12 Best IPO Stocks with Huge Upside Potential

In this article, we will discuss the 12 Best IPO Stocks with Huge Upside Potential.

On July 6, Maria Llerena, Director of Financial Research at Domini Impact Investments, joined BNN Bloomberg to discuss the recent performance of the technology sector and the outlook for the remainder of the year. Llerena confirmed that while tech stocks faced a challenging finish to June, H1 of the year was very solid, with the sector driving overall market performance in H2. In particular, she highlighted that semiconductors and chips, which are central to the AI boom, were up almost 90% by the end of June. Regarding the recent sell-off, she attributed it to recurring concerns regarding the massive CapEx spending within the AI industry. She noted that AI-related CapEx is now equivalent to the spending of all non-AI-exposed stocks in the S&P 500, with an estimated $800 billion projected for 2026. This has raised questions about future returns, especially as hyperscalers have begun issuing debt to fund these investments rather than relying solely on cash flow.

Llerena explains that while borrowing is a standard practice for investment, the market is now placing a big microscope on how AI will be implemented across enterprises and how the broader economy will benefit. She emphasized the importance of observing how token pricing evolves as companies move from the initial investment phase to actual implementation. Turning to the bond markets, she noted that there is currently at least a 50% chance of a Fed rate hike by the end of the year, a possibility driven by the Fed’s ongoing focus on high inflation and the state of the job market. While she acknowledged that much of this has already been priced in, she noted that investors are operating without the extensive guidance they were accustomed to during the long-term low-rate environment.

Looking ahead to the upcoming earnings season, Llerena explained that she will be paying close attention to beats and raises, strong margins, and robust cash flow. She expects to gain early visibility into the semiconductor side of the industry through reports from Samsung. Outside of the AI-specific names, she is looking for evidence that the broader economy and consumer base remain strong, confirming her firm’s theory that the market is beginning to broaden out.

Against this backdrop, lets take a look at some of the best IPO stocks with huge upside potential.

Our Methodology

We used screeners to identify stocks that have gone public in the last 5 years and have an average upside potential of at least 45%. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.

Note: All data was sourced on July 6. 

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. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).

12 Best IPO Stocks with Huge Upside Potential

12. Venture Global Inc. (NYSE:VG)

Average Upside Potential: 47.47%

Venture Global Inc. (NYSE:VG) is one of the best IPO stocks with huge upside potential. On June 26, Venture Global announced that its subsidiary, Venture Global Shipping Holdings, LLC, closed a senior secured term loan facility totaling up to $1.5 billion. This financing agreement, which serves as a major capital initiative, is scheduled to mature on June 26, 2032.

Deutsche Bank and ING served as the coordinating lead arrangers for this transaction. Additionally, ING has taken on the roles of facility agent and security trustee to oversee the agreement.

Venture Global Inc. (NYSE:VG) plans to utilize the net proceeds for general corporate purposes. This includes reimbursing Venture Global LNG Inc. for the acquisition of nine LNG carriers, funding specific reserve accounts, and covering transaction-related fees and expenses.

Venture Global Inc. (NYSE:VG) is an energy, specifically LNG, company that owns, develops, constructs, and operates LNG production facilities on the US Gulf Coast. The company operates as a subsidiary of Venture Global Partners II LLC.

11. Cadre Holdings Inc. (NYSE:CDRE)

Average Upside Potential: 48.61%

Cadre Holdings Inc. (NYSE:CDRE) is one of the best IPO stocks with huge upside potential. On June 2, Cadre announced that its subsidiary, Safariland, was selected as the ballistic panel provider for an FBI armor contract. The selection integrates Safariland’s SX HP panels into the Overt Armor Kit/OAK developed by Predictive Ballistics LLC, which recently secured a five-year, $61 million IDIQ contract for the FBI and other Department of Justice agencies.

The SX HP panel was chosen following a rigorous evaluation process against 11 competitors, demonstrating superior ballistic performance, quality, and comfort. This selection marks a significant commercial milestone for the product, which was originally introduced by the company in 2025.

This contract reinforces Cadre Holdings Inc.’s (NYSE:CDRE) position in the federal law enforcement market and aligns with its strategy of developing mission-critical protective equipment. The award benefits from multi-year terms and recurring demand, further supporting the company’s long-term growth and commitment to innovative, life-saving technology.

Cadre Holdings Inc. (NYSE:CDRE) is a leading global manufacturer and distributor of safety and survivability equipment for law enforcement, first responders, and military personnel, focused on body armor, duty gear, and explosive ordnance disposal (EOD) tools.

10. Caris Life Sciences Inc. (NASDAQ:CAI)

Average Upside Potential: 54.41%

Caris Life Sciences Inc. (NASDAQ:CAI) is one of the best IPO stocks with huge upside potential. On July 1, Caris Life announced the commercial launch of Caris Detect, a multi-cancer early detection blood test. By utilizing ultra-deep Whole Genome and Whole Transcriptome sequencing alongside advanced AI, the test identifies cancer signals by analyzing a comprehensive range of molecular and biological patterns.

The technology aims to replace outdated screening methods by offering greater sensitivity than approaches that rely on limited genomic snapshots. This new tool is supported by a vast proprietary database containing over one million cases and 50 billion molecular markers, enabling the detection of subtle early-stage disease signals across various cancer types.

The launch is backed by findings from the Caris Detect ACHIEVE 1 study, which demonstrated the test’s effectiveness in identifying cancer signals. Moving forward, Caris Life Sciences Inc. (NASDAQ:CAI) intends to continue refining its platform through ongoing research to strengthen clinical evidence further and expand the test’s capabilities.

