In this article, we will discuss: 12 Best Performing Stocks in February.
On March 2, CNBC reported, citing a person familiar with the matter, billionaire investor Ken Griffin’s Citadel hedge funds posted gains in February amid volatility stemming from artificial intelligence disruptions and macroeconomic uncertainty. The firm’s flagship multi-strategy Wellington fund increased 1.9% in the month, bringing its year-to-date gain to 2.9%. The source reported that all five of Citadel’s primary strategies, including commodities, equities, fixed income, credit, and quantitative, closed February on a positive note. The tactical trading fund rose 1.5%, taking its 2026 return to 3.5%, while the equities fund earned 1.0% for the month. The global fixed-income fund rose 1.6%, bringing its total return to 2.9% for the year.
The S&P 500 lost 0.9% in February, weighed down by AI-related and software stocks, as geopolitical concerns following US and Israeli attacks on Iran pushed oil prices higher. As of February, the source noted that Citadel had $66 billion in assets under management. The firm declined to respond.
With that said, here are the 12 Best Performing Stocks in February.
Photo by osamu nakazawa on Unsplash
Our Methodology
We used stock screeners to identify the Best Performing Stocks in February that were popular among analysts and elite hedge funds. A market cap filter with a value of more than $2 billion was used on the screener. From that list, we selected 12 stocks that posted the highest total returns in February. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. We ranked the stocks by total returns in February.
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 Performing Stocks in February 12. Circle Internet Group (NYSE:CRCL)
Total Returns in February: 41.76%
On February 25, 2026, Reuters reported that Circle Internet Group (NYSE:CRCL) announced fourth-quarter revenue that exceeded Wall Street projections, due to the higher circulation of its USD Coin stablecoin. The firm achieved $770 million in total sales and reserve income, up 77% year on year and above analysts’ $739 million estimate gathered by LSEG. USDC circulation grew 72% year on year to $75.3 billion in the fourth quarter, bringing revenue from reserves to $733 million. Shares surged over 30% in afternoon trading after the report.
Circle Internet Group (NYSE:CRCL) benefits from the growing use of dollar-pegged stablecoins as a result of the GENIUS Act, which established a federal regulatory framework. The firm invests cash received for issued tokens in deposits and short-term US Treasury securities, creating a yield from those reserves. The company received preliminary approval to establish a national trust bank license in December and expanded deals, including a partnership with Visa Inc. that allows US institutions to complete transactions with USDC.
Circle Internet Group (NYSE:CRCL) is a financial technology firm. It allows businesses of all sizes to benefit from the power of digital currencies and public blockchains for payments, commerce, and financial applications globally.
11. Silicon Laboratories Inc. (NASDAQ:SLAB)
Total Returns in February: 42.61%
On February 4, 2026, Silicon Laboratories Inc. (NASDAQ:SLAB) announced its fourth-quarter and full-year 2025 financial results for the period ending January 3, 2026. The firm’s fourth-quarter revenue was $208 million, a 25% increase year on year, with $122 million from Industrial & Commercial revenue, up 37%, and $87 million from Home & Life revenue, up 12%. The corporation posted a GAAP gross margin of 63.4% and GAAP operating expenses of $135 million, resulting in a GAAP operating loss of $3 million and a diluted loss per share of $0.08. Non-GAAP results showed a gross margin of 63.6%, operating expenditures of $112 million, operating income of $21 million, and diluted earnings per share of $0.56.
Silicon Laboratories Inc. (NASDAQ:SLAB) reported $785 million in revenue for the fiscal year 2025, a 34% growth over the previous year. The company achieved a GAAP gross margin of 58.2%, GAAP operating expenses of $528 million, and a GAAP operating loss of $71 million. It generated non-GAAP operating income of $25 million and diluted EPS of $0.92.
Silicon Laboratories Inc. (NASDAQ:SLAB) provides and develops analog-intensive and mixed-signal integrated circuits. It specializes in wireless development platforms and product portfolios for the Internet of Things, including Bluetooth, sub-GHz proprietary technologies, Wi-SUN, Thread, Wi-Fi, Zigbee, and Z-Wave.
10. Clear Secure, Inc. (NYSE:YOU)
Total Returns in February: 48.70%
On February 25, 2026, Clear Secure, Inc. (NYSE:YOU) published fourth-quarter 2025 financial results, with revenue of $240.8 million, up 16.7% year on year, and total bookings of $287.1 million, up 25.4%. The company earned operating income of $53.9 million with a 22.4% margin and net income of $46.5 million with a 19.3% margin. It generated adjusted EBITDA of $79.9 million with a 33.2% margin and 870 basis points of growth. The firm reported diluted earnings of $0.31 per share, $198.4 million in operating cash flow, and $187.4 million in free cash flow.
