Our list highlights the best stocks you’ll wish you bought sooner.
Markets often reward those investors who spot inflection points before they become widely known. As the market looks beyond some of the larger names that have dominated the performance scene, a new set of opportunities may emerge in stocks with an attractive combination of improving fundamentals and undervalued potential. These are the types of names that, in hindsight, investors often say they “wish they had bought sooner.”
Morgan Stanley’s latest outlook underpins this thought. The bank remained bullish on the markets and raised its 12-month S&P 500 target to 7,800 on November 17. As per Mike Wilson, Chief U.S. Equity Strategist and CIO at Morgan Stanley, this revision was driven by a sharp reversal in previously negative policy and earnings expectations.
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Wilson noted that recent policy actions have been more constructive than anticipated. In addition, a more supportive Federal Reserve stance is now acting as a tailwind, reinforcing the positive earnings revision cycle. He further stated:
“There’s a fork in the road now, as Yogi Berra would say, take it. We’re going to take the fork towards the broadening out. And that would be areas like consumer discretionary, some of the financials that have not performed. Some of the financials have done really well. But there are parts of the financial sector that haven’t done well. Transports, that’s an area that’s really suffered. Some of the commodity patch hasn’t done particularly well; consumer goods over services. So, there are plenty of things in the market that have not worked yet, that don’t have high multiples, where the earnings are going to surprise on the upside. You get multiple expansion and earnings growth.”
That said, big tech is expected to continue posting stronger returns, according to Dan Ives, Global Head of Technology Research at Wedbush. As discussed on CNBC on December 2, Ives forecasts around 20% returns for the tech sector in 2026, with the so-called AI-revolution stocks to be up a minimum of 20%. According to him, we are at the beginning of the monetization of the AI revolution.
With that background, let us explore the 11 best stocks you’ll wish you bought sooner. Our selection focuses on companies that hold strong competitive positions, post consistent returns, and have exposure to long-term structural trends.
Our Methodology
To identify the best stocks for this article, we began by screening U.S.-listed companies with a market capitalization of over $2 billion and total returns of at least 50% over the past three years. From this universe, we narrowed the list to companies with a five-year average return on equity above 20% and a free cash flow margin exceeding 20%. We then filtered for stocks offering a minimum upside potential of 15%-20%. Finally, we ranked the top 11 stocks in ascending order of hedge fund ownership, using Insider Monkey’s Q3 2025 data.
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).
Note: All pricing data is as of market close on December 4, 2025.
11 Best Stocks You’ll Wish You Bought Sooner
11. Corcept Therapeutics Incorporated (NASDAQ:CORT)
Price Return Over 3 Years: 261.8%
Return On Equity: 23.3%
Potential Upside: 62.4%
Number of Hedge Fund Holders: 28
Corcept Therapeutics Incorporated (NASDAQ:CORT) is among the best stocks you’ll wish you bought sooner.
As of the close of December 2, the consensus shows that analyst opinions are highly favourable towards Corcept Therapeutics Incorporated (NASDAQ:CORT), with 80% of analysts covering it assigning a Buy or equivalent rating, and none assigning a Sell rating. With a consensus 1-year median price target of $137.50, the analysts still see a 70% upside potential.
On November 25, H.C. Wainwright analyst Swayampakula Ramakanth reiterated a bullish stance on the stock, reaffirming his Buy rating and a consensus high price target of $145.00.
The analyst believes that Corcept Therapeutics (NASDAQ:CORT) remains well-positioned for solid growth despite recent commercial challenges with its core product, Korlym. Despite these headwinds, he notes that volume trends have strengthened meaningfully over the past two quarters, supporting the guidance for FY2025 revenue growth of 19%-26%, which implies $800–$850 million in revenue.
Ramakanth also believes that Corcept’s pipeline provides ample medium- to long-term catalyst. The company is advancing its oral therapy relacorilant in two severe disorders, with PDUFA dates of December 30, 2025, for Cushing’s syndrome, and July 11, 2026, for ovarian cancer. The analyst’s estimates suggest that relacorilant could generate up to $4.3 billion in annual revenue by 2034, highlighting significant upside potential.
Corcept Therapeutics Incorporated (NASDAQ:CORT), a commercial-stage biopharmaceutical company engaged in the discovery and development of medications to treat severe endocrinologic, oncologic, metabolic, and neurologic disorders.
10. InterDigital Inc. (NASDAQ:IDCC)
Price Return Over 3 Years: 608.1%
Return On Equity: 24.3%
Potential Upside: 28.3%
Number of Hedge Fund Holders: 35
InterDigital Inc. (NASDAQ:IDCC) is among the best stocks you’ll wish you bought sooner.
