Earlier on June 11, Jeff Richards of Notable Capital joined ‘Closing Bell’ on CNBC to express optimism about the upcoming activity in the IPO market. Richards suggested that viewers will soon have opportunities to invest directly in the next wave of companies and highlighted recent data indicating a resurgence in IPO performance, with the average of the last 20 IPOs being up over 50%, and several outperforming by over 100%. He also pointed out the recent successful IPOs of 2 or 3 companies with market caps below $5 billion, which is a threshold that bankers had previously been reluctant to cross. He emphasized that many investors are awaiting the next generation of AI companies for IPOs. Until these new AI companies arrive, investors are backing publicly traded companies that have seen 50% to 60% increases, which shows interest expected for private AI companies once they go public. He also highlighted a change in the number of public companies, which decreased from 7,000 in 1996 to 4,000 today, despite a 10x to 15x growth in GDP and the economy over the same period.

This concentration of the market in private assets primarily benefits the venture capital industry, though Richards admitted that the industry has faced liquidity challenges in recent years, which are hopefully beginning to go away with increasing IPO and M&A activity. Talking about the next wave of AI, Richards acknowledged obvious areas like self-driving, autonomous systems, and robotics, but he also highlighted two less commonly discussed areas: small businesses, that constitute 50% of the US economy and 55% of employment, will benefit from AI automating basic tasks such as scheduling, billing, and collections. The second is vertical AI, which involves companies developing software and AI tailored for particular industries like legal, healthcare, industrial, and manufacturing.

That being said, we’re here with a list of the 13 best up and coming stocks to invest in now.

Methodology

We sifted through the Finviz stock screener to compile a list of the top stocks that went public in the last 5 years. We then selected the 13 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q1 2025.

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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

13 Best Up and Coming Stocks to Invest In Now

13. Amdocs Limited (NASDAQ:DOX)

Number of Hedge Fund Holders: 27

Amdocs Limited (NASDAQ:DOX) is one of the best up and coming stocks to invest in now. On July 1, MobiFone, which is a leading mobile network operator in Vietnam, launched its new digital brand called Saymee. This brand is specifically designed to cater to Gen Z subscribers and is powered by Amdocs’ connectX cloud-native SaaS platform.

Saymee offers features tailored for the tech-savvy young generation, which include free GPT chat and a loyalty program. By using Amdocs’ connectX platform, MobiFone aims to expedite the launch of new offers for Saymee and manage mobile subscription plans. This enables MobiFone to adapt to the evolving demands of young subscribers and manage the dynamic mobile virtual network operator/MVNO market.

Amdocs’ connectX platform provides a telco-in-a-box solution built on AWS and empowers telecom operators and MVNOs to deploy flexible and versatile digital services. It includes a complete SaaS offering with features such as catalog management, subscription services management, a mobile application, and integration with local payment gateways and network aggregators. The collaboration strengthens Amdocs’ market presence in Southeast Asia and also underscores its commitment to specialized solutions for demographically targeted service offerings.

Amdocs Limited (NASDAQ:DOX) provides software and services to communications, entertainment, and media service providers worldwide.

12. Edgewise Therapeutics Inc. (NASDAQ:EWTX)

Number of Hedge Fund Holders: 42

Edgewise Therapeutics Inc. (NASDAQ:EWTX) is one of the best up and coming stocks to invest in now. On June 26, Edgewise Therapeutics announced positive results from its sevasemten program for Becker and Duchenne muscular dystrophies.

For Becker muscular dystrophy, the company reported positive data from MESA, which is an open-label extension trial that provides continued access to sevasemten for participants previously enrolled in ARCH, CANYON, GRAND CANYON, or DUNE trials. Sevasemten maintained a favorable safety profile over up to 3 years of treatment. For Duchenne muscular dystrophy, Edgewise announced encouraging topline data from its Phase 2 LYNX and FOX trials.

Sevasemten is an orally administered and first-in-class fast skeletal myosin inhibitor designed to protect against contraction-induced muscle damage in muscular dystrophies like Becker and Duchenne. Becker muscular dystrophy is a rare, genetic, debilitating, and degenerative neuromuscular disorder primarily affecting males, with no currently approved therapies. Duchenne muscular dystrophy is a severe degenerative muscle disorder, the most common type of muscular dystrophy, with a median life expectancy of around 30 years.

Edgewise Therapeutics Inc. (NASDAQ:EWTX) is a biopharmaceutical company that discovers, develops, and commercializes therapies for the treatment of muscle disorders.