On September 24, Ryan Detrick, Carson Group chief market strategist, joined CNBC’s ‘Power Lunch’ to discuss why he still expects a strong end-of-year rally. Detrick pointed out that late September and early October are seasonally weak times. Although seasonals haven’t strictly applied this year due to the market being so bullish, he noted that the market is looking at 5 straight up months. Historically, when the market is up 5 months going into October, it is not too surprisingly down on average, suggesting investors get a break. Crucially, Detrick emphasized to listeners that Q4 is still up almost 6% on a median return and higher the great majority of the time when the market has been up 5 months in a row going into it. He attributed his bullishness to the word momentum, which the bull market still possesses.
Detrick stated that he would be happy with some kind of a pullback, noting that while pullbacks are painful, stocks going up every day makes one nervous. He said that his firm would welcome a four to six percent normal, mild correction. He mentioned a couple of things that currently have their attention: put-to-call ratios are at some of the lowest levels seen all year, and $58 billion flowed into US equity funds, which is the most seen this year. He suggested that between the Jewish holidays and early October, there might be a little bit of volatility or weakness, but their opinion is that it will be a buying opportunity. This opportunity, he claimed, will be led by strong earnings, strong profit margins, and a stronger consumer, citing the retail sales from the previous week. He stressed that he doesn’t see this recession that some people are still discussing, and he would use any weakness as a buying opportunity.
That being said, we’re here with a list of the 12 best hot stocks to invest in.
Methodology
We sifted through different stock screeners to compile a list of the hot stocks with the highest performance over the past 3 months (over 50%) and with high upside potential (over 20%). We then selected the 12 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 Q2 2025.
Note: All data was sourced on October 10.
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).
12 Best Hot Stocks to Invest In
12. Monopar Therapeutics Inc. (NASDAQ:MNPR)
3-Month Performance as of October 10: 100.82%
Average Upside Potential as of October 10: 20.70%
Number of Hedge Fund Holders: 6
Monopar Therapeutics Inc. (NASDAQ:MNPR) is one of the best hot stocks to invest in. On October 6, Raymond James raised the firm’s price target on Monopar Therapeutics to $142 from $80, while keeping a Strong Buy rating on the shares. The firm thinks that the company’s shares can continue to work well into 2026.
Earlier in Q2 2025, the company’s net loss was $2.5 million (or $0.35 per share), compared to a net loss of $1.7 million (or $0.49 per share) for Q2 2024. Monopar Therapeutics reported that its cash, cash equivalents, and investments totaled $53.3 million, which will support operations through December 31, 2026.
This will allow the company to follow its anticipated timeline and execute tasks like filing an NDA for ALXN1840, concluding its Phase 1 imaging/dosimetry trial for MNPR-101-Zr, continuing its Phase 1a therapeutic trial for MNPR-101-Lu, and advancing its preclinical MNPR-101-Ac program into the clinic.
Monopar Therapeutics Inc. (NASDAQ:MNPR) is a clinical-stage biopharmaceutical company that develops therapeutics for the treatment of cancer in the US.
11. Mesoblast Limited (NASDAQ:MESO)
3-Month Performance as of October 10: 64.01%
Average Upside Potential as of October 10: 56.16%
Number of Hedge Fund Holders: 6
Mesoblast Limited (NASDAQ:MESO) is one of the best hot stocks to invest in. On October 3, Mesoblast Limited announced that its product Ryoncil (remestemcel-L-rknd) was assigned a specific Healthcare Common Procedure Coding System/HCPCS J-Code by the US Medicare & Medicaid Services/CMS. The new permanent J-Code, J3402, became active for billing and reimbursement on October 1.
The formal recognition by CMS is a commercial milestone as it provides a standardized, clear, and permanent billing pathway for Ryoncil, facilitating reimbursement by Medicare, Medicaid, and commercial payers, thus enabling broader patient access to the therapy. Ryoncil is the first mesenchymal stromal cell/MSC product approved by the US FDA for any indication.
It is the only product approved for children under age 12 (specifically, pediatric patients 2 months and older) with steroid-refractory acute graft-versus-host disease/SR-aGvHD. Mesoblast develops allogeneic (off-the-shelf) cellular medicines for severe inflammatory conditions. The company’s proprietary mesenchymal lineage cell therapy technology platform works by having its cell therapies release anti-inflammatory factors that modulate the immune system to reduce damaging inflammatory processes.
Mesoblast Limited (NASDAQ:MESO), together with its subsidiaries, develops regenerative medicine products in Australia, the US, Singapore, and Switzerland. The company’s proprietary regenerative medicine technology platform is based on specialized cells known as mesenchymal lineage cells.
