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.

11. Roblox Corporation (NYSE:RBLX)

Number of Hedge Fund Holders: 90

Average Upside Potential: 52.20%

Roblox Corporation (NYSE:RBLX) is one of the best upside stocks to invest in right now. On February 9, Wells Fargo lowered its price target on Roblox to $97 from $107 while keeping an Overweight rating. This announcement was made as the firm noted that Q4 2025 results and guidance for Q1 2026 and FY2026 exceeded expectations.

Although the firm anticipates continued investor concern regarding difficult content comparisons beginning in late April, it highlights management’s confident full-year forecast and expects the stock to recover from its year-to-date weakness.

On the same day, Roth Capital upgraded Roblox to Buy from Neutral, raising the price target to $84 from $78. The firm’s positive outlook is driven by Roblox’s better-than-expected 2026 bookings guidance and a forecast of over 20% annual bookings growth for the next several years. The firm highlighted the company’s strong and sustainable virtuous circle, and noted that improved development tools are leading to higher-quality games and an attractive valuation at current levels.

Roblox Corporation (NYSE:RBLX) operates an immersive platform for connection and communication in the US and internationally.

10. DoorDash Inc. (NASDAQ:DASH)

Number of Hedge Fund Holders: 91

Average Upside Potential: 59.57%

DoorDash Inc. (NASDAQ:DASH) is one of the best upside stocks to invest in right now. On February 2, UBS analyst Stephen Ju raised the firm’s price target on DoorDash to $245 from $241 and maintained a Neutral rating.

However, on January 29, Guggenheim lowered its price target on DoorDash to $275 from $280 while keeping a Buy rating ahead of the company’s Q4 2025 earnings report. The firm adjusted the target to account for expected investment impacts extending into 2027.

Additionally, Stifel lowered its price target on DoorDash Inc. (NASDAQ:DASH) on January 27 to $224 from $253 and maintained a Hold rating. The firm noted that while third-party data indicates a healthy Q4 for the e-commerce sector, recent commentary from Amazon suggests potential pricing pressure on consumers in 2026.

DoorDash Inc. (NASDAQ:DASH), together with its subsidiaries, operates a commerce platform that connects merchants, consumers, and independent contractors in the US and internationally.

9. AppLovin Corporation (NASDAQ:APP)

Number of Hedge Fund Holders: 110

Average Upside Potential: 64.18%

AppLovin Corporation (NASDAQ:APP) is one of the best upside stocks to invest in right now. On February 10, UBS lowered its price target on AppLovin to $686 from $840 while keeping a Buy rating. This announcement was made as the firm noted that AppLovin’s Q4 2025 earnings results exceeded expectations due to strong performance from Axon 2.0, increased e-commerce spending, and higher advertiser adoption.

However, Wedbush analyst Michael Pachter raised the firm’s price target on AppLovin on the same day to $640 from $465 and maintained an Outperform rating. The firm highlighted AppLovin’s solid earnings beat and significant future growth opportunities and noted that the company is benefiting from strong momentum in gaming.

Jefferies lowered its price target on AppLovin Corporation (NASDAQ:APP) to $700 from $860 with a Buy rating. The firm described the results as impressive and remains constructive on the stock following the earnings report, despite the reduction in the price target.

AppLovin Corporation (NASDAQ:APP) builds a software-based platform for advertisers to enhance the marketing and monetization of their content in the US and internationally. It has two segments: Advertising and Apps.

8. Caesars Entertainment Inc. (NASDAQ:CZR)

Number of Hedge Fund Holders: 71

Average Upside Potential: 66.33%

Caesars Entertainment Inc. (NASDAQ:CZR) is one of the best upside stocks to invest in right now. On January 23, JPMorgan lowered its price target on Caesars to $37 from $38 while maintaining an Overweight rating as part of a Q4 2025 earnings preview for the gaming sector. The firm suggests investors remain selective due to prevailing negativity surrounding gaming stocks and noted that the digital segment presents the most significant opportunity for earnings beats.

Additionally, on January 21, TD Cowen lowered its price target on Caesars to $35 from $40 with a Buy rating. The firm anticipates turbulence ahead of the company’s Q4 earnings report, citing reduced near-term visibility in Las Vegas. Consequently, the firm lowered Q4 2025 and 2026 estimates due to uneven visitation patterns and increased volatility in digital hold.

Earlier on January 16, Morgan Stanley lowered its price target on Caesars Entertainment Inc. (NASDAQ:CZR) to $27 from $29 with an Equal Weight rating. The firm noted that fundamentals in the gaming, lodging, and leisure sectors were muted in 2025, with growth primarily limited to companies catering to older, wealthier demographics.

Caesars Entertainment Inc. (NASDAQ:CZR) operates as a gaming and hospitality company. The company owns, leases, brands, or manages domestic properties in 18 states.

