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.
8. Chewy Inc. (NYSE:CHWY)
Chewy Inc. (NYSE:CHWY) is one of the stocks with explosive growth potential. On February 24, Chewy announced the appointment of Chris Deppe as its new Chief Financial Officer. Deppe, who joined the company in 2022, previously served as Vice President of Supply Chain & Operations Finance and most recently headed all Corporate and Commercial Finance functions. His selection followed a rigorous search process involving several external candidates, with CEO Sumit Singh citing Deppe’s deep institutional knowledge, operational rigor, and proven track record in driving profitable growth as key factors in the decision.
Before his tenure at Chewy, Deppe spent over 16 years in senior finance leadership roles at Amazon, focusing on global transportation, international logistics, and fulfillment operations. His extensive background includes leading large-scale cost-optimization and strategic-planning initiatives across complex global networks.
Deppe holds a Bachelor of Science in Chemical Engineering from Colorado State University, along with an MBA and a Master of Science in Finance from Indiana University. Following this appointment, interim Principal Financial Officer Will Billings will transition to the role of Chief Accounting Officer.
Chewy Inc. (NYSE:CHWY), together with its subsidiaries, engages in the e-commerce business in the US. It offers pet food & treats, pet supplies & pet medications, and other pet-health products & services.
7. Summit Therapeutics Inc. (NASDAQ:SMMT)
Summit Therapeutics Inc. (NASDAQ:SMMT) is one of the stocks with explosive growth potential. On February 23, Summit Therapeutics reported results for 2025 with a strong financial foundation, reporting ~$713.4 million in cash and no outstanding debt. While GAAP operating expenses for Q4 reached $225 million, this represented a decrease from the previous quarter. Conversely, non-GAAP operating expenses rose to $113.3 million as the company ramped up investment in its Harmony 3 and Harmony 7 clinical trials.
The company’s focus remains on the development of ivonescimab, supported by a pipeline of 15 Phase 3 trials and over 4,000 enrolled patients globally. A key highlight is the upcoming interim progression-free survival analysis for the Harmony 3 squamous lung cancer cohort, expected in Q2 2026. Summit also expanded its therapeutic reach through high-profile clinical collaborations, including a partnership with GSK to evaluate ivonescimab alongside a novel antibody-drug conjugate and a collaboration with Revolution Medicines to test combinations with RAS inhibitors across various solid tumors.
Despite these advancements, Summit Therapeutics Inc. (NASDAQ:SMMT) faces regulatory hurdles, as the FDA emphasized that statistically significant overall survival data is required for marketing authorization in certain lung cancer indications. Because overall survival data for the Harmony 3 study will remain immature during the upcoming interim PFS readout, there is inherent uncertainty regarding the timeline for regulatory approval.
Summit Therapeutics Inc. (NASDAQ:SMMT) is a biopharmaceutical company that discovers, develops, and commercializes patient, physician, caregiver, and society-friendly medicinal therapies.
6. BridgeBio Pharma Inc. (NASDAQ:BBIO)
BridgeBio Pharma Inc. (NASDAQ:BBIO) is one of the stocks with explosive growth potential. On February 24, BridgeBio Pharma reported a transformative full-year 2025, marked by a surge in total revenue to $502.1 million. This was driven largely by the commercial success of its flagship product, Attruby. In Q4 alone, Attruby generated $146 million in net product revenue, reflecting a 35% increase over Q3. This growth was supported by 7,804 new patient starts and high levels of patient persistence.
The company achieved significant clinical milestones with three positive Phase 3 readouts in late 2025: Encaleret for ADH1, BBP-418 for LGMD2I, and Infigratinib for achondroplasia. These successes position BridgeBio to transition from a single-product company to one with potentially six approved medicines by the end of its first decade. NDAs for both Encaleret and BBP-418 are expected in H1 2026, with US launches targeted for late 2026 or early 2027.
Management highlighted that Attruby’s near-complete stabilization of transthyretin serves as a key clinical differentiator that should protect its market share even as potential generic competitors for tafamidis emerge. While the net loss for the year widened to $724.9 million, BridgeBio Pharma Inc. (NASDAQ:BBIO) expects cash burn to stabilize and eventually decrease as Attruby’s margins expand and new products enter the market.
BridgeBio Pharma Inc. (NASDAQ:BBIO) is a biopharmaceutical company that discovers, develops, and delivers medicines for patients with genetic diseases.
5. IonQ Inc. (NYSE:IONQ)
IonQ Inc. (NYSE:IONQ) is one of the stocks with explosive growth potential. On February 25, IonQ reported a historic 2025, becoming the first quantum computing company to surpass $100 million in annual GAAP revenue. The company delivered $130 million for the full year, which was a 202% year-over-year increase, and significantly beat its own guidance. This growth was fueled by strong commercial traction, with 60% of revenue coming from commercial customers and 30% from international markets.
A major shift was IonQ’s evolution into a full-stack quantum platform. Beyond its core computing business, the company expanded into quantum networking, sensing, and security. A cornerstone of this strategy is the announced agreement to acquire SkyWater Technology, a leading US quantum foundry. This move is intended to secure IonQ Inc.’s (NYSE:IONQ) supply chain and establish it as a primary merchant supplier for the US quantum industry, ensuring that its semiconductor-based manufacturing remains onshore and geopolitically trusted.
Technically, IonQ claimed a world-record 99.99% two-qubit gate fidelity, which management asserts provides a 1,000x to 10,000x speed advantage over competing superconducting systems for specific algorithms. For 2026, the company issued revenue guidance of $225 to $245 million. The roadmap includes the deployment of a sixth-generation, 256-qubit system by late 2026.
IonQ Inc. (NYSE:IONQ) develops quantum computing systems in the US, Switzerland, and internationally. It sells access to quantum computers of various qubit capacities.
