Major US indexes finished in the green on Wednesday, May 7, after a volatile session as investors reacted to updates from the Federal Reserve and new trade developments. The S&P 500 rose by 0.43%, while the tech-heavy Nasdaq added 0.27%. The blue-chip Dow Jones Industrial Average increased by 0.7%
READ ALSO: 11 Best Stocks Under $15 to Buy According to Hedge Funds and 10 Most Profitable Cheap Stocks to Buy Now.
As anticipated, the Federal Open Market Committee decided to keep its benchmark overnight borrowing rate unchanged in a range between 4.25% to 4.5%, where it has been since December.
In its post-meeting statement, the Fed pointed out that the risks of both higher unemployment and higher inflation have risen. The Fed also said that uncertainty about the economic outlook has grown and that it will keep watching new data closely before making any changes. This announcement coincides with growing concerns about a global trade war that could send prices higher. This could make it difficult for the central bank to achieve its goal of bringing inflation down to 2%.
During the post-decision press conference, Fed Chair Jerome Powell stated that if the recently announced large increases in tariffs remain in place, they could slow economic growth, push inflation up in the long run, and increase unemployment.
Bloomberg reported on Wednesday that the Trump administration aims to end trade restrictions on AI. This helped boost some AI and tech stocks. However, earlier on Wednesday, President Trump told reporters that he is not ready to lower tariffs on China as a condition to start trade talks. This statement by the US President came ahead of meetings set to take place this weekend between US and Chinese officials in Switzerland to discuss trade issues.
With this background in mind, let’s take a look at 11 stocks that will bounce back according to analysts.
A busy trading room floor with analysts absorbing the day’s financial markets information.
Our Methodology
To compile our list of the 11 stocks that will bounce back according to analysts, we looked for stocks that have lost at least 30% year-to-date as of May 5, 2025. Next, we focused on the top stocks that analysts believe have the most potential for growth. To find stocks that will bounce back, we narrowed down our selection by looking for stocks that analysts believe will gain at least twice as much as they have lost year-to-date. Finally, we ranked the 11 stocks that will bounce back based on their average price target upside potential according to analysts as of May 5, 2025.
Additionally, we mentioned the hedge fund sentiment surrounding each stock, which was taken from Insider Monkey’s Q4 2024 database of more than 1,000 elite hedge funds.
Why do we care about what hedge funds do? 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 Stocks That Will Bounce Back According To Analysts
11. Rumble Inc. (NASDAQ:RUM)
Year-to-Date Performance: -37.26%
Average Price Target Upside Potential According to Analysts: 79.95%
Number of Hedge Fund Holders: 13
Rumble Inc. (NASDAQ:RUM) is a Canadian online video platform and cloud services provider. It is known for its independent infrastructure that allows creators to express themselves freely without the fear of being censored, removed, or canceled. Rumble Inc. (NASDAQ:RUM) ranks among stocks that will bounce back according to analysts.
The company is focused on growing its audience and establishing itself as a top platform for creators and viewers. On March 14, Rumble Inc. (NASDAQ:RUM) launched Rumble Live, a linear live streaming lineup of dynamic creator content that lets viewers watch news, commentary, and entertainment all day without having to go anywhere else. The shows will use the Rumble Raiding technology to follow one another so audiences can move smoothly from one show to the next. Each show will also be available on the creator’s own Rumble channel. Rumble Inc. (NASDAQ:RUM) reported that in addition to the Rumble Live lineup, well-known creators like Steven Crowder will voluntarily stop live streaming on YouTube to exclusively stream on Rumble. The content lineup will also continue to include viewer favorites like Donald Trump Jr., Kimberly Guilfoyle, Dave Rubin, Kim Iversen, Glenn Greenwald, Hayley Caronia, Jimmy Dore, Redacted News, and Badlands.
