, we think 7 percent plus.”
Thermo Fisher Scientific Inc. (NYSE:TMO) facilitates research and diagnostics through high-end life sciences solutions, analytical instruments, specialty diagnostics, and laboratory products. The company also offers software, consumables, pharma, and instrument services to various research and industrial markets. It covers several segments such as academics, biotechnology, government, pharmaceuticals, and others.
8. Amazon.com Inc. (NASDAQ:AMZN)
Amazon.com Inc. (NASDAQ:AMZN) is one of the 10 best stocks that recently issued new debt.
On March 25, Citi increased its price target on Amazon.com Inc. (NASDAQ:AMZN) from $265 to $285 while maintaining a Buy rating on the stock. The firm has also raised its estimates for Amazon Web Services, driven by the ongoing need for AI after analysing the revenue contributions of Anthropic, OpenAI, and core workloads.
Citi predicts 28 percent year-over-year revenue growth for AWS in the first quarter, and 29 percent in 2026. The growth rate is expected to rise to 37 percent in 2027 as the partnerships between Amazon’s Anthropic and OpenAI kick in.
Back on February 23, Wells Fargo maintained an Overweight rating on Amazon.com Inc. (NASDAQ:AMZN). The firm reduced its price target from $305 to $304. Wells Fargo highlighted compute capacity as a key success factor, noting that AI-driven demand is expected to exceed supply in the near to medium term.
The firm also expects hyperscaler capacity to double up to 98GW, with annual CapEx reaching $860 billion by 2027. It highlighted significant expansion in the cloud industry as compared to street estimates, supporting a more constructive long-term outlook for the company and broader industry.
Amazon.com, Inc. (NASDAQ:AMZN) is a technology company engaged in e-commerce, cloud computing, streaming, AI solutions, and physical retail. It offers consumer retail, advertising, and subscription solutions through an extensive network of online and brick-and-mortar stores worldwide. The company also develops and sells electronic devices such as Kindle, fire tablets, fire TVs, blink, and eero.
7. Formula One Group (NASDAQ:FWONK)
Formula One Group (NASDAQ:FWONK) is one of the 10 best stocks that recently issued new debt.
As of the March 26 closing, Formula One Group (NASDAQ:FWONK) carried a strongly bullish sentiment. The stock received coverage from 8 analysts, 6 of whom assigned Buy ratings and 2 gave Hold calls. With no Sell rating, it has a projected median 1-year price target of $116.13, resulting in an upside potential of more than 42%.
On March 13, Nate Saunders of ESPN reported that Formula 1 is expected to cancel its April races in Bahrain and Saudi Arabia due to the ongoing Iran conflict. The report cited logistical challenges around freight timelines, making a decision urgent. It added that the races are unlikely to be replaced, leaving a gap in the schedule.
Earlier on March 3, Salesforce Inc. (NYSE: CRM) and Formula One Group (NASDAQ:FWONK) announced the launch of a new fan companion agent to increase reach and personalize the experience for F1’s 827 million fans worldwide.
The agent was created as part of the extended partnership agreement between Salesforce and Formula One. The agent will be available on F1.com initially and will serve as an educational resource to teach fans about the new 2026 regulations.
Formula One Group (NASDAQ:FWONK) operates in the motorsports business, through its subsidiaries, across the U.S. and the United Kingdom. They have the commercial rights for the FIA Formula One World Championship and are also responsible for its promotion. Other services they offer include ticketing, hospitality packages, licensing, and television production.
6. Aptiv PLC (NYSE:APTV)
Aptiv PLC (NYSE:APTV) is one of the 10 best stocks that recently issued new debt.
On March 23, Winchester Interconnect, an Aptiv PLC (NYSE:APTV) company, announced the launch of Modulus, a modular connector system that integrates high-speed single pair Ethernet and modular power in a small, serviceable format.
Designed for next-generation Low Earth Orbit satellite initiatives and unmanned aerial vehicles, Modulus provides engineers a chance to future-proof high-density platforms by streamlining development and optimizing signals, data, and power configuration in a single connector footprint. The system will also service modules in the field without removing the entire assembly.
On March 12, UBS upgraded Aptiv PLC (NYSE:APTV) from Neutral to Buy. The firm raised its price target from $89 to $97, resulting in an adjusted upside potential of 39%.
UBS cited compelling upside driven by value unlocking from the upcoming Versigent spin-off scheduled for April 1. It added that current valuation levels appear to price in too many risks, suggesting investors may be underestimating the company’s potential and effectively receiving additional value from the spin-off at current share levels.
Aptiv PLC (NYSE:APTV) offers advanced electrical and active safety technologies that ensure safer and greener mobility solutions. Operating through 2 segments, Signal & Power Solutions, and Advanced Safety & User Experience, it develops and sells vehicle components for automotive and commercial vehicles.
While we acknowledge the potential of APTV 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 APTV and that has 100x upside potential, check out our report about the cheapest AI stock.
Click to continue reading and see the 5 Best Stocks That Recently Issued New Debt.
Disclosure: None. Follow Insider Monkey on Google News.
