On August 15, Rick Heitzmann, FirstMark Capital founder and partner, joined ‘Closing Bell’ on CNBC to discuss the hot streak in the IPO market. Heitzmann stated that he believes the IPO window is open, citing the successful public debuts of Bullish and Miami International. He also mentioned Figma’s incredible run a couple of weeks prior and noted that there has been broad and cross-industry support for IPOs. Because of this, First Smart Capital is advising the companies it invests in to get ready and go public. Comparing the current advice he’s giving with the conversations he had with companies 6 to 12 months ago, Heitzmann explained that the market for IPOs was dead from 2022 to 2024, which he described as one of the worst times for IPOs ever. He said that early in the year, he and others had discussed how there was still demand for IPOs and that companies becoming more efficient would make them more attractive to public market investors.
Heitzmann said that some of the highest quality companies have gone public, which he said tend to kick open the door and prepare the market for future companies. He said that about a half dozen companies went public in the first quarter, with another half dozen doing so over the summer. He thinks that dozens of companies will go public in the back half of the year.
That being said, we’re here with a list of the 15 best IPO stocks to buy and hold for 3 years.
Methodology
We sifted through the Finviz stock screener to compile a list of the top IPO stocks that have gone public in the last 3 years. Then, to identify the 15 best stocks to buy and hold for 3 years, we included only those stocks that have an average expected EPS growth of at least 15% over the next 3 to 5 years, according to Wall Street estimates. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q2 2025.
Note: All Data was Sourced on September 9.
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).
15 Best IPO Stocks To Buy and Hold For 3 Years
15. Infinity Natural Resources Inc. (NYSE:INR)
EPS Forward Long Term Growth (3-5 Year CAGR): 23.00%
Number of Hedge Fund Holders: 14
Infinity Natural Resources Inc. (NYSE:INR) is one of the best IPO stocks to buy and hold for 3 years. On September 3, KeyBanc lowered the firm’s price target on Infinity Natural Resources to $22 from $24, while keeping an Overweight rating on the shares. This sentiment by the firm shows KeyBanc’s revised natural gas price forecast.
Earlier in the company’s Q2 2025 earnings report, Infinity Natural Resources recorded a 25% increase in production from Q1, averaging 33.1 MBOE per day compared to 26.5 MBOE per day in Q1. This marked a ~28% increase in net production year-over-year as well.
The growth was primarily driven by the development of Marcellus Shale wells in Pennsylvania. Operating costs declined to $7.93 per barrel of oil equivalent, which was an improvement from $8.14 in Q2 2024 due to improved efficiency and increased natural gas production.
Infinity Natural Resources Inc. (NYSE:INR) acquires, explores, and develops properties to produce oil, natural gas, and natural gas liquids from underground reservoirs in the US.
14. American Integrity Insurance Group Inc. (NYSE:AII)
EPS Forward Long Term Growth (3-5 Year CAGR): 15.00%
Number of Hedge Fund Holders: 21
American Integrity Insurance Group Inc. (NYSE:AII) is one of the best IPO stocks to buy and hold for 3 years. On August 26, Allstate and the National Association of Collegiate Directors of Athletics/NACDA announced the first-ever Allstate NACDA Good Works Team (Fall), which honors 20 student-athletes for their outstanding community service.
The team includes male and female athletes from 7 different collegiate sports and across various NCAA divisions, as well as junior/community colleges and the NAIA. The honorees were selected for their work on causes such as pediatric cancer care, disability inclusion, and addressing food and housing insecurity.
Loyola Chicago men’s soccer player Aidan Crawford was named the inaugural team captain for making sports accessible for all athletes. As a redshirt junior and a molecular & cellular neuroscience major, Crawford founded “Special Olympics Loyola University Chicago.” The group facilitates Special Olympics practices and on-campus programs, and in 2024, it represented Special Olympics Illinois in Chicago’s Mag Mile Parade.
American Integrity Insurance Group Inc. (NYSE:AII) is an insurance company that provides personal residential property insurance for single-family homeowners and condominium owners, as well as coverage for vacant dwellings and investment properties in Florida, Georgia, and South Carolina.
