In this article, we talk about the 13 hot stocks to buy with the highest upside potential.
On average, equities are expected continue to deliver positive results in 2026, this time with greater breadth across sectors, styles, and regions, compared to the other periods of the recent bull market when most of the growth was more concentrated across the expensive mega-cap US tech stocks, according to Steve Locke, Mackenzie Investments CIO for fixed income and multi-asset strategies. This anticipated broadening of the bull market is expected to shift focus from more popular stocks to companies across other industries that have unveiled growth stories in different markets. Locke added that investors can take advantage of this broadening by adopting a more diversified outlook, one that leverages high-growth stocks that still show potential for further price gains.
“There has been an inflection in 2025 that we would say lends support to the broadening of exposures in a portfolio,” Locke said. “We are not saying that the Magnificent Seven companies are going to become unprofitable or that their fundamentals will really lag, but what we’re thinking about are the forward earnings for these companies and how much they’ve been discounted relative to some of the other businesses that are going to use some of this innovation to propel their own profitability in 2026 and beyond.”
With that said, here is the list of the 13 hot stocks to buy with the highest upside potential.
Our Methodology
To identify the top 13 hot stocks with the highest upside potential, we used a screener to filter companies to those with a market capitalization of at least $2 billion. Then, we shortlisted stocks that gained at least 30% over the past 6 months and further filtered to include companies with at least 20% upside over the next 12 months, based on analysts’ assessments. Next, we ranked the stocks in ascending order of their average upside potential. Additionally, we included data on hedge fund holdings in these companies as of Q3 2025 to provide further insight into investor interest.
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. Praxis Precision Medicines Inc. (NASDAQ:PRAX)
Potential Upside: 61.76%
Number of Hedge Fund Holders: 33
Praxis Precision Medicines Inc. (NASDAQ:PRAX) is one of the 13 hot stocks to buy with the highest upside potential. On February 2, Wells Fargo gave a more tempered assessment on the stock, initiating coverage of the company with an Equal Weight rating and a $282 price target. Wells Fargo noted that while public sentiment about ulixacaltamide, an investigational-stage treatment for essential tremor, is bullish, it sees a 50% probability of success for the drug.
Meanwhile, Praxis Precision Medicines Inc. (NASDAQ:PRAX) noted in a January 2026 presentation to investors that it expects up to $20 billion in potential peak revenue over the next 24 months across the four drugs that it anticipates launching over the period. This estimate includes about $10 billion in anticipated revenues for ulixacaltamide, as well as $5 billion for relutrigine, $4 billion for epilepsy treatment vormatrigine, and around $1 billion for elsunersen.
Praxis Precision Medicines Inc. (NASDAQ:PRAX) is a clinical-stage biopharmaceutical company engaging in the development of therapies for central nervous system disorders characterized by neuronal excitation-inhibition imbalance.
12. Apogee Therapeutics Inc. (NASDAQ:APGE)
Potential Upside: 66.02%
Number of Hedge Fund Holders: 30
Apogee Therapeutics Inc. (NASDAQ:APGE) is one of the 13 hot stocks to buy with the highest upside potential. On February 2, Jefferies lowered its price target on Apogee Therapeutics Inc. (NASDAQ:APGE) to $95 from $98 while keeping its Buy rating on the stock. The analyst also reduced its risk-adjusted peak sales forecast for Apogee’s ’279 combination therapy from $1.8 billion to $1.6 billion to reflect potential limitations in high-risk patients.
Jefferies’ price target adjustment on Apogee Therapeutics Inc. (NASDAQ:APGE) stock followed a 6% fall in the biotechnology company’s share price after Amgen discontinued its OX40 collaboration with Kyowa Kirin and Sanofi deprioritized amlitelimab in certain non-atopic dermatitis indications. The analyst also noted that it does not anticipate Kaposi’s Sarcoma to significantly impact the commercial potential of OX40 therapies; however, a potential black box warning for high-risk populations is anticipated, despite expectations for a better safety profile compared to JAK inhibitors.
