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.
Our 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.
10. Marex Group (NASDAQ:MRX)
Number of Hedge Fund Holders: 39
Average Upside Potential as of October 10: 66.28%
Marex Group (NASDAQ:MRX) is one of the best young stocks with huge upside potential. On October 8, Barclays analyst Benjamin Budish lowered the price target on Marex Group to $40 from $50 and maintained an Overweight rating on the shares as part of a Q3 2025 earnings preview. Barclays does not expect too many surprises with the Q3 reports.
Volumes across the futures grew sequentially during lower volatility, while trading activity for options saw strong growth as well. Earlier on September 9, Benjamin Budish maintained a Buy rating on Marex Group and set a price target of $50.
Marex Group (NASDAQ:MRX) is a financial services platform provider company that provides liquidity, market access, and infrastructure services to clients in the energy, commodities, and financial markets in the UK, the US, and internationally.
9. Venture Global Inc. (NYSE:VG)
Number of Hedge Fund Holders: 22
Average Upside Potential as of October 10: 69.31%
Venture Global Inc. (NYSE:VG) is one of the best young stocks with huge upside potential. On October 10, Mizuho analyst Gabriel Moreen downgraded Venture Global to Neutral from Outperform with a price target of $12, which was downgraded from $17. Moreen believes that the arbitration ruling that Venture breached its contract with BP by not declaring the Commercial Operation Date at CP1 on time was a negative surprise.
On October 9, BP won its arbitration case against Venture Global. The dispute centered on Venture Global’s failure to deliver LNG under a long-term contract that was scheduled to begin in late 2022. In a regulatory filing, Venture Global confirmed that the International Chamber of Commerce International Court of Arbitration ruled it had breached its obligations to declare that commercial operations had begun at its Calcasieu Pass plant on time and to act as a reasonable operator.
The ruling was a setback for Venture Global, as it directly contrasts with a decision in August where the company prevailed against Shell in a similar complaint.
Venture Global Inc. (NYSE:VG) develops, constructs, and produces natural gas liquefaction and export projects near the US Gulf Coast in Louisiana.
8. Aardvark Therapeutics Inc. (NASDAQ:AARD)
Number of Hedge Fund Holders: 7
Average Upside Potential as of October 10: 78.35%
Aardvark Therapeutics Inc. (NASDAQ:AARD) is one of the best young stocks with huge upside potential. On October 8, Aardvark Therapeutics announced that the company had reached alignment with the US FDA on a protocol amendment for its Phase 3 HERO trial. The trial is evaluating the company’s lead compound, ARD-101, for the treatment of hyperphagia (insatiable hunger) associated with Prader-Willi Syndrome/PWS, which is a rare disease.
The protocol amendment expands the eligibility of the patient population for the Phase 3 HERO trial by changing the minimum age for participation from 13 to 10 years old. The decision aligns with FDA guidance and was driven by support from the PWS community and historical data suggesting that younger patients may benefit more from early intervention.
ARD-101 is an oral, gut-restricted small molecule that acts as a potent pan-agonist of select bitter taste receptors/TAS2Rs expressed in the intestinal lumen. By stimulating enteroendocrine cells, it triggers the release of multiple gut-peptide hormones, including GLP-1 and the satiety hormone Cholecystokinin, which activates gut-brain neurological signaling to mediate hunger. ARD-101 has shown an ability to reduce hunger when used alone or in combination with currently available GLP-1 therapies.
Aardvark Therapeutics Inc. (NASDAQ:AARD) is a clinical-stage biopharmaceutical company that develops small-molecule therapeutics to activate innate homeostatic pathways for the treatment of metabolic diseases.
7. Chime Financial Inc. (NASDAQ:CHYM)
Number of Hedge Fund Holders: 46
Average Upside Potential as of October 10: 91.62%
Chime Financial Inc. (NASDAQ:CHYM) is one of the best young stocks with huge upside potential. On October 1, Keefe Bruyette analyst Sanjay Sakhrani lowered the price target on Chime to $35 from $42, while keeping an Outperform rating. This announcement was made ahead of the company’s Q3 2025 earnings report.
