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.”
8. Apollo Global Management, Inc. (NYSE:APO)
Upside Potential as of November 20, 2025: 21.49%
Number of Hedge Fund Holders: 86
On November 20, Morgan Stanley raised the price target on Apollo Global Management, Inc. (NYSE:APO) to $180.00 from $151.00 and upgraded the stock from Equalweight to Overweight. The firm is confident about the company’s ability to achieve over 20% fee-related earnings growth, highlighting the role of spread-related earnings growth.
Earlier on November 5, Goldman Sachs increased the price target on Apollo Global Management, Inc. (NYSE:APO) to $155.00 from $151.00, with an unchanged ‘Buy’ rating on the stock. This revision, reflecting a potential upside of nearly 23%, highlights the company’s differentiated origination capabilities and leading position in origination capabilities, as the bank notes.
Goldman Sachs noted that Apollo Global Management, Inc. (NYSE:APO) posted over 20% growth in fee-related earnings (FRE) for 2026 and delivered a better-than-expected guidance for 2026 spread-related earnings (SRE). Additionally, the firm updated its EPS forecasts around 4% higher on average for 2026/2027, thanks to a strong fundraising outlook.
Apollo Global Management, Inc. (NYSE:APO) is a New York-based private equity firm offering private equity, infrastructure, credit, secondaries, and real estate investments. Founded in 1990, the company is committed to delivering exceptional investment performance.
7. The Cigna Group (NYSE:CI)
Upside Potential as of November 20, 2025: 27.60%
Number of Hedge Fund Holders: 80
On November 12, Lance Wilkes, an analyst at Bernstein, trimmed the price target on The Cigna Group (NYSE:CI) to $294 from $346, while maintaining a ‘Market Perform’ rating on the stock. The firm believes the company’s new pharmacy benefit manager (PBM) model is “more sustainable,” but stated it was “not expecting valuation rerating yet” as the company’s third-quarter earnings report was released.
In the third quarter, The Cigna Group (NYSE:CI) delivered revenue of $69.7 billion, representing a 10% increase from the third quarter of 2024, and adjusted earnings of $7.83 per share, compared to $7.51 per share in the same quarter last year. What’s even more interesting is that the company delivered these results while continuing to invest in driving growth and innovation, management highlighted.
As stated by the CEO, David Cordani,
“And pharmacy benefit managers and the industry as a whole have played a key role in contributing to these lower costs by leveraging a competitive environment for clinically equivalent drugs.”
In early November, several analysts adjusted their outlook on The Cigna Group (NYSE:CI). On November 4, an analyst at TD Cowen reduced the price target on CI to $333 from $387, but reaffirmed the ‘Buy’ rating on the stock. On that same day, JPMorgan reiterated an ‘Overweight’ rating as it revised the price target to $375 from $428.
The Cigna Group (NYSE:CI) is a Connecticut-based provider of insurance and related products and services through its subsidiaries. Founded in 1792, the company operates through Evernorth Health Services and Cigna Healthcare segments.
6. Alibaba Group Holding Limited (NYSE:BABA)
Upside Potential as of November 20, 2025: 30.67%
Number of Hedge Fund Holders: 101
On November 19, Wei Fang, an analyst at Mizuho Securities, reaffirmed the ‘Outperform’ rating on Alibaba Group Holding Limited (NYSE:BABA) with an unchanged price target of $195. Earlier on October 22, Fang had raised the price target on the stock to $195 from $159, while maintaining an ‘Outperform’ rating. In this update, he had highlighted his expectation that higher incentives would lead to stronger delivery order growth in the summer quarter. Moreover, he noted that the company’s AI-driven offerings should help it gain market share in the banking sector.
Similarly, on November 17, the company received a ‘Buy’ rating with a $218 price target from Citi.