Apogee Therapeutics Inc. (NASDAQ:APGE) is a biotechnology company that develops treatments for atopic dermatitis, chronic obstructive pulmonary disease, and related inflammatory and immunology indications.
11. Crinetics Pharmaceuticals Inc. (NASDAQ:CRNX)
Potential Upside: 67.36%
Number of Hedge Fund Holders: 31
Crinetics Pharmaceuticals Inc. (NASDAQ:CRNX) is one of the 13 hot stocks to buy with the highest upside potential. On January 30, Stifel raised its price target on Crinetics Pharmaceuticals Inc. (NASDAQ:CRNX) to $84 from $75, while maintaining its Buy rating, noting that the company’s pre-report for the fourth quarter of 2025 went better than early investor expectations for the first quarter of the launch of Palsonify, an FDA-approved, once-daily oral medication for treating adults with acromegaly.
Meanwhile, in a January 23 report, Yasmeen Rahimi from Piper Sandler maintained a Buy rating on Crinetics Pharmaceuticals Inc. (NASDAQ:CRNX) with a price target of $97. Earlier in the month, on January 12, Goldman Sachs upgraded its stock rating on Crinetics Pharmaceuticals Inc. (NASDAQ:CRNX) to Buy from Neutral, with a $67 price target, citing positive Phase 2 clinical trial results for the company’s congenital adrenal hyperplasia treatment. The analyst noted that 25% of patients in Cohort 4 of its Phase 2 TouCAHn study have already achieved the primary composite endpoint planned for the Phase 3 trial, which the firm believes has “highly derisked” the upcoming late-stage study’s novel endpoint design.
Crinetics Pharmaceuticals Inc. (NASDAQ:CRNX) operates as a clinical-stage pharmaceutical company focused on the discovery, development, and commercialization of novel therapeutics for rare endocrine diseases and endocrine-related tumors.
10. Cipher Mining Inc. (NASDAQ:CIFR)
Potential Upside: 71.56%
Number of Hedge Fund Holders: 40
Cipher Mining Inc. (NASDAQ:CIFR) is one of the 13 hot stocks to buy with the highest upside potential. On February 9, Morgan Stanley started covering Cipher Mining Inc. (NASDAQ:CIFR) with an Overweight rating and a price target of $38, suggesting that Bitcoin companies with established data centers such as Cipher Mining will likely draw interest from infrastructure investors who value long-term, stable cash flows, especially if they manage to secure long-term leases to creditworthy counterparties for their established data centers.
In its report on the stock, Morgan Stanley compared Cipher Mining Inc. (NASDAQ:CIFR)’s business model to data center REITs like Equinix and Digital Realty, but cautioned that Bitcoin companies’ data centers likely won’t reach the same multiples as other pure-play data center companies due to more limited growth potential. The analyst also suggested that contracted data centers developed by Bitcoin companies should ultimately be owned by REIT-like investors who appropriately value long-term, low-risk contracted cash flows.
Cipher Mining, Inc. operates as a Bitcoin mining ecosystem in the U.S. and develops a cryptocurrency business.
9. Beam Therapeutics Inc. (NASDAQ:BEAM)
Potential Upside: 73.45%
Number of Hedge Fund Holders: 27
Beam Therapeutics Inc. (NASDAQ:BEAM) is one of the 13 hot stocks to buy with the highest upside potential. On February 9, Sami Corwin from William Blair maintained a Buy rating on Beam Therapeutics. This maintained rating reinforced the bullish outlook that the analyst previously gave on Beam Therapeutics Inc. (NASDAQ:BEAM) in a January 21 note. Corwin noted that the existing clinical data on the lead program of Beam Therapeutics Inc. (NASDAQ:BEAM), the BEAM-302 treatment for alpha-1 antitrypsin deficiency, is an important foundation that supports continued confidence in the program’s trajectory.
The analyst also urged investors to watch the early 2026 clinical data update for BEAM-302, which he sees as a key catalyst for the stock. He highlights the alignment between Beam Therapeutics Inc. (NASDAQ:BEAM) and the FDA on a potential accelerated approval pathway based on 12-month biomarker data as an important de-risking step, offering a clearer and possibly faster regulatory route. Combined with strengthening clinical evidence and clearly defined upcoming milestones, this supportive regulatory backdrop reinforces his positive stance on the company and underpins his Buy rating.