10. Amprius Technologies Inc. (NYSE:AMPX)
3-Month Performance as of October 10: 77.27%
Average Upside Potential as of October 10: 21.54%
Number of Hedge Fund Holders: 11
Amprius Technologies Inc. (NYSE:AMPX) is one of the best hot stocks to invest in. On October 7, Northland raised the firm’s price target on Amprius Technologies to $20 from $10, with an Outperform rating on the shares after the company announced a new CFO, Ricardo Rodriguez, who is expected to help Amprius handle the exponential growth that it is likely facing.
Northland remains comfortable with the firm’s near-term and long-term financial forecasts. Management anticipates a sequential revenue increase in Q3 2025, as more of its existing 320+ customers are expected to transition from the qualification stage to placing revenue-generating production orders.
Amprius Technologies made $15.1 million in Q2 sales, which was a 34% sequential increase and a 350% year-over-year rise. Furthermore, Amprius achieved positive gross margins for the first time due to the success of its Cyorp product, which has maintained positive gross margins since its inception. This growth was also supported by customer expansion, with the company shipping to 93 customers in Q2, 43 of which were new to the platform.
Amprius Technologies Inc. (NYSE:AMPX) develops, manufactures, and markets lithium-ion batteries for mobility applications. The company offers silicon anode lithium-ion batteries under the SiCore and SiMaxx product platforms.
9. National Energy Services Reunited Corp. (NASDAQ:NESR)
3-Month Performance as of October 10: 69.93%
Average Upside Potential as of October 10: 44.23%
Number of Hedge Fund Holders: 15
National Energy Services Reunited Corp. (NASDAQ:NESR) is one of the best hot stocks to invest in. On October 10, JPMorgan raised the firm’s price target on National Energy Services to $19 from $10, while keeping an Overweight rating on the shares. JPMorgan believes that the company’s future growth potential is more important than its recent Q3 2025 financial results, expecting this growth to soon increase the company’s earnings.
The company’s full-year 2025 revenue outlook is projected to be greater than full-year 2024 revenues. While Q3 is expected to be consistent with Q2, CFO Stefan Angeli anticipates an increase in Q4 revenue.
Earlier in Q2 2025, National Energy Services Reunited reported a revenue of $327.4 million, which marked an 8% sequential increase from Q1 2025 and a modest 0.71% increase year-over-year. EPS for the quarter was $0.21, which was a 50% sequential increase.
National Energy Services Reunited Corp. (NASDAQ:NESR) provides oilfield services in the Middle East and North Africa region.
8. Upstream Bio Inc. (NASDAQ:UPB)
3-Month Performance as of October 10: 67.26%
Average Upside Potential as of October 10: 180.33%
Number of Hedge Fund Holders: 17
Upstream Bio Inc. (NASDAQ:UPB) is one of the best hot stocks to invest in. On September 30, Upstream Bio presented new structural and mechanistic data for its therapeutic candidate, verekitug, at the European Respiratory Society/ERS Congress. The congress was held from September 27 – October 1 in Amsterdam, Netherlands. The data, presented on September 30, elucidated the drivers of verekitug’s potent pharmacodynamic activity and its unique mechanism of targeting the thymic stromal lymphopoietin/TSLP receptor.
Verekitug is a novel recombinant fully human immunoglobulin G1 (IgG1) monoclonal antibody and the only known monoclonal antibody currently in clinical development that targets and inhibits the TSLP receptor. The structural and mechanistic findings support a differentiated therapeutic effect by showing that verekitug binds to the TSLP receptor with high affinity. The high-resolution crystal structure reveals that verekitug effectively occupies most of the TSLP binding sites on the TSLP receptor, which prevents TSLP from binding.
Furthermore, verekitug outcompetes TSLP even in the presence of preformed heterodimeric receptor complexes, thereby inhibiting the TSLP:TSLP receptor interaction. Semi-mechanistic pharmacokinetic/pharmacodynamic (PK/PD) models indicate that the lower abundance and slower turnover of the TSLP receptor compared to the TSLP ligand may be the reason for verekitug’s greater potency observed in both in vitro and clinical datasets, compared to published data for the ligand-targeting drug tezepelumab.
Upstream Bio Inc. (NASDAQ:UPB) is a clinical-stage biotechnology company that develops treatments for inflammatory diseases, focusing on severe respiratory disorders.
7. Olema Pharmaceuticals Inc. (NASDAQ:OLMA)
3-Month Performance as of October 10: 118.84%
Average Upside Potential as of October 10: 131.79%
Number of Hedge Fund Holders: 20
Olema Pharmaceuticals Inc. (NASDAQ:OLMA) is one of the best hot stocks to invest in. On October 8, Guggenheim initiated coverage of Olema Oncology with a Buy rating and $20 price target. The firm views Olema as the top biotech for selective estrogen receptor degrader/SERD breast cancer drugs. Guggenheim cited its palazestrant as the most promising drug in a $10 billion market.
