In this article, we discuss 11 Best Breakout Stocks to Buy According to Analysts.
Stock markets have been on edge in response to the US President’s aggressive trade war that has resulted in trade tariffs aimed at settling the trade deficit. Likewise, stocks remain on edge, with the US president ramping up attacks against the Federal Reserve Chair Jerome Powell raising serious concerns about the central bank’s independence.
Trump has been on Powell’s neck over what he terms as laxity in cutting interest rates at a time when major central banks led by the European Central Bank and Bank of Canada have cut significantly. In posts on his social network Trust Social, Trump has always insisted that the US economy would slow unless Powell, who he has always deemed as “Mr. Too Late, a major loser,” cut rates.
The remarks come against the backdrop of major indices pulling back significantly from record highs as stocks remain under pressure across various sectors. The S&P 500 has already closed on the negative for the 3rd straight month, waiting to see if the selloff will persist. The last time the index closed negative for 4 straight months was in 2011.
While a negative, the sell-off has presented unique investment opportunities as valuations have pulled back significantly from historical highs. Likewise, the pullback has given rise to solid breakout plays as the selloff dust slowly settles. Nearly two-thirds of the S&P 500 stocks have posted first-quarter 2025 results that have topped estimates. Strong quarterly results from some of the big tech giants are helping alleviate concerns about the potential impact of Trump’s tariffs. Likewise, the solid earnings have once again eased concerns that the artificial intelligence progress has slowed amid economic turmoil triggered by the trade war.
“Few stocks are truly immune to Trump tariffs [and] trade war, but AI is a lot less impacted than investors currently believe,” said Jed Ellerbroek, portfolio manager at Argent Capital Management. “We’re early in a very steep growth curve right now, and that goes for AI infrastructure.”
China signaling it is evaluating the possibility of starting trade negotiations with the US is a positive for the markets under pressure. The remarks come at a time when the Trump administration is increasingly targeting quick wins with major trading partners. The prospects of a trade agreement between the US and China should be a catalyst to trigger a significant bounce back after months of deep sell-offs.
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Our Methodology
To compile a list of 11 Best Breakout Stocks to Buy According to Analysts, we analyzed the holdings of the IBD Breakout Opportunities ETF. We then settled on 11 companies backed by solid underlying fundamentals and well poised to breakout, according to analysts, once the sell off dust in the equity markets settles. Finally, we ranked these stocks in ascending order based on analysts’ upside potential (as of May 2).
At Insider Monkey, we are obsessed with 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
11 Best Breakout Stocks to Buy According to Analysts
11. Tarsus Pharmaceuticals, Inc. (NASDAQ:TARS)
Stock Upside Potential as of May 2: 34.45%
Number of Hedge Fund Holders: 32
Tarsus Pharmaceuticals, Inc. (NASDAQ:TARS) is a biopharmaceutical company that develops and commercializes therapeutics, primarily emphasizing eye care. Their lead product, XDEMVY, is an FDA-approved treatment for Demodex blepharitis. It also explores TP-04 for ocular rosacea and TP-05 for Lyme disease and malaria prevention. While the stock is down by about 8% year-to-date, it is one of the best breakout stocks to buy, according to analysts.
Tarsus Pharmaceuticals, Inc.’s (NASDAQ:TARS) long-term prospects hinge on XDEMVY, an eye treatment that is gaining significant traction among Eye Care Professionals (ECPs). Over 11,000 ECPs have prescribed the treatment, affirming broad market adoption and penetration, expected to fuel long-term revenue growth. The treatment option has been the catalyst behind the company’s sales surging by over 900% over the past 12 months.
In the first quarter of 2025, revenues nearly tripled to $78.34 million compared to $27.61 million for the same quarter last year. While the focus has been XDEMVY, Tarsus is also looking to diversify its revenue base with increased emphasis on Meibomian Gland Dysfunction (MGD) treatments.
