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.
8. Klarna Group (NYSE:KLAR)
Number of Hedge Fund Holders: 50
Average Upside Potential as of January 6: 53.11%
Klarna Group (NYSE:KLAR) is one of the best up and coming stocks to buy according to Wall Street. On January 2, Keefe Bruyette lowered the firm’s price target on Klarna to $45 from $52 and kept an Outperform rating on the shares. The firm revised its price targets across the consumer finance and payments sectors as part of its updated valuation assessments.
Additionally, Klarna Group (NYSE:KLAR) reported that the company reached a total revenue of $903 million in Q3 2025, which was supported by a 51% year-over-year revenue increase in the US and a 43% rise in US GMV. A primary driver of this success was the Fair Financing product, which saw GMV grow by 139% globally and 244% in the US, as the number of merchants offering the product tripled over two years to 151,000.
Klarna continues to use AI to drive unprecedented efficiency. The company has reduced its total headcount by 47% through natural attrition, while revenue per employee has climbed to $1.1 million. Its AI assistant now performs work equivalent to 853 full-time roles, saving an estimated $60 million annually. These gains allowed Klarna to maintain flat operating expenses despite 108% revenue growth over the measured period. Klarna is also successfully transitioning into a Global Neobank. The Klarna Card has reached 3.2 million active users and now generates 4x more revenue per customer ($130) than a standard active user ($33).
Klarna Group (NYSE:KLAR) operates as a digital bank and flexible payments provider in the UK, the US, Germany, Sweden, and internationally.
7. Centessa Pharmaceuticals (NASDAQ:CNTA)
Number of Hedge Fund Holders: 40
Average Upside Potential as of January 6: 54.77%
Centessa Pharmaceuticals (NASDAQ:CNTA) is one of the best up and coming stocks to buy according to Wall Street. On January 5, Needham raised the firm’s price target on Centessa to $38 from $35 with a Buy rating on the shares. Needham suggested that Centessa’s stock momentum is poised to persist through 2026 due to the forthcoming data from the dose-escalation cohorts of the ongoing ORX-750 Phase 2a study. Consequently, the firm identified the company as one of the most compelling acquisition targets within the biotech sector for the coming year.
Furthermore, on December 10, Oppenheimer assumed coverage of Centessa with an Outperform rating with a price target of $62, which was brought up from $40. The firm has been designated a top pick by Oppenheimer, largely due to its pipeline of potentially best-in-class orexin agonists. Oppenheimer anticipates a commercial launch in H1 2028, projecting that these treatments will dramatically broaden the narcolepsy market by improving diagnosis rates, patient uptake, compliance, and pricing power relative to existing therapies. Believing that the company is currently significantly undervalued, the firm expects substantial stock appreciation driven by multiple clinical data readouts scheduled throughout 2026 and the following years.
In Q3 2025, Centessa Pharmaceuticals confirmed that its lead candidate, ORX750, showed potential best-in-class efficacy for treating Narcolepsy Type 1 (NT1), Type 2 (NT2), and Idiopathic Hypersomnia. Phase 2a data showed that low doses of the oral OX2R agonist achieved statistically significant, dose-dependent normalization of wakefulness. Centessa Pharmaceuticals (NASDAQ:CNTA) is now prepared for a major clinical expansion in Q1 2026. During this period, the company expects to launch the ORX750 registrational program, initiate patient studies for the highly potent ORX142, and begin first-in-human trials for ORX489, its most potent agonist to date.
Centessa Pharmaceuticals (NASDAQ:CNTA) is a clinical-stage pharmaceutical company that discovers, develops, and delivers medicines.
6. Rubrik Inc. (NYSE:RBRK)
Number of Hedge Fund Holders: 52
Average Upside Potential as of January 6: 57.65%
Rubrik Inc. (NYSE:RBRK) is one of the best up and coming stocks to buy according to Wall Street. On January 5, Barclays lowered the firm’s price target on Rubrik to $100 from $120, while maintaining an Overweight rating on the shares.
On the same day, Piper Sandler lowered the firm’s price target on Rubrik to $99 from $118, while keeping an Overweight rating on the shares. The firm reaffirmed its stance on the stock as a top overall pick, despite making minor downward adjustments to its financial estimates. These changes were prompted by a detailed review of the company’s recent 10-Q filing disclosures.
Rubrik Inc. (NYSE:RBRK) was also initiated by Stephens analyst Todd Weller with an Overweight rating and $105 price target on December 29. Weller highlighted the company’s compelling growth potential within the data protection and security markets and noted that the projected margin expansion is expected to support its strong revenue performance. The firm specifically pointed to Rubrik’s unified platform as a disruptive leap forward that challenges and replaces traditional legacy architectures.