Beam Therapeutics Inc. (NASDAQ:BEAM) is a biotechnology company that develops an integrated platform for precision genetic medicines.
8. Vaxcyte Inc. (NASDAQ:PCVX)
Potential Upside: 73.95%
Number of Hedge Fund Holders: 46
Vaxcyte Inc. (NASDAQ:PCVX) is one of the 13 hot stocks to buy with the highest upside potential. On February 2, Vaxcyte Inc. (NASDAQ:PCVX) closed its public offering of the sale of 12.65 million shares of the company’s common stock at $50 per share, raising $632.5 million in gross proceeds in the process. The offering included the full exercise of the underwriters’ option to purchase an additional 1.65 million shares at the public offering price, less underwriting discounts and commissions.
Meanwhile, on January 23, Cantor Fitzgerald reiterated its Overweight rating on Vaxcyte Inc. (NASDAQ:PCVX), noting that the company’s clinical pipeline is progressing according to schedule. The analyst projected that the topline readout from Vaxcyte’s Phase 3 OPUS-1 non-inferiority trial is expected in the fourth quarter of 2026, with an adult Biologics License Application filing planned for 2027. The firm also projected the release of results for the company’s OPUS-2 and OPUS-3 studies to be released in the first half of 2027.
Vaxcyte Inc. (NASDAQ:PCVX) develops vaccines for infectious diseases, focusing on conjugate and protein-based vaccines delivered through a platform based on cell-free protein synthesis technology.
7. Vera Therapeutics Inc. (NASDAQ:VERA)
Potential Upside: 76.09%
Number of Hedge Fund Holders: 36
Vera Therapeutics Inc. (NASDAQ:VERA) is one of the 13 hot stocks to buy with the highest upside potential. As of February 13, nearly 90% of analysts who cover the stock have assigned a Buy or equivalent rating. The consensus 1-year median price target of $73 implies a 76% upside.
Earlier, on January 28, Vera Therapeutics Inc. (NASDAQ:VERA) appointed Matt Skelton as Chief Commercial Officer, who previously served as the executive vice president of the company’s commercial department.
Meanwhile, on January 27, JPMorgan reiterated its Overweight rating and $96 price target on Vera Therapeutics Inc. (NASDAQ:VERA), noting that as competitive readouts emerge in the space, the company’s shares could gradually move higher toward a more appropriate probability-adjusted level. The firm also thinks that atacicept, Vera’s lead drug candidate, is well-positioned in the IgA nephropathy (IgAN) B-Cell modulator space.
On January 16, Cantor Fitzgerald maintained its Overweight rating and $100 price target on the company, expressing confidence in the company’s regulatory prospects and commercial preparations. According to the analyst, all the pieces are in place for a successful regulatory outcome for atacicept’s potential approval for treating IgA nephropathy.
Vera Therapeutics Inc. (NASDAQ:VERA) is a clinical-stage biotech company developing and commercializing transformative treatments for immunological diseases.
6. Nebius Group NV (NASDAQ:NBIS)
Potential Upside: 76.54%
Number of Hedge Fund Holders: 65
Nebius Group NV (NASDAQ:NBIS) is one of the 13 hot stocks to buy with the highest upside potential. On February 9, analyst Josh Baer from Morgan Stanley maintained a Hold rating on Nebius Group NV (NASDAQ:NBIS), with a price target of $126. The analyst is bullish on the company’s lower total cost of ownership driven by custom infrastructure, its strong software capabilities backed by an experienced developer base, and a diversified customer mix that includes large, investment‑grade clients and strategic equity stakes that can support future capital needs.
However, Morgan Stanley analysts noted that investors are concerned about the company’s broader neocloud business model, which faces risks such as competitive pressure from hyperscalers, capital intensity, and uncertainty about long‑term software monetization and pricing dynamics amid AI capacity expansion.