10. The GEO Group, Inc. (NYSE:GEO)
Stock Upside Potential as of May 2: 42.04%
Number of Hedge Fund Holders: 39
The GEO Group, Inc. (NYSE:GEO) is a protection and Services Company that owns, leases, operates and manages secure facilities, processing centers, and community-based reentry facilities. Likewise, it is one of the best breakout stocks to buy, according to analysts, as it benefits from President Donald Trump’s immigration policies.
As the Trump administration ramps up detentions and deportations of immigrants in the US, Geo Group has emerged as the go-to company. The company is increasingly ramping up millions from the federal government on offering facilities used to hold people before they are deported. Late last year, it committed to investing $70 million in capital expenditures in anticipation of booming business from the federal government.
The GEO Group, Inc. (NYSE:GEO) has signed a 15-year contract with ICE to offer 1,000 beds at its Delaney Hall Facility in New Jersey. The contract is expected to add up to $60 million in annual revenue. It has also signed an 1800-bed facility contract with ICE in Michigan, which is expected to generate up to $70 million in yearly revenue. The wave of Federal contracts underscores why the stock is rated as a Buy at Jones Trading with a $55 price target.
9. CBIZ, Inc. (NYSE:CBZ)
Stock Upside Potential as of May 2: 46.01%
Number of Hedge Fund Holders: 18
CBIZ, Inc. (NYSE:CBZ) is a professional services company that provides businesses and individuals with a wide range of financial and insurance services. It specializes in accounting, tax, advisory, benefits, insurance, and technology solutions, helping clients manage risk, attract talent, and drive growth. The company delivered strong first-quarter 2025 results characterized by earnings and cash flow growth in varying business climates.
CBIZ, Inc. (NYSE:CBZ) recorded a revenue of $838 million, representing a 69.5% year-over-year increase. Net income in the quarter surged to $122.8 million or $1.91 a share compared to $76.9 million or $1.53 a share delivered the same quarter a year ago. The better-than-expected results came even on the economic and geopolitical environment impacting non-recurring service lines.
Nevertheless, CBIZ, Inc. (NYSE:CBZ) remains in a solid position to shrug off the headwinds as the seventh-largest accounting service provider in the US. The acquisition of Marcum LLP last year continues to strengthen the company’s competitive edge as a leading provider of professional services.
8. The Chemours Company (NYSE:CC)
Stock Upside Potential as of May 2: 60.66%
Number of Hedge Fund Holders: 40
The Chemours Company (NYSE:CC) is a basic materials company that provides performance chemicals. It provides refrigerants, thermal management solutions, propellants, foam-blowing agents, and specialty solvents under the Freon and Opteon brand names. While the stock is down by about 26% year-to-date, Truist Securities insists it is a strong buy despite cutting the price target to $22 from $27.
The bullish stance stems from the company delivering impressive financial results affirming underlying growth. The Chemours Company (NYSE:CC) achieved record fourth-quarter revenue of $1.4 billion, driven by a 23% increase in the Opteon Refrigerants unit. In addition, it bounced back to profitability with a net income of $86 million or $0.57 a share compared to a net loss of $238 million or $1.60 per diluted share a year ago.
The Chemours Company (NYSE:CC) is well-positioned to deliver solid financial results in 2025, driven by double-digit growth in Opteon Refrigerants. Consequently, it is on course to deliver adjusted earnings of between $825 million and $975 million, with operating cash flow also expected to improve. It should also continue rewarding income-focused investors, going by its 8.08% dividend yield.
7. Coeur Mining, Inc. (NYSE:CDE)
Stock Upside Potential as of May 2: 61.11%
Number of Hedge Fund Holders: 37
Coeur Mining, Inc. (NYSE:CDE) is a mining company that explores gold, silver, zinc, and other related metals in the US, Canada, and Mexico. Under off-take agreements, it markets and sells its concentrates to third-party customers, including refiners and smelters. According to analysts, it stands out as one of the best breakout stocks to buy, owing to the growing demand for gold and silver, which has resulted in a significant price spike.