Earlier on December 8, Citi analyst Fatima Boolani lowered the firm’s price target on Rubrik Inc. (NYSE:RBRK) to $115 from $117, with a Buy rating on the shares. This sentiment was posted by Boolani after the firm updated the company’s model post the FQ3 2026 earnings report.
Rubrik Inc. (NYSE:RBRK) provides data security solutions to individuals and businesses worldwide.
5. CoreWeave Inc. (NASDAQ:CRWV)
Number of Hedge Fund Holders: 62
Average Upside Potential as of January 6: 58.38%
CoreWeave Inc. (NASDAQ:CRWV) is one of the best up and coming stocks to buy according to Wall Street. On January 5, DA Davidson analyst Gil Luria upgraded CoreWeave to Neutral from Underperform with a price target of $68, up from $36. Despite expressing some reluctance, the firm upgraded the stock and cited OpenAI’s potential $100 billion fundraise as a significant catalyst for CoreWeave.
Although the firm noted that the success of this capital raise is not guaranteed, a successful round would enable OpenAI to meet its 2026 obligations, including those to CoreWeave. Despite the upgrade, the firm warned that CoreWeave’s equity could eventually become worthless because debt holders currently own the entirety of the enterprise value. However, DA Davidson believes that an OpenAI fundraiser would effectively delay an inevitable reckoning for the company’s capital structure.
On the same day, CoreWeave Inc. (NASDAQ:CRWV) also announced that it will integrate the Nvidia Rubin platform into its AI cloud infrastructure. Positioned as one of the first cloud providers to deploy this tech, CoreWeave expects to launch the platform in H2 2026. This move is designed to support the next generation of agentic AI, which focuses on sophisticated reasoning, large-scale inference, and complex workloads like drug discovery, genomic research, and climate simulation.
The deployment will feature Nvidia Vera Rubin NVL72 racks, which CoreWeave manages as single programmable entities through its proprietary Rack Lifecycle Controller. This Kubernetes-native orchestrator coordinates power delivery, liquid cooling, and hardware validation to ensure racks are production-ready.
CoreWeave Inc. (NASDAQ:CRWV) operates a cloud platform that provides scaling, support, and acceleration for GenAI. It builds the infrastructure that supports compute workloads for enterprises.
4. Netskope Inc. (NASDAQ:NTSK)
Number of Hedge Fund Holders: 44
Average Upside Potential as of January 6: 59.76%
Netskope Inc. (NASDAQ:NTSK) is one of the best up and coming stocks to buy according to Wall Street. On January 5, RBC Capital analyst Matthew Hedberg lowered the firm’s price target on Netskope to $23 from $27, while keeping an Outperform rating on the shares. Hedberg predicts that 2026 will distinguish companies based on their AI readiness. Companies that are prepared for enterprise AI adoption are expected to see clear benefits, while those lagging may struggle against the ‘AI is the death of software’ sentiment. The firm noted that corporate spending is stabilizing and GenAI is fueling innovation, but management teams are still providing cautious financial guidance for early 2026.
Earlier on December 12, Deutsche Bank analyst Brad Zelnick raised the firm’s price target on Netskope Inc. (NASDAQ:NTSK) to $26 from $25, while maintaining a Buy rating on the shares. This sentiment was posted following the company’s Q3 2025 earnings report.
On the same day, RBC Capital analyst Matthew Hedberg raised the firm’s price target on Netskope to $27 from $26 with an Outperform rating on the shares. In its debut earnings report as a public company on December 11, Netskope delivered impressive results highlighted by a continued acceleration in annual recurring revenue. Hedberg noted that the company’s execution was strong across all areas, as Netskope successfully improved its operational performance even while scaling its workforce.
Netskope Inc. (NASDAQ:NTSK) is a cybersecurity company that provides security, networking, and analytics solutions to the largest enterprises to mid-sized companies worldwide.
3. Monday.com Ltd. (NASDAQ:MNDY)
Number of Hedge Fund Holders: 55
Average Upside Potential as of January 6: 63.01%
Monday.com Ltd. (NASDAQ:MNDY) is one of the best up and coming stocks to buy according to Wall Street. On January 5, Jefferies lowered the firm’s price target on Monday.com to $260 from $300 with a Buy rating on the shares. In a sector outlook note, the firm suggested that 2026 will likely be characterized by the continued monetization of AI. To calm investor fears regarding AI’s potential to disrupt traditional software, Jefferies believes that the industry needs to show more growth and acceleration, which will require a more selective investment approach. The firm remains confident that the software layer will eventually capture AI value, but advises patience as sector valuations have already returned to historical averages.