For the whole fiscal year 2025, Clear Secure, Inc. (NYSE:YOU) recorded $900.8 million in sales and $977.2 million in total bookings, with $186.5 million in operating income, $168.1 million in net income, and $262.2 million in adjusted EBITDA. The corporation boosted the total number of CLEAR members to 38.0 million and active CLEAR+ members to 7.6 million. The company renewed its multi-year deal with American Express.
Clear Secure, Inc. (NYSE:YOU) primarily runs a secure identity platform under the CLEAR brand name in the United States. It offers a secure identity platform with a multi-layered infrastructure that includes both the front-end (enrollment, verification, and linking) and the back-end.
9. Texas Pacific Land Corporation (NYSE:TPL)
Total Returns in February: 55.72%
On February 10, 2026, the board of Texas Pacific Land Corporation (NYSE:TPL) announced a quarterly cash dividend of $0.60 per share, up 12.5% from the previous quarter. The dividend will be paid to shareholders of record on March 16, 2026, at the close of business on March 2, 2026.
On February 18, 2026, Texas Pacific Land Corporation (NYSE:TPL) announced fourth-quarter 2025 results, with total sales of $211.6 million and net income of $123.3 million, or $1.79 per diluted share. The corporation achieved $178.1 million in adjusted EBITDA and $118.9 million in free cash flow, while royalty output averaged 37.5 thousand barrels of oil equivalent per day. Water sales revenue made up $60.7 million with volumes of 1.0 million barrels per day, while produced water royalties generated $33.5 million with volumes of 4.8 million barrels/day. During the quarter, the company generated $98.2 million in Water Services and Operations sales and $113.4 million in Land and Resource Management revenue.
Texas Pacific Land Corporation (NYSE:TPL) is a landowner in the state of Texas. It operates in the land and resource management, water services, and operations businesses.
8. ImmunityBio, Inc. (NASDAQ:IBRX)
Total Returns in February: 59.54%
On March 4, 2026, Piper Sandler analyst Patrick Soon-Shiong increased ImmunityBio, Inc. (NASDAQ:IBRX)’s price objective to $12 from $7, maintaining an Overweight rating. The firm pointed out ANKTIVA’s strong commercial momentum, reporting U.S. net revenues of approximately $113 million in 2025, noting a roughly 700% increase. Piper Sandler now forecasts ANKTIVA revenue of $195 million in 2026, showing that demand for the company’s immunotherapy treatment remains strong.
On February 26, 2026, ImmunityBio, Inc. (NASDAQ:IBRX) concluded enrollment in the Phase 2 QUILT 2.005 randomized study, which compared ANKTIVA + Bacillus Calmette-Guérin (BCG) to BCG alone in patients with BCG-naïve non-muscle invasive bladder cancer carcinoma in situ. The trial enrolled 366 patients and randomly assigned them to the two therapy groups ahead of schedule. An interim review conducted by the US Food and Drug Administration found that the combined therapy increased the durability of complete response, with 85% of patients retaining response at six months compared to 57% for BCG alone, and 84% at nine months versus 52%. The firm plans to submit a biologics licensing application in the fourth quarter of 2026.
ImmunityBio, Inc. (NASDAQ:IBRX) is a clinical-stage immunotherapy business. It creates next-generation treatments that activate immunogenic pathways to combat cancer and infectious diseases.
7. Arcellx, Inc. (NASDAQ:ACLX)
Total Returns in February: 63.80%
On February 23, 2026, CNBC reported that Gilead Sciences announced it would acquire Arcellx, Inc. (NASDAQ:ACLX) for up to $7.8 billion to expand its cancer treatment pipeline. The corporation agreed to pay $115 per share in cash, a 79% premium over Arcellx, Inc. (NASDAQ:ACLX)’s last closing price. Its stock jumped 77.9% to $114.06 in morning trading. The deal is Gilead’s largest since its acquisition of Immunomedics for $21 billion in 2020. Gilead Sciences CEO Daniel O’Day has explored acquisitions and partnerships as the firm aims to expand beyond HIV and liver disease therapies, notwithstanding declining revenues from its flagship COVID-19 medicine, Veklury, and potential patent losses.