Late last year, Coeur Mining, Inc. (NYSE:CDE) inked a deal to acquire SilverCrest Metals in a $1.7 billion all-in-stock acquisition, which is expected to bolster production capabilities and financial performance in 2025. With the acquisition, the company gains access to the high-grade Las Chispas mine in Mexico, which is expected to bolster its gold and silver reserves. In addition, the acquisition should bolster EBITDA estimates by up to $700 million and is expected to contribute about $350 million in free cash flow.
The acquisition comes as Coeur Mining, Inc. (NYSE:CDE) is increasingly close to becoming profitable. The company reduced its net loss by 43.4% to $58.9 million in 2024, down from $103.6 million in 2023, as revenue climbed 28% to $1.05 billion year-over-year. It also generated $85 million in free cash flow in the second half of the year as it also reduced its debt by $80 million.
6. Matrix Service Company (NASDAQ:MTRX)
Stock Upside Potential as of May 2: 64.88%
Number of Hedge Fund Holders: 20
Matrix Service Company (NASDAQ:MTRX) is an Engineering & Construction company that provides engineering, fabrication, construction, and maintenance services to support critical energy infrastructure and industrial markets. Its Storage and Terminal Solutions segment undertakes work related to above-ground crude oil and refined product storage tanks. The company is reaping on its increased focus on large complex projects across the energy and industrial landscape.
Executing a diverse backlog of large multiyear projects is the catalyst behind sustained organic revenue growth. Consequently, revenue in its second quarter fiscal 2025 rose to $187.2 million compared to $175 million a year ago. The increase was attributed to higher volumes in the storage and terminal solution segments.
A backlog of about $1.3 billion as of 2024 underscores Matrix Service Company’s (NASDAQ:MTRX) solid revenue base. Consequently, the company remains in a solid position to achieve its fiscal 2025 revenue guidance of between $850 and $900 million, which would be a significant improvement from revenue of $782.4 million delivered in 2024.
5. Zai Lab Limited (NASDAQ:ZLAB)
Stock Upside Potential as of May 2: 70.85%
Number of Hedge Fund Holders: 26
Zai Lab Limited (NASDAQ:ZLAB) is a biopharmaceutical company that is discovering, developing, and commercializing innovative products for unmet medical needs in areas like oncology, immunology, neuroscience, and infectious diseases. Its lead product includes Zejula for treating ovarian cancer, VYVGART for generalized myasthenia gravis, and NUZYRA for community-acquired bacterial pneumonia. The stock is up by about 25% for the year, outperforming the overall market and emerging as one of the best breakout stocks to buy, according to analysts.
Zai Lab Limited (NASDAQ:ZLAB) has been in fine form, attributed to strong sales growth, financial strength, and significant progress in the development of the Zai Lab pipeline. The VYVGART franchise remains a key value driver, generating $93.6 million in net product revenue last year. Consequently, total product sales increased 49% in 2024 to $397.6 million.
Zai Lab Limited (NASDAQ:ZLAB) has already set its sights on the Chinese market as it looks to unlock new revenue opportunities. The National Medical Products Administration of China is evaluating its application to widen the use of repotrectinib for patients suffering from solid tumors associated with NTRK gene fusion. The push comes on the heels of Zai Lab securing clearance for the KarXT New Drug Application in China.
4. Gogo Inc. (NASDAQ:GOGO)
Stock Upside Potential as of May 2: 71.73%
Number of Hedge Fund Holders: 26
Gogo Inc. (NASDAQ:GOGO) is a communication services company that provides broadband connectivity services to the aviation industry. Its product platform includes networks, antennas, and airborne equipment that allow it to offer in-flight systems, in-flight services, and aviation partner support. While the stock is down by about 5% for the year, Roth MKM maintains a Buy rating with a $13 price target.
Roth MKM’s bullish stance stems from MKM delivering solid financial results that affirm underlying growth. In its fourth quarter of fiscal 2024, revenue was up 41% year over year to $137.8 million, driven by a 47% increase in service revenue. The robust revenue growth came as the company completed the acquisition of Satcom Direct, which created the only multi-orbit, multi-band, in-flight connectivity provider.
