On December 19, Ben Narasin, Tenacity Venture Capital founder, joined ‘Squawk Box’ on CNBC to discuss the state of the IPO market and the 2026 IPO pipeline outlook. While Narasin admitted his previous prediction of a blow-up year for IPOs was slightly off, he remained highly optimistic about the coming year. He described a pipeline filled with high-quality products and noted that bankers and venture capitalists are excited about potential listings from companies like SpaceX and Anthropic. However, he remained uncertain regarding whether OpenAI will go public within the next calendar year.
Discussing whether the market is in a bubble, Narasin viewed the then-current environment as a natural cycle rather than a bubble, where progress involves growth followed by regression before getting stronger again. He stated that world-changing technologies naturally attract the best and brightest entrepreneurs and capital. While he acknowledged that many companies might fail, he also asserted that the successful ones will provide tremendous value, similar to the long-term impact of the internet. He referenced Jeff Bezos’s view on the uniqueness of the American capital bench, which is willing to risk billions on ventures with only a 10% chance of success, provided the winners pay for the losers, and more. He classified OpenAI as the white whale of future IPOs but noted that their access to vast amounts of private capital makes their path uncertain.
That being said, we’re here with a list of the 11 best young stocks to buy and hold for 3 years.
Our Methodology
We used the Finviz stock screener to compile a list of stocks that went public in the past 3 years and used SeekingAlpha to pick stocks that had an average EPS growth rate of at least 30%. We then selected 11 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q3 2025.
Note: All data was sourced on January 12.
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).
11 Best Young Stocks to Buy and Hold For 3 Years
11. Infinity Natural Resources Inc. (NYSE:INR)
EPS Forward Long Term Growth (3-5 Year CAGR): 33.00%
Number of Hedge Fund Holders: 15
Infinity Natural Resources Inc. (NYSE:INR) is one of the best young stocks to buy and hold for 3 years. On December 9, Roth Capital raised the firm’s price target on Infinity Natural Resources to $18 from $17 with a Buy rating on the shares. The firm believes that the company’s recent Ohio Utica deal is a compelling expansion. By acquiring midstream operations and under-utilized drilling assets that sit adjacent to its existing acreage, the company effectively boosted its inventory and operational control in a single move.
In other news, Infinity Natural Resources Inc. (NYSE:INR) announced a transformational $1.2 billion acquisition of upstream and midstream assets in the Ohio Utica Shale from Antero Resources Corporation and Antero Midstream Corporation. To facilitate the deal, Northern Oil & Gas Inc. (NYSE:NOG) will acquire an undivided 49% interest for $588 million, leaving Infinity Natural Resources with a 51% interest for a net purchase price of $612 million.
The acquired assets include ~71,000 net acres located in Ohio’s Guernsey, Belmont, and Harrison counties. As of Q3 2025, these assets produced approximately 133 MMcfe/d (81% gas and 19% liquids) from 255 producing laterals. The deal also adds significant inventory, including over 110 undeveloped laterals totaling 1.6 million lateral feet and 764 billion cubic feet of undeveloped reserves. Pro forma, Infinity Natural Resources will control ~102,000 net horizontal acres in Ohio with 1.4 Tcfe of undeveloped net reserves.
Infinity Natural Resources Inc. (NYSE:INR) acquires, explores, and develops properties to produce oil, natural gas, and natural gas liquids from underground reservoirs in the US.
10. Fidelis Insurance Holdings Limited (NYSE:FIHL)
EPS Forward Long Term Growth (3-5 Year CAGR): 53.80%
Number of Hedge Fund Holders: 16
Fidelis Insurance Holdings Limited (NYSE:FIHL) is one of the best young stocks to buy and hold for 3 years. On January 7, Goldman Sachs raised the firm’s price target on Fidelis Insurance to $18 from $17 and kept a Sell rating on the shares. The firm expects strong profitability for Americas Insurance in the near term, but warned that the P&C market is now solidly in the softening phase. This transition likely means a drop in pricing and margins due to increased competition.
On the same day, Evercore ISI adjusted its outlook for Fidelis Insurance, raising the price target to $21, up from $20, while maintaining an In Line rating on the shares. In a 2026 sector preview, the firm warned that the Property & Casualty insurance industry faces a tough cyclical backdrop that will make the coming year particularly difficult. However, it noted that this volatility creates a stock picker’s market, where careful investors can still find opportunities in the sector despite broader challenges.
However, JPMorgan downgraded Fidelis Insurance Holdings Limited (NYSE:FIHL) from Neutral to Underweight, even as it raised its price target to $21 from $19. Despite the company’s discount valuation and de-risked exposures, the firm expressed concern over Fidelis Insurance Holdings ‘ high concentration in the property sector.
Fidelis Insurance Holdings Limited (NYSE:FIHL) provides insurance and reinsurance solutions in Bermuda, the Republic of Ireland, and the UK. It operates in two segments: Insurance and Reinsurance.
