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.
12. Cloudflare, Inc. (NYSE:NET)
Number of Hedge Funds: 65
1Y Return: 154%
Cloudflare, Inc. (NYSE:NET) is one of the best multibagger stocks according to hedge funds. On July 21, 2025, Wells Fargo analyst Andrew Nowinski raised his price target on Cloudflare from $200 to $225, while maintaining an “Overweight” rating. He attributed the target hike to strong large-deal momentum, including 14 seven‑figure contracts and four deals in the $10–15 million range, which set the stage for what he anticipates will be a beat‑and‑raise second-quarter earnings report on July 31.
Nowinski’s upgrade hinges squarely on accelerating enterprise traction driven by major contracts. He expects Cloudflare to sustain one of the most durable growth profiles in software, with forecasting of high‑20s to low‑30s revenue growth in the foreseeable future and warning that the company must earn any further guidance bump rather than relying on macro excuses.
Cloudflare, Inc. (NYSE: NET) is a performance and security platform that delivers cloud services such as DDoS protection, edge computing, DNS and CDN to businesses worldwide, currently powering roughly 20% of web traffic globally.
11: Interactive Brokers Group, Inc. (NASDAQ:IBKR)
Number of Hedge Funds: 67
1Y Return: 120.5%
Interactive Brokers Group, Inc. (NASDAQ:IBKR) is one of the best multibagger stocks according to hedge funds. On July 18, 2025, Barclays analyst Benjamin Budish maintained an “Overweight” rating on Interactive Brokers and raised his price target from $65 to $73.
Analysts highlight continued strength in trading volumes, robust net interest income, and operating margin expansion as key reasons for the upward revision. They point to the firm’s ability to capture elevated customer activity amid volatile markets, noting that Interactive Brokers remains well-positioned to benefit from sustained retail and institutional engagement.
Interactive Brokers Group, Inc. (Nasdaq: IBKR) is a U.S.-based electronic brokerage firm offering global access to a wide range of asset classes and advanced trading tools, serving both individual investors and institutions.
10: Roblox Corporation (NYSE:RBLX)
Number of Hedge Funds: 68
1Y Return: 193%
Roblox Corporation (NYSE:RBLX) is one of the best multibagger stocks according to hedge funds. On July 25, 2025, Wedbush’s Michael Pachter bumped his price target on Roblox (RBLX) from $110 to $142 while reaffirming an Outperform rating, calling the stock the standout growth story in gaming.
He points to a surge in user activity fueled by recent breakout titles and a strong pipeline of upcoming content. With new monetization levers on the horizon and platform momentum building, Wedbush expects Q2 to set fresh records. Though questions remain around just how well Roblox can convert engagement into revenue, the firm sees room for outperformance relative to Street forecasts.
Roblox Corporation (NYSE: RBLX) is a California-based online entertainment platform that enables users to create, share, and play games and virtual experiences, primarily monetized through in-game purchases using its virtual currency, Robux.
9. Reddit, Inc. (NYSE:RDDT)
Number of Hedge Funds: 72
1Y Return: 140%
Reddit, Inc. (NYSE:RDDT) is one of the best multibagger stocks according to hedge funds. On July 23, 2025, Needham analyst Laura Martin raised her price target on Reddit from $145 to $165, while maintaining a “Buy” rating.
Reddit’s latest quarter came in ahead of expectations, and momentum looks set to continue. Daily active users are climbing, and ad revenue, especially from direct-response formats, is gaining traction. The pivot toward full-funnel advertisers, paired with launches like Reddit Search and Reddit Answers, is deepening engagement and improving content discovery. Financially, the company is benefiting from expanding margins and accelerating free cash flow. Meanwhile, AI is playing a growing role: new translation features aim to accelerate global user growth, and early results from Reddit Insights suggest the platform is beginning to monetize generative AI effectively.
Reddit, Inc. (NYSE: RDDT) is a social media platform based in San Francisco that hosts user-generated content across thousands of interest-based forums called subreddits, and primarily generates revenue through digital advertising.
8: Tapestry (NYSE:TPR)
Number of Hedge Funds: 73
1Y Return: 165%
Tapestry (NYSE:TPR) is one of the best multibagger stocks according to hedge funds. On July 22, 2025, Raymond James analyst Rick Patel reiterated his “Outperform” rating on Tapestry and raised the price target from $85 to $115.