On November 24, William Blair analyst Arjun Bhatia reaffirmed his Buy rating on the stock without assigning a price target. This reiteration followed the company’s announcement of favourable legal judgments in its patent infringement cases against Disney in Germany and Brazil.
The analyst believes that these decisions bode well for the potential monetization of the company’s streaming technology patents. In his earlier note on November 11, Bhatia argued that these rulings could create significant revenue opportunities, which he estimated would exceed $300 million by 2030.
On November 24, InterDigital Inc. (NASDAQ:IDCC) announced that the Munich Regional Court issued a second injunction against Disney for infringement of a patent related to the streaming of video content using high dynamic range (HDR) technology. Earlier, this same court had issued another injunction in an infringement case involving a patent that enables dynamically overlaying a first video stream with a second video stream.
This success was preceded by another victory, announced by the company on September 3, when a court in Brazil issued an injunction against Disney for infringing two of InterDigital’s AVC and HEVC video coding patents.
A week later, InterDigital Inc. (NASDAQ:IDCC) initiated litigation against Amazon for patent infringement related to video compression and improving picture quality through high dynamic range (HDR) technology. The case is ongoing in various jurisdictions.
InterDigital Inc. (NASDAQ:IDCC) is a global research and development company focused primarily on wireless, video, artificial intelligence, and related technologies. The company licenses its technologies to companies, including makers of wireless communications devices, consumer electronics, IoT devices, cars and other motor vehicles, and providers of cloud-based services such as video streaming.
9. AppFolio Inc. (NASDAQ:APPF)
Price Return Over 3 Years: 103.2%
Return On Equity: 20.6%
Potential Upside: 37.9%
Number of Hedge Fund Holders: 40
AppFolio Inc. (NASDAQ:APPF) is among the best stocks you’ll wish you bought sooner. As of December 1, the company is a consensus Buy, and its 1-year median price target of $325 indicates a strong 43% upside.
However, AppFolio Inc. (NASDAQ:APPF)’s share price has been volatile recently, as noted by DA Davidson analyst Gil Luria in a November 19 note. Following the company’s recent Investor Day, Luria reaffirmed a Buy rating and maintained a $325 price target, according to TheFly.
At the investor day on November 18, management declined to provide long-term financial guidance, prompting a negative market reaction. The share price was down as much as 7.5% on the day but settled at -4.3% by the close. However, Luria viewed this response as “unjustified”, considering the strong underlying business fundamentals and healthy growth trends. In his view, the absence of long-term targets does not change the company’s growth trajectory, and AppFolio Inc. (NASDAQ:APPF) has ample opportunities to expand monetization.
While management did not provide any forward guidance at the event, they emphasized their focus on growing operating cash flow per share through profitable revenue growth, accelerating the adoption of premium-tier and value-added services, and cost discipline.
Apart from Luria, Piper Sandler analyst Hannah Rudoff, along with analysts from KeyBanc and William Blair, also reiterated their Buy ratings and price targets.
AppFolio Inc. (NASDAQ:APPF) provides a cloud-based property management platform for residential, commercial, and community association real estate operators.
8. Cadence Design Systems Inc. (NASDAQ:CDNS)
Price Return Over 3 Years: 95.3%
Return On Equity: 28.7%
Potential Upside: 17.1%
Number of Hedge Fund Holders: 69
Cadence Design Systems Inc. (NASDAQ:CDNS) is among the best stocks you’ll wish you bought sooner. On December 1, Oppenheimer analyst Edward Yang raised his rating on the stock to Perform from Underperform and increased his price target to $275 from $225 earlier.
This was a substantial change in his stance, as the analyst had been “skeptical for over a year” on the company due to potential competitive disruption. Moreover, he had been cautious about the company’s ability to monetize AI.
The primary reason for the change in Yang’s stance was Nvidia’s announcement of a multi-year strategic partnership and a $2 billion investment in competitor Synopsys Inc. (NASDAQ:SNPS) on December 1. This collaboration will integrate Nvidia’s AI and accelerated computing capabilities with Synopsys’ engineering solutions to deliver enhanced design and simulation for intelligent systems.
While this investment strengthens Cadence Design Systems Inc.’s (NASDAQ:CDNS) rival, the analyst sees it as positive for the legacy Electronic Design Automation (EDA) and simulation sector, where both these players have a significant presence.
With improved sentiment towards the sector, the analyst applied a higher multiple, leading to an upward price target revision, though his earnings estimates remained unchanged.