10. Alvotech (NASDAQ:ALVO)
Year-to-Date Performance: -36.70%
Average Price Target Upside Potential According to Analysts: 80.07%
Number of Hedge Fund Holders: 10
Alvotech (NASDAQ:ALVO) is a biotech company that focuses on developing and manufacturing biosimilar medicines for patients around the world. The company has launched 2 biosimilars and the current development pipeline includes 9 disclosed biosimilar candidates for the treatment of autoimmune disorders, eye disorders, osteoporosis, respiratory disease, and cancer. According to analysts, Alvotech (NASDAQ:ALVO) is one of the top stocks that will bounce back.
In March 2025, Alvotech (NASDAQ:ALVO) announced the acquisition of Xbrane’s research and development operations in Sweden and all rights to a biosimilar candidate referencing Cimzia (certolizumab pegol). Xbrane’s shareholders have approved the acquisition and final approval from Swedish authorities is pending. Alvotech (NASDAQ:ALVO) is experiencing strong growth and reported total revenues in Q1 2025 reached $132.8 million, up 260% year-over-year. The company expects to be free-cash-flow positive in 2025. With the acquisition of Xbrane’s operations and expansion of its research and development activities into Sweden, Alvotech (NASDAQ:ALVO) increased its full-year top-line revenue guidance to $600–700 million. The company got a strong response to its acquisition of a proposed biosimilar to Cimzia. Alvotech (NASDAQ:ALVO) is now aiming to launch a total of four new biosimilars in the near term.
9. Core Scientific, Inc. (NASDAQ:CORZ)
Year-to-Date Performance: -39.57%
Average Price Target Upside Potential According to Analysts: 105.71%
Number of Hedge Fund Holders: 66
Core Scientific, Inc. (NASDAQ:CORZ) is a leading company in digital infrastructure for digital assets mining and high-performance computing. The company provides digital infrastructure to third-party customers and also owns a large fleet of computers to earn digital assets for its own account. The company is allocating and converting a significant portion of its operational data centers to support AI-related workloads and deliver hosting services for high-performance computing. According to analysts, Core Scientific, Inc. (NASDAQ:CORZ) is one of the top stocks that will bounce back.
In February 2025, Core Scientific, Inc. (NASDAQ:CORZ) expanded its partnership with CoreWeave, an AI Hyperscaler, with a new agreement that brings an additional $1.2 billion in contracted revenue at Core Scientific’s Denton TX location. This deal adds 70 megawatts (MW) of contracted power at the Denton site to bring its full critical IT load to about 260 MW. This also increases CoreWeave’s total contracted high-performance computing (HPC) infrastructure contracted with Core Scientific, Inc. (NASDAQ:CORZ) to about 590 MW across six sites. The company is actively looking for sites to expand its HPC hosting capacity, and it could see over $10 billion in potential cumulative revenue with CoreWeave.
On April 8, Jefferies analysts reduced the price target on Core Scientific, Inc. (NASDAQ:CORZ) to $14 from $18 but maintained a “Buy” rating. The analysts noted the company’s potential to benefit from the growing demand for data center infrastructure needed for AI. According to Jefferies analysts, the market has not yet fully recognized the value of Core Scientific, Inc.’s (NASDAQ:CORZ) collaboration with CoreWeave, which places the company in a favorable position to capitalize on significant revenue growth.
8. Pony AI Inc. (NASDAQ:PONY)
Year-to-Date Performance: -36.14%
Average Price Target Upside Potential According to Analysts: 106.19%
Number of Hedge Fund Holders: 20
Pony AI Inc. (NASDAQ:PONY) is a leading autonomous mobility technology company. The company leverages its Virtual Driver technology, a full-stack autonomous driving technology that utilizes the company’s proprietary software, hardware, and services, to enable the large-scale production and deployment of autonomous vehicles. The company has a presence in China, Europe, East Asia, the Middle East, and other regions. Pony AI Inc. (NASDAQ:PONY) ranks among the stocks that will bounce back according to analysts.
