On December 26, Thomson Nguyen, Saga Ventures co-founder and managing partner, joined ‘Squawk Box’ on CNBC to discuss the resurgence of the IPO market following a strong 2025 performance. The year 2025 saw significant listings, marking the most active year for IPOs since the anomalous record-high of 2021. Nguyen believes that 2026 could potentially surpass previous records due to modest interest rate cuts, a surge in the AI sector, and a huge backlog of large-cap private companies. He specifically named SpaceX, OpenAI, and Anthropic as high-profile candidates whose potential capital raises could reach unprecedented levels.

He also addressed the valuation gap between private and public markets and noted that private market valuations often act as a leading indicator before eventually reverting to more traditional P/E multiples once a company goes public. Nguyen pointed to the growth of AI-native companies and quoted OpenAI as a prime example. Despite having a product only three years old, OpenAI has amassed 800 million users and a million business customers. When questioned about the market’s ability to absorb such a massive influx of new issuance, Nguyen acknowledged the potential for volatility and compared the situation to the 2010s. He predicts a consolidation effect where value will ultimately accrue to the winners in the AI application and infrastructure layers, much like it did for AWS, Google Cloud, and Microsoft Azure.

That being said, we’re here with a list of the 10 best up and coming stocks to buy according to Wall Street.

Our Methodology

We sifted through the Finviz stock screener to compile a list of companies that went public in the last 5 years. We then selected 10 stocks that had an upside potential of over 40%. The stocks are ranked in ascending order of their upside potential. We have also added the hedge fund sentiment for each stock, as of Q3 2025, which was sourced from Insider Monkey’s database.

Note: All data was sourced on January 6. 

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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).

10 Best Up and Coming Stocks to Buy According to Wall Street

10. Structure Therapeutics Inc. (NASDAQ:GPCR)

Number of Hedge Fund Holders: 42

Average Upside Potential as of January 6: 49.93%

Structure Therapeutics Inc. (NASDAQ:GPCR) is one of the best up and coming stocks to buy according to Wall Street. On December 19, H.C. Wainwright analyst Ananda Ghosh raised the firm’s price target on Structure Therapeutics to $90 from $60 with a Buy rating on the shares. The firm suggested that the company’s titration strategy has been validated by key opinion leaders. As payer economics push oral GLP-1s toward Tier 1 therapy status, H.C. Wainwright views Structure Therapeutics’ current valuation as a significant arbitrage opportunity when compared to recent industry deal metrics. Due to strong M&A potential and encouraging Phase 2 data, the company is positioned for future growth or acquisition.

Earlier on December 12, Morgan Stanley analyst Terence Flynn raised the firm’s price target on Structure Therapeutics to $125 from $120 while keeping an Overweight rating on the shares. Flynn informed investors that the regulatory and political uncertainties that weighed on the biopharma sector in 2025 are expected to fade in 2026. This shift is projected to redirect market attention toward the industry’s core business performance and pipeline developments rather than government-related risks.

A day prior to that, Jefferies also raised the firm’s price target on the company to $125 from $79 with a Buy rating on the shares. The firm characterized the recent Phase 2b data for aleniglipron as a solid win, positioning Structure Therapeutics Inc. (NASDAQ:GPCR) as a leader in the space. Jefferies noted that the company likely possesses a best-in-class small-molecule oral GLP1, supported by the most advanced development stage and clinical data that has been significantly de-risked.

Structure Therapeutics Inc. (NASDAQ:GPCR) is a clinical stage global biopharmaceutical company that develops and delivers novel oral small-molecule therapeutics to treat various chronic diseases with unmet medical needs in the US.

9. Procept BioRobotics Corporation (NASDAQ:PRCT)

Number of Hedge Fund Holders: 23

Average Upside Potential as of January 6: 51.81%

Procept BioRobotics Corporation (NASDAQ:PRCT) is one of the best up and coming stocks to buy according to Wall Street. On December 18, Truist analyst Richard Newitter lowered the firm’s price target on Procept BioRobotics to $47 from $50 while keeping a Buy rating on the shares as part of a 2026 MedTech sector preview. Although the firm is more optimistic about the industry due to attractive valuations, it cautioned that MedTech might act as a source of funds rather than a primary destination for new capital. Truist expressed a preference for companies with specific catalysts capable of driving long-term revenue growth and those suffering from unpopular short-term market narratives.

On December 12, the company was initiated by UBS analyst Danielle Antalffy with a Buy rating and $62 price target. Consultations with key opinion leaders have supported the firm’s confidence in the company’s utilization growth through 2026 and 2027. The firm believes that the market is currently overlooking several core strengths: Procept’s initiatives to increase usage across its current hardware, the vast potential for new system placements in untapped markets, and the margin growth expected from a more profitable product mix.

Earlier on December 8, Bank of America also downgraded Procept BioRobotics Corporation (NASDAQ:PRCT) to Neutral from Buy with a price target of $38, which was brought down from $55. While Procept’s aquablation tech holds significant market potential for treating benign prostatic hyperplasia, BofA warned investors that slowing utilization growth is a growing concern. Although the company is implementing changes to boost usage, these adjustments may cause short-term operational friction. The firm concluded that the simultaneous slowdown in both system sales and procedure volume makes it difficult to feel confident about the stock’s potential for near-term growth.

Procept BioRobotics Corporation (NASDAQ:PRCT) is a surgical robotics company that develops transformative solutions in urology in the US and internationally.