In this article, we will discuss 12 Strong Buy Stocks with High Upside According to Analysts.
Every year, hundreds of stocks receive analyst “Strong Buy” ratings, but only a select few combine those endorsements with something even more compelling: more than 40% projected upside potential. While skeptics often dismiss analyst forecasts as overly optimistic, some of the world’s most successful billionaires and hedge fund managers believe that identifying mispriced growth opportunities before the broader market catches on is one of the keys to generating outsized returns.
Legendary investor Peter Lynch famously argued that the biggest gains often come from companies that Wall Street has not fully appreciated yet. Similarly, hedge fund billionaire Stanley Druckenmiller has repeatedly emphasized the importance of finding businesses entering powerful earnings and revenue acceleration cycles before they become consensus trades. Ken Griffin has highlighted the value of rigorous research and market inefficiencies, while Ray Dalio has stressed that successful investing often comes from identifying situations where future outcomes are better than the market expects.
The research supporting high-conviction stock ideas is compelling. A study published in the Journal of Financial Economics found that stocks with the most favorable analyst recommendations significantly outperformed those with the least favorable ratings. Meanwhile, research from TipRanks has shown that top-rated Wall Street analysts consistently identify stocks that outperform the broader market over time. Recent market data also shows that many of the market’s biggest winners began their rallies while carrying Strong Buy ratings and substantial upside targets, often before institutional ownership surged.
For investors searching for market-beating opportunities, Strong Buy stocks with more than 40% upside potential offer a rare combination of professional conviction, favorable fundamentals, and asymmetric return potential. The challenge, of course, is separating the future winners from the countless stocks that merely look attractive on paper.
With this context in mind, here are the strong buy stocks with high upside according to analysts.
Our Methodology
We used stock screeners to identify the stocks that were given the ‘Strong Buy’ rating from analysts. From that list, we shortlisted stocks with more than 40% upside potential. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds. To make the list easier to navigate, we ranked the stocks in ascending order of their upside potential.
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. Insider Monkey’s quarterly newsletter strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
12 Strong Buy Stocks with High Upside According to Analysts
12. CRH plc (NYSE:CRH)
Upside Potential: 40.70%
On July 8, Wells Fargo lowered its price target on CRH plc (NYSE:CRH) to $132 from $135 while maintaining an Overweight rating on the shares. Ahead of second-quarter earnings for the building materials sector, the firm noted that results could face pressure from higher energy costs as pricing actions continue to lag input cost inflation. Wells Fargo also cited concerns about potentially slower government spending as a factor weighing on the broader industry outlook. Despite these near-term challenges, the firm named CRH its top pick within the sector, highlighting the company’s planned acquisition of Arcosa’s construction materials assets and an attractive valuation relative to its growth prospects.
Earlier, on June 26, Jefferies raised its price target on CRH plc (NYSE:CRH) to $165.60 from $149 while reiterating a Buy rating. The firm believes the Arcosa transaction will provide a meaningful earnings boost once fully integrated, estimating that the acquisition could contribute approximately 5% to 6% upside to its earnings-per-share forecasts beginning in 2027. Jefferies also emphasized that the scale of the transaction demonstrates CRH’s ability to drive growth through a combination of organic expansion and strategic acquisitions, reinforcing its leadership position within the global construction materials industry.
CRH plc (NYSE:CRH) is a leading international provider of building materials solutions headquartered in Dublin, Ireland, with origins dating back to 1936. CRH’s disciplined acquisition strategy, strong position in infrastructure-related markets, and continued analyst confidence support a favorable long-term outlook despite temporary cost pressures affecting the building materials sector, ranking it among the strong buy stocks with high upside according to analysts.
11. Intercontinental Exchange, Inc. (NYSE:ICE)
Upside Potential: 40.91%
On July 9, Barclays lowered its price target on Intercontinental Exchange, Inc. (NYSE:ICE) to $180 from $201 while maintaining an Overweight rating on the shares. Although the firm reduced its valuation target, it continues to view ICE favorably relative to peers and remains constructive on the company’s long-term growth prospects. The revised target reflects updated assumptions across the financial services sector rather than a fundamental change in the firm’s outlook regarding ICE’s competitive position or business model.
Earlier, on July 7, UBS lowered its price target on Intercontinental Exchange, Inc. (NYSE:ICE) to $190 from $205 while maintaining a Buy rating. The firm’s revised target similarly reflects updated valuation assumptions, though UBS continues to see attractive long-term opportunities supported by the company’s diversified portfolio of exchange, clearing, and technology businesses. The continued Buy rating underscores confidence in ICE’s ability to generate durable earnings growth through a combination of transaction-based revenue streams and recurring technology-related income.
Founded in 2000 and headquartered in Atlanta, Georgia, Intercontinental Exchange, Inc. (NYSE:ICE) operates a global network of regulated financial exchanges, clearing houses, and technology platforms. The company provides critical infrastructure for trading, risk management, price discovery, and mortgage technology services, serving financial institutions, corporations, governments, and investors around the world.