The company discovers and develops targeted therapies for breast cancer and beyond. A key highlight was the selection of a 90 mg once-daily dose of its lead product candidate, palazestrant (OP-1250), for Part 2 of the ongoing pivotal OPERA-01 Phase 3 monotherapy trial and for the planned pivotal OPERA-02 Phase 3 trial.
In Q2 2025, Olema reported a Net Loss of $43.8 million for the quarter, compared to a net loss of $30.4 million for Q2 2024. The increase in net loss was due to increased R&D spending related to the late-stage trials for palazestrant and the advancement of OP-3136.
Olema Pharmaceuticals Inc. (NASDAQ:OLMA) is a clinical-stage biopharmaceutical company that discovers, develops, and commercializes therapies for women’s cancers.
6. Beta Bionics Inc. (NASDAQ:BBNX)
3-Month Performance as of October 10: 63.91%
Average Upside Potential as of October 10: 23.63%
Number of Hedge Fund Holders: 26
Beta Bionics Inc. (NASDAQ:BBNX) is one of the best hot stocks to invest in. On October 1, Goldman Sachs upgraded Beta Bionics to Buy from Neutral with a price target of $26, which was upgraded from $18. Goldman Sachs’ analysis of the diabetes technology market shows sustained growth and profitability for Beta Bionics.
Earlier in the second quarter of 2025, Beta Bionics saw a significant 54% year-over-year increase in net sales, reaching $23.2 million. This growth was mirrored in patient adoption, with a 57% increase in new patient starts, totaling 4,934 new patients adopting the islet system. Concurrently, the gross margin showed an improvement to 53.8%.
To boost market reach, the company expanded its sales force by 20 territories. Reflecting this performance and optimism, Beta Bionics raised its full-year 2025 net sales guidance to between $88 million and $93 million, up from the previous forecast of $82 million to $87 million.
Beta Bionics Inc. (NASDAQ:BBNX) is a commercial-stage medical device company that designs, develops, and commercializes solutions to enhance the health and quality of life of insulin-requiring people with diabetes.
5. Enanta Pharmaceuticals Inc. (NASDAQ:ENTA)
3-Month Performance as of October 10: 58.33%
Average Upside Potential as of October 10: 81.49%
Number of Hedge Fund Holders: 26
Enanta Pharmaceuticals Inc. (NASDAQ:ENTA) is one of the best hot stocks to invest in. On September 29, Enanta Pharmaceuticals reported positive topline results from its Phase 2b study/RSVHR of zelicapavir. Zelicapavir is a novel N-protein inhibitor with Fast Track designation from the FDA, being developed as a once-daily oral treatment for acute Respiratory Syncytial Virus/RSV infection in high-risk adult outpatients.
The study was a randomized, double-blind, placebo-controlled, proof-of-concept trial designed to inform the design of a Phase 3 study, including endpoints and populations, by assessing the antiviral treatment effect on symptoms using the RiiQ (Respiratory Infection Intensity and Impact Questionnaire) patient-reported outcome tool.
Zelicapavir is a lead N-protein inhibitor that targets the virus’s replication machinery, showing a high barrier to resistance in vitro and maintaining antiviral potency across all clinical isolates tested. It is differentiated from RSV fusion inhibitors. The drug has shown a consistent safety profile in 600+ people exposed to date. RSV is a common respiratory virus that poses an increased risk of severe illness, hospitalization, and death for older adults and those with underlying conditions like COPD, CHF, or asthma.
Enanta Pharmaceuticals Inc. (NASDAQ:ENTA) is a biotechnology company that discovers and develops small-molecule drugs for the treatment of viral infections and liver diseases.
4. CG Oncology Inc. (NASDAQ:CGON)
3-Month Performance as of October 10: 66.99%
Average Upside Potential as of October 10: 58.38%
Number of Hedge Fund Holders: 32
CG Oncology Inc. (NASDAQ:CGON) is one of the best hot stocks to invest in. On October 8, Guggenheim analyst Brad Canino initiated coverage of CG Oncology with a Buy rating and $90 price target. The firm believes that the non-muscle invasive bladder cancer market has lots of patients and pricing power. Guggenheim also highlighted CG Oncology’s cretostimogene, which will enter FDA review in 2026.
It was in its Q2 2025 earnings update that the company reported that it is developing cretostimogene grenadenorepvec, which is an investigational oncolytic immunotherapy, as a potential bladder-sparing therapeutic for NMIBC.
CG Oncology also initiated the CORE-008 Cohort CX trial, which is evaluating the combination of cretostimogene and gemcitabine in high-risk NMIBC patients. Upcoming milestones include the completion of Phase 3 enrollment for the PIVOT-006 trial in Q3 and the initiation of a BLA submission for cretostimogene in Q4.