The acquisition boosts Gilead’s position in cell therapy with anito-cel, an investigational CAR-T treatment for multiple myeloma developed by Kite Pharma and Arcellx, Inc. (NASDAQ:ACLX). The U.S. Food and Drug Administration is considering the therapy as a fourth-line treatment, with a decision set for December 23, 2026. According to Brian Abrahams of RBC Capital Markets, the treatment may have a better safety profile than Carvykti, which was developed by Johnson & Johnson and Legend Biotech. Gilead anticipates the transaction to be completed in the second quarter of 2026.
Arcellx, Inc. (NASDAQ:ACLX) is a clinical-stage biotechnology business that develops new immunotherapies for cancer and other incurable diseases.
6. Valaris Limited (NYSE:VAL)
Total Returns in February: 65.46%
On February 23, 2026, Susquehanna analyst Charles Minervino increased Valaris Limited (NYSE:VAL)’s price target to $96 from $87 while retaining a Neutral rating. The firm modified its projections following a review of fourth-quarter data and management discussion regarding a potential agreement with Transocean. Management anticipates the transaction will be finalized in the second half of the year. Susquehanna stated that the potential deal might establish the joint business as a leader in offshore drilling while aligning with both companies’ strategic ambitions as offshore markets show signs of medium-term growth.
On February 19, 2026, Valaris Limited (NYSE:VAL) reported $537 million in fourth-quarter 2025 operating revenue, $97 million in adjusted EBITDA, and $717 million in net income. Revenues, excluding reimbursables, decreased to $502 million from $556 million in the third quarter due to fewer floater operating days, the sale of the jackup VALARIS 247, and lower bareboat charter sales from ARO Drilling. Contract drilling expenses climbed to $380 million from $368 million due to higher maintenance, claims, and mobilization costs.
Valaris Limited (NYSE:VAL) provides offshore contract drilling services to the international oil and gas industry. It functions in the following segments: Floaters, Jackups, ARO, and Other.
5. Lumentum Holdings Inc. (NASDAQ:LITE)
Total Returns in February: 65.54%
On March 3, 2026, Rosenblatt analyst Mike Genovese increased the price objective for Lumentum Holdings Inc. (NASDAQ:LITE) from $580 to $900 while maintaining a Buy rating. Rosenblatt predicted higher earnings after NVIDIA decided to invest $2 billion in the company and make multibillion-dollar purchase agreements to secure future capacity availability for complex lasers and optical components. The analyst linked the deals to the demand for co-packaged optics that support next-generation computing systems.
On March 2, 2026, NVIDIA and Lumentum Holdings Inc. (NASDAQ:LITE) announced multiyear strategic agreements to improve optics technology for AI infrastructure. NVIDIA made multibillion-dollar purchases and invested $2 billion to assist R&D, capacity growth, and operations related to U.S. manufacturing. NVIDIA CEO Jensen Huang noted that AI is driving a significant computing infrastructure buildout. Lumentum Holdings Inc. (NASDAQ:LITE) CEO Michael Hurlston said that the deal boosts collaboration on optics technologies and promotes the development of a new fabrication facility to improve production capacity and speed innovation for AI data centers.
Lumentum Holdings Inc. (NASDAQ:LITE) offers optical and photonic products. It works in the Cloud and Networking and Industrial Tech areas.
4. Acadia Healthcare Company, Inc. (NASDAQ:ACHC)
Total Returns in February: 77.44%
On March 2, 2026, Barclays analyst Andrew Mok elevated Acadia Healthcare Company, Inc. (NASDAQ:ACHC)’s price goal to $20 from $14, maintaining an Equal Weight rating.
On February 25, 2026, Acadia Healthcare Company, Inc. (NASDAQ:ACHC) announced fourth-quarter 2025 revenue of $821.5 million, a 6.1% gain over the previous year. Same-facility revenue climbed 4.4%, driven by a 3.1% increase in patient days and a 1.3% rise in revenue per day. The firm reported a net loss of $13.02 per diluted share, which included a $996.2 million non-cash goodwill impairment charge, while adjusted net income was $6.1 million, or $0.07 per share. Adjusted EBITDA was $99.8 million, with a $52.7 million adjustment to professional and general liability reserves. CEO Debbie Osteen stated that the quarter saw solid volume growth. The corporation increased licensed beds by 181 in the quarter and by 1,089 in 2025, with revenue expected to range from $3.37 to $3.45 billion in 2026. The adjusted EPS projection ranges from $1.30 to $1.55.
Acadia Healthcare Company, Inc. (NASDAQ:ACHC) provides behavioral healthcare services in the United States. The firm serves its patients in several settings, including inpatient mental hospitals, specialty treatment facilities, residential treatment programs, and outpatient clinics.
