The market in 2025 is primed for multibagger opportunities—and it’s not just tech carrying the load. After a strong 2024, when the S&P 500 delivered a total return of about 25%, momentum has carried into 2025. As of late July, the index stands roughly 9.4% year-to-date, drawing investor focus toward non-tech playbooks.

Biotech remains a high-conviction theme. While the broader group lacks uniform gains, some names have rocketed on innovations in gene-editing, immunotherapy, and precision medicine. The sector’s global market is projected to climb from about USD 1.55 trillion in 2023–24 to roughly USD 3.9 trillion by 2030 (according to Grand View Research). Outcomes vary, but when innovation lands, returns can be outsized.

E‑commerce continues its secular rise, though at a moderating pace. Global online retail sales are forecast to hit USD 6.42 trillion in 2025, with around 6.8% YoY growth—slower than earlier booms but still significant (according to eMarketer). Well-positioned platforms and logistics plays are benefiting from consumer habits that have permanently shifted.

Clean energy is quietly delivering surprises. Global energy investment is on track for a record USD 3.3 trillion in 2025, with about two-thirds allocated to renewables and related clean tech (according to the IEA). Investment is expected to roughly double by 2030, rising from USD 1.2 trillion this year to USD 2.4 trillion, supporting robust demand for firms combining tech and energy infrastructure. While sector-wide stock returns hitting 20–30% can’t be broadly confirmed, pockets of spectacular performance are emerging.

Macroeconomic conditions remain favorable, with global GDP growth likely near 3.6% in 2025. Still, elevated valuations mean investors must be selective. Discipline and theme-based positioning, not momentum chasing, will likely unlock the next wave of multibaggers.

Our Methodology

For our list, we used Finviz and selected stocks that had a 1-year return of over 100% and ranked them on the basis of the number of hedge funds holding stake in them as of Q1, 2025.

Note: The data was recorded on July 25.

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).

14. Verona Pharma PLC (NASDAQ:VRNA)

Number of Hedge Funds: 51

1Y Return: 363%

Verona Pharma plc (NASDAQ:VRNA) is one of the best multibagger stocks according to hedge funds. On July 9, 2025, Merck & Co. unveiled a $10 billion agreement to acquire Verona Pharma at $107 per American Depositary Share, representing a 23% premium over the closing price, in a bold move to bolster its respiratory portfolio ahead of Keytruda’s impending patent expiration in 2028. This acquisition centers on Ohtuvayre® (ensifentrine), Verona’s first-in-class inhaled COPD maintenance therapy, launched in August 2024 and already showing rapid adoption, including over $40 million in sales during 2024 and roughly $71 million in Q1 2025. The transaction is expected to close in Q4 2025 pending regulatory and shareholder approvals, and marks Merck’s largest acquisition since its Prometheus and Acceleron deals.

Taken by itself, this deal spotlights why hedge funds see multibagger potential: Merck’s acquisition validates Ohtuvayre’s market opportunity and gives shareholders immediate upside via a solid takeover premium. It also signals confidence in Verona’s pipeline and commercial execution.

Verona Pharma plc (Nasdaq: VRNA) is a UK-based biotech focused on treatments for respiratory diseases. Its lead product, Ohtuvayre, is FDA-approved for COPD and commercially available in the U.S., and is also being evaluated in clinical trials for bronchiectasis.

13. Duolingo, Inc. (NASDAQ:DUOL)

Number of Hedge Funds: 51

1Y Return: 110%

Duolingo, Inc. (NASDAQ:DUOL) is one of the best multibagger stocks according to hedge funds. On July 17, 2025, JPMorgan analyst Bryan Smilek lowered his price target for Duolingo from $580 to $500 while maintaining an “Overweight” rating, citing concerns about slowing growth in daily active users (DAUs) and subscription churn as the company heads into its second‑quarter earnings report on August 6.

Smilek highlighted that Sensor Tower data shows DAU growth decelerating to approximately 39% year-over-year in Q2 (down from ~51% in Q1), with monthly breakdowns of 41% in April, 40% in May, and 37% in June. He adjusted his forecasts accordingly, trimming Duolingo’s estimated DAU growth to 42% in Q2, 39% in Q3, and 40% in Q4, which sits at or below the company’s own guidance of 40–45%.

Despite the downgrade, Smilek advises investors to view the pullback as a potential opportunity, reaffirming JPMorgan’s belief in Duolingo’s long‑term leadership in language learning and strong financial health, including 72% gross margins and ~39% revenue growth.

Duolingo, Inc. (Nasdaq: DUOL) is a Pittsburgh-based ed‑tech company offering a gamified language-learning platform, monetized through subscriptions like Super Duolingo and AI-powered Duolingo Max, as well as the Duolingo English Test.