In this article, we discuss the 15 stocks set to explode in 2026.
While the market figures out whether artificial intelligence is driving the next bubble or the next industrial revolution, a quiet rotation of capital into the next wave of growth leaders outside Big Tech is occurring.
AI spending is expected to hit the $500 billion mark by 2026, according to UBS. Amid this surge, power infrastructure, construction, and traditional industries—essential to supporting AI expansion—will attract investors’ attention. On CNBC’s ‘Power Lunch’ on October 15, Anneka Treon, ING’s global head of Private Banking, said, “AI bubble or not, it boils down to real dollars being spent on real capex with a very long runway of funding ahead.”
Appearing on CNBC’s ‘Squawk on the Street’ on October 14, Larry Fink, BlackRock chairman and CEO, noted, “Investing in AI does not just mean investing in GPUs and chips, it means investing in HVAC and IT, investing in power grids and power supplies.” Due to the ripple effect, sectors such as industrials, materials, and financials are expected to be beneficiaries of AI’s vast capital footprint.
At the same time, MetLife Investment Management’s Drew Matus expressed a cautious outlook for 2026, which he shared on ‘Squawk Box’ on October 3. While predicting “sticky yields,” a Federal Reserve shift to rate cuts, and a “steepening in the yield curve,” he stated, “2026 is going to be a stall year.” Thus, overall equity momentum could be kept subdued, he noted.
Asked whether we are in an AI bubble, Pat Gelsinger, former Intel CEO, responded by saying, “Of course we are.” He added that he does not see it going away for “several years.” Gelsinger appeared on ‘Squawk Box’ on October 13.
With this background in mind, let’s jump to our list of 15 stocks set to explode in 2026.
Copyright: stegarau / 123RF Stock Photo
Our Methodology
To curate our list of 15 stocks set to explode in 2026, we began by screening U.S.-listed companies with a market capitalization of over $2 billion and a potential upside of more than 50%, as of November 4, 2025. We also ensured that these stocks receive significant analyst coverage. Furthermore, we considered hedge fund ownership of these stocks using Insider Monkey’s hedge fund database, which tracks over 1,000 hedge funds as of Q2 2025. Finally, we ranked these stocks in ascending order based on their upside potential.
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).
15. Amicus Therapeutics, Inc. (NASDAQ:FOLD)
Number of Hedge Fund Holders: 40
Upside Potential: 73.53%
With significant upside potential and hedge fund interest, Amicus Therapeutics, Inc. (NASDAQ:FOLD) secured a spot on our list of the 15 stocks set to explode in 2026.
On November 5, 2025, Goldman Sachs raised its price target on Amicus Therapeutics, Inc. (NASDAQ:FOLD) from $9 to $11, maintaining a “Neutral” rating.
The revision follows the company’s performance in the third quarter, marked by the first positive GAAP net income and solid revenue execution. With the expectation of sustained profitability, these outcomes reinforced the analyst’s confidence in Amicus Therapeutics, Inc.’s (NASDAQ:FOLD) full-year revenue outlook.
Prior to this revision, Amicus Therapeutics, Inc. (NASDAQ:FOLD) reported its Q3 2025 results on November 4, posting a 17% revenue surge to $169.1 million. With GAAP net income of $17.3 million, or $0.06 per share basic and diluted, the quarter marked the company’s milestone transition to GAAP profitability. Commenting on the company’s quarterly performance, CEO Bradley Campbell highlighted commercial momentum and steady clinical progress, including the on-track Phase 3 enrollment of DMX-200, as key drivers of long-term growth.
Looking ahead, Amicus Therapeutics, Inc.’s (NASDAQ:FOLD) management has reaffirmed its full-year revenue guidance and its target to exceed $1 billion in sales by 2028. Thus, it looks well-positioned for durable expansion, reinforcing investor optimism.
Amicus Therapeutics, Inc. (NASDAQ:FOLD), a global biotechnology company, develops and commercializes innovative medicines for patients living with rare diseases.