13. Diebold Nixdorf Incorporated (NYSE:DBD)
EPS Forward Long Term Growth (3-5 Year CAGR): 15.00%
Number of Hedge Fund Holders: 23
Diebold Nixdorf Incorporated (NYSE:DBD) is one of the best IPO stocks to buy and hold for 3 years. On September 3, Diebold Nixdorf announced that Eurasian Bank, which is a major financial institution in Kazakhstan, is the first to implement its latest self-service software, called VCP-Lite 7. This software is a key part of Diebold Nixdorf’s new multi-vendor software family, Vynamic Connection Points.
The pilot program was successfully rolled out on a DN Series 450V cash recycler that runs on Microsoft Windows 11. The installation and services for this implementation were provided by BS/2, which is Diebold Nixdorf’s licensed partner in the Central Asia region. VCP-Lite 7 is designed to be a future-ready platform that enhances the banking experience. It operates on the latest Windows 11 operating system, with long-term support scheduled until 2034.
The software uses industry-standard protocols and modern APIs to ensure quick connectivity and compliance with the most recent regulatory requirements. By enabling web extensions, VCP-Lite 7 can seamlessly integrate with the bank’s digital channels, creating a more cohesive and enhanced customer experience.
Diebold Nixdorf Incorporated (NYSE:DBD) automates, digitizes, and transforms the way people bank and shop worldwide. It has 2 segments: Banking and Retail.
12. RXO Inc. (NYSE:RXO)
EPS Forward Long Term Growth (3-5 Year CAGR): 46.52%
Number of Hedge Fund Holders: 31
RXO Inc. (NYSE:RXO) is one of the best IPO stocks to buy and hold for 3 years. On September 10, Barclays analyst Brandon Oglenski maintained a Buy rating on RXO Inc. with a price target of $17. The previous month, RXO Inc. reported a total revenue of $1.4 billion in Q2 2025, with a gross margin of 17.8%.
Despite facing a prolonged soft freight market and challenges in the automotive sector, RXO achieved an adjusted EBITDA of $38 million, reaching the high end of its guidance. This resulted in an adjusted EBITDA margin of 2.7%. The company’s brokerage revenue was $1.025 billion, which accounted for 69% of total revenue, with a brokerage gross margin of 14.4%.
Although truckload volume declined by 12% due to a 28% year-over-year drop in automotive volume, the company’s truckload gross profit per load increased by 7% sequentially. The company’s strategy of optimizing price, volume, and service, which is now largely complete, contributed to the improved gross profit per load. RXO has also been using AI and ML for over a decade to improve pricing and productivity, which has increased by 45% over the last 2 years.
RXO Inc. (NYSE:RXO) engages in the truck brokerage business in the US, Canada, Mexico, Asia, and Europe. The company offers truckload freight brokering services.
11. Fortrea Holdings Inc. (NASDAQ:FTRE)
EPS Forward Long Term Growth (3-5 Year CAGR): 58.41%
Number of Hedge Fund Holders: 38
Fortrea Holdings Inc. (NASDAQ:FTRE) is one of the best IPO stocks to buy and hold for 3 years. On September 9, Jefferies raised the firm’s price target on Fortrea to $9.50 from $7, while keeping a Hold rating on the shares. This sentiment was mainly driven by the biotech funding being stronger in the last 3 months, and bookings improving across the contract research organization industry.
Earlier, for the second quarter of 2025, Fortrea Holdings reported a revenue of $710.3 million, which was an increase from the $662.4 million recorded in Q2 2024. The company’s GAAP net loss was $374.9 million, which included a non-cash goodwill impairment charge of $309.1 million, contributing to a GAAP loss of $4.14 per diluted share.
Despite the loss, Fortrea achieved a positive adjusted net income of $17.6 million, or $0.19 per diluted share, a turnaround from the $2.3 million adjusted net loss in Q2 2024. Fortrea is now increasing its 2025 revenue guidance to a range of $2,600 to $2,700 million. The company is also affirming its adjusted EBITDA guidance in the range of $170 million to $200 million for the full year.
Fortrea Holdings Inc. (NASDAQ:FTRE) is a contract research organization that provides biopharmaceutical product and medical device development solutions to pharmaceutical, biotechnology, and medical device customers worldwide.
10. Circle Internet Group Inc. (NYSE:CRCL)
EPS Forward Long Term Growth (3-5 Year CAGR): 78.00%
Number of Hedge Fund Holders: 39
Circle Internet Group Inc. (NYSE:CRCL) is one of the best IPO stocks to buy and hold for 3 years. On September 9, Fireblocks and Circle Internet Group Inc. announced a collaboration to speed up the adoption of stablecoins by financial institutions. The partnership combines Circle’s established stablecoin network with Fireblocks’ institutional-grade digital asset infrastructure, which includes custody, tokenization, and payments.