Cadence Design Systems Inc. (NASDAQ:CDNS) is a leading provider of electronic design automation (EDA) software, hardware, and IP used by semiconductor companies to design and verify advanced integrated circuits and systems.
7. Autodesk Inc. (NASDAQ:ADSK)
Price Return Over 3 Years: 54.2%
Return On Equity: 69.0%
Potential Upside: 22.9%
Number of Hedge Fund Holders: 83
Autodesk Inc. (NASDAQ:ADSK) is among the best stocks you’ll wish you bought sooner. On November 28, Taylor McGinnis, an analyst at UBS, lifted the price target on Autodesk from $385 to $400 while maintaining a Buy rating. The analyst based his update on the company’s operating consistency and its ability to sustain low-teens growth, supported by solid demand visibility and improved margins.
On November 25, Autodesk Inc. (NASDAQ:ADSK) reported its third-quarter fiscal 2026 results, where both revenue and adjusted EPS exceeded consensus. The company delivered 18% constant-currency revenue growth, taking revenue to $1.85 billion. EPS came in at $2.67. For the fourth quarter, management is guiding for roughly 11% adjusted revenue growth and 18% adjusted billings growth.
McGinnis reviewed the company’s third-quarter fiscal 2026 results, which, in his view, indicated that demand momentum remains intact. While fiscal 2027 guidance has not yet been issued, the company hinted that billings growth should initially remain elevated before normalizing in line with underlying revenue trends.
The analyst highlighted that the company increased its fiscal 2026 operating margin guidance by 50 basis points to 37.5% and argued that this demonstrates its margin performance has strengthened, supported by ongoing efficiency improvements and tight execution.
Autodesk Inc. (NASDAQ:ADSK) is a design and engineering software company that serves the architecture, engineering, construction, manufacturing, and media industries. Its flagship products include AutoCAD, Revit, and Fusion 360.
6. Mastercard Incorporated (NYSE:MA)
Price Return Over 3 Years: 52.3%
Return On Equity: 145.9%
Potential Upside: 21.8%
Number of Hedge Fund Holders: 136
Mastercard Incorporated (NYSE:MA) is among the best stocks you’ll wish you bought sooner. On December 3, UBS analyst Timothy Chiodo reiterated a Buy rating on Mastercard, with an unchanged price target of $700.00. This reaffirmation came a day after the company presented at the UBS Global Technology and AI Conference 2025.
At the conference, management said that Mastercard (NYSE:MA) continues to demonstrate robust growth momentum, supported by consistently healthy spending trends across both general and affluent consumer segments.
Management also highlighted their expectations of a strong holiday shopping season, with customer spending on Black Friday up approximately 4% year over year. However, they now estimate that net revenue would benefit by roughly 3% in Q4 from favourable foreign exchange rates, lower than their earlier estimates.
According to Mastercard SpendingPulse data (source: investing.com), Black Friday sales were primarily driven by e-commerce, which jumped 10.4% year-over-year, while in-store sales were up 1.7%.
In another development, JPMorgan analyst Tien Tsin Huang published a report on payments and fintech stocks on December 4, mentioning Mastercard Incorporated (NYSE:MA) alongside Visa as the best play on AI-driven agentic commerce. This area of growth was also highlighted by Craig Vosburg, Mastercard’s Chief Services Officer, at the UBS conference. When asked about opportunities for value-added services within an agentic-commerce world, Vosburg said:
“We’re excited about agentic commerce, and we think we have a very important role to play in enabling agentic commerce.” He further stated, “Our starting point on agentic is Mastercard Agent Pay, which is really built around establishing a level of trust and confidence for consumers and businesses alike in a fast-moving world of agentic commerce.”
Headquartered in Purchase, New York, Mastercard Incorporated (NYSE:MA) is an American multinational payment card services company that offers a range of payment transaction processing and other related payment services.
5. Netflix Inc. (NASDAQ:NFLX)
Price Return Over 3 Years: 230.2%
Return On Equity: 31.4%
Potential Upside: 34.7%
Number of Hedge Fund Holders: 154
Netflix Inc. (NASDAQ:NFLX) is among the best stocks you’ll wish you bought sooner.
On Friday, December 5, Netflix Inc. (NASDAQ:NFLX) announced the long-contested acquisition of Warner Bros. Discovery (NASDAQ:WBD) in a cash-and-stock deal. The enterprise value (EV) of the agreement is around $82.7 billion, and the equity value is $72 billion, substantially higher than Paramount’s initial $60 billion offer, which WBD had rejected. The EV includes Warner Bros. Discovery’s $10.7 billion in debt.