14. Summit Therapeutics Inc. (NASDAQ:SMMT)
Number of Hedge Fund Holders: 30
Upside Potential: 78.62%
Summit Therapeutics Inc. (NASDAQ:SMMT) is one of the 15 stocks set to explode in 2026.
On November 7, 2025, Summit Therapeutics Inc. (NASDAQ:SMMT) announced results from the Phase III HARMONi trial conducted in China. The results were published by its partner Akeso, Inc.
The study tested ivonescimab, an innovative bispecific antibody, combining it with platinum-doublet chemotherapy in patients whose lung cancer had a specific genetic mutation (EGFR) and whose cancer was advanced or had spread. Furthermore, these patients were those who had already been treated with EGFR-TKI therapy.
A statistically significant improvement in overall survival was noted by the trial, marked by a median OS of 16.8 months for ivonescimab plus chemotherapy versus 14.1 months for chemotherapy alone. Ivonescimab demonstrated a manageable safety profile, in line with previous Phase III studies.
With these results, Summit Therapeutics Inc. (NASDAQ:SMMT) highlighted ivonescimab’s potential to cater to high unmet medical needs in NSCLC. The antibody promises to offer efficacy where PD-1 therapies had previously failed. Thus, the therapy’s momentum solidifies further as over 40,000 patients in China have already been treated with ivonescimab across clinical and commercial settings.
Previously, on November 3, 2025, Truist Financial analyst Asthika Goonewardene maintained a “Buy” rating on Summit Therapeutics Inc. (NASDAQ: SMMT).
Summit Therapeutics Inc. (NASDAQ:SMMT), a biopharmaceutical company specializing in oncology, develops innovative therapies, with ivonescimab being its lead development candidate.
13. Chime Financial, Inc. (NASDAQ:CHYM)
Number of Hedge Fund Holders: 46
Upside Potential: 83.37%
With significant upside potential and hedge fund interest, Chime Financial, Inc. (NASDAQ:CHYM) secured a spot on our list of the 15 stocks set to explode in 2026.
On November 5, 2025, Chime Financial, Inc. (NASDAQ:CHYM) reported Q3 2025 results.
This quarter surpassed the company’s guidance, helping Chime Financial, Inc. (NASDAQ:CHYM) lift its full-year outlook, amid rising utilization of fintech for everyday banking. With 65% growth in platform-related revenue and 16% in payments, CHYM recorded a 29% year-over-year increase in its revenue, bringing it to $544 million.
Meanwhile, gross profit hit $474 million, resulting in an 87% margin, while adjusted EBITDA climbed to $29 million, helping the company mark a 9-point margin expansion from last year. Furthermore, 21% growth in active members was noted, taking the total to 9.1 million. At the same time, acquisition costs per new active member declined for the third straight quarter.
During the third quarter, the company successfully rolled out the Chime Card in September, reported rapid scaling of its Outbound Instant Transfer (OIT) feature to $640 million in volume, and full migration to ChimeCore, its proprietary processing platform. The quarter also featured a $200 million share repurchase program. Strong performance in the quarter helped the company raise its full-year revenue guidance to a range of up to $2.173 billion.
Chime Financial, Inc. (NASDAQ:CHYM), a leading consumer fintech company, delivers fee-free digital banking solutions.
12. DuPont de Nemours, Inc. (NYSE:DD)
Number of Hedge Fund Holders: 49
Upside Potential: 92.43%
DuPont de Nemours, Inc. (NYSE:DD) is one of the 15 stocks set to explode in 2026.
On November 6, 2025, DuPont de Nemours, Inc. (NYSE:DD) released its third-quarter results.
With net sales of $3.1 billion (up 7% YoY), DuPont de Nemours, Inc. (NYSE:DD) exceeded prior guidance and reinforced confidence in its post-spin-off trajectory. The top-line growth was driven by 4% and 10% organic sales growth in the IndustrialCo and ElectronicsCo segments, respectively. As a result, the company recorded $840 million in operating EBITDA and adjusted EPS of $1.09.