Earlier on September 11, James Faucette from Morgan Stanley maintained a Buy rating on the company with a price target of $40. Faucette believes that Chime Financial will not be hit hard by the recent court ruling on debit interchange fees. The court vacated the Fed’s Regulation II, but this is expected to hit banks with assets over $10 billion. whereas Chime Financial’s bank partners are smaller. Therefore, the analyst believes that the company’s business model is safe for the near and medium term.
Chime Financial Inc. (NASDAQ:CHYM) is a financial technology company that provides digital consumer banking and payment solutions.
6. KinderCare Learning Companies Inc. (NYSE:KLC)
Number of Hedge Fund Holders: 9
Average Upside Potential as of October 10: 93.32%
KinderCare Learning Companies Inc. (NYSE:KLC) is one of the best young stocks with huge upside potential. On October 10, UBS lowered the firm’s price target on KinderCare Learning to $10 from $11 and kept a Buy rating on the shares. The sentiment was posted ahead of the company’s Q3 2025 earnings report as the firm does not expect a material narrative shift coming out of Q3. Additionally, Wall Street estimates for the quarter seem achievable without a major change in enrollment trajectory.
On October 15, Goldman Sachs analyst George Tong also downgraded KinderCare Learning to Neutral from Buy with a price target of $6, down from $20. Goldman Sachs believes that the stock’s upside will be limited due to declining child care center occupancy rates and slowing revenue growth. The company’s occupancy declines are due to local market dynamics rather than a single factor.
KinderCare Learning Companies Inc. (NYSE:KLC) provides early childhood education and care services in the US. The company operates community-based early childhood education centers under the KCLC brand, and community-based early child care and education schools under the Creme School brand.
5. Tamboran Resources Corporation (NYSE:TBN)
Number of Hedge Fund Holders: 5
Average Upside Potential as of October 10: 98.99%
Tamboran Resources Corporation (NYSE:TBN) is one of the best young stocks with huge upside potential. On October 1, Tamboran Resources reached an agreement to acquire Falcon Oil & Gas. The deal is expected to close in Q1 2026, where the transaction values Falcon at ~$172 million.
Under the agreement, Tamboran will take ownership of all Falcon subsidiaries. The consideration for the transaction includes 6.5 million shares of Tamboran’s common stock and $23.7 million in cash. Upon completion, Falcon’s investors will hold a 26.8% stake in the combined entity, with Tamboran shareholders holding the remaining 73.2%.
The acquisition will extend Tamboran’s footprint in the Beetaloo sub-basin, or depocentre, and create one of the largest acreage holders in the region, with ~2.9 million net prospective acres. This figure includes non-operating stakes in blocks held by Daly Waters Energy. The deal also increases Tamboran’s working interest in the phase two development area to 80.62%. For this area, Tamboran is currently undertaking a farmout process with RBC Capital Markets to identify a new development partner while maintaining a material working interest.
Tamboran Resources Corporation (NYSE:TBN) is a natural gas company that develops unconventional gas resources in the northern territory of Australia.
4. Alto Neuroscience Inc. (NYSE:ANRO)
Number of Hedge Fund Holders: 19
Average Upside Potential as of October 10: 103.90%
Alto Neuroscience Inc. (NYSE:ANRO) is one of the best young stocks with huge upside potential. On October 3, Alto Neuroscience announced that the US FDA granted Fast Track designation to its drug candidate, ALTO-101, for the treatment of cognitive impairment associated with schizophrenia/CIAS.
The designation may make ALTO-101 eligible for more frequent meetings with the FDA, as well as possible accelerated approval and priority review, provided relevant criteria are met. The designation highlights the significant unmet need for new treatments for CIAS, a core, debilitating feature of schizophrenia for which there are currently no approved treatments.