4. Samsara Inc. (NYSE:IOT)
Samsara Inc. (NYSE:IOT) is one of the stocks with explosive growth potential. On February 26, Samsara announced the launch of its latest-generation Asset Tag and the all-new, ultra-compact Asset Tag XS, designed to track high-value equipment of all sizes. These ruggedized devices are engineered for extreme environments, with the standard Asset Tag offering a six-year battery life and the smaller XS model providing three years of power for handheld tools and specialized gear.
To support these devices, Samsara Inc. (NYSE:IOT) doubled the density of its industrial Bluetooth network over the past two years, ensuring coverage across 99% of major US roads. The company enhanced its tracking capabilities by integrating Hubble’s terrestrial network of 90 million consumer smartphones, allowing for visibility even inside buildings where traditional signals might fail.
This connectivity powers a new AI-driven theft and loss workflow that helps managers identify at-risk equipment. Features like “Left Behind” notifications alert users in real time when an asset is separated from its designated vehicle, while “Compass Mode” allows recovery teams to pinpoint the exact location of a missing item during a search. This launch coincides with new research from Samsara which highlights the financial impact of equipment loss, with the average unprotected organization losing over $13 million annually. Small assets account for over 70% of these costs and frequently cause operational delays.
Samsara Inc. (NYSE:IOT) provides solutions to connect physical operations data to its connected operations platform in the US and internationally.
3. Flutter Entertainment (NYSE:FLUT)
Flutter Entertainment (NYSE:FLUT) is one of the stocks with explosive growth potential. On February 26, Flutter Entertainment reported strong top-line momentum for Q4 2025, with group revenue increasing 25% and adjusted EBITDA rising 27%. The company’s US division, anchored by FanDuel, remained a primary growth engine, posting a 33% increase in revenue and 90% in adjusted EBITDA. This was supported by a 35% jump in sportsbook revenue and a 33% gain in iGaming. Internationally, revenue grew by 19%, supported by acquisitions in high-growth markets like Brazil and Italy.
However, net income for the quarter fell sharply to $10 million from $156 million in the prior year, primarily due to higher interest costs and tax expenses. The company also noted a divergence in sportsbook trends; while gross revenue margins were high, the betting “handle” (total volume) moderated. Management attributed this to a less compelling NFL season and favorable sports results that impacted customer sentiment.
For 2026, Flutter Entertainment (NYSE:FLUT) issued a positive outlook with US revenue projected at $7.8 billion and international revenue at $10.6 billion. The company is leaning into new opportunities, such as the launch of “FanDuel Predicts” in 18 states to capture the emerging prediction markets sector.
Flutter Entertainment (NYSE:FLUT) operates as a sports betting and gaming company in the US, the UK, Ireland, Australia, Italy, and internationally.
2. Zscaler Inc. (NASDAQ:ZS)
Zscaler Inc. (NASDAQ:ZS) is one of the stocks with explosive growth potential. On February 26, Zscaler reported FQ2 2026 financial results, with revenue reaching $816 million, a 26% year-over-year increase that exceeded market expectations. The company’s ARR grew 25% to $3.4 billion, driven by momentum in large-scale enterprise deals. Notably, the number of customers contributing over $1 million in ARR rose 18% year-over-year, while the Americas region remained the primary growth engine, accounting for 57% of total revenue.
The company is heavily positioning itself as a leader in the AI security space, having processed nearly 1 trillion AI transactions in 2025. CEO Jay Chaudhry highlighted the launch of ‘AI Protect,’ which is a solution designed to manage shadow AI and prevent data leaks or prompt-injection attacks. Zscaler is also shifting its business model toward metered, non-seat-based usage, which now accounts for over a quarter of new annual contract value.
This shift is supported by the Z-Flex program, which allows large enterprises to swap or activate security modules without new procurement cycles, generating over $290 million in contract value this quarter alone. Strategic acquisitions continue to expand Zscaler Inc.’s (NASDAQ:ZS) platform, including the recent purchase of SquareX to secure unmanaged devices via browser extensions and the integration of Red Canary to support agentic security operations.
Zscaler Inc. (NASDAQ:ZS) operates as a cloud security company worldwide. The company offers cyberthreat protection products, including Zscaler Internet Access, Zscaler Private Access solution, Zero Trust Firewall, Cloud Sandbox, and Zero Trust Browser.
1. Heico Corporation (NYSE:HEI)
Heico Corporation (NYSE:HEI) is one of the stocks with explosive growth potential. On February 25, Heico Corporation reported results for FQ1 2026, with consolidated net income rising 13% to $190.2 million and net sales increasing 14% to $1.2 billion. This growth was led by the Flight Support Group, which saw a 15% revenue increase and expansion of operating margins to 24.5% due to strong organic demand and successful acquisitions.
While the Electronic Technologies Group also reported a 12% increase in sales, its operating margin dipped to 19.8% due to an unfavorable product mix and lower shipments in the space sector, which management characterized as a temporary fluctuation expected to normalize by H2 year.
The company remains highly active in the M&A market, recently completing the acquisitions of Rockmart Fuel Containment and EthosEnergy Accessories, the latter of which positions Heico to capitalize on rising power demand driven by AI and data centers. Additionally, Heico Corporation (NYSE:HEI) announced a pending agreement to acquire 80% of a commercial aviation and defense service provider, expected to close in FQ2.
Heico Corporation (NYSE:HEI) provides aerospace, defense, and electronics-related products and services in the US and internationally.
While we acknowledge the potential of HEI 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 HEI and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 40 Most Popular Stocks Among Hedge Funds Heading Into 2026 and 10 Best Stocks for Beginners with Little Money in 2026.
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