On November 25, Matt Powers, managing partner of Powers Advisory Group, joined CNBC’s ‘Squawk Box’ to discuss what to make of recent volatility and why he believes that value will start to pick up. Regarding the signs of market capitulation observed last week, it was acknowledged that the current signs might differ from historical norms. Powers announced his firm’s decision to upgrade equities to overweight at the close of the prior week, expressing an expectation for new all-time highs and a good chance to surpass 7,000 for the S&P 500 index by the end of the year. This optimistic outlook was supported by several factors. First, the group’s internal sentiment model, which aggregates key positioning and sentiment data, had registered extreme pessimism. Second, they observed a significant spike in inverse ETF volume, a measure they use to track retail capitulation. This volume reached its highest level in two years, a pattern that has historically marked near-term market bottoms. Third, they pointed to the level of hidden pain in the recent pullback; while the main index was down just over 5% peak to trough, the median stock was down more than 16% from its 52-week high. Historically, this amount of pain in individual stocks suggests a more severe correction, closer to 10%, for the overall index. Combining these technical and sentiment signals with positive seasonal trends, Powers concluded that the market is set up for a very strong end of the year.
Powers, while finding the strong performance of both the Equal Weight S&P and the Russell 2000 encouraging, injected a note of caution regarding the latter. He characterized being long the Russell 2000 as very much a rates bet, explaining that the Russell is the subsegment of the market most sensitive to interest rate movements. Given that the 10-year yield was down to 4%, holding a long position in the Russell is a bet that rates will continue to fall along a glide path while economic growth remains robust. The guest described this as a needle that needs to be threaded, and while the one-day performance was healthy, the index was not where they would currently focus their investments.
That being said, we’re here with a list of the 10 most promising stocks with huge upside potential.
Our Methodology
We sifted through the Finviz stock screener to compile a list of the most promising stocks that were the most popular among elite hedge funds. We then picked 10 stocks with high 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 Q2 2025, which was sourced from Insider Monkey’s database.
Note: All data was sourced on November 25.
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 Most Promising Stocks with Huge Upside Potential
10. Peloton Interactive Inc. (NASDAQ:PTON)
Number of Hedge Fund Holders: 53
Average Upside Potential as of November 25: 44.66%
Peloton Interactive Inc. (NASDAQ:PTON) is one of the most promising stocks with huge upside potential. On November 20, Citi analyst Ronald Josey cut the price target on Peloton to $8.25 from $9.50 while keeping a Neutral rating on the shares after the company posted its FQ1 2026 earnings report. The firm also lowered its full-year subscriber forecast for Peloton by 3% due to a rise in customer turnover.
Peloton’s total revenue for FQ1 reached $551 million, comprising $152 million from Connected Fitness products and $398 million from subscription revenue. While this revenue was a decline of 6.01% year-over-year, it was still $9.72 million higher than Street estimates. The company’s EPS also surpassed guidance by $0.05 and totaled $0.06. Peloton’s full-year revenue guidance remains unchanged at $2.4 to $2.5 billion.
The company’s Connected Fitness paid subscriptions totaled 2.732 million in the said quarter, which was a 6% decrease from the year-ago period due to challenges in maintaining subscriber growth. The average net monthly churn, however, improved to 1.6%, better by 0.2% year-over-year. Despite the subscription decrease, the company experienced a decline of 5% in Connected Fitness products revenue due to lower equipment sales and deliveries.
Peloton Interactive Inc. (NASDAQ:PTON) provides fitness and wellness products and services in North America and internationally. The company offers several connected fitness products, such as the Peloton Bike, Peloton Bike+, Peloton Tread, Peloton Tread+, and Peloton Row.
9. Coinbase Global Inc. (NASDAQ:COIN)
Number of Hedge Fund Holders: 87
Average Upside Potential as of November 25: 57.41%
Coinbase Global Inc. (NASDAQ:COIN) is one of the most promising stocks with huge upside potential. On November 25, Argus analyst Kevin Heal downgraded Coinbase to Hold from Buy with no price target. The company stands as the top cryptocurrency trading platform, and its dollar-backed stablecoin, USDC (which is the world’s second-largest), is maintaining strong growth. However, Heal noted a significant valuation issue: the stock is currently trading at 39x its expected forward earnings, substantially higher than the 24x to 27x multiples observed for competing exchanges.
In other news, the company’s Q3 2025 earnings report disclosed that Coinbase Global experienced a total trading volume of $295 billion in the quarter, which was sequentially up 24%. Consumer trading volume specifically grew 37% to $59 billion, outperforming the US spot markets.
The company reported a total revenue of $1.9 billion in Q3, which was a sequential rise of 25%. Net income stood at $433 million, fueled by both transaction and subscription revenues. Transaction revenue reached $1.0 billion, up 37%, with consumer transaction revenue at $844 million, up 30%. Furthermore, the company successfully grew its Subscription and Services revenue to $747 million, an increase of 14%, contributing to overall financial growth.
Coinbase Global Inc. (NASDAQ:COIN) operates a platform for crypto assets in the US and internationally.
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