ALTO-101 is a novel small molecule phosphodiesterase-4/PDE4 inhibitor. The mechanism of action is based on PDE4’s role in breaking down cyclic adenosine monophosphate/cAMP, a molecule essential for neuronal signaling and synaptic plasticity. By inhibiting PDE4, ALTO-101 is believed to increase cAMP levels, thereby enhancing neural circuits and potentially improving cognitive function, which includes deficits in attention, memory, and executive function seen in schizophrenia.
Alto Neuroscience Inc. (NYSE:ANRO) is a clinical-stage biopharmaceutical company in the US. The company was incorporated in 2019 and is headquartered in Mountain View, California.
3. Lexeo Therapeutics Inc. (NASDAQ:LXEO)
Number of Hedge Fund Holders: 15
Average Upside Potential as of October 10: 142.72%
Lexeo Therapeutics Inc. (NASDAQ:LXEO) is one of the best young stocks with huge upside potential. On October 7, Lexeo Therapeutics announced progress regarding its gene therapy candidate, LX2006, for Friedreich ataxia/FA cardiomyopathy. The company shared positive updates from discussions with the US FDA on an Accelerated Approval pathway, along with encouraging new interim clinical data from ongoing Phase I/II studies.
Lexeo’s leadership believes this combination of regulatory support and compelling data could significantly accelerate the overall timeline for a Biologics License Application/BLA submission. The FDA indicated that it is open to an accelerated approval BLA submission that includes pooling clinical data from the ongoing Phase I/II trials with new data generated in the planned pivotal study.
To enable this, Lexeo will need to submit enhanced manufacturing comparability data and meet an additional nonclinical requirement before starting the pivotal trial. This is because the company intends to utilize its optimized, high-yield Sf9-baculovirus manufacturing platform for future commercial supply, a departure from the adherent HEK293 process employed for the Phase I/II supply. The FDA previously agreed to evaluate the co-primary endpoint of left ventricular mass index at a time point earlier than 12 months. Lexeo believes this regulatory flexibility will enable a smaller and shorter pivotal study, with plans to initiate the trial as soon as possible in H1 2026.
Lexeo Therapeutics Inc. (NASDAQ:LXEO) is a clinical-stage genetic medicine company that focuses on hereditary and acquired diseases with high unmet need in the US.
2. Kyverna Therapeutics Inc. (NASDAQ:KYTX)
Number of Hedge Fund Holders: 14
Average Upside Potential as of October 10: 239.37%
Kyverna Therapeutics Inc. (NASDAQ:KYTX) is one of the best young stocks with huge upside potential. On October 8, Wells Fargo analyst Derek Archila raised the firm’s price target on Kyverna Therapeutics to $27 from $24, while maintaining an Overweight rating on the shares. Wells Fargo likes the risk/reward on KYV-101’s pivotal stiff person syndrome trial readout in H1 2026.
The firm believes that Wall Street underappreciates how de-risked the trial is. On September 24, Kyverna Therapeutics announced that updated data from Phase 1 investigator-initiated trials/IITs of its lead candidate, KYV-101, in progressive multiple sclerosis/MS would be presented at the 2025 European Committee for Treatment and Research in Multiple Sclerosis/ECTRIMS Congress in Barcelona, Spain.
Across both IITs, KYV-101 demonstrated a tolerable safety profile, consistent with observations from the first 100 patients treated with the therapy across all indications. Notably, there were no high-grade Cytokine Release Syndrome/CRS or Immune Effector Cell Associated Neurotoxicity Syndrome/ICANS events reported, and no serious adverse events/SAEs in the Stanford study.
KYV-101 is a fully human, autologous, CD19 CAR T-cell therapy with CD28 co-stimulation, currently being investigated for its potential to deliver deep B-cell depletion and immune system reset in various B-cell-driven autoimmune diseases
Kyverna Therapeutics Inc. (NASDAQ:KYTX) is a clinical-stage biopharmaceutical company that develops cell therapies for patients with autoimmune diseases.
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.
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