As per the deal, Netflix Inc. (NASDAQ:NFLX) will pay Warner Bros. shareholders $23.25 in cash and $4.50 in Netflix common stock, bringing the per share value to $27.75 for WBD equity. Of the total equity value, cash accounts for 84%, i.e., $60.3 billion, and the company plans to fund this part with $10.3 billion in cash on hand and $50 billion in acquisition debt. $11.7 billion is to be paid in stock.
The transaction is expected to close in 12-18 months, and before the deal closes, Warner Bros. is expected to complete the spinoff of its networks division, which includes cable channels such as TNT, CNN, and TBS.
Management expects the deal to deliver “at least $2 billion to $3 billion” in annual cost savings by the third year and to be accretive to GAAP EPS by the second full year.
Earlier, on December 3, Reuters reported that Netflix might be looking to push the idea of lowering costs by bundling its streaming services with HBO Max to bolster its case for acquiring Warner Bros. Discovery.
While none of the companies had confirmed or commented on this development, Reuters quoted sources close to the negotiations that by proposing lower costs, Netflix Inc. (NASDAQ:NFLX) is trying to allay regulatory concerns that the combination of two of the largest streaming services will mar competition and will lead to increased pricing.
While the bidding war intensified in recent weeks, analysts remained bullish on Netflix Inc. (NASDAQ:NFLX), with more than two-thirds of the analysts covering it holding a Buy or equivalent rating. As of the time of writing this article, the latest rating update was from Rosenblatt Securities analyst Barton Crockett, who reaffirmed a Buy rating on Netflix on November 28. He also revised his price target slightly to $152, down from $153.
Netflix Inc. (NASDAQ:NFLX) is a global streaming entertainment platform that offers on-demand media content across more than 190 countries through a subscription-based model.
4. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Price Return Over 3 Years: 259.4%
Return On Equity: 31.0%
Potential Upside: 19.5%
Number of Hedge Fund Holders: 194
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is among the best stocks you’ll wish you bought sooner.
As of December 2, the semiconductor foundry giant TSMC is a consensus Buy with almost all the analysts covering it assigning a Buy or equivalent rating. It is not only the positive sentiment; analysts also expect the stock to rise by more than 21% from the current level, with a 1-year median price target of $355.
Corroborating the positive opinions, Bank of America Securities analyst Mike Yang reaffirmed his Buy rating on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) on November 17, along with a price target of $390. The analyst based his investment case on the company’s capabilities in advanced semiconductor technologies, particularly in 2nm expansion and high-end packaging, which should help it maintain its edge over competitors.
In his earlier note on November 10, Yang highlighted that Taiwan Semiconductor Manufacturing Company Limited’s (NYSE:TSM) product backlog is supported by rising capital expenditure from large hyperscaler companies such as Google and Microsoft, which should underpin continued demand for cloud AI infrastructure into 2026.
More recently, the limelight was on Taiwan Semiconductor Manufacturing Company Limited’s (NYSE:TSM) November 25th lawsuit against a former senior vice president, Wei-Jen Lo, who had worked with the company for 21 years before joining Intel in July this year. The lawsuit alleged that “There is a high probability that Lo uses, leaks, discloses, delivers, or transfers TSMC’s trade secrets and confidential information to Intel.”
While this development put pressure on the stock price, Intel’s management denied the leak and had earlier told Bloomberg News that the “company respects intellectual property rights.”
Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) is the world’s largest contract semiconductor manufacturer, specializing in advanced logic chips for leading technology companies.
3. Nvidia Corporation (NASDAQ:NVDA)
Price Return Over 3 Years: 1004.0%
Return On Equity: 60.6%
Potential Upside: 36.3%
Number of Hedge Fund Holders: 234
Nvidia Corporation (NASDAQ:NVDA) is among the best stocks you’ll wish you bought sooner.
On Thursday, December 4, Reuters reported that a group of U.S. senators introduced a bill, known as the SAFE CHIPS Act, that aims to block any changes to rules restricting the supply of advanced AI semiconductors from Nvidia and AMD to countries including China, Russia, Iran, and North Korea.
The Reuters report argues that the bill follows reports that the Trump administration may approve the potential supply of Nvidia’s H200 to China. While supporting the bill, Democrat Senator Chris Coons wrote on X:
“We’re taking action to protect America’s AI leadership and ensure our most advanced chips don’t end up in the hands of the CCP. That’s why I’m introducing the SAFE CHIPS Act with @SenatorRicketts to strengthen U.S. innovation and national security.”
