13 Reddit Stocks with the Highest Upside Potential

In this article, we will discuss the 13 Reddit Stocks with the Highest Upside Potential.

In the global markets weekly update dated August 8, released by T.Rowe Price, one of the several focus areas was the increased likelihood of the US Fed reducing rates at its next meeting in September. Several Fed officials have noted that rate cuts may be in the near future, including Federal Reserve Bank of San Francisco President Mary Daly.

Current Trends Impacting Broader US Markets

Morningstar highlighted that, at the current premium, the broader market is not offering any margin of safety to compensate investors for the risks. One of the critical near-term risks is the current trade and tariff negotiations. This earnings season, it was all about AI, added Morningstar. The firm’s largest fair value increases were concentrated in the IT and communications sectors. This is because these are most directly linked to manufacturing the hardware to run AI, hosting AI on the cloud platforms, or are still in the initial stages of utilizing AI.

However, financial services have also seen a strong increase in valuations, according to Morningstar. On the other hand, strong reductions to its fair values were concentrated in the healthcare sector. This is because large pharma companies and healthcare insurance organisations have come under increased pressure.

Amidst such trends, we will now have a look at the 13 Reddit Stocks with the Highest Upside Potential.

A large computer terminal full of complex calculations tracking the company’s cash flow and investment management decisions.

Our Methodology

To list the 13 Reddit Stocks with the Highest Upside Potential, we sifted through Reddit threads and narrowed our list to the 13 best stocks by selecting the ones that analysts see upside to. Next, we chose the ones popular among hedge funds. We also mentioned hedge fund sentiments around each stock, as of Q1 2025. Finally, the stocks were arranged in ascending order of their hedge fund sentiments.

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).

Note: All the data is as of August 10

13 Reddit Stocks with the Highest Upside Potential 

13. The Wendy’s Company (NASDAQ:WEN)

Number of Hedge Fund Holders: 31

Average Upside Potential: ~29%

The Wendy’s Company (NASDAQ:WEN) is one of the Reddit Stocks with the Highest Upside Potential. On August 8, the company released its unaudited results for Q2 2025, with international systemwide sales increasing 8.7% amidst growth throughout regions. In the quarter, the company expanded its global footprint, adding 44 new restaurants and bringing its total additions to 118 in H1 2025. In Q2 2025, The Wendy’s Company (NASDAQ:WEN)’s operating profit came in at $104.3 million compared to $99.5 million in Q2 2024, reflecting a growth of 4.8% YoY.

Notably, the improvement in operating profit was mainly because of a decline in The Wendy’s Company (NASDAQ:WEN)’s investment in advertising spend, reduced reorganization and realignment costs, as well as lower general and administrative expenses. These were partially mitigated by a decline in franchise royalty revenue and a reduction in US Company-operated restaurant margin. For FY 2025, the company expects global net unit growth of 2% – 3%, and capital expenditures and franchise development fund investments in the range of $165 million – $175 million.