7. Reddit Inc. (NYSE:RDDT)

Number of Hedge Fund Holders: 80

Average Upside Potential: 79.48%

Reddit Inc. (NYSE:RDDT) is one of the best upside stocks to invest in right now. On February 9, Citi lowered its price target on Reddit to $245 from $265 and kept a Buy rating, citing recent market volatility following the company’s Q4 2025 report as the reason for the adjustment.

On the same day, Wells Fargo lowered its price target on Reddit to $196 from $207 with an Equal Weight rating. The firm noted that the company delivered a steady beat and raise report in a market that currently has little tolerance for anything less. While Wells Fargo expects the stock to see some relief following recent year-to-date pressure, the firm emphasized that navigating difficult year-over-year comparisons in the second quarter will be critical for a further recovery.

On February 6, Baird lowered its price target on Reddit Inc. (NYSE:RDDT) to $200 from $240 while keeping a Neutral rating. The firm updated its financial model following the company’s strong quarterly results and outlook.

Reddit Inc. (NYSE:RDDT) operates a digital community in the US and internationally. The company’s platform enables users to engage in conversations, explore passions, research new hobbies, and exchange goods & services.

6. Coupang Inc. (NYSE:CPNG)

Number of Hedge Fund Holders: 83

Average Upside Potential: 81.20%

Coupang Inc. (NYSE:CPNG) is one of the best upside stocks to invest in right now. On February 10, Citi reduced its price target for Coupang from $27 to $24 while maintaining a Buy rating.

On February 5, Bernstein initiated coverage of Coupang with an Underperform rating and a $17 price target. As part of a broader rollout of coverage on the Korean internet space, the firm indicated a preference for companies with strong growth potential linked to online penetration and AI leadership. Bernstein expects the shift toward online channels to continue in the digital advertising sector and noted that Korea is currently less penetrated than the US or China. However, the firm contends that the e-commerce and food delivery sectors are showing limited growth opportunities.

Earlier on January 12, Nomura downgraded Coupang to Neutral from Buy and lowered its price target to $22 from $30. While the firm initially considered the November 30 data breach a temporary issue, it now points to heightened regulatory risk as the South Korean FTC has signaled plans for rigorous administrative measures. Consequently, Nomura reduced its 2026 EPS estimate by 95% to $0.03 to account for a consumer compensation package and a potential $900 million fine.

Coupang Inc. (NYSE:CPNG), together with its subsidiaries, owns and operates a retail business through its mobile applications and internet websites in South Korea and internationally. It operates through the Product Commerce and Developing Offerings segments.

5. Robinhood Markets Inc. (NASDAQ:HOOD)

Number of Hedge Fund Holders: 77

Average Upside Potential: 88.53%

Robinhood Markets Inc. (NASDAQ:HOOD) is one of the best upside stocks to invest in right now. On February 11, Barclays lowered its price target on Robinhood to $124 from $159 while keeping an Overweight rating. This sentiment was posted following a Q4 2025 earnings report that missed revenue expectations.

Despite the company’s focus on ambitious long-term goals, Barclays expects a recent slowdown in net new asset growth to impact the stock, which fell 12% in morning trading. The firm attributed the weaker Q4 2025 results to lower take rates in options and crypto, which negatively affected transaction revenues.

Needham also lowered its price target on Robinhood Markets Inc. (NASDAQ:HOOD) to $100 from $135 with a Buy rating. The firm noted that Q4 2025 results were strong and in line with estimates, specifically highlighting the company’s prediction markets, which saw an all-time high of 3.5 billion contracts in January. However, the firm pointed to weakening crypto metrics and a pullback in equity and options activity in FY 2026.

Robinhood Markets Inc. (NASDAQ:HOOD) operates a financial services platform in the US. Its platform allows users to invest in stocks, ETFs, American depository receipts, options, gold, and cryptocurrencies.

4. Flutter Entertainment (NYSE:FLUT)

Number of Hedge Fund Holders: 95

Average Upside Potential: 90.60%

Flutter Entertainment (NYSE:FLUT) is one of the best upside stocks to invest in right now. On February 10, UBS lowered its price target on Flutter Entertainment to $300 from $320 while keeping a Buy rating. This announcement was made as the firm noted that the company’s equity story is under pressure due to a sharper growth slowdown in US online sports betting data.

This trend led the firm to cut its 2026 and 2027 forecasts to slightly below consensus. Despite Flutter’s leading global position and strong long-term structural tailwinds, the firm expects continued share volatility until US performance timing becomes clearer and earnings stabilize.