The goal is to provide a more seamless and secure way for financial institutions to build digital asset products and services. Fireblocks, which secures over $10 trillion in digital asset transactions, and Circle, a market leader in stablecoins, are working together to create an “institutional-grade, programmable financial system” for cross-border treasury and tokenized asset settlement.
A key part of this collaboration is the integration of Circle’s products and services with Fireblocks’ platform. Fireblocks customers will get seamless access to Circle’s stablecoins, including through Circle Gateway, a new cross-chain primitive that allows for a unified USDC balance and instant liquidity across different blockchains. The collaboration will also be supported by Arc, a new open Layer-1 enterprise-grade blockchain created specifically for stablecoin finance.
Circle Internet Group Inc. (NYSE:CRCL) is a platform, network, and market infrastructure for stablecoin and blockchain applications.
9. CAVA Group Inc. (NYSE:CAVA)
EPS Forward Long Term Growth (3-5 Year CAGR): 35.72%
Number of Hedge Fund Holders: 41
CAVA Group Inc. (NYSE:CAVA) is one of the best IPO stocks to buy and hold for 3 years. On September 2, Argus lowered the firm’s price target on CAVA Group to $76 from $110, while keeping a Buy rating on the shares. The company lowered its same-store sales growth estimates for the full-year 2025, which Argus agrees with.
Earlier in August, CAVA Group highlighted strong financial growth in Q2 2025, with revenue increasing by 20.3% year-over-year to $278.2 million. The company’s adjusted EBITDA grew by 22.6% over Q2 2024, reaching $42.1 million, while net income was $18.4 million. CAVA’s financial health appears strong, with $385.8 million in cash and investments and zero debt.
During Q2, CAVA successfully expanded its footprint and opened 16 net new restaurants to bring its total to 398 locations. The company also maintained an efficient operational model, evidenced by a restaurant-level profit margin of 26.3%. Culinary innovation remains a key focus, with new menu items like chicken shawarma and cinnamon sugar pita chips being introduced. However, the company faced challenges with its same-restaurant sales growth, which was 2.1%.
CAVA Group Inc. (NYSE:CAVA) owns and operates a chain of restaurants under the CAVA brand in the US. It also offers dips, spreads, and dressings through grocery stores.
8. StandardAero Inc. (NYSE:SARO)
EPS Forward Long Term Growth (3-5 Year CAGR): 245.52%
Number of Hedge Fund Holders: 48
StandardAero Inc. (NYSE:SARO) is one of the best IPO stocks to buy and hold for 3 years. On August 28, StandardAero celebrated the grand opening of a major expansion to its business aviation maintenance, repair, and overhaul/MRO facility at Augusta Regional Airport/AGS in Augusta, Georgia. The expansion represents a 60% increase and adds 80,500 square feet to the existing campus, which brings the total size to 210,000 square feet.
The project is expected to increase the company’s capacity to serve business aviation operators in North America and beyond, while creating ~100 new technically skilled jobs in the region. The expansion adds new hangar and engine shop space, advanced avionics capabilities, and improved customer amenities. This investment will also increase the MRO capacity for the Honeywell HTF7000 engine, for which StandardAero is the exclusive independent heavy overhaul provider licensed by the OEM.
While airframe maintenance services are already being performed in the new hangar, the new engine shop is expected to be fully operational in the first half of 2026. StandardAero is actively hiring to support its expanded operations and currently employs ~175 people at the Augusta facility and ~7,700 worldwide.
StandardAero Inc. (NYSE:SARO) provides aerospace engine aftermarket services for fixed and rotary wing aircraft internationally. It has 2 segments: Engine Services and Component Repair Services.
7. Waystar Holding Corp. (NASDAQ:WAY)
EPS Forward Long Term Growth (3-5 Year CAGR): 44.32%
Number of Hedge Fund Holders: 48
Waystar Holding Corp. (NASDAQ:WAY) is one of the best IPO stocks to buy and hold for 3 years. On September 9, Waystar announced details for its upcoming Fall Waystar Innovation Showcase. The Showcase will be held during the company’s sold-out annual client conference, Waystar True North, from September 15 to 17, at the Gaylord Opryland Resort & Convention Center in Nashville, Tennessee.
