On February 10, Sam Stovall, chief investment strategist at CFRA, and Tim Seymour, founder of Seymour Asset Management, appeared on CNBC’s ‘Closing Bell Overtime’ to discuss how investors are currently focused on a heavy week of corporate earnings and two critical pieces of economic data: the January jobs report and the Consumer Price Index. Seymour identified the payroll report as a pivotal event and noted that the market is attempting to determine if the labor market is in trouble due to prevailing secular trends. He observed that while semiconductors are outperforming, other sectors like healthcare and energy are also performing well. He described this as a barbell approach to investing, which he believes remains viable as long as the job market remains stable. He suggests that the payroll numbers will be essential in setting the tone for the market’s direction.
Stovall addressed the disconnect between global economic lift-off signals from the equity market and recent slowdown talks, such as those from Kevin Hassett regarding potential labor weakness. He explained that the strong market follow-through after Friday’s snapback is driven by several optimistic projections. Stovall also added that the expectation of a Fed rate cut in June will support share prices. He pointed out that investors are capitalizing on a valuation opportunity, specifically noting that the technology sector had been trading at an 8% discount compared to its five-year average.
That being said, we’re here with a list of the 13 best upside stocks to invest in right now.
Our Methodology
We first compiled a list of stocks that were the most popular among elite hedge funds, as of Q3 2025. We then selected 13 stocks that had an upside potential of over 40%. The stocks are ranked in ascending order of their upside potential. We have also added the hedge fund sentiment for each stock, which was sourced from Insider Monkey’s database.
Note: All data was sourced on February 12.
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).
13 Best Upside Stocks to Invest In Right Now
13. Vistra Corp. (NYSE:VST)
Number of Hedge Fund Holders: 112
Average Upside Potential: 45.49%
Vistra Corp. (NYSE:VST) is one of the best upside stocks to invest in right now. On February 10, Jefferies analyst Julien Dumoulin-Smith upgraded Vistra from Hold to Buy and raised the price target to $203 from $191. This decision was made as the firm cited an improved risk/reward profile for the company following a 25% decline in the stock since September.
Despite recent announcements regarding Texas data center contracts and the attractively priced Cogentrix acquisition, Jefferies believes that the current share price fails to account for future data center opportunities.
On February 6, Goldman Sachs analyst Carly Davenport also upgraded Vistra Corp. (NYSE:VST) to Buy from Neutral while raising the price target to $205 from $200. The upgrade is based on a recent pullback in share price and the firm’s higher earnings estimates. Davenport noted that Vistra’s deal with Meta demonstrates the company’s ability to secure significant power purchase agreements quickly, despite ongoing policy uncertainty and discussions surrounding affordability.
Vistra Corp. (NYSE:VST), together with its subsidiaries, operates as an integrated retail electricity and power generation company in the US. It has five segments: Retail, Texas, East, West, and Asset Closure.
12. Alnylam Pharmaceuticals Inc. (NASDAQ:ALNY)
Number of Hedge Fund Holders: 72
Average Upside Potential: 52.04%
Alnylam Pharmaceuticals Inc. (NASDAQ:ALNY) is one of the best upside stocks to invest in right now. On January 30, Bank of America lowered its price target on Alnylam to $462 from $529 while maintaining a Buy rating as part of the firm’s Q4 2025 small-to-mid cap biotech earnings preview.
On the same day, H.C. Wainwright also lowered its price target on Alnylam to $510 from $570 with a Buy rating. The firm reduced its estimates to reflect a more disciplined outlook for near-term growth and margins. Despite the adjustment, the firm sees compelling upside for the shares as the TTR franchise scales and the Alnylam 2030 strategy is implemented.
On January 27, Barclays analyst Eliana Merle assumed coverage of Alnylam Pharmaceuticals Inc. (NASDAQ:ALNY) with an Overweight rating and a $527 price target. This initiation was part of a broader move in which Barclays began covering 12 biotech stocks and assumed coverage of 11 others, expressing a positive outlook on the industry for 2026. Merle noted that many biotech stocks remain undervalued and anticipates that significant tailwinds will benefit the sector.
Alnylam Pharmaceuticals Inc. (NASDAQ:ALNY) discovers, develops, and commercializes therapeutics based on ribonucleic acid interference.