Meanwhile, on January 6, Nebius Group NV (NASDAQ:NBIS) announced that it will deploy the NVIDIA Rubin platform through its AI Cloud and Token Factory services, allowing customers to access next-generation reasoning and agentic AI capabilities starting in the second half of 2026.
Nebius Group NV (NASDAQ:NBIS) is a technology company that provides infrastructure and services to AI builders worldwide. It offers Nebius AI, an AI-centric cloud platform that provides full-stack infrastructure, including large-scale GPU clusters, cloud services, and developer tools.
5. Amicus Therapeutics Inc. (NASDAQ:FOLD)
Potential Upside: 82.59%
Number of Hedge Fund Holders: 45
Amicus Therapeutics Inc. (NASDAQ:FOLD) is one of the 13 hot stocks to buy with the highest upside potential. On January 27, TD Cowen analyst Ritu Baral maintained the firm’s Hold rating on Amicus Therapeutics Inc. (NASDAQ:FOLD), as well as the $14.50 price target on the stock. Amicus’s pre-announced fourth-quarter and full-year 2025 total product revenue were modestly above expectations, according to TD Cowen, with Fabry disease medication Galafold delivering a clear outperformance versus consensus estimates, while revenues from Pompe disease medications came in roughly in line with broader Wall Street expectations.
TD Cowen also noted that the strategic landscape for the Amicus Therapeutics Inc. (NASDAQ:FOLD) stock is now largely defined by BioMarin’s agreement to acquire Amicus for $14.50 per share in cash, with the deal already approved by both companies’ boards and expected to close by the second quarter of 2026, subject to shareholder and regulatory approvals. With a fixed takeout price and a clear M&A timeline, the scope for further meaningful appreciation in Amicus Therapeutics Inc. (NASDAQ:FOLD) share price is constrained primarily to potential deal-spread dynamics and low-probability transaction risk, rather than fundamentals-driven multiple expansion, according to the analyst.
Amicus Therapeutics Inc. (NASDAQ:FOLD) is a biotechnology company that focuses on discovering, developing, and delivering medicines for people living with metabolic diseases.
4. ImmunityBio Inc. (NASDAQ:IBRX)
Potential Upside: 95.04%
Number of Hedge Fund Holders: 18
ImmunityBio Inc. (NASDAQ:IBRX) is one of the 13 hot stocks to buy with the highest upside potential. On February 2, ImmunityBio Inc. (NASDAQ:IBRX) announced that it has initiated a Phase 2 clinical trial evaluating a novel combination immunotherapy for patients with indolent B-cell non-Hodgkin lymphoma (iNHL).
Meanwhile, on January 26, ImmunityBio Inc. (NASDAQ:IBRX) amended a $505 million convertible promissory note with Nant Capital LLC, allowing the noteholder to convert any portion of the outstanding principal into fully paid and nonassessable shares of ImmunityBio’s common stock at any time before the note’s maturity date.
On the same day, H.C. Wainwright raised its price target on ImmunityBio Inc. (NASDAQ:IBRX) to $10 from $8, while maintaining a Buy rating. H.C. Wainwright also observed that while ImmunityBio has not been profitable over the last twelve months, the company’s financial position shows liquid assets exceeding short-term obligations with a current ratio of 5.77, as well as a moderate level of debt.
ImmunityBio, Inc. is a clinical-stage immunotherapy company developing next-generation therapies that drive immunogenic mechanisms to defeat cancers and infectious diseases.
3. Ondas Inc. (NASDAQ:ONDS)
Potential Upside: 96.08%
Number of Hedge Fund Holders: 20
Ondas Inc. (NASDAQ:ONDS) is one of the 13 hot stocks to buy with the highest upside potential. On February 9, Ondas Inc. (NASDAQ:ONDS) announced that its subsidiary 4M Defense has secured a multi-year demining contract in Israel valued at more than $30 million. The contract, which has an initial execution period of up to three years, covers about 741 acres along the Israel-Syria border and is described as one of the largest land-clearance initiatives ever undertaken in Israel.
