On September 15, Tom Sosnoff, Tastylive founder, joined ‘Squawk Box’ on CNBC to discuss the state of the IPO landscape and what to make of the surge of IPO offerings. In September, Wall Street’s long-anticipated IPO rebound appeared to be underway following a surge of sizable public offerings in recent weeks. Sosnoff stated that, as far as the companies in the current influx of IPOs are concerned, he considers them relatively strong companies. He described them as real companies that had been waiting for the ideal time to go public. He also attributed the strong demand to the fact that their pricing is attractive to retail investors. However, he added a cautionary note and stated that the opening numbers and prices are not that healthy. By that, he meant that it scares him when a stock priced at, for example, $32, opens at $110. He said he would never buy that and does not think anyone should, pointing out that this has happened in many of the recent cases where stocks are opening at 1x, 2x, or 3x the IPO price. While he understood that keeping the IPO price low is good PR, he warned that some retail customers and some of the people trying to stabilize these stocks are being caught holding the bag.
Later on October 1, Dan Primack, business editor at Axios, appeared on CNBC’s ‘The Exchange’ to discuss how the government shutdown impacts IPOs. Talking about whether many companies would put their plans on hold, and if a floodgates moment would occur with a rush of activity right after the shutdown ends, Primack stated that this is likely what will happen. He noted that there are probably about a dozen companies that have filed to go public at some point. Primack assumed that several companies are betting that the shutdown will be short-lived. He also suggested waiting a few days, perhaps a couple of weeks, because most companies do not have a particular reason to go public in Q4 as opposed to Q1. He explained that if they have their internal affairs and bankers ready, they could wait a couple of months, like January or February, or even 5 months, as has happened historically. He believes that the companies presumably wait and watch to see if shutdowns last 24 to 48 hours, as has happened with a bunch of them over the past decades. If it is that short, nothing changes, and they proceed with their plans. But, if the shutdown goes on for a week or two, then most companies decide there is no reason to rush or to wait daily for the shutdown to end and kick the can into the new year.
That being said, we’re here with a list of the 12 best young stocks with huge upside potential.
Methodology
We used the Finviz stock screener to compile a list of the top stocks that went public in the last 2 years and have an upside potential of over 35%. The stocks are ranked in ascending order of their upside potential. We have also added the hedge fund sentiment for each stock, as of Q2 2025, which was sourced from Insider Monkey’s database.
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 Young Stocks with Huge Upside Potential
12. LandBridge (NYSE:LB)
Number of Hedge Fund Holders: 19
Average Upside Potential as of October 10: 35.08%
LandBridge (NYSE:LB) is one of the best young stocks with huge upside potential. On October 7, LandBridge announced that it has agreed to acquire ~37,500 total acres from 1918 Ranch & Royalty. The acquisition is expected to close in Q4 2025. The transaction involves acreage across Loving, Reeves, Winkler, and Ward counties in Texas and is expected to increase LandBridge’s total holdings to ~300,000 surface acres.
The acquired acreage is composed of ~22,000 fee surface acres, ~3,500 surface acres held under a long-term management agreement, and ~12,000 leasehold surface acres. The acquisition is anticipated to support existing cash flows and future revenue growth opportunities.
Upon closing, the transaction will immediately provide LandBridge with access to high-quality pore space adjacent to its large contiguous surface acreage position in Loving County, Texas. This is expected to support additional water handling infrastructure to manage escalating commercial produced water volumes in the Stateline region of the Delaware Basin.
LandBridge (NYSE:LB), together with its subsidiaries, owns and manages land and resources to support and enhance oil and natural gas development in the US.
11. Ategrity Specialty Insurance Company Holdings (NYSE:ASIC)
Number of Hedge Fund Holders: 28
Average Upside Potential as of October 10: 47.39%
Ategrity Specialty Insurance Company Holdings (NYSE:ASIC) is one of the best young stocks with huge upside potential. On October 9, JPMorgan analyst Pablo Singzon lowered the firm’s price target on Ategrity Specialty to $22 from $26, with an Overweight rating on the shares as part of a Q3 2025 preview for the property and casualty insurance group.
JPMorgan believes that the sector is positioned to outperform. The firm believes that the margins for the insurers and growth for brokers have peaked and will moderate further. However, Singzon also noted that fundamentals in the business are healthy, and sentiment is downbeat following the recent stock underperformance.
Earlier on October 8, Alex Scott from Barclays maintained a Buy rating on the company, while setting a $30 price target.
Ategrity Specialty Insurance Company Holdings (NYSE:ASIC), through its subsidiaries, provides excess and surplus lines insurance and reinsurance products to small and medium-sized businesses in the US. It offers property and casualty insurance solutions.