Strong operational execution in the quarter helped DuPont de Nemours, Inc. (NYSE:DD) raise full-year operating EBITDA guidance to $1.6 billion. Furthermore, the company’s management announced a new $2 billion share repurchase authorization during the quarter, which includes a $500 million accelerated buyback. DuPont also declared a quarterly dividend of $0.20 per share.
Following the results, KeyBanc analyst Aleksey Yefremov marginally raised his price target to $45 from $44 and maintained his “Overweight” rating. He viewed the results update positively, despite second-half average growth rates decreasing compared to the first half. He also acknowledged that the second-half comparisons have become less clear due to the post-spin changes.
In his previous update before the results, Yefremov had reduced his price target on DuPont de Nemours, Inc. (NYSE:DD) from $93 to $44, while maintaining an “Overweight” rating. The target revision reflected updates to the company’s capital structure and standalone EBITDA following the Qnity Electronics spin-off. Still, the investment firm remained optimistic about the company’s outlook as it realigns its strategy to drive sustainable shareholder value.
DuPont de Nemours, Inc. (NYSE:DD), a global innovation leader, delivers advanced solutions to transform industries across healthcare, water, construction, and transportation sectors.
11. QXO, Inc. (NYSE:QXO)
Number of Hedge Fund Holders: 65
Upside Potential: 93.06%
With significant upside potential and hedge fund interest, QXO Inc. (NYSE:QXO) secured a spot on our list of the 15 stocks set to explode in 2026.
QXO, Inc. (NYSE:QXO) reported its Q3 2025 results on November 6, 2025, which aligned with previously announced preliminary figures disclosed alongside the announcement of its recent term loan refinancing. With an 11.1% adjusted EBITDA margin, the company reported an adjusted diluted EPS of $0.14 and adjusted EBITDA of $301.9 million.
Reporting $2.73 billion in revenue, the company’s leadership reaffirmed its trajectory toward $50 billion in annual revenue within the next decade, citing strong execution in optimizing Beacon, its wholly-owned subsidiary. QXO, Inc. (NYSE:QXO)’s management stated that it is on track to grow legacy Beacon’s EBITDA to over $2 billion. The company reported adjusted diluted EPS of $0.14.
The company’s earnings release was followed by Wells Fargo’s “Buy” rating with a $30 price target on the same day. The firm’s analyst, Sam Reid, cited the company’s strong performance in Q3, highlighting its stable gross and EBITDA margins amid a challenging macroeconomic environment. Furthermore, he highlighted the company’s trajectory toward achieving $50 billion in annual revenue within the next decade. While the analyst acknowledged a soft short-term outlook due to external pressures, he believes the company’s long-term outlook remains robust, driven by potential deals and acquisitions.
QXO, Inc. (NYSE:QXO), the largest publicly traded distributor of roofing, waterproofing, and complementary building products in North America, sees itself becoming the tech-enabled leader in the $800 billion building products distribution industry.
10. SM Energy Company (NYSE:SM)
Number of Hedge Fund Holders: 36
Upside Potential: 98.88%
SM Energy Company (NYSE:SM) is one of the 15 stocks set to explode in 2026.
SM Energy Company (NYSE:SM) reported its third-quarter results on November 3, 2025. The quarter featured record production and resilient cash production margins amid softer commodity prices.
During the quarter, SM Energy Company (NYSE:SM) reported $155.1 million, or $1.35 per share in net income, compared with $240.5 million, or $2.09 per share, in the same period a year earlier. On an adjusted basis, the net income came in at $153.7 million ($1.33 per share) and adjusted EBITDAX stood at $588.2 million, reflecting a 22% YoY increase.