Meanwhile, on February 4, JCapital Research issued a critical report questioning the company’s business model and financial sustainability. While JCapital Research did not issue an overt rating on the stock, the research firm argued that Ondas could struggle to sustain its hype due to concerns about its revenue growth strategy. JCapital criticized Ondas for pursuing “high-priced, money-losing acquisitions funded by massive share dilution,” claiming that the company is buying its way into military contracts for nosebleed prices without demonstrating a clear path to profitability.
Ondas Inc. (NASDAQ:ONDS) provides autonomous systems and private wireless solutions through its business units. The company’s Ondas Autonomous Systems division delivers AI-powered defense and security platforms, while Ondas Networks offers software-defined wireless broadband technology.
2. Wave Life Sciences Ltd. (NASDAQ:WVE)
Potential Upside: 127.21%
Number of Hedge Fund Holders: 38
Wave Life Sciences Ltd. (NASDAQ:WVE) is one of the 13 hot stocks to buy with the highest upside potential. On February 5, BofA initiated coverage of Wave Life Sciences Ltd. (NASDAQ:WVE) with a Buy rating and $38 price target. The analyst expects the company’s obesity medication, WVE-007, to become a key value driver, accounting for 56% of the firm’s price target and peaking at greater than $11 billion in sales, likely beating Wall Street estimates.
Meanwhile, on February 3, Canaccord Genuity raised its price target on Wave Life Sciences Ltd. (NASDAQ:WVE) to $43 from $40, while maintaining a Buy rating on the stock. On the same day, H.C. Wainwright reiterated a Buy rating on the company with a price target of $30. The two analysts gave their opinions following the company’s announcement that it has regained full rights to WVE-006 from GSK. According to Canaccord, GSK’s decision to return rights was based on its focus on large-scale diseases, while WAVE can pursue smaller, rarer conditions. According to H.C. Wainwright, this move transforms WVE into a fully integrated commercial entity, positioning the company to operate independently in bringing its treatments to market.
Wave Life Sciences Ltd. (NASDAQ:WVE) is a clinical-stage biotechnology company that focuses on developing its proprietary RNA medicines platform and PRISM. It also develops and commercializes a pipeline of RNA medicines in a variety of therapeutic areas.
1. Dyne Therapeutics Inc. (NASDAQ:DYN)
Potential Upside: 137.74%
Number of Hedge Fund Holders: 45
Dyne Therapeutics Inc. (NASDAQ:DYN) is one of the 13 hot stocks to buy with the highest upside potential. As of February 13, nearly 90% of analysts who cover the stock have assigned a Buy or equivalent rating. The consensus 1-year median price target of $39.5 implies a 138% upside.
Earlier, on January 21, Francois Brisebois from LifeSci Capital reiterated a Buy rating on Dyne Therapeutics Inc. (NASDAQ:DYN), with a price target of $44.
Meanwhile, on January 20, Dyne Therapeutics Inc. (NASDAQ:DYN) announced that the Ministry of Health, Labour and Welfare in Japan granted Orphan Drug designation to zeleciment basivarsen (z-basivarsen) for the treatment of myotonic muscular dystrophy type 1 (DM1). In Japan, the Orphan Drug designation is granted to drugs intended for the treatment of rare diseases affecting fewer than 50,000 patients in the country and for which there is a high medical need. Benefits include subsidies for development costs and potential market exclusivity for up to 10 years, if approved. Z-basivarsen has also been granted Breakthrough Therapy, Fast Track, and Orphan Drug designations from the U.S. Food and Drug Administration (FDA), as well as an Orphan Drug designation from the European Medicines Agency (EMA) for the treatment of individuals with DM1.
Dyne Therapeutics Inc. (NASDAQ:DYN) develops innovative, life-transforming therapies for genetically driven muscle diseases. It develops a broad portfolio of therapeutics for muscle diseases, including lead programs in myotonic dystrophy type 1, Duchenne muscular dystrophy, and facioscapulohumeral muscular dystrophy.
While we acknowledge the potential of DYN as an investment, 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 DYN and that has 100x upside potential, check out our report about this cheapest AI stock.
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