Following the acquisition, Gogo Inc. (NASDAQ:GOGO) has inked a multi-faceted memorandum of understanding with Airbus to offer Airbus ACJ operators the highest standard connectivity solutions. The two also join forces to create an industry-leading product portfolio that provides best-in-class solutions for all aircraft types. It also kickstarted a new era of inflight connectivity.
3. Consensus Cloud Solutions, Inc. (NASDAQ:CCSI)
Stock Upside Potential as of May 2: 79.43%
Number of Hedge Fund Holders: 16
Consensus Cloud Solutions, Inc. (NASDAQ:CCSI) is a software infrastructure company that provides digital cloud fax technology and interoperability solutions. It offers eFax Corporate, a digital cloud fax technology; EFax for use by public sector customers with extremely high-security demands. It is one of the best breakout stocks to buy, according to analysts, amid the growing demand for cloud solutions.
Growth in the company’s corporate business unit continues to offset a slowdown in the SoHo Business. While revenue in Q4 2024 was down by about 0.8% to $87.0 million, Consensus Cloud Solutions, Inc. (NASDAQ:CCSI) was still able to post an 8% increase in net income to $18.1 million. The company is increasingly bolstering its financial position, having reduced its outstanding debt by $20.1 million in Q4 2024.
Consensus Cloud Solutions, Inc. (NASDAQ:CCSI) also returned value by repurchasing $0.3 million worth of common stock. It also invested $7.98 million in property and equipment as it looks to unlock new growth opportunities. Analysts at Oppenheimer maintained a Buy rating on the stock with a $32 price target.
2. Century Communities, Inc. (NYSE:CCS)
Stock Upside Potential as of May 2: 88.13%
Number of Hedge Fund Holders: 27
Century Communities, Inc. (NYSE:CCS) is a real estate company that develops, constructs, and sells new homes under the Century Communities and Century Complete brands. In some markets, it also offers ancillary services like title, insurance, and lending. While the stock is down by about 25% year-to-date, Wedbush maintains a Hold rating with an $88 price target.
According to Wedbush, there is no reason why a public builder like Century Communities, Inc. (NYSE:CCS) will trade below 1-time price/tangible book at a time when national home and land prices are rising. Nevertheless, the research firm warns that the company could come under pressure from larger entry-level builders selling for volume over margin.
Nevertheless, Century Communities, Inc. (NYSE:CCS) remains focused on providing high-quality, affordable homes in its push for shareholder value. Consequently, it is in the process of launching Ridge at Twin Rivers, a new residential community in Covington, GA. Sales for the new single-family homes will start at a low of $300 from Midway, with over 100 homes on offer. In addition, it continues to reward investors with a 2.13% dividend yield.
1. Enanta Pharmaceuticals, Inc. (NASDAQ:ENTA)
Stock Upside Potential as of May 2: 138.02%
Number of Hedge Fund Holders: 20
Enanta Pharmaceuticals, Inc. (NASDAQ:ENTA) is a clinical-stage biotechnology company focused on developing small-molecule drugs for viral infections and immunological diseases. Its product pipeline includes EDP-514 for the treatment of hepatitis B virus or HBV; EDP-938 and EDP-323 for the treatment of respiratory syncytial virus; and EDP-235 for the treatment of human coronaviruses and Glecaprevir.
Enanta Pharmaceuticals, Inc. (NASDAQ:ENTA) is up by about 8% for the year, emerging as one of the best breakout stocks to buy, according to analysts, as the overall market remains under pressure. The rally comes at the backdrop of Enanta Pharmaceuticals progress in developing RSV compounds and expanding its immunology portfolio. It has also delivered positive results from its pediatric RSV study.
In addition, the clinical-stage company is advancing and expanding its immunology portfolio while targeting Type 2 immune diseases. Revenue for its fiscal first quarter ended December 31, 2024, totaled $17 million as net loss shrunk to $22.3 million from $33.4 million in the same quarter the previous year.
While we acknowledge the potential of Enanta Pharmaceuticals, Inc. (NASDAQ:ENTA) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ENTA but that trades at less than 5 times its earnings check out our report about this cheapest AI stock.
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