On July 1, Ralph Schlosstein, Evercore’s chairman emeritus and BlackRock’s co-founder, joined ‘Closing Bell Overtime’ on CNBC to talk about his outlook for markets heading into the second half of the year. Schlosstein explained that it’s impossible to say that tariffs are entirely behind us, as the path of the president’s tariff discussions and the reactions of trading partners remain uncertain. However, he expressed cautious optimism and noted a strong desire from both the US government and its negotiating counterparts to reach the least disruptive settlement possible. While he acknowledged that there might be some mini tantrums, he overall expects no major disruptions from tariffs in H2.

Schlosstein also stated that while predicting future economic statistics with certainty is impossible, the trend for inflation appears positive and lays a strong foundation for a September rate cut. He also observed a slight loosening in the labor markets, which would support a downward move in interest rates. He concluded that the next directional change in Fed interest rates would be downward. The only remaining question was the number of cuts this year. Schlosstein expected two, and if not two, then three rather than just one. This is because he believes that there was sufficient room in both inflation and employment statistics to gradually move the Fed funds rate back towards a neutral level.

That being said, 11 best hot stocks to buy according to Wall Street analysts.

Methodology

We sifted through different stock screeners to compile a list of the hot stocks with the highest gains over the past 1 month (over 15%). We then selected the top 11 stocks with an upside potential of over 25% as of July 3. The stocks are ranked in ascending order of their upside potential. We have also added the hedge fund sentiment for each stock, as of Q1 2025, which was sourced from Insider Monkey’s database.

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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

11 Best Hot Stocks to Buy According to Wall Street Analysts

11. POSCO Holdings Inc. (NYSE:PKX)

Gain Over the Past 1 Month: 25.58%

Number of Hedge Fund Holders: 12

Average Upside Potential as of July 3: 20.24%

POSCO Holdings Inc. (NYSE:PKX) is one of the best hot stocks to buy according to Wall Street analysts. On July 1, POSCO Holdings announced its agreement to construct a pilot lithium processing plant in the US. This is a collaboration with Australia’s Anson Resources and aims to support POSCO’s EV battery raw materials supply chain while reducing its reliance on Chinese suppliers.

This is in response to new import restrictions imposed by the Trump administration in the US. The two companies have formalized their partnership through an MoU. The new pilot plant is slated for construction next year in Green River City, Utah. Its primary purpose will be to evaluate the commercial viability of POSCO’s proprietary Direct Lithium Extraction/DLE technology for large-scale production.

POSCO has been developing this innovative technology since 2016, and it extracts lithium from large and low-concentration brine lakes without solely relying on natural evaporation. Anson Resources possesses the mining rights for the lithium brine site in Utah, where the plant will be located. This venture will be the first time a South Korean company directly produces lithium in North America. Unlike some domestic competitors, POSCO is engaging in direct production.

POSCO Holdings Inc. (NYSE:PKX) is an integrated steel producer in Korea and internationally.

10. Summit Therapeutics Inc. (NASDAQ:SMMT)

Gain Over the Past 1 Month: 25.51%

Number of Hedge Fund Holders: 20

Average Upside Potential as of July 3: 42.57%

Summit Therapeutics Inc. (NASDAQ:SMMT) is one of the best hot stocks to buy according to Wall Street analysts. On July 3, Bloomberg News reported that AstraZeneca (NASDAQ:AZN) is in discussions with Summit Therapeutics for a licensing agreement concerning an experimental lung cancer drug, with a potential value of up to $15 billion.

The proposed deal for the drug, which is known as ivonescimab, could involve an upfront payment of several billion dollars to Summit, in addition to future milestone payments. However, the talks are ongoing and could still fall apart. Summit might even choose to partner with a different company. Neither Summit nor AstraZeneca has officially commented on the report.

Summit Therapeutics secured the rights to ivonescimab through a separate deal worth up to $5 billion with China-based Akeso in December 2022. Under that agreement, Summit gained exclusive rights to develop and commercialize ivonescimab in the US, Canada, Europe, and Japan, while Akeso (OTC:AKESF) retained rights for other regions, including China. The deal included an upfront payment of $500 million to Akeso and potential regulatory and commercial milestones of up to $4.5 billion.

Summit Therapeutics Inc. (NASDAQ:SMMT) is a biopharmaceutical company that discovers, develops, and commercializes patient, physician, caregiver, and societal-friendly medicinal therapies. AstraZeneca (NASDAQ:AZN) is a biopharmaceutical company that discovers, develops, manufactures, and commercializes prescription medicines.