The flagship conference highlights Waystar’s position as a technology leader in the healthcare industry. The program will focus on AI and advanced automation, showcasing how these innovations can deliver a meaningful return on investment, reduce denials, and accelerate reimbursement for providers, allowing them to redirect resources toward patient care.
The Waystar Innovation Showcase is scheduled for September 16, during which the company will unveil its newest AI capabilities. The Showcase will be available to both in-person attendees and a global audience via a live stream on Waystar’s website.
Waystar Holding Corp. (NASDAQ:WAY) develops a cloud-based software solution for healthcare payments. The company primarily serves the healthcare industry.
6. Amrize (NYSE:AMRZ)
EPS Forward Long Term Growth (3-5 Year CAGR): 15.97%
Number of Hedge Fund Holders: 48
Amrize (NYSE:AMRZ) is one of the best IPO stocks to buy and hold for 3 years. On September 9, Oppenheimer analyst Bryan F. Blair initiated coverage of Amrize with an Outperform rating and $62 price target. Oppenheimer noted Amrize’s advantaged footprint and resource base, structural pricing power, and sustainable margin generation. The firm also highlighted Amrize’s prospects for double-digit earnings growth through the cycle.
Prior to this sentiment, Amrize delivered its Q2 2025 financial results, which reported stable revenues of $3.22 billion. This was a slight decrease from $3.24 billion in Q2 2024. Net income for Q2 2025 was $428 million, or $0.78 per diluted share, down from $473 million, or $0.86 per diluted share, in Q2 2024.
Amrize is pursuing a growth strategy that includes operational improvements, acquisitions, and capital investments. The company launched its ASPIRE program, which aims to generate over $250 million in synergies by 2028. It expects to see savings from this program in H2 2025, with full annual savings beginning in 2026. Amrize also expanded its market presence by acquiring Langley Concrete Group in Canada and opening a new quarry in Oklahoma to serve the Dallas-Fort Worth market.
Amrize (NYSE:AMRZ) focuses on the building materials business in North America. It was incorporated in 2023 and is based in Zug, Switzerland.
5. BrightSpring Health Services Inc. (NASDAQ:BTSG)
EPS Forward Long Term Growth (3-5 Year CAGR): 34.04%
Number of Hedge Fund Holders: 51
BrightSpring Health Services Inc. (NASDAQ:BTSG) is one of the best IPO stocks to buy and hold for 3 years. On September 9, Deutsche Bank analyst Pito Chickering raised the firm’s price target on BrightSpring Health to $30 from $25, while maintaining a Buy rating on the shares.
Earlier in August, BrightSpring Health Services also released its Q2 2025 earnings, where the company’s total revenue grew by 29% year-over-year to $3.1 billion, primarily due to its Pharmacy Solutions segment. This segment in particular saw a 32% increase in revenue and reached $2.8 billion. Within Pharmacy Solutions, infusion and specialty revenue surged by 39% to $2.2 billion, and specialty scripts grew by 38%.
The Provider Services segment also contributed to the growth with an 11% increase in revenue to $358 million. This segment’s growth was fueled by home healthcare revenue, which rose 17% to $185 million, along with increases in rehab revenue by 9% to $73 million and personal care revenue by 4% to $100 million. Overall, the company’s gross profit increased by 20% year-over-year to $375 million.
BrightSpring Health Services Inc. (NASDAQ:BTSG) is a home and community-based healthcare services platform in the US. It has 2 segments: Pharmacy Solutions and Provider Services.
4. Viking Holdings Ltd. (NYSE:VIK)
EPS Forward Long Term Growth (3-5 Year CAGR): 34.45%
Number of Hedge Fund Holders: 53
Viking Holdings Ltd. (NYSE:VIK) is one of the best IPO stocks to buy and hold for 3 years. On September 5, Viking partnered with Focus Features, Universal Pictures, and Carnival Films to celebrate the release of the film Downton Abbey: The Grand Finale. The movie will be released in the US and UK on September 12. The partnership is a continuation of Viking’s corporate sponsorship of the MASTERPIECE series on PBS, which began in 2011.
The cruise line is also celebrating its long-standing relationship with Highclere Castle, the iconic filming location for Downton Abbey and the home of the Earl and Countess of Carnarvon. Since 2014, Viking has offered guests “Privileged Access” to the castle through pre- and post-voyage land extensions, such as the Oxford & Highclere Castle and Great Homes, Gardens & Gin extensions.