In another development, on November 1, Morgan Stanley analyst Joseph Moore raised his price target on Nvidia Corporation (NASDAQ:NVDA) from $235 to $250, while reaffirming an Overweight rating, according to TheFly. The upward target revision reflects the analyst’s increased confidence in the company’s long-term revenue trajectory tied to its Blackwell and Rubin product ramps.
The analyst noted that he had previously taken a conservative approach when management talked about the potential $500 billion revenue opportunity during Nvidia Corporation’s (NASDAQ:NVDA) GTC event. He instead opted to wait for third-party validation rather than immediately adjust forecasts.
However, following discussions with multiple industry contacts across Asia and the U.S., the analyst now believes that the end-market demand signals and supply chain feedback are sufficient to support a higher revenue outlook. While the revised estimates remain below CEO Jensen Huang’s more aggressive “$500 billion in five quarters” commentary, he believes “clearly the situation is strong.”
Nvidia Corporation (NASDAQ: NVDA) designs and manufactures graphics processing units (GPUs), system-on-a-chip (SoC) units, and AI hardware and software.
2. Meta Platforms Inc. (NASDAQ:META)
Price Return Over 3 Years: 440.3%
Return On Equity: 28.0%
Potential Upside: 26.6%
Number of Hedge Fund Holders: 273
Meta Platforms Inc. (NASDAQ:META) is among the best stocks you’ll wish you bought sooner.
On December 4, Citi reiterated its Buy rating and maintained an $850 price target on Meta Platforms Inc. (NASDAQ:META). This reaffirmation followed a Bloomberg report that said the company is planning budget cuts of as much as 30% for its Metaverse division.
However, the analysts at the investment bank view this potential restructuring as a strategic realignment rather than a negative development like a retrenchment. They noted that it would free up capital and talent to accelerate Meta’s Super Intelligence Labs and next-generation AI initiatives as new products approach launch in FY2026.
Meta’s allocation of resources between core Reality & Research (R&R) efforts and emerging artificial intelligence opportunities has been a hotly debated topic recently. Citi, however, believes that the move is a confirmation that Meta is sharpening its investment focus toward higher-return avenues to drive incremental growth.
According to the Bloomberg report, most of the reductions will be in Meta’s virtual reality group and Horizon Worlds. Meta Platforms Inc. (NASDAQ:META) is expected to divert the savings toward futuristic projects such as AI glasses and other wearables. Elaborating on that, the company spokesperson said in a statement:
“Within our overall Reality Labs portfolio, we are shifting some of our investment from Metaverse toward AI glasses and wearables, given the momentum there. We aren’t planning any broader changes than that.”
While layoffs will most likely be part of the reductions, a final decision on the cuts is yet to be made, according to people familiar with the developments, the Bloomberg report said.
Meta Platforms Inc. (NASDAQ:META) operates major social media services, including Facebook, Instagram, WhatsApp, Messenger, and Threads, as well as virtual reality products such as Oculus headsets.
1. Microsoft Corporation (NASDAQ:MSFT)
Price Return Over 3 Years: 92.2%
Return On Equity: 40.7%
Potential Upside: 31.9%
Number of Hedge Fund Holders: 312
Microsoft Corporation (NASDAQ:MSFT) is among the best stocks you’ll wish you bought sooner. On December 5, Barclays maintained its Overweight rating and a $625 price target on Microsoft following the company’s announcement of upcoming price increases for its Office and Microsoft 365 commercial subscriptions.
These changes, effective on July 1, 2026, mark Microsoft’s second major subscription price adjustment since the original launch of Office 365 in 2011. Before this, a price increase was implemented in 2022.
In its December 4 announcement, management attributed the price increases to the significant expansion of product capabilities and stated:
“We are continuously investing and innovating our platform for the future. In the last year, we released more than 1,100 features across Microsoft 365, Security, Copilot, and SharePoint.” They further stated, “Collectively, these features have increased the value of our suites across security, productivity, and management. We’re excited about what’s next—and will continue investing in ways to build a more secure, productive, and AI-powered future.”
Within the MS 365 suite, the Microsoft 365 F1 plan will see the most significant price increase at 33% (from $2.25 to $3), an area Barclays highlights as benefiting from strong net seat expansion trends. According to Barclays, the price increase reflects Microsoft Corporation’s (NASDAQ:MSFT) ability to steadily monetize its AI-driven product leadership, backed by loyal enterprise customers.
Microsoft Corporation (NASDAQ:MSFT) develops and sells a wide range of software, cloud services, devices, and business solutions, serving both individual users and enterprise customers worldwide.
While we acknowledge the potential of MSFT 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 MSFT and that has 100x upside potential, check out our report about this cheapest AI stock.
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