The company is partnering with major automakers to make autonomous mobility more accessible. On April 23, 2025, Pony AI Inc. (NASDAQ:PONY) launched its seventh-generation autonomous driving system. The company also showcased the new Robotaxi lineup with Toyota, BAIC, and GAC at the Shanghai Auto Show. The new autonomous driving system features a 100% automotive-grade autonomous driving kit and delivers an extended product lifecycle with improved stability and safety for passengers. Pony AI Inc. (NASDAQ:PONY) also reported that design improvements have also reduced bill-of-materials costs by 70%. The company introduced three seventh-generation Robotaxi models at the Shanghai Auto Show. These included the Toyota bZ4X Robotaxi, BAIC ARCFOX Alpha T5, and GAC Aion V.
7. Apellis Pharmaceuticals, Inc. (NASDAQ:APLS)
Year-to-Date Performance: -39.75%
Average Price Target Upside Potential According to Analysts: 110.21%
Number of Hedge Fund Holders: 44
Apellis Pharmaceuticals, Inc. (NASDAQ:APLS) is a global biopharmaceutical company that is focused on developing life-changing therapies for some of the most challenging diseases. The company pioneered targeted C3 therapies and now has two approved medicines targeting C3, including the first-ever therapy for geographic atrophy, a leading cause of blindness. According to analysts, Apellis Pharmaceuticals, Inc. (NASDAQ:APLS) is one of the top stocks that will bounce back.
On April 29, Cantor Fitzgerald initiated coverage of Apellis Pharmaceuticals, Inc. (NASDAQ:APLS) and assigned an “Overweight” rating with a price target of $44. The firm noted that the company has faced several recent challenges, specifically with its main drug, Syfovre. The company’s leading drug faced obstacles like an updated safety label, competition from a newly launched rival drug, and issues with an unfunded patient assistance program. Despite these challenges, Cantor Fitzgerald is still optimistic about Syfovre’s future, expecting it to reach peak sales of $1.3 billion, with projections for 2024 already over $600 million. The firm suggested that the second half of 2025 will be pivotal for Apellis Pharmaceuticals, Inc. (NASDAQ:APLS), as the company is looking to get approval and launch pegcetacoplan, a C3 inhibitor, for the treatment of C3 Glomerulopathy (C3G). Cantor Fitzgerald believes that if pegcetacoplan is approved and successfully launched, it could introduce a new phase of growth for Apellis Pharmaceuticals, Inc. (NASDAQ:APLS).
6. Crinetics Pharmaceuticals, Inc. (NASDAQ:CRNX)
Year-to-Date Performance: -34.72%
Average Price Target Upside Potential According to Analysts: 113.97%
Number of Hedge Fund Holders: 41
Crinetics Pharmaceuticals, Inc. (NASDAQ:CRNX) is a clinical-stage pharmaceutical company that focuses on discovering, developing, and commercializing new therapies for endocrine diseases and endocrine-related tumors. CRNX ranks among stocks that will bounce back according to analysts.
The company is actively working to make its therapies accessible worldwide and support its global growth. Paltusotine, which is Crinetics Pharmaceuticals, Inc.’s (NASDAQ:CRNX) lead development candidate, is the first investigational once-daily, oral medicine that is in clinical development for acromegaly and carcinoid syndrome associated with neuroendocrine tumors. In March 2025, Crinetics Pharmaceuticals, Inc. (NASDAQ:CRNX) reported that the European Medicines Agency (EMA) validated the Marketing Authorization Application (MAA) for paltusotine for the proposed treatment and long-term maintenance therapy of acromegaly. The application will now be reviewed by the Committee for Medicinal Products for Human Use (CHMP). Previously, the EMA had granted paltusotine Orphan Drug Designation (ODD) for the treatment of acromegaly in February 2025. In the US, the Food and Drug Administration (FDA) has also accepted the New Drug Application (NDA) by Crinetics Pharmaceuticals, Inc. (NASDAQ:CRNX) for paltusotine, with a decision expected by September 25, 2025.