3. AXT, Inc. (NASDAQ:AXTI)
Total Returns in February: 80.99%
On February 19, AXT, Inc. (NASDAQ:AXTI) announced fourth-quarter 2025 revenue of $23.0 million, down from $28.0 million in the third quarter of 2025 and $25.1 million the previous year. The firm’s GAAP gross margin was 20.9%, compared to 22.3% in the previous quarter and 17.6% in the fourth quarter of 2024, while the non-GAAP gross margin was 21.5%. The company reported a GAAP net loss of $3.5 million, or $0.08 per share, up from $1.9 million, or $0.04 per share, in the previous quarter but down from $5.1 million, or $0.12 per share, a year ago. The non-GAAP net loss totaled $2.3 million, or $0.05 per share. CEO Morris Young noted export permit restrictions during the quarter.
For fiscal year 2025, AXT, Inc. (NASDAQ:AXTI) produced $88.3 million in revenue, down from $99.4 million in 2024, with a GAAP gross margin of 12.7%. The company reported a GAAP net loss of $21.3 million, or $0.49 per share, although the non-GAAP net loss was $18.0 million, or $0.41 per share. Young stated that the corporation expects sequential revenue growth in the first quarter of 2026, fueled by indium phosphide demand related to AI infrastructure expansion.
AXT, Inc. (NASDAQ:AXTI) designs, develops, manufactures, and distributes compound and single-element semiconductor substrates. It also distributes specialty material substrates as well as raw materials used for the production of substrates and related goods.
2. Applied Optoelectronics, Inc. (NASDAQ:AAOI)
Total Returns in February: 90.74%
On February 26, Applied Optoelectronics, Inc. (NASDAQ:AAOI) announced fourth-quarter 2025 revenue of $134.3 million, up from $100.3 million a year ago and $118.6 million the previous quarter. The corporation reported a GAAP gross margin of 31.2%, up from 28.7% in the fourth quarter of 2024 and 28.0% in the third quarter of 2025, while the non-GAAP gross margin was 31.4%. The firm reported a GAAP net loss of $2.0 million, or $0.03 per share, a decrease from a loss of $119.7 million, or $2.60 per share, a year ago, and $17.9 million, or $0.28 per share, the previous quarter. The non-GAAP net loss totaled $0.6 million, or $0.01 per share. CEO Thompson Lin mentioned demand in the CATV and datacenter areas.
For the full fiscal year 2025, the company achieved GAAP sales of $455.7 million, up from $249.4 million in 2024, with a GAAP gross margin of 30%. Applied Optoelectronics, Inc. (NASDAQ:AAOI) announced a GAAP net loss of $38.2 million, or $0.64 per share. Revenue for the first quarter of 2026 is expected to range between $150 million and $165 million, with a non-GAAP gross margin of 29% to 31%.
Applied Optoelectronics, Inc. (NASDAQ:AAOI) designs and manufactures optical communication products. It manufactures optical devices such as laser diodes, photodiodes, related modules, and circuitry, as well as equipment for fiber-to-the-home, cable television, point-to-point communications, and wireless applications.
1. Fastly, Inc. (NASDAQ:FSLY)
Total Returns in February: 107.15%
On March 2, RBC Capital boosted Fastly, Inc. (NASDAQ:FSLY)’s price objective to $20 from $12 while maintaining a Sector Perform rating. The analyst noted improved execution and potential multiple expansion after holding investor meetings with the company’s management team.
On February 25, 2026, Fastly, Inc. (NASDAQ:FSLY) released its fourth annual Global Security Research Report, which examined cybersecurity concerns faced by AI-first enterprises. The research found that companies that integrate AI into core operations take roughly seven months on average to recover from cybersecurity incidents, which is around 80 days longer than non-AI-first firms. These firms also face breaches that cost more than 135% higher than others. Nearly 44% of AI-first participants said that attackers used AI in their most recent security incident, compared to 6% of non-AI-first firms. According to Fastly CISO Marshall Erwin, fast AI adoption necessitates the simultaneous modernization of security infrastructure to handle expanding attack surfaces and increased operational risks.
Fastly, Inc. (NASDAQ:FSLY) offers real-time content delivery network services. It provides edge compute, edge delivery, edge security, edge applications, including load balancing and image optimization, video on demand, and managed edge delivery.
While we acknowledge the potential of FSLY 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 FSLY and that has 100x upside potential, check out our report about this cheapest AI stock.
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Disclosure: None. 12 Best Performing Stocks in February is originally published on Insider Monkey. 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.