Furthermore, on February 6, Bernstein analyst Ian Moore lowered the firm’s price target on Flutter Entertainment (NYSE:FLUT) to $170 from $225 while keeping a Market Perform rating ahead of the company’s quarterly results. The firm anticipates strong Q4 results this month, driven by favorable sports outcomes. However, Bernstein suggested that these results may not be enough to ease investor concerns regarding potential challenges heading into 2026.

Flutter Entertainment (NYSE:FLUT) is a sports betting and gaming company that operates in the US, the UK, Ireland, Australia, Italy, and internationally.

3. Guidewire Software Inc. (NYSE:GWRE)

Number of Hedge Fund Holders: 72

Average Upside Potential: 110.87%

Guidewire Software Inc. (NYSE:GWRE) is one of the best upside stocks to invest in right now. On January 8, Wells Fargo analyst Michael Turrin lowered the firm’s price target on Guidewire to $250 from $275 with an Overweight rating. The firm identified AI as the primary driver for 2026, highlighting infrastructure, incumbents, and innovation as the three key investment themes. Although adoption is expected to be uneven, Wells Fargo believes that these secular trends will ultimately dictate performance throughout the year.

In FQ1 2026, Guidewire Software Inc. (NYSE:GWRE) reported a 21% year-over-year increase in annual recurring revenue to $1.063 billion and a 27% increase in total revenue to $333 million. The company’s momentum was driven by robust cloud demand, with eight new deals with major insurers and a 31% surge in subscription and support revenue.

The acquisition of ProNavigator and the launch of new AI-driven tools like PricingCenter are expected to further bolster Guidewire’s strategy as the core system of record for the P&C insurance industry. Guidewire also raised its fiscal year 2026 outlook, now projecting annual recurring revenue between $1.220 billion and $1.230 billion and total revenue up to $1.419 billion. Management remains optimistic about the virtuous circle of cloud migrations and the integration of GenAI to improve operational efficiency for customers.

Guidewire Software Inc. (NYSE:GWRE) provides a platform for property and casualty insurers worldwide. It offers Guidewire InsuranceSuite, including PolicyCenter, ClaimCenter, and BillingCenter applications.

2. Coinbase Global Inc. (NASDAQ:COIN)

Number of Hedge Fund Holders: 73

Average Upside Potential: 112.14%

Coinbase Global Inc. (NASDAQ:COIN) is one of the best upside stocks to invest in right now. On February 11, H.C. Wainwright lowered its price target on Coinbase to $350 from $425 and kept a Buy rating. This decision was made ahead of the company’s Q4 2025 earnings report.

The firm anticipates a potential miss in net revenue and adjusted EBITDA due to intra-quarter data, suggesting an ideal setup is unlikely. However, H.C. Wainwright recommends buying on any post-report weakness. This bullish stance is supported by a favorable risk/reward profile at current levels and by the potential for crypto market-structure legislation to serve as a near-term catalyst.

A day before that, JPMorgan lowered its price target on Coinbase Global Inc. (NASDAQ:COIN) to $290 from $399 and kept an Overweight rating. The firm updated the company’s model ahead of the Q4 report and marked it to current crypto prices.

Coinbase Global Inc. (NASDAQ:COIN) operates a platform for crypto assets internationally. It offers a financial account in the crypto economy, a brokerage platform with a pool of liquidity across the crypto marketplace, and a suite of products granting access to build on-chain.

1. Unity Software Inc. (NYSE:U)

Number of Hedge Fund Holders: 74

Average Upside Potential: 133.54%

Unity Software Inc. (NYSE:U) is one of the best upside stocks to invest in right now. On February 12, Citizens analyst Andrew Boone lowered the firm’s price target on Unity to $37 from $50 while maintaining an Outperform rating. The adjustment follows a mixed Q4 2025 where the company beat revenue and EBITDA guidance but provided a slightly softer Q1 2026 outlook.

Despite this, core segments showed solid momentum, with Vector up mid-teens quarter-over-quarter and Create growing 16% year-over-year, excluding non-strategic revenue. The firm noted that operational traction is building through runtime data integration, the Commerce Platform rollout, and strong Unity 6 adoption, viewing AI as a tailwind for content creation.

Wells Fargo also lowered its price target on Unity Software Inc. (NYSE:U) to $38 from $54 with an Overweight rating. The firm noted that Unity’s Q4 EPS and Q1 guidance were affected by a deterioration in ironSource and greater-than-expected seasonality in the Create segment. Despite these factors, Wells Fargo maintained its core thesis that runtime data will drive increased share for the Unity Ad Network.

Unity Software Inc. (NYSE:U) operates a platform to create and grow games and interactive experiences for mobile phones, PCs, consoles, and extended reality devices in the US, China, Hong Kong, Taiwan, Europe, the Middle East, Africa, the Asia Pacific, Canada, and Latin America.

While we acknowledge the potential of U 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 U 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.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.