5. Sarepta Therapeutics, Inc. (NASDAQ:SRPT)
Year-to-Date Performance: -48.70%
Average Price Target Upside Potential According to Analysts: 156.05%
Number of Hedge Fund Holders: 50
Sarepta Therapeutics, Inc. (NASDAQ:SRPT) is a global biotechnology company that is focused on engineering genetic medicine for rare diseases. The company holds leadership positions in Duchenne muscular dystrophy (DMD) and limb-girdle muscular dystrophies (LGMDs). It also has a vast pipeline with more than 40 programs in various stages of development. According to analysts, Sarepta Therapeutics, Inc. (NASDAQ:SRPT) ranks among stocks that will bounce back.
On April 11, Wells Fargo initiated coverage on Sarepta Therapeutics, Inc. (NASDAQ:SRPT) and gave it an “Overweight” rating with a price target of $115. The firm’s analyst, Yanan Zhu, showed confidence in the company’s Duchenne muscular dystrophy (DMD) treatments, including the gene therapy ELEVIDYS. Even after a recent adverse event report, Zhu noted that ELEVIDYS remains the best treatment option for most young DMD patients and that Sarepta Therapeutics, Inc. (NASDAQ:SRPT) has a substantial commercial opportunity ahead. Wells Fargo does not expect major changes to the product’s labeling and sees the recent drop in the stock price as a good chance to invest in SRPT at a value. The $115 price target is based on a discounted cash flow analysis, with most of the company’s value coming from the commercial success of its approved DMD products. These include ELEVIDYS and three exon-skipping drugs. Gene therapy, particularly ELEVIDYS, is expected to be the primary value driver, contributing three times more than the exon-skipping products. Wells Fargo projects global sales for ELEVIDYS to reach $1.6 billion in 2025 and peak sales are estimated at $3.5 billion by 2028.
4. Biohaven Ltd. (NYSE:BHVN)
Year-to-Date Performance: -39.32%
Average Price Target Upside Potential According to Analysts: 160.83%
Number of Hedge Fund Holders: 41
Biohaven Ltd. (NYSE:BHVN) is a biopharmaceutical company. It focuses on the discovery, development, and commercialization of life-changing treatments in key therapeutic areas, including immunology, neuroscience, and oncology. Biohaven Ltd. (NYSE:BHVN) ranks among stocks that will bounce back according to analysts.
Leerink Partners analyst Marc Goodman has kept a positive outlook on Biohaven Ltd. (NYSE:BHVN) by maintaining a “Buy” rating on April 28. The analyst believes that the company is working strategically to expand its market by pursuing approval of troriluzole for the treatment of patients with spinocerebellar ataxia (SCA) in the EU, even though the review process can be challenging and the current financial models do not include sales outside of the US. Goodman acknowledges the company’s strong commitment to expand and is also optimistic about the drug’s chances for approval in the US. The US Food and Drug Administration (FDA) accepted to review the New Drug Application (NDA) for troriluzole, the decision for which is expected in the third quarter of 2025. If approved, Biohaven Ltd. (NYSE:BHVN) will be ready to commercialize troriluzole for SCA in the US in 2025.
3. Globalstar, Inc. (NASDAQ:GSAT)
Year-to-Date Performance: -37.45%
Average Price Target Upside Potential According to Analysts: 163.95%
Number of Hedge Fund Holders: 13
Globalstar, Inc. (NASDAQ:GSAT) is an international telecom infrastructure provider that offers reliable satellite and terrestrial connectivity services. The company operates a satellite constellation in low Earth orbit to deliver secure data transmission for asset tracking, critical data transfer, and safety applications for consumers, businesses, and government agencies around the world.
Globalstar, Inc. (NASDAQ:GSAT) also offers terrestrial spectrum, Band 53 and its 5G variant n53, which provides cable companies, carriers, and system integrators with private wireless networks and improved connectivity. Through its Internet of Things (IoT) hardware and software products, the company supports efficient tracking and monitoring of assets, processing smart data at the edge, and managing analytics with cloud-based telematics solutions. According to analysts, GSAT ranks among stocks that will bounce back.