On November 17, Alibaba Group Holding Limited (NYSE:BABA) initiated an update to its AI chatbot. This move positions the company well in the consumer artificial intelligence market after trailing its competitors. The app is built on an advanced version of its Qwen large language model.
For now, this free app is available in China as a mobile application and website, with an international launch on the way. As the company states,
“With a single command, it can generate a full research report and automatically produce a polished, multi-slide PowerPoint presentation in seconds.”
Alibaba Group Holding Limited (NYSE:BABA) is a Hong Kong-based provider of technology infrastructure and marketing reach. Founded in 1999, the company operates several businesses, including Taobao and Tmall, 1688.com, AliExpress, and Daraz.
5. Capital One Financial Corporation (NYSE:COF)
Upside Potential as of November 20, 2025: 31.05%
Number of Hedge Fund Holders: 132
On November 20, UBS maintained its Buy rating on Capital One Financial Corporation (NYSE:COF) and a price target of $270. While utilising its HOLT framework, the bank finds that the market appears to be pricing in almost no improvement in the company’s cash flow ROE following its acquisition of Discover Financial Services, which could possibly result in synergies.
Earlier on November 18, BofA analyst Mihir Bhatia also reaffirmed a Buy rating on the stock with a price target of $248. Although the analyst acknowledged volatility in credit metrics, he believes that the company’s credit performance is stable and broadly in line with his expectations, which supports his positive view.
Capital One Financial Corporation’s (NYSE:COF) positive outlook was further supported by an analyst at Wolfe Research, who raised the price target on Capital One Financial Corporation (NYSE:COF) to $262 from $260, with an ‘Outperform’ rating, on October 22.
Capital One Financial Corporation (NYSE:COF) is a Virginia-based financial services holding company providing financial products and services. Founded in 1988, the company operates through three segments: Credit Card, Consumer Banking, and Commercial Banking.
4. UnitedHealth Group Incorporated (NYSE:UNH)
Upside Potential as of November 20, 2025: 31.76%
Number of Hedge Fund Holders: 159
On November 11, Wells Fargo analyst Stephen Baxter reaffirmed a Buy rating on UnitedHealth with a price target of $400. Earlier on November 3, a Barclays analyst had also maintained his Buy rating and a $386 price target. Analysts’ opinion on the stock is currently tilting towards the positive, with the consensus 1-year median price target of $410 implying a 28% potential upside.
On the business side, on November 18, UnitedHealth Group Incorporated (NYSE:UNH) announced the addition of ex-commissioner of the U.S. Food and Drug Administration, Scott Gottlieb, to its board, effective immediately.
Having previously served as the FDA chief from 2017 to 2019 and later at U.S. drugmaker Pfizer, Gottlieb is widely recognized by public health advocates for his efforts in reducing flavored e-cigarette use among youths. He has also played a pivotal role in intensifying competition through speedy approvals.
“I hope to leverage my experience to support providers in their delivery of care that’s not only more innovative but also more affordable, and that improves outcomes for patients and communities,” he said.
UnitedHealth Group Incorporated (NYSE:UNH) is a Minnesota-based healthcare company operating through four segments: UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx. Founded in 1974, the company is committed to improving the healthcare system.
3. KKR & Co. Inc. (NYSE:KKR)
Upside Potential as of November 20, 2025: 35.04%
Number of Hedge Fund Holders: 84
On November 10, TD Cowen reaffirmed the ‘Buy’ rating on KKR & Co. Inc. (NYSE:KKR), while trimming the price target to $146 from $153, implying an upside of nearly 21%. This downward revision of the price target stems from near-term macroeconomic challenges, though the long-term picture remains positive.
The firm is confident about the company’s insurance business, highlighting management’s guidance for ROE to reach 15% through 2028 and FRE per share of at least $4.50.
“As we continue to rotate the book, we would expect the difference between our reported earnings and the earnings on a marked basis to go up in 2026 but come down over time as the portfolio matures,” the management stated.