Analysts, in general, point to accelerating momentum in the company’s Coach brand, particularly strong demand for its Tabby and Brooklyn bag lines, and noted improving web traffic as a signal of rising consumer interest. They also pointed to operational streamlining following the sale of the Stuart Weitzman brand and emphasized the company’s focus on scaling its higher-margin core businesses. Analysts expect the sharpened portfolio to support margin expansion and top-line acceleration in the upcoming quarters.
Tapestry, Inc. (NYSE: TPR) is a New York–based luxury fashion company and the parent of Coach and Kate Spade. It designs and markets handbags, accessories, and footwear globally.
7. Shopify Inc. (NASDAQ:SHOP)
Number of Hedge Funds: 77
1Y Return: 107.5%
Shopify Inc. (NASDAQ:SHOP) is one of the best multibagger stocks according to hedge funds. On July 22, 2025, KeyBanc Capital Markets analyst Justin Patterson raised his price target on Shopify from $115 to $145 and reiterated an “Overweight” rating. The adjustment is reflective of accelerating growth across multiple revenue streams, including international expansion, B2B commerce, offline retail, and Shopify Plus. Recent product innovation at the company such as AI-powered tools and upgrades to Shopify Checkout, Sidekick, and Managed Markets are key contributors to a “multi-year compounding opportunity.”
Analysts also note Shopify’s gross merchandise volume growth remains resilient and that the company is beginning to show signs of operating leverage as it scales its platform globally.
Shopify’s ability to integrate new capabilities without disrupting merchant experience continues to strengthen its competitive moat, particularly against legacy e-commerce platforms. The note followed Shopify’s Q2 update, which showed revenue growth of 26.5% year-over-year and improving adjusted operating income.
Shopify Inc. (NASDAQ: SHOP) is a Canadian e-commerce infrastructure company that provides software and services enabling merchants to create, manage, and scale online and offline storefronts.
6. Talen Energy Corporation (NASDAQ:TLN)
Number of Hedge Funds: 80
1Y Return: 205%
Talen Energy is one of the best multibagger stocks according to hedge funds. On July 25, 2025, UBS analyst William Appicelli raised his price target on Talen Energy from $399 to $431, while maintaining a “Buy” rating.
Appicelli tied the upgrade to Talen’s $3.5 billion acquisition of two combined‑cycle gas-fired power plants in Pennsylvania and Ohio, highlighting that the deal was immediately accretive and would extend the runway for capacity growth in the PJM region amid rising power demand for AI and data centers.
The acquisition, financed with approximately $3.8 billion in new debt, adds around 3 gigawatts of dispatchable low-carbon energy to Talen’s portfolio and boosts its forecasted adjusted free cash flow for 2026 from $693 million to $956 million.
Talen Energy Corporation (NASDAQ:TLN) is a Houston-based independent power producer operating roughly 10.7 gigawatts (expanding to 14) of generation assets across nuclear and natural gas facilities in the U.S., with a plan to leverage its infrastructure toward hyperscale data center demand and capital returns.
5. DoorDash, Inc. (NASDAQ:DASH)
Number of Hedge Funds: 81
1Y Return: 139%
DoorDash is one of the best multibagger stocks according to hedge funds. On July 21, 2025, Morgan Stanley analyst Brian Nowak raised his price target on DoorDash from $220 to $275, maintaining an “Overweight” rating.
In his note, Nowak cited confidence in DoorDash’s long‑term growth potential, particularly driven by expansion into restaurant operations and local commerce via its Deliveroo acquisition, as well as accelerating gross order value growth. He maintained that DoorDash’s leadership in U.S. restaurant delivery and momentum in emerging categories supported the revised outlook.
Also on July 21, Raymond James reaffirmed a Buy rating, raising its target from $260 to $275, based on increasing optimism around DoorDash’s businesses beyond core delivery, including grocery, convenience, and advertising revenue streams.
And on July 17, Benchmark analyst Mark Zgutowicz maintained a “Buy” rating and raised his target from $225 to $260, citing positive outlook on DoorDash’s expanding market share and growth potential across newer verticals like DashPass, advertising, and grocery delivery.
DoorDash, Inc. (NASDAQ:DASH) is a San Francisco–based technology company operating a leading online food delivery and convenience platform in the U.S., now expanding globally and monetizing through delivery fees, subscriptions, advertising, and grocery services.
4. Carvana Co. (NYSE:CVNA)
Number of Hedge Funds: 90
1Y Return: 150%
Carvana Co. (NYSE:CVNA) is one of the best multibagger stocks according to hedge funds. On July 25, 2025, Oppenheimer analyst Brian Nagel upgraded Carvana from “Perform” to “Outperform” and raised his price target to $450.