On December 23, Citi lowered the firm’s price target on Monday.com to $293 from $319 and kept a Buy rating on the shares. After direct consultations with application software management, Citi updated its 2026 financial models and described a stable yet cautious demand environment that found relief in the reopening of the US government.
Furthermore, on December 16, BTIG initiated coverage of Monday.com Ltd. (NASDAQ:MNDY) with a Buy rating and $210 price target. BTIG emphasized that Monday.com is evolving beyond its origins in work management, with new product ARR reaching ~$133 million (10% of the total) and expanding at an 84% year-over-year rate. The firm noted that the company is accelerating its go-to-market strategy by using this multi-product expansion, successfully moving upmarket to larger enterprises, and maintaining strong customer retention.
Monday.com Ltd. (NASDAQ:MNDY), together with its subsidiaries, develops software applications in the US, Europe, the Middle East, Africa, the UK, and internationally.
2. Credo Technology Group Holding Ltd. (NASDAQ:CRDO)
Number of Hedge Fund Holders: 56
Average Upside Potential as of January 6: 76.30%
Credo Technology Group Holding Ltd. (NASDAQ:CRDO) is one of the best up and coming stocks to buy according to Wall Street. On December 16, Bank of America analyst Vivek Arya lowered the firm’s price target on Credo Technology to $200 from $240 and maintained a Buy rating on the shares. This sentiment was announced as BofA updated its price targets for covered US Semiconductor stocks. The firm anticipates that stock prices may experience volatility due to scrutiny of AI returns and hyperscaler spending, but choppiness will be mitigated by the growth of LLM development and the expansion of AI factories.
In FQ2 2026, Credo Technology Group Holding Ltd. (NASDAQ:CRDO) achieved record revenue of $268 million, which was a 20% sequential increase and a 272% surge year-over-year. This growth was fueled by the expansion of AI training and inference clusters, driving a non-GAAP gross margin of 67.7% and non-GAAP net income of $127.8 million.
Credo reported that four domestic customers each accounted for more than 10% of total revenue: the largest at 42%, followed by 24%, 16%, and 11%. The company’s Active Electrical Cable line remains its fastest-growing segment, as these cables have become the industry standard for inter-rack connectivity due to being 1,000 times more reliable than traditional optics while consuming half the power.
Credo projects a revenue between $335 and $345 million. For the full FY2026, the company raised its total revenue growth forecast from 120% to over 170% year-over-year. This upward revision reflects a strengthening demand across the sector rather than a single customer win.
Credo Technology Group Holding Ltd. (NASDAQ:CRDO) provides various high-speed connectivity solutions for optical and electrical Ethernet and PCIe applications in the US, Taiwan, Mainland China, Hong Kong, and internationally.
1. Roblox Corporation (NYSE:RBLX)
Number of Hedge Fund Holders: 90
Average Upside Potential as of January 6: 97.13%
Roblox Corporation (NYSE:RBLX) is one of the best up and coming stocks to buy according to Wall Street. On January 6, Wolfe Research lowered the firm’s price target on Roblox to $100 from $150 and maintained an Outperform rating on the shares. While 2026 is expected to be another profitable year for Internet stocks, the firm suggested that outperformance may be more modest than the previous 3 years due to currently stretched valuations. Despite these elevated multiples, the firm highlighted several factors that could drive further upside: AI-driven developments, new product launches, a resilient macroeconomic environment, and effective capital allocation.
Additionally, on December 12, JPMorgan downgraded the company to Neutral from Overweight with a price target of $100, which was brought down from $145. The firm observed that while Roblox saw a significant surge in engagement during 2025, this momentum is now beginning to fade. JPMorgan warned that shares could take a breather in 2026 as viral experiences move past their peak performance, leading to a moderation in engagement trends. Furthermore, the firm anticipates a slowdown in bookings growth and compressed profit margins in the year ahead.
On the same day, Jefferies lowered the firm’s price target on Roblox Corporation (NYSE:RBLX) to $100 from $115 and kept a Hold rating on the shares. The firm advised investors to remain selective regarding Internet stocks. Jefferies cautioned that increased incremental investments may restrict margin expansion, while ongoing concerns over AI-driven disintermediation could prevent stock multiples from appreciating.
Roblox Corporation (NYSE:RBLX) operates an immersive platform for connection and communication in the US and internationally.
While we acknowledge the potential of RBLX 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 RBLX and that has 100x upside potential, check out our report about this cheapest AI stock.
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