The company is focused on growing its business and making investments to solidify its leadership in global satellite communications. In March 2025, Globalstar, Inc. (NASDAQ:GSAT) announced the grand opening of its new, state-of-the-art Satellite Operations Control Center (SOCC) at its headquarters in Covington, Louisiana. This marks a major step forward for the company’s operational capabilities and reinforces its strategic growth as it advances next-generation satellite and connectivity solutions. With the new SOCC, Globalstar, Inc. (NASDAQ:GSAT) will be able to better manage its satellite fleet, improve network performance, and prepare for new satellite constellations.
2. Immunovant, Inc. (NASDAQ:IMVT)
Year-to-Date Performance: -39.58%
Average Price Target Upside Potential According to Analysts: 228.52%
Number of Hedge Fund Holders: 35
Immunovant, Inc. (NASDAQ:IMVT) is a clinical-stage immunology company that is focused on developing therapies for patients with autoimmune diseases. The company is a leader in anti-FcRn technology and develops innovative and targeted treatments to meet the complex needs of people with autoimmune diseases. Immunovant, Inc. (NASDAQ:IMVT) ranks among stocks that will bounce back according to analysts.
The company is focused on moving rapidly to unlock the full potential of IMVT-1402, its lead asset. IMVT-1402 is designed to be a leading anti-FcRn antibody for the treatment of IgG-mediated autoimmune diseases. Immunovant, Inc. (NASDAQ:IMVT) aims to initiate clinical trials evaluating IMVT-1402 in ten indications by March 31, 2026. So far, the company has reported six Investigational New Drug (IND) applications have been cleared. Immunovant, Inc. (NASDAQ:IMVT) is also running pivotal studies in Graves’ disease and difficult-to-treat rheumatoid arthritis. Additionally, the company is expecting results from another drug, batoclimab, for Graves’ disease. This will include data on patients who would stay in remission for 6 months without treatment, which is expected in summer 2025.
1. Vaxcyte, Inc. (NASDAQ:PCVX)
Year-to-Date Performance: -58.85%
Average Price Target Upside Potential According to Analysts: 304.03%
Number of Hedge Fund Holders: 50
Vaxcyte, Inc. (NASDAQ:PCVX) is a clinical-stage vaccine innovation that engineers, optimizes, and manufactures superior, high-fidelity vaccines. The company develops vaccines to prevent or treat bacterial infections like invasive pneumococcal disease, Group A Strep, periodontitis, and Shigella. Vaxcyte, Inc. (NASDAQ:PCVX) is one of the top stocks that will bounce back according to analysts.
On April 22, Cantor Fitzgerald initiated coverage of Vaxcyte, Inc. (NASDAQ:PCVX) with an “Overweight” rating after the company showcased promising VAX-31 pneumococcal conjugate vaccine (PCV) data in adults last fall. Despite the fact that Vaxcyte, Inc. (NASDAQ:PCVX) is facing challenges, like mixed results from its VAX-24 pediatric vaccine and shifts in US vaccine policy, Cantor Fitzgerald still is optimistic about the company’s long-term prospects. The firm’s analysis noted that the company’s programs are still years away from regulatory review. The adult VAX-31 is expected in 2027 while the pediatric strategy is expected in 2029. Cantor Fitzgerald suggests that by the time the company’s products come under review, the current leadership and policy environment could change and help the company’s trajectory. Vaxcyte, Inc. (NASDAQ:PCVX) has a strong position in the pneumococcal conjugate vaccine market, which is valued at over $8 billion, thanks to strong data from the adult VAX-31 trials. Additionally, Cantor Fitzgerald pointed out that the company has two ways to move forward with its pediatric vaccines with VAX-31 and a dose-optimized VAX-24. The firm’s commentary suggests that the stock’s current low price and market capitalization could bounce back if there are changes in the Health and Human Services (HHS), Food and Drug Administration (FDA), or Centers for Disease Control and Prevention (CDC) leadership and vaccine policy.
Overall, PCVX ranks first among the 11 stocks that will bounce back according to analysts. While we acknowledge the potential of these stocks, our conviction lies in the belief that some 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 PCVX but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