CG Oncology Inc. (NASDAQ:CGON) is a late-stage clinical biopharmaceutical company that develops and commercializes backbone bladder-sparing therapeutics for patients with bladder cancer.
3. Cidara Therapeutics Inc. (NASDAQ:CDTX)
3-Month Performance as of October 10: 104.36%
Average Upside Potential as of October 10: 47.72%
Number of Hedge Fund Holders: 34
Cidara Therapeutics Inc. (NASDAQ:CDTX) is one of the best hot stocks to invest in. On October 9, Cidara Therapeutics announced that the US FDA granted Breakthrough Therapy designation for its drug-Fc conjugate/DFC therapeutic candidate, CD388. The designation is for the prevention of influenza A and B in adults and adolescents who are at higher risk of influenza complications.
The high-risk group includes individuals with underlying immunodeficiency, those at higher risk of severe influenza despite vaccination, or those for whom vaccines are contraindicated. The Breakthrough Therapy designation was supported by positive results from the Phase 2b NAVIGATE trial, which demonstrated statistically significant prevention of seasonal influenza in healthy unvaccinated adults aged 18-64.
Top-line data from the NAVIGATE study were initially announced in June this year, with additional data expected to be presented at scientific conferences later in October. CD388 is developed using Cidara’s proprietary Cloudbreak platform, which is a long-acting antiviral designed to achieve universal prevention of seasonal and pandemic influenza with a single dose by directly inhibiting viral proliferation. Cidara plans to submit a Biologic License Application/BLA for CD388.
Cidara Therapeutics Inc. (NASDAQ:CDTX) is a biotechnology company that develops targeted therapies for patients facing cancers and other serious diseases.
2. Liquidia Corporation (NASDAQ:LQDA)
3-Month Performance as of October 10: 60.15%
Average Upside Potential as of October 10: 59.55%
Number of Hedge Fund Holders: 43
Liquidia Corporation (NASDAQ:LQDA) is one of the best hot stocks to invest in. On October 9, BofA raised the firm’s price target on Liquidia to $37 from $35 and kept a Buy rating on the shares. BofA previewed Q3 2025 EPS updates for its commercial-stage biopharma coverage and does not expect any major Q3 beats/misses and no big 2026 revisions among the group.
Liquidia reported its Q2 2025 earnings with a strong launch of its product, YUTREPIA (treprostinil inhalation powder). The quarter’s total revenue reached $8.8 million. This was comprised of $6.5 million from YUTREPIA product sales, which began shipping in June, and $2.3 million in service revenue related to a promotion agreement for treprostinil injection with Sandoz.
Commercially, the company has signed contracts with major commercial payers, which is expected to improve market access and remove new-to-market blocks in the coming quarters. However, the initial $6.5 million revenue was attributed primarily to channel inventory, with patient demand expected to drive growth into Q3.
Liquidia Corporation (NASDAQ:LQDA) is a biopharmaceutical company that develops, manufactures, and commercializes various products for unmet patient needs in the US.
1. Dyne Therapeutics Inc. (NASDAQ:DYN)
3-Month Performance as of October 10: 57.69%
Average Upside Potential as of October 10: 170.46%
Number of Hedge Fund Holders: 43
Dyne Therapeutics Inc. (NASDAQ:DYN) is one of the best hot stocks to invest in. On October 7, Dyne Therapeutics announced additional one-year clinical data from the ongoing Phase 1/2 ACHIEVE trial of zeleciment basivarsen (z-basivarsen), formerly known as DYNE-101, for patients with Myotonic Dystrophy Type 1/DM1.
The data was released at the 30th Annual International Congress of the World Muscle Society/WMS in Vienna, Austria, and demonstrated robust and clinically meaningful improvements in function and strength at the selected registrational dose. The data also supported the clinical meaningfulness of the functional improvements to patients. Meaningful and sustained improvements from baseline were observed in the Myotonic Dystrophy Health Index/MDHI patient-reported outcome measure, including in the subscales for central nervous system manifestations.
New data showed improvements in other MDHI subscales, including mobility, ability to do activities, and upper extremity function. Furthermore, new data from both the Patient Global Impression of Change (PGI-C) and Clinician Global Impression of Change (CGI-C) scales indicated improvements from baseline in overall disease burden, as reported by both patients and physicians.
Dyne Therapeutics Inc. (NASDAQ:DYN) is a clinical-stage neuromuscular disease company that discovers and develops therapeutics for neuromuscular diseases in the US.
While we acknowledge the potential of DYN 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 DYN and that has 100x upside potential, check out our report about the cheapest AI stock.
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Disclosure: None.
