In this piece, we discuss the 10 Under-the-Radar Stocks with Massive Upside for 2026.

The earnings season, which carried equities to record highs, is largely over. Instead, the considerably less friendly macro environment is now taking center stage.

As of May 22, 2026, the S&P 500 stood close to its all-time high, up more than 9% for the year after eight consecutive weekly gains, per Reuters. But the backdrop is shifting fast.

The benchmark 10-year Treasury yield hit its highest level since January 2025 that same week, while the 30-year yield briefly touched its highest since 2007, Reuters reported. Inflation concerns are driving that move, compounded by energy price spikes tied to the U.S.-Israel conflict with Iran, which has effectively shut the Strait of Hormuz, a waterway that previously handled about one-fifth of global oil and LNG shipments.

Futures markets, which at the start of 2026 were pricing in rate cuts, are now fully pricing in a 25-basis-point Federal Reserve rate hike by January 2027, per Reuters on May 25, 2026. U.S. consumer sentiment fell to a record low in May as surging gasoline prices deepened affordability concerns.

In that environment, stock selection matters more than ever. Therefore, we will dive into our list of under-the-radar stocks with massive upside for 2026.

Our Methodology

To curate our list for this article, we screened for stocks with a market capitalization of over $2 billion and upside potential of at least 50%. Next, we considered hedge fund ownership of these stocks, selecting those with relatively fewer hedge fund holders than their industry peers, indicating they are under the radar. For hedge fund data, we relied on Insider Monkey’s hedge fund database, which tracks over 1,000 hedge funds as of Q4 2025.

Our list is presented in ascending order by each stock’s upside potential. Furthermore, our final selection is limited to stocks with noteworthy recent developments.

Note: All data sourced on May 26, 2026.

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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).

10. CRISPR Therapeutics AG (NASDAQ:CRSP)

With an analyst consensus upside of 52.3%, CRISPR Therapeutics AG (NASDAQ:CRSP) ranks among the under-the-radar stocks with massive upside for 2026.

As CASGEVY reinforced confidence in the company’s long-term growth outlook, CRISPR Therapeutics AG (NASDAQ:CRSP) received fresh support from Wall Street.

On May 13, 2026, Bernstein raised its price target on CRISPR Therapeutics AG (NASDAQ:CRSP) to $56 from $50 while keeping a “Market Perform” rating. The firm pointed to a strong start for biotech in 2026, with the sector up 11% year-to-date and outperforming both pharma and the S&P 500. Bernstein maintained a positive view on the space, citing expectations for healthy M&A and IPO activity and characterizing recent FDA leadership changes as a tailwind, particularly for less mature companies.

That update followed Q1 2026 results reported on May 4, 2026.

CASGEVY, the company’s approved gene-editing therapy for sickle cell disease and transfusion-dependent beta thalassemia (TDT), generated $43 million in revenue during the quarter, with more than 500 patients having initiated treatment worldwide. Net loss narrowed to $122.9 million, or $1.28 per share, from $136.0 million a year earlier. R&D expenses came in at $68.6 million and G&A at $17.2 million, both lower than the prior-year period.

Cash, cash equivalents, and marketable securities strengthened to $2.44 billion as of March 31, 2026, up from $1.98 billion at year-end 2025, driven largely by $585.4 million in net proceeds from convertible senior notes issued in March. CEO Samarth Kulkarni said 2026 “will be a defining year” for CRISPR Therapeutics AG (NASDAQ:CRSP), citing pipeline milestones ahead.

Meanwhile, on May 5, 2026, BofA trimmed its price target to $83 from $86 but kept a “Buy” rating, saying the Q1 updates left its core thesis largely unchanged.

Overall, 14 out of 26 covering analysts hold bullish views on CRISPR Therapeutics AG (NASDAQ:CRSP).

CRISPR Therapeutics AG (NASDAQ:CRSP) develops gene-editing therapies for serious diseases using its CRISPR/Cas9 platform technology.

9. Karman Holdings Inc. (NYSE:KRMN)

Karman Holdings Inc. (NYSE:KRMN), with upside potential of 66.9%, ranks among the under-the-radar stocks with massive upside for 2026.

While Karman Holdings Inc. (NYSE:KRMN) closed a major acquisition and hit record revenue, analysts view the stock as one of the better-positioned players in the defense and space market.

On May 20, 2026, KeyBanc cut its price target on Karman Holdings Inc. (NYSE:KRMN) to $100 from $122 while keeping an “Overweight” rating. Analyst Michael Leshock said the reduction reflects incrementally higher near-term investments and integration costs following Q1 results, though the firm’s long-term thesis remains intact.

“We believe KRMN is well-positioned to capitalize on the replenishment of missile inventories, growing investment in commercial/gov’t space programs, a strong A&D backdrop, and potential M&A opportunities,” Leshock said.

A day earlier, on May 19, 2026, Piper Sandler analyst Clarke Jeffries also trimmed the firm’s price target to $114 from $127, keeping an “Overweight” rating. Jeffries noted results were solid following the closeout of the Seemann and MSC deal, with the newly added Maritime Defense segment contributing 17% of revenue in the quarter. Piper continues to see Karman Holdings Inc. (NYSE:KRMN) as well-positioned for both domestic and international munitions replenishment and for emerging categories, including hypersonics, space, and launch, with back-half contracts expected to flow into fiscal 2027 numbers and beyond.

Those analyst updates followed Q1 2026 results reported on May 12, 2026. Revenue came in at $151.2 million, up 51% year-over-year, with net income of $7.8 million, improving sharply from a $4.8 million loss a year earlier. Gross margin improved to 42.2%, and backlog reached a record $1.0 billion. For full-year 2026, Karman Holdings Inc. (NYSE:KRMN) guided for revenue of $720 to $735 million and adjusted EBITDA of $208.5 to $219.5 million.

The Seemann and MSC acquisition, closed on February 3, 2026, added the Maritime Defense Systems end market. Karman expects to complete integration by the end of 2026. Seemann Composites and MSC are leaders in specialty maritime defense technologies.

Karman Holdings Inc. (NYSE:KRMN) is an aerospace & defense company that deals in mission-critical systems in the U.S. The company supplies products for hypersonic systems, strategic missile defense, tactical & integrated defense, and space & launch markets.