In this article, we will take a look at the 10 Stocks Analysts Are Upgrading Today.

The easing of the US-China trade war is the catalyst driving equity markets higher after weeks of heightened volatility. Major US indices are once again back into positive territory after recouping all the losses accrued in the aftermath of the U.S. waging a ferocious trade war in the race to settle a long-running trade deficit.

“And just like that, the markets’ twin fears — a tariff-induced recession and sticky inflation — have been greatly assuaged,” said Chris Zaccarelli, chief investment officer at Northlight Asset Management. “We’re still concerned that high valuations and market concentration remain risks to much higher stock prices this year, but in the short run, markets should love this data and continue yesterday’s (China-trade) celebration.”

The Magnificent Seven club members added over $800 billion in market value in the aftermath of the U.S. and China pausing most tariffs on each other’s goods. As trade tensions between the two greatest economies in the world threatened to disrupt supply chains and harm some of the top U.S. enterprises, technology equities, including semiconductor companies and smartphone manufacturers, were impacted significantly.

However, after negotiations between the United States and China resulted in a brief halt to “reciprocal” duties, investors exhaled with relief. A 90-day tariff delay agreed to by the United States and China relieved Wall Street.

“With US/China clearly on an accelerated path for a broader deal we believe new highs for the market and tech stocks are now on the table in 2025 as investors will likely focus on the next steps in these trade discussions which will happen over the coming months. This morning is a huge win for the bulls and a best case scenario post this weekend in our view,” Daniel Ives, global head of technology research at Wedbush Securities, said in a note on Monday.

Adding to the gains following tariff relief was softer-than-expected inflation data that affirmed the case for a Federal Reserve interest rate cut in June. In April, the consumer price index, a broad indicator of the expenses of goods and services across the U.S. economy, rose 2.3% annually. According to a Dow Jones poll of economists, last month’s inflation rate was projected to stay at 2.4% year over year. The much lower inflation level amid a waging tariff war has heightened the case for the U.S. central bank to cut rates, which works in favor of equities.

Consequently, analysts on Wall Street have been aggressive in upgrading stocks initially battered by concerns of the long-term impact of a vicious U.S.-China trade war. With the 90-day truce, awaiting further negotiations, analysts expect heightened trading activities between the two nations, which is a positive for business.

Our Methodology

We sifted through financial media reports to compile a list of 10 stocks analysts are upgrading today, on May 13. We then settled on the top 10 stocks that have received an analyst upgrade and ranked them in ascending order based on their upside potential.

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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

10 Stocks Analysts Are Upgrading Today

10. Insulet Corporation (NASDAQ:PODD)

Stock Upgrade: Peer Perform to Outperform

Stock Price Target: $350

Stock Upside Potential as of May 13: 11.46%

Insulet Corporation (NASDAQ:PODD) is a medical devices company that develops, manufactures, and sells insulin delivery systems for people with insulin-dependent diabetes. It offers Omnipod platform products comprising the Omnipod 5 automated insulin delivery system, which includes a proprietary AID algorithm embedded in the pod that integrates with a third-party. The company delivered solid first quarter 2025 results, characterized by a 69% earnings per share increase to $1.02

Revenues, on the other hand, were up 28% to $569 million, prompting the medical device maker to raise its second quarter and full year 2025 revenue guidance. Consequently, Insulet expects quarterly sales to rise by an average of 17% over the next four quarters with full-year revenues increasing by 30%.

The better-than-expected quarterly results and guidance underscore growing demand for Insulet products in revolutionizing diabetes management. Likewise, analysts at Wolfe Research have upgraded Insulet Corporation (NASDAQ:PODD) to ‘Outperform’ from ‘Peer Perform’ and set the price target at $350. According to the firm, Insulet is well positioned to achieve high market penetration rates in the type 1 diabetes sector, which could see it secure a market share of between 40% and 50%.

9. Caterpillar Inc. (NYSE:CAT)

Stock Upgrade: Neutral to Outperform

Stock Price Target: $395

Stock Upside Potential as of May 13: 12.21%

Caterpillar Inc. (NYSE:CAT) is an industrial company that manufactures and sells construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. While the company has been under pressure amid the vicious US-China trade war, it has received some reprieve from the two nations, laying out a framework for a trade deal and suspending some tariffs.

Consequently, Baird analysts have upgraded Caterpillar Inc. (NYSE:CAT) to an ‘Outperform’ and lifted the price target to $395. The upgrade comes on the US easing tariffs on China, one of the company’s key markets. Likewise, analysts at Baird expect the easing of tariffs to make 2025 a ‘trough’ year for the company’s earnings, allowing the stock to bounce back and catch up with the S&P 500 after underperforming by about 15% over the past year.

Caterpillar Inc. (NYSE:CAT) delivered disappointing first-quarter results with revenues declining 10% year-over-year to $14.25 billion. On a per share basis, earnings came in at $4.20, missing estimates of $4.30. As the macroeconomic outlook becomes more definite, lower tariffs on China will limit the negative impact on Caterpillar’s expenses and provide enhanced visibility for customers looking to invest/deploy resources.