The analyst described Carvana as a “unique, digitally‑driven disruptor” in the U.S. used‑car market, highlighting lowered operational costs and rising demand, despite recent record highs in the stock price. Nagel asserted that investors are still underestimating the company’s growth and profit potential, projecting over 30% upside from current levels.
Carvana Co. (NYSE:CVNA) is an Arizona-based online used‑car retailer that sells vehicles via its digital platform and operates auto-financing and logistics systems to support rapid delivery to consumers.
3. Applovin Corporation (NASDAQ:APP)
Number of Hedge Funds: 96
1Y Return: 370%
AppLovin Corporation (NASDAQ:APP) is one of the best multibagger stocks according to hedge funds. On July 23, 2025, BTIG analyst Clark Lampen maintained a “Buy” rating on AppLovin (NASDAQ: APP) and raised the price target from $480 to $483.
In his note, Lampen cited strong gaming-related momentum and largely positive non‑gaming feedback from industry checks as the rationale behind the upward revision.
He also reaffirmed AppLovin’s status as a BTIG Top Pick heading into the company’s Q2 earnings release on August 6, 2025. Lampen acknowledged that AppLovin had underperformed the S&P 500 in recent weeks, attributing the softness to short‑term skepticism and sector-wide digital-ad caution, factors he assessed as “mostly misguided”.
AppLovin Corporation (NASDAQ: APP) is a Palo Alto–based mobile technology company offering an advertising platform that helps app developers monetize through user acquisition, in-app bidding, and programmatic advertising across gaming and non-gaming verticals.
2. Vistra Corp. (NYSE:VST)
Number of Hedge Funds: 102
1Y Return: 170%
Vistra Corp. (NYSE:VST) is one of the best multibagger stocks according to hedge funds. On July 7, 2025, the U.S. Nuclear Regulatory Commission (NRC) approved a 20-year license renewal for Vistra’s Perry Nuclear Generating Station in Ohio, extending its operating authorization through 2046, an additional two decades beyond its original expiration date.
Perry, a single-unit boiling-water reactor rated at approximately 1,268 megawatts, becomes the final reactor in Vistra’s nuclear fleet to receive such an extension, meaning all six units are now licensed to operate for a full 60-year lifespan.
In Vistra’s official release, CEO Jim Burke remarked that extending Perry ensures Ohio continues to benefit from reliable, emission-free baseload power, while supporting jobs and regional grid stability. Ken Peters, Vistra’s Chief Nuclear Officer, emphasized that the plant’s safety culture and condition underpinned the NRC’s decision, praising the operations team’s preparation for the review process.
This regulatory milestone further solidifies Vistra’s position as one of the largest competitive nuclear power operators in the U.S. Its six reactors now deliver over 6,500 MW of emission-free generation capacity, enough to power more than 3 million homes.
Vistra Corp. (NYSE: VST) is an integrated energy provider headquartered in Irving, Texas. The company operates a diversified portfolio that includes natural gas, nuclear, solar, and battery storage assets totaling approximately 41 GW of generation capacity, serving deregulated markets across the U.S.
1. GE Vernova Inc. (NYSE:GEV)
Number of Hedge Funds: 111
1Y Return: 272%
GE Vernova Inc. (NYSE:GEV) is one of the best multibagger stocks according to hedge funds. On July 21, 2025, GE Vernova announced it would acquire France-based AI specialist Alteia SAS, which provides visual‑intelligence software used by utility companies to inspect and monitor grid infrastructure. The acquisition, expected to close on August 1, will integrate Alteia’s computer-vision algorithms into GE Vernova’s GridOS Visual Intelligence platform, enhancing real-time operational insights and predictive maintenance capabilities.
This move underlines GE Vernova’s strategic shift toward bolstering its electrification software business, a segment that has been expanding at a mid-single-digit rate. Analysts from RBC Capital Markets noted the acquisition aligns with increasing AI-driven demand from utilities seeking smarter grid operations amid surging power loads, including from AI and cryptocurrency data centers.
By adding visual data analysis to its existing operational systems, GE Vernova aims to offer a more comprehensive suite of AI-enabled tools to utilities worldwide, potentially accelerating the adoption of GridOS among customers looking to cut operations costs and prevent outages.
GE Vernova Inc. (NYSE: GEV), founded in 2024 via a GE spin-off and headquartered in Cambridge, Massachusetts, operates across Power, Wind, and Electrification, including grid software and infrastructure.
While we acknowledge the potential of GEV 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 GEV and that has 100x upside potential, check out our report about this cheapest AI stock.
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