On February 26, Darren Sissons, partner and portfolio manager at Campbell, Lee & Ross Investment Management, appeared on BNN Bloomberg to share his outlook on Global and Technology Stocks. Regarding the broader tech sector, Sissons noted a wholesale sell-off of enterprise software that led to what he called ridiculous valuations for some stocks.
Expressing caution regarding the AI build-up, he argued that the ability to build software does not automatically equate to a successful and scalable business. He identified medtech as an interesting area following its sell-off in 2025, further stating his view that the current midterm election year could be a positive influence on growth.
A day earlier, Philip Petursson, chief investment strategist at IG Wealth Management, joined BNN Bloomberg to discuss the markets ahead of bank earnings. Moving to the broader North American markets, Petursson observed a shift from the tech-heavy dominance of 2025 and expensive tech names toward asset-heavy sectors. Such a rotation is seen as a sign of a healthier market, as capital moves from overvalued stocks into cheaper ones.
That being said, we’re here with a list of the 10 stocks with explosive growth potential.
Our Methodology
We used screeners to identify stocks with an average upside potential of at least 50%, and limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.
Note: All data was sourced on March 2.
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 Stocks With Explosive Growth Potential
10. Madrigal Pharmaceuticals Inc. (NASDAQ:MDGL)
Madrigal Pharmaceuticals Inc. (NASDAQ:MDGL) is one of the stocks with explosive growth potential. On February 19, Madrigal Pharmaceuticals announced the earnings report for 2025, which was driven by the successful launch of Rezdiffra, the first approved treatment for MASH. Full-year net sales reached $958.4 million, with Q4 revenue alone hitting $321.1 million, more than tripling the previous year’s quarterly results. By the end of 2025, the patient base on Rezdiffra grew to over 36,250, up from ~29,500 in Q3.
The company significantly evolved from a single-product entity into a diversified biopharmaceutical leader with a pipeline of more than 10 programs. Key strategic expansions include licensing an oral GLP-1 receptor agonist, a Phase 2 oral DGAT-2 inhibitor called ervogastat, and six preclinical siRNA programs. These assets are intended to create combination therapies anchored by Rezdiffra to address various patient subtypes and genetic drivers of MASH. Additionally, Madrigal secured long-term market exclusivity for Rezdiffra through a patent extension lasting until 2045 and initiated its international rollout with a launch in Germany.
Looking toward 2026, Madrigal Pharmaceuticals Inc. (NASDAQ:MDGL) expects continued double-digit growth in the MASH market despite rising gross-to-net impacts, which are projected to reach the high 30% range. While the international contribution remained negligible in 2025, the US market remains the primary growth engine with broad first-line insurance access and steady patient starts. The company is also focused on clinical milestones, particularly the MAESTRO-NASH outcomes trial in cirrhosis patients, which is on track to deliver data in 2027.
Madrigal Pharmaceuticals Inc. (NASDAQ:MDGL) is a biopharmaceutical company that delivers novel therapeutics for metabolic dysfunction-associated steatohepatitis/MASH in the US.
9. Equitable Holdings Inc. (NYSE:EQH)
Equitable Holdings Inc. (NYSE:EQH) is one of the stocks with explosive growth potential. On February 5, Equitable Holdings reported full-year 2025 financial results highlighted by record assets under management and administration, which reached $1.1 trillion, a 10% increase year-over-year. The company generated $1.6 billion in organic cash during the year and expects this figure to rise to ~$1.8 billion in 2026.
The firm’s growth was underscored by momentum in its Wealth Management segment, which achieved its $200 million annual earnings target two years ahead of schedule. Wealth Management saw $8.4 billion in net inflows for the year, representing a 13% organic growth rate, while the Retirement segment contributed $5.9 billion in net flows. Additionally, Equitable Holdings Inc. (NYSE:EQH) completed a major life reinsurance transaction with RGA, which created $2 billion in capital and reduced the company’s net mortality exposure by 75%.
However, the company faced challenges like elevated mortality claims that limited annual operating earnings growth to 1% over 2024. AllianceBernstein recorded net outflows of $11.3 billion, partly due to low-fee outflows associated with the RGA transaction. Equitable Holdings now remains focused on closing the valuation gap between its integrated business model and its subsidiary, AllianceBernstein, while targeting continued double-digit growth in its core retirement and wealth sectors.
Equitable Holdings Inc. (NYSE:EQH), together with its consolidated subsidiaries, operates as a diversified financial services company worldwide. It has six segments: Individual Retirement, Group Retirement, Asset Management, Protection Solutions, Wealth Management, and Legacy.