Caris Life Sciences Inc. (NASDAQ:CAI) is an AI-driven precision medicine company that uses large-scale clinico-genomic data and molecular profiling to guide cancer diagnosis and treatment. Its platforms apply machine learning to predict therapy response and improve personalized oncology outcomes.

9. Figure Technology Solutions Inc. (NASDAQ:FIGR)

Average Upside Potential: 58.38%

Figure Technology Solutions Inc. (NASDAQ:FIGR) is one of the best IPO stocks with huge upside potential. On July 6, Figure Technology announced its intention to offer $600 million in aggregate principal amount of senior notes through a private offering. This transaction is exempt from the registration requirements of the Securities Act of 1933 and is subject to market and other customary conditions.

The company plans to use the net proceeds to fund the cash consideration for its acquisition of Kiavi, an AI-powered lending platform for residential real estate investors, as well as for general corporate purposes and related transaction fees. The completion of the notes offering is not conditional upon the finalization of the Kiavi acquisition.

These notes will be guaranteed on a joint and several basis by certain domestic wholly-owned subsidiaries of Figure Technology Solutions Inc. (NASDAQ:FIGR). The offering is restricted to qualified institutional buyers in the US and non-US persons outside the country, as the notes will not be registered under the Securities Act or applicable state securities laws.

Figure Technology Solutions Inc. (NASDAQ:FIGR) is a US fintech company operating a blockchain‑native capital marketplace for loan origination, funding, and trading of tokenized assets, including consumer credit and digital asset products.

8. Firefly Aerospace Inc. (NASDAQ:FLY)

Average Upside Potential: 60.71%

Firefly Aerospace Inc. (NASDAQ:FLY) is one of the best IPO stocks with huge upside potential. On June 30, Firefly Aerospace and SSC Space announced the achievement of critical milestones for the development of Launch Complex 3C at the Esrange Space Center in Sweden. Following the completion of key infrastructure and the establishment of international regulatory frameworks, the companies have entered the final stages of pad construction with the first orbital launch of the Alpha rocket targeted for 2028.

The infrastructure development includes a new launch control center, payload processing facility, and vehicle integration building. These advancements are supported by a recent Memorandum of Cooperation between the Swedish National Space Agency and the US Federal Aviation Administration, which streamlines licensing processes and builds upon a bilateral Technology Safeguards Agreement to facilitate the export of US space technology.

This collaboration expands Europe’s access to space and strengthens strategic autonomy by providing a dedicated site for polar and sun-synchronous orbit missions. Additionally, SSC Space has secured a SEK 209 million agreement with the Swedish Defense Materiel Administration, enabling the Swedish Armed Forces to utilize the Alpha launch vehicle for future domestic satellite missions.

Firefly Aerospace Inc. (NASDAQ:FLY) is a space and defense technology company serving government, national security, and commercial customers. The company offers integrated launch and space services technology. It also offers Ocula, a lunar imaging service, alongside software and sensor solutions, and responsive space services.

7. Zenas BioPharma Inc. (NASDAQ:ZBIO)

Average Upside Potential: 68.24%

Zenas BioPharma Inc. (NASDAQ:ZBIO) is one of the best IPO stocks with huge upside potential. On June 2, Zenas announced positive results from the Phase 3 INDIGO trial of obexelimab for Immunoglobulin G4-Related Disease. The study met its primary and all key secondary endpoints, demonstrating a 56% reduction in flare risk compared to placebo and a significant decrease in glucocorticoid use and related toxicities.

The findings, presented at the EULAR 2026 Congress and published in the New England Journal of Medicine, highlight the drug’s potential as a first-line therapy. The trial, the largest ever conducted for this disease, showed that over 73% of treated patients remained flare-free through 52 weeks with a safety profile comparable to the placebo.

Following these successful results, Zenas BioPharma Inc. (NASDAQ:ZBIO) submitted a Biologics License Application to the FDA in May. The company continues to advance its clinical pipeline, with additional data expected later this year from its Phase 2 trial for systemic lupus erythematosus.

Zenas BioPharma Inc. (NASDAQ:ZBIO) is a clinical-stage company focused on developing transformative therapies for autoimmune diseases. Their pipeline features late-stage candidates like obexelimab and orelabrutinib, alongside several earlier-stage programs targeting chronic inflammatory conditions.

6. Fervo Energy Co. (NASDAQ:FRVO)

Average Upside Potential: 68.58%

Fervo Energy Co. (NASDAQ:FRVO) is one of the best IPO stocks with huge upside potential. On June 22, Fervo Energy, NVIDIA, and the Pacific Northwest National Laboratory/PNNL announced a partnership to develop “EGS-Twin,” a digital twin platform for Enhanced Geothermal Systems.

The initiative will integrate high-resolution field data with physics-based modeling and AI to improve subsurface management, optimize power generation, and increase the scalability of geothermal infrastructure.

PNNL will use Fervo Energy Co.’s (NASDAQ:FRVO) proprietary field data from its Nevada and Utah sites to train AI models on NVIDIA infrastructure to identify subsurface changes and enhance system reliability. The platform is scheduled for implementation by 2029, marking a significant advancement in applying accelerated computing to the clean energy sector.

Fervo Energy Co. (NASDAQ:FRVO) deploys large-scale enhanced geothermal systems to provide affordable, reliable, and clean power. Their industrial approach helps meet the growing energy demands of AI hyperscalers, utilities, and an increasingly electrified economy.

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