In this article, we will take a look at the stocks Wall Street analysts are watching closely.
As markets enter the final stretch of 2025, investor sentiment appears to be turning slightly constructive, driven by expectations of improving macroeconomic conditions and strong corporate earnings momentum. After the better part of the year marked by elevated rates, geopolitical uncertainty, and volatile sector performance, analysts across Wall Street are recalibrating their outlook and are focusing on companies that could lead the next leg of market performance.
Against this backdrop, a November 19 report by Morgan Stanley, titled “2026 Investment Outlook: U.S. Stocks Shine in Spotlight of Favorable Conditions”, forecasts that U.S. stocks will outperform global stocks, expecting the S&P 500 to gain as high as 14% through 2026. It acknowledges the macroeconomic headwinds that have dominated 2025 but expects a more favorable investment landscape in the near term.
In this context, Morgan Stanley advises investing in stocks, maintaining a neutral stance on fixed income, and underweighting commodities and cash, with a special preference for U.S. assets.
“The triumvirate of fiscal policy, monetary policy and deregulation are all working together in a way that rarely happens outside of a recession,” states Serena Tang, Chief Global Cross-Asset Strategist at Morgan Stanley. “This unusually favorable policy mix allows markets to shift focus from global macro concerns to asset-specific narratives—particularly those related to AI investments.”
The report further suggests that tech-related financing is well-positioned to thrive in credit markets in the coming year. The rise of AI and data infrastructure means “greater financing needs.”
With that context, let’s take a look at the stocks Wall Street analysts are watching closely.
Our methodology
Our list of stocks Wall Street analysts are watching closely is based on the market’s leading companies, which have a strong runway ahead and are favored by hedge fund investors. We began by preparing a list of all such stocks using financial media sources, ETFs, and screeners. From this universe, we selected companies with a market capitalization of over $20 billion and an upside potential of over 20%. We then shortlisted the top 10 companies with the highest upside potential and ranked them in ascending order. We also included data on hedge fund holdings in these companies based on Insider Monkey’s database, as of Q2 2025.
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. Brookfield Corporation (NYSE:BN)
Upside Potential as of November 20, 2025: 21.28%
Number of Hedge Fund Holders: 37
On November 17, Ken Worthington, an analyst at JPMorgan, reaffirmed a ‘Buy’ rating on Brookfield Corporation (NYSE:BN) with a price target of $56, suggesting an upside of around 28%. Similarly, TD Securities’ analyst Cherilyn Radbourne maintained the ‘Buy’ rating on the stock and raised the price target to $59 from $57 on November 14, according to TheFly. While the stock pulled back after reporting Q3 earnings, the analyst noted that the decline was driven by broader market weakness. He also highlighted that Brookfield continued to strengthen its competitive position in artificial intelligence-related renewable infrastructure.
In its Q3 earnings report on November 13, Brookfield Corporation (NYSE:BN) announced a revenue of $1.57 billion, meeting expectations, and an EPS before realizations of $0.56, up from $0.53 in the same quarter last year. Throughout the call, management highlighted its emphasis on growth through 2026 and beyond. The company continues to focus on AI infrastructure and opportunities in the nuclear sector.
Despite some macroeconomic risks and competitive pressures, management remains confident in the company’s ability to deploy capital effectively. CEO of Brookfield Corporation (NYSE:BN), Bruce Flatt, acknowledged the company’s strong strategic positioning, stating,
“Our portfolio is built around inflation-linked durable cash flows backed by hard assets that protect real returns.”
Brookfield Corporation (NYSE:BN) is a Canadian multi-asset manager specializing in real estate, venture capital, and private equity, among others. Founded in 1997, the company is committed to building long-term wealth.
9. AT&T Inc. (NYSE:T)
Upside Potential as of November 20, 2025: 21.47%
Number of Hedge Fund Holders: 83
On November 17, AT&T Inc. (NYSE:T) announced the completion of the deployment of mid-band spectrum purchased from EchoStar across approximately 23,000 cell sites situated in the United States under a short-term spectrum manager lease. What makes this $23 billion transaction so attractive is how it enhances 5G download speeds by up to 80% for mobile users and 55% for AT&T Internet Air customers.
The management believes that the reduced need for capital-intensive construction of additional cell sites will translate to operating efficiencies for the company in the long run. While strengthening the company’s growth strategy for customers benefiting from both home internet and 5G wireless services, the deployment will support what AT&T Inc. (NYSE:T) describes as “the most reliable and largest wireless network in North America,” according to the RootMetrics United States RootScore Report.
Earlier on November 12, KeyBanc Capital Markets lifted the rating on AT&T Inc. (NYSE:T) to Overweight from Sector Weight, citing the recent pullback as an attractive entry point. With the company’s outlook for accelerated growth in mind, the analyst forecasts adjusted EBITDA to increase from ~3% in 2025 to nearly 5% in 2027/2028.
AT&T Inc. (NYSE:T), founded in 1983, is a Texas-based provider of telecommunications and technology services. With two main segments: Communications and Latin America, the company is committed to “connect people to greater possibility.”
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