TD Cowen describes the company’s third-quarter results and conference call as a “clearing event” for the stock. During the call’s question-and-answer session, KKR & Co. Inc. (NYSE:KKR) increased its realization projection to $1 billion from $800 million. Throughout the call, management highlighted the record-breaking management fees, fee-related earnings, and adjusted net income over the last 12 months.
While KKR & Co. Inc.’s (NYSE:KKR) stock performance has been disappointing year-to-date (down over 20%), it currently enjoys a strong Buy opinion from analysts, with a consensus 1-year median price target still indicating a potential upside of 30%.
KKR & Co. Inc. (NYSE:KKR) is a New York-based private equity and real estate investment firm engaging in direct and fund-of-fund investments. Founded in 1976, the company is dedicated to generating strong investment returns.
2. United Airlines Holdings, Inc. (NASDAQ:UAL)
Upside Potential as of November 20, 2025: 38.81%
Number of Hedge Fund Holders: 73
On November 20, David Vernon, an analyst at Bernstein, reaffirmed the ‘Buy’ rating on United Airlines Holdings, Inc. (NASDAQ:UAL) with a price target of $123, suggesting an upside of nearly 36%. Earlier, on November 12, the company witnessed an upgrade from Moody’s Ratings. While the corporate family rating (CFR) for the company was increased to Ba1 from Ba2, the backed senior secured rating was raised to Baa3 from Ba1. Not only that, the company’s 18 tranches of Enhanced Equipment Trust Certificates were elevated, with the remaining two holding steady.
The rating agency highlighted the company’s improved operating performance across all of its revenue sources, particularly in premium cabin, basic economy, loyalty, and cargo services. According to Moody’s, United Airlines Holdings, Inc. (NASDAQ:UAL) is in a good position to surpass $63 billion in revenue in 2026, with operating profit to be at least $5.5 billion.
Even with heavier capex lined up for the next year, the agency forecasts free cash flow to be over $1.5 billion. As long as United Airlines Holdings, Inc. (NASDAQ:UAL) effectively shifts its capital structure to unsecured debt, with debt/EBITDA reaching 2.5x, the rating could be uplifted even further, Moody’s Ratings says.
United Airlines Holdings, Inc. (NASDAQ:UAL) is an Illinois-based provider of air transportation services through its subsidiaries. Founded in 1968, the company also engages in ground handling, flight academy, and maintenance services for external parties.
1. Meta Platforms, Inc. (NASDAQ:META)
Upside Potential as of November 20, 2025: 44.28%
Number of Hedge Fund Holders: 260
On November 19, Reuters reported that a federal judge had ruled in favor of Meta Platforms, Inc. (NASDAQ:META) against the Federal Trade Commission’s (FTC) charges that the company holds a monopoly in social networking. In the antitrust case, the FTC argued that Meta has been using its deep pockets to suppress competition by purchasing competitors and that Meta should restructure or sell Instagram and WhatsApp to restore competition.
This win is seen as a substantial positive for the mega-cap technology companies, like Amazon, which are facing other FTC cases. While FTC spokesperson Joe Simonson said that they are disappointed by the ruling, a Meta spokesperson said:
“Our products are beneficial for people and businesses and exemplify American innovation and economic growth. We look forward to continuing to partner with the Administration and to invest in America.”
On the same day, Cantor Fitzgerald trimmed the price target on Meta Platforms, Inc. (NASDAQ:META) to $720 from $830, maintaining an ‘Overweight’ rating. Earlier on November 10, Saken Ismailov, an analyst at Freedom Capital, upgraded the stock to ‘Buy’ from ‘Hold,’ with a price target of $800.
Meta Platforms, Inc. (NASDAQ:META) is a California-based company that develops products enabling people to share and connect across various devices. Founded in 2004, the company operates through two segments: Family of Apps and Reality Labs.
While we acknowledge the potential of META 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 META and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.
Disclosure: None.
