In this article, we discuss the 12 Best Multibagger Stocks to Buy Heading into 2026.

As we head into 2026, the biggest question market participants are asking is whether the strong momentum this year can carry over into next year. Even more importantly, they are wondering where the next wave of massive returns may emerge.

So, before we jump onto our list of the 12 Best Multibagger Stocks to Buy Heading into 2026, we attempt to frame the broader market backdrop through the lens of leading Wall Street expectations.

Chris Toomey, Managing Director at Morgan Stanley Private Wealth Management, appeared in a CNBC Closing Bell interview on December 16, 2025. Striking a significantly constructive tone for 2026, the analyst laid out his expectations for another solid year for markets, which may be driven by a combination of secular tailwinds, improving earnings visibility, supportive fiscal and monetary policy, and an eventual revival of “animal spirits” on the back of deregulation and heightened M&A activity.

However, Toomey highlighted that risks remain around inflation dynamics and increasing government debt. Yet he stated that the overall setup will remain as a driver for continued growth, given that the resilience in economic expansion remains.

What is increasingly relevant for investors seeking multibaggers is Toomey’s emphasis on market leadership, which he believes will likely broaden. While recent years have seen mega-cap technology stocks dominating returns, the analyst thinks that previously overlooked sectors will present increasing opportunities.

With this backdrop, we will now move on to our list of the 12 best multibagger stocks to buy heading into 2026.

Our Methodology

To curate our list of the best multibagger stocks to buy heading into 2026, we used screeners to identify stocks with a market capitalization of over $500 million. Next, we filtered for stocks that delivered at least 150% returns over the past year. Furthermore, these stocks offer at least 50% upside. Finally, we selected the 12 stocks with the greatest potential upside and ranked them in ascending order. Additionally, we considered hedge fund sentiment surrounding these stocks, using Insider Monkey’s hedge fund database that tracks 978 stocks as of Q3 2025.

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 17, 2025.

12. CytomX Therapeutics, Inc. (NASDAQ:CTMX)

Market Cap: $696.38 Million

Price Return over 1-Year: 263.72%

Upside Potential: 58.20%

Number of Hedge Fund Holders: 31

CytomX Therapeutics, Inc. (NASDAQ:CTMX) is one of the 12 best multibagger stocks to buy heading into 2026.

As of December 18, 2025, 90% of analysts are bullish on CytomX Therapeutics, Inc. (NASDAQ:CTMX), setting a median price target of $6.50. This translates into a healthy upside potential of 58.20%.

On December 5, 2025, CytomX Therapeutics, Inc. (NASDAQ:CTMX) saw H.C. Wainwright reiterate its “Buy” rating with a $10.00 price target, ahead of a critical data readout for the company’s CX-2051 therapy in colorectal cancer. For the upcoming dataset, the investment firm outlined clear performance benchmarks and categorized potential outcomes into “slam dunk,” “bull,” and “bear” scenarios.

Under the “slam dunk” scenario, the firm expects an objective response rate (ORR) of 25%-30% or higher, median progression-free survival (PFS) of at least six months, and Grade 3 diarrhea in fewer than 5% of patients. Meanwhile, the “bull” scenario would see an ORR of 15-20% or higher, PFS of at least five months, and Grade 3 diarrhea in fewer than 10% of patients. Lastly, the firm’s “bear case” was defined as one with an ORR of 10% or lower and a median PFS of only 2-3 months. The firm’s analysis was based on Dr. Michael Pishvaian’s inputs, who sees CX-2051’s interim performance in irinotecan-pretreated patients as particularly promising.

H.C. Wainwright’s analysis builds upon CytomX Therapeutics, Inc. (NASDAQ:CTMX)’s Q3 2025 updates that showed continued momentum on the CX-2051 program. The enrollment progressed toward approximately 100 patients ahead of the planned Phase 1 update in Q1 2026. With combination studies alongside bevacizumab set to start in the same quarter, management believes CX-2051 is well-positioned as a first-in-class EpCAM-directed ADC targeting both late-line colorectal cancer and broader EpCAM-expressing tumors.

CytomX Therapeutics, Inc. (NASDAQ:CTMX), a clinical-stage oncology company, develops conditionally activated biologics localized to tumors, including ADCs and T-cell engagers. The company aims for safer, more effective cancer therapies.

11. Trevi Therapeutics, Inc. (NASDAQ:TRVI)

Market Cap: $1.59 Billion

Price Return over 1-Year: 169.11%

Upside Potential: 73.40%

Number of Hedge Fund Holders: 30

Trevi Therapeutics, Inc. (NASDAQ:TRVI) is one of the 12 best multibagger stocks to buy heading into 2026.

On December 4, 2025, Trevi Therapeutics, Inc. (NASDAQ:TRVI) announced the appointment of David Hastings as Chief Financial Officer, effective January 6, 2026. This marks a key leadership change amid the company’s transition into a more advanced stage of development. As the company moves into Phase 3 development for Haduvio, management sees Hastings’ 25 years of financial leadership experience across public life sciences companies as valuable. Over the years, he has helped companies raise $2 billion in equity and debt financing. Furthermore, his experience in helping companies thrive through commercialization, scaling operations, and strategic transactions aligns with Trevi’s next phase of growth.

This move comes amid strong clinical momentum, as its lead program advances steadily toward pivotal trials. In chronic cough associated with idiopathic pulmonary fibrosis (IPF), Trevi Therapeutics, Inc. (NASDAQ:TRVI) is preparing to request an End-of-Phase 2 meeting with the FDA in Q4 2025, having already completed key Phase 2 work. The company expects to initiate a Phase 3 program in the first half of 2026.

Reinforcing the company’s transition into Phase 3, the ongoing Phase 1 TIDAL study in IPF patients has shown no safety signals, and the completed drug-drug interaction study has confirmed that nalbuphine ER can be safely co-administered with standard antifibrotic therapies. Trevi Therapeutics, Inc. (NASDAQ:TRVI) has also presented topline Phase 2b CORAL data, increasing clinical and investor visibility.

With a cash balance of $194.9 million as of the end of Q3 2025, Trevi Therapeutics, Inc. (NASDAQ:TRVI) looks well-established to capitalize on this clinical momentum.

Trevi Therapeutics, Inc. (NASDAQ:TRVI), a clinical-stage biopharmaceutical company, develops Haduvio, an oral extended-release therapy for chronic cough across IPF, Non-IPF ILD, and refractory chronic cough.