12 Best Young Stocks with Huge Upside Potential

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1. Fractyl Health Inc. (NASDAQ:GUTS)

Number of Hedge Fund Holders: 13

Average Upside Potential as of October 10: 347.76%

Fractyl Health Inc. (NASDAQ:GUTS) is one of the best young stocks with huge upside potential. On October 7, Fractyl Health announced potent new preclinical data for RJVA-002, which is the second candidate from the company’s Rejuva Smart GLP-1 gene therapy platform and is being developed for obesity. The data were presented at the 2025 Cell & Gene Meeting on the Mesa, expanding the platform’s potential from Type 2 Diabetes/T2D to obesity.

RJVA-002 is a dual GIP/GLP-1 gene therapy candidate designed to encode both the GIP and GLP-1 hormones. Its expression is driven by an engineered human insulin promoter to ensure beta cell-specific, nutrient-responsive activity. In an ongoing preclinical study using a diet-induced obesity/DIO mouse model that expresses a humanized GIP receptor, a single administration of RJVA-002 led to significant weight loss.

The Rejuva platform develops next-generation adeno-associated virus/AAV-based, locally delivered gene therapies designed to durably reprogram pancreatic islet cells to endogenously produce metabolic hormones. The platform transforms the treatment of metabolic diseases from chronic management to durable remission. RJVA-001, the first candidate from the platform, is expected to enter its first-in-human clinical trials for patients with inadequately controlled T2D in 2026.

Fractyl Health Inc. (NASDAQ:GUTS) is a metabolic therapeutics company that develops therapies for the treatment of type 2 diabetes/T2D and obesity.

While we acknowledge the potential of GUTS 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 GUTS  and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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