Meanwhile, SM Energy Company (NYSE:SM) reported a 26% YoY growth in production, taking it to 19.7 MMBoe (213.8 MBoe/d). The increased production was driven by a 47% growth in oil volumes from the Uinta Basin. SM Energy Company (NYSE:SM) maintained its company-wide cash margins despite a $10/Bbl drop in benchmark oil prices, thanks to operational efficiencies it achieved during the quarter. Accordingly, a 33% growth was noted in operating cash flow, bringing it to $557.5 million, which generated $234.3 million in free cash flow, an 80% increase from 2024.
In the third quarter, SM Energy Company’s (NYSE:SM) capital activity included drilling 24 net wells, 12 of which were in the Uinta Basin and eight were in South Texas. The company also added 27 net flowing completions, 15 of which were in the Midland Basin and 12 were in South Texas.
Ending the quarter with $162.3 million in cash and reduced leverage of 1.1x net debt-to-EBITDAX, SM Energy Company (NYSE:SM) returned $35.1 million to shareholders through dividends and buybacks. Its capital expenditures for the quarter totaled $397.7 million.
SM Energy Company (NYSE:SM), an independent energy company, is focused on the acquisition, exploration, development, and production of crude oil, natural gas, and NGLs in Texas and Utah.
9. Beam Therapeutics Inc. (NASDAQ:BEAM)
Number of Hedge Fund Holders: 31
Upside Potential: 105.67%
With significant upside potential and hedge fund interest, Beam Therapeutics Inc. (NASDAQ:BEAM) secured a spot on our list of the 15 stocks set to explode in 2026.
On November 5, 2025, Clear Street increased its price target on Beam Therapeutics Inc. (NASDAQ:BEAM) from $34 to $37, while maintaining a “Buy” rating.
The revised target reflected the company’s robust performance in the third quarter of 2025. The investment firm pointed toward the first patient dosing in Beam Therapeutics Inc. (NASDAQ:BEAM)’s BEAM-103 healthy volunteer study, which is a key achievement in its ESCAPE platform. Furthermore, Clear Street highlighted the company’s upcoming BEAM-302 interim update in early 2026 as a key catalyst. The firm also praised the company’s increased strength in its balance sheet, evident from its 17% stake in Orbital Therapeutics, which is valued at roughly $255 million following its $1.5 billion buyout by Bristol Myers Squibb.
Meanwhile, on the previous day, Beam Therapeutics Inc. (NASDAQ:BEAM) reported advancement across its hematology and genetic disease franchises. The company’s management emphasized continued dosing in the BEAM-302 trial for alpha-1 antitrypsin deficiency, alongside new data from BEAM-101 expected at the December ASH meeting.
The investor confidence in Beam Therapeutics Inc. (NASDAQ:BEAM) is also evident from Cathie Wood’s ARK purchase of 291,001 shares, worth $7.06 million, on November 4, 2025.
With its proprietary base editing platform, Beam Therapeutics Inc. (NASDAQ: BEAM) develops precision genetic medicines that enable targeted single-base changes for treating serious diseases.
8. Ocular Therapeutix, Inc. (NASDAQ:OCUL)
Number of Hedge Fund Holders: 27
Upside Potential: 105.69%
Ocular Therapeutix, Inc. (NASDAQ:OCUL) is one of the 15 stocks set to explode in 2026.
On November 5, 2025, RBC Capital raised its price target on Ocular Therapeutix, Inc. (NASDAQ:OCUL) from $17 to $24, while maintaining an “Outperform” rating.
The revised target was attributed to the company’s strong execution in its SOL-1 wet age-related macular degeneration (wAMD) superiority study. The study is on a solid trajectory for a first-quarter 2026 top-line readout. The investment firm cited patient retention and adherence going past 95%, no signs of safety concerns, and excess cash reserves as key growth drivers. The cash reserves now sit at approximately $790 million following a $445 million capital raise. Furthermore, RBC Capital sees Ocular Therapeutix, Inc. (NASDAQ:OCUL) potentially gaining significant market share in both wAMD and DR segments, expecting the company’s momentum to extend into diabetic retinopathy trials.