To celebrate the new film, Viking is running a sweepstakes for US and Canadian residents through September 30, 2025. The grand prize is a trip for two on Viking’s eight-day river voyage, Paris & the Heart of Normandy, which includes the three-night Oxford & Highclere Castle extension, as well as round-trip international Business Class airfare. Entries can be submitted at www.viking.com/downton.
Viking Holdings Ltd. (NYSE:VIK) engages in the passenger shipping and other forms of passenger transport in North America, the UK, and internationally. The company operates through the River and Ocean segments.
3. Maplebear Inc. (NASDAQ:CART)
EPS Forward Long Term Growth (3-5 Year CAGR): 15.64%
Number of Hedge Fund Holders: 64
Maplebear Inc. (NASDAQ:CART) is one of the best IPO stocks to buy and hold for 3 years. On September 9, Pear Suite, which is a digital health company, and Instacart announced a partnership aimed at improving food access for Medicaid members across the US. The collaboration will equip thousands of community health workers/CHWs with the tools to address food insecurity and connect individuals with healthy food resources.
The partnership builds on a 6-month pilot program involving 3,000+ Medicaid members. During the pilot, CHWs used Pear Suite’s AI-powered platform to provide nutrition education, support SNAP enrollment, and offer online grocery services through Instacart, like Instacart Health Fresh Funds grocery stipends. The program achieved an 86% engagement rate between CHWs and members with critical food access needs.
The pilot also found that one in five SNAP-eligible community members were not enrolled in the program, and 42% of clients reported rising grocery costs as a major barrier. Additionally, 42% of members faced transportation barriers, which online grocery delivery helped to overcome. The partnership allowed more than 150 families with immediate food needs to receive assistance.
Maplebear Inc. (NASDAQ:CART), doing business as Instacart, provides online grocery shopping services to households in North America.
2. Reddit Inc. (NYSE:RDDT)
EPS Forward Long Term Growth (3-5 Year CAGR): 36.00%
Number of Hedge Fund Holders: 74
Reddit Inc. (NYSE:RDDT) is one of the best IPO stocks to buy and hold for 3 years. On September 9, Reddit announced that it is changing the activity indicators on its subreddit headers. The platform will replace the “Member count” with two new metrics: active visitors and weekly activity levels, which are based on a rolling 28-day average.
According to Reddit, the member count doesn’t fully represent true engagement because users can post and comment without being a member of a community. By shifting the focus from passive membership to active participation, Reddit aims to highlight what makes the platform unique: “real people engaging in real conversations.”
The new indicators are intended to give users a more accurate sense of a community’s vibrancy and could be a useful tool for brands conducting research. This move aligns with Reddit’s strength in fostering highly engaged communities, which has already positioned it as a key source for human-centric insights and even as the most referenced source for AI answers.
Reddit Inc. (NYSE:RDDT) operates a digital community. The company’s platform enables users to engage in conversations, explore passions, research new hobbies, exchange goods & services, create new communities & experiences, share laughs, and find belonging.
1. GE Vernova Inc. (NYSE:GEV)
EPS Forward Long Term Growth (3-5 Year CAGR): 59.95%
Number of Hedge Fund Holders: 106
GE Vernova Inc. (NYSE:GEV) is one of the best IPO stocks to buy and hold for 3 years. On September 5, HSBC analyst Sean McLoughlin raised the firm’s price target on GE Vernova to $580 from $570, while maintaining a Hold rating on the shares. The firm believes that GE Vernova stands to benefit most from any US onshore demand rebound. The Trump admin’s intervention in offshore wind is high. But in onshore, a newly opened window for developers to lock in tax credits to 2030 can drive a rebound in demand from current low levels.
In Q2 2025, GE Vernova reported orders of $12.4 billion and a revenue of $9.1 billion, which was up 11% year-over-year. This was fueled by the demand in the Power and Electrification segments, with both equipment and services contributing to the increase. Net income for the quarter was $0.5 billion.
The company’s backlog rose by $5.2 billion sequentially from equipment and services. Notably, the Gas Power equipment backlog and slot reservation agreements increased from 50 to 55 GW.
GE Vernova Inc. (NYSE:GEV) is an energy company that provides various products and services that generate, transfer, orchestrate, convert, and store electricity. The company has 3 segments: Power, Wind, and Electrification.
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 the cheapest AI stock.
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