On the other hand, on November 4, 2025, Ocular Therapeutix, Inc. (NASDAQ:OCUL) released its Q3 2025 results. The quarter marked a reaffirmation of the company’s progress in its SOL-R trial, which achieved its randomization goal of 555 subjects. The company demonstrated disciplined trial design by expanding its AXPAXLI program across retinal diseases. The company maintains a financial runway into 2028 with a cash balance of $344.8 million, excluding net proceeds of $445 million from an underwritten offering of common shares.
Ocular Therapeutix, Inc. (NASDAQ:OCUL), an integrated biopharmaceutical company, develops innovative hydrogel-based therapies for treating retinal diseases.
7. Strategy Inc (NASDAQ:MSTR)
Number of Hedge Fund Holders: 45
Upside Potential: 112.36%
With significant upside potential and hedge fund interest, Strategy Inc. (NASDAQ:MSTR) secured a spot on our list of the 15 stocks set to explode in 2026.
On November 3, 2025, Canaccord Genuity reiterated its “Buy” rating on Strategy Inc. (NASDAQ:MSTR), while raising its price target from $464 to $474. The investment firm remains confident in the company’s long-term value, citing its bitcoin yield strategy as a key driver of this confidence. Accordingly, it believes the company is well-positioned to achieve its ambitious 30% bitcoin yield target for 2025, as Strategy Inc. has already reached 26% through manageable preferred issuances. In addition to bitcoin’s price appreciation, the investment firm sees sustainable yield growth as one of the primary growth drivers.
Meanwhile, on October 30, 2025, Strategy Inc. (NASDAQ:MSTR) reported its Q3 results. The company reported $3.9 billion in operating income and $2.8 billion in net income ($8.42 diluted EPS). The quarter saw bitcoin holdings increasing to 640,808 BTC, valued at roughly $71 billion. Looking ahead, full-year guidance was reiterated by the management, who projected $34 billion in operating income and $24 billion in net income.
Strategy Inc (NASDAQ:MSTR), one of the largest Bitcoin Treasury companies, combines its digital asset strategy with enterprise analytics software, delivering long-term value through innovation and bitcoin-backed capital growth.
6. Denali Therapeutics Inc. (NASDAQ:DNLI)
Number of Hedge Fund Holders: 35
Upside Potential: 112.67%
Denali Therapeutics Inc. (NASDAQ:DNLI) is one of the 15 stocks set to explode in 2026.
On November 7, 2025, H.C. Wainwright’s Andrew Fein reiterated his “Buy” rating on Denali Therapeutics Inc. (NASDAQ:DNLI) with a $32 price target.
Fein’s bullish stance followed Denali Therapeutics Inc. (NASDAQ:DNLI)’s Q3 results. He highlighted the upcoming launch of tividenofusp, which is the first transferrin receptor (TfR)-enabled medicine. Fein believes this launch will establish a commercial framework capable of supporting future enzyme replacement programs. He also discussed the recent acquisition of Avidity, which reflects the industry’s increasing recognition of TfR-based delivery as an efficient method for tissue penetration.
Moreover, with tividenofusp getting closer to its PDUFA date and DNL126 completing Phase 1/2 enrollment, the analyst believes Denali’s pipeline is advancing strongly. Furthermore, with its innovative Transport Vehicle (TV) platform seen as both clinically and commercially viable, investor confidence in the company’s ability to bank on its technological progress is bolstered. At the same time, Denali Therapeutics Inc. (NASDAQ:DNLI) is filing new Investigational New Drug applications (INDs) for programs targeting Alzheimer’s and Pompe disease, which the analyst believes will expand its market reach.
The analyst’s note followed the company’s earnings release on the previous day, where it reported a net loss of $126.9 million. Denali Therapeutics Inc. (NASDAQ:DNLI) reported slightly increased R&D expenses of $102 million, driven by operational start at its large molecule manufacturing facility in Salt Lake City, Utah. The company ended the quarter with $872.9 million in cash balance.
Denali Therapeutics Inc. (NASDAQ:DNLI), a South San Francisco-based biopharmaceutical company, is focused on the development of therapies for neurodegenerative and lysosomal storage diseases, improving drug delivery across the blood-brain barrier.
5. Aurora Innovation, Inc. (NASDAQ:AUR)
Number of Hedge Fund Holders: 41
Upside Potential: 123.19%
With significant upside potential and hedge fund interest, Aurora Innovation, Inc. (NASDAQ:AUR) secured a spot on our list of the 15 stocks set to explode in 2026.
On October 28, 2025, Aurora Innovation, Inc. (NASDAQ:AUR) released its Q3 2025 results. The quarter marked a 12% sequential growth in revenue, bringing it to $1 million, thanks to a record number of commercial miles from customers, including FedEx, Uber Freight, and Schneider. Despite the operating loss of $222 million, the company closed the quarter with $1.6 billion in liquidity, enough to fund operations into the second half of 2027.
The company’s leadership also highlighted that its self-driving trucks, boasting a 100% on-time safety record, surpassed 100,000 driverless miles. The company also launched a new 600-mile Fort Worth-El Paso driverless route. Looking ahead, Aurora Innovation, Inc. (NASDAQ:AUR) aims to deploy its second-generation commercial hardware kit in 2026, which is expected to reduce hardware costs by over 50%. Through upcoming Phoenix and Sun Belt expansions, as well as legislative momentum via the AMERICA DRIVES Act, the company is bolstering investor confidence as it races toward commercial scale and profitability.
With its Aurora Driver platform, Aurora Innovation, Inc. (NASDAQ:AUR) offers a suite of self-driving hardware, software, and data services.
4. Legend Biotech Corporation (NASDAQ:LEGN)
Number of Hedge Fund Holders: 39
Upside Potential: 134.20%
Legend Biotech Corporation (NASDAQ:LEGN) is one of the 15 stocks set to explode in 2026.
On October 17, 2025, H.C. Wainwright analyst Mitchell Kapoor reiterated his “Buy” rating on Legend Biotech Corporation (NASDAQ:LEGN) with a $60 price target.
Discussing the company’s robust growth trajectory for its CARVYKTI therapy, he pointed toward the therapy’s rising clinical potential. Kapoor particularly emphasized the inclusion of overall survival (OS) data in the therapy’s label, which he regards as an underappreciated catalyst for long-term adoption. Furthermore, he highlighted the company’s confidence in CARVYKTI’s estimated $5 billion peak sales potential with robust YoY and sequential growth.
Previously, on October 10, 2025, the FDA approved a label update for CARVYKTI to include overall survival data from the Phase 3 CARTITUDE-4 study. With this update, confidence in CARVYKTI’s long-term durability was bolstered, as it now demonstrates a significant survival benefit for patients with relapsed, refractory multiple myeloma compared to standard care. However, the label also warned about serious immune-related side effects. It emphasized the need for careful management by physicians.
Legend Biotech Corporation (NASDAQ:LEGN) is focused on developing and commercializing innovative cell therapies for the treatment of multiple myeloma.
3. Vaxcyte, Inc. (NASDAQ:PCVX)
Number of Hedge Fund Holders: 44
Upside Potential: 137.00%
With significant upside potential and hedge fund interest, Vaxcyte, Inc. (NASDAQ:PCVX) secured a spot on our list of the 15 stocks set to explode in 2026.
On November 5, 2025, TD Cowen analyst Tara Bancroft reiterated her “Buy” rating on Vaxcyte, Inc. (NASDAQ:PCVX) with a $50 price target.
The analyst cited positive Phase II data from the company’s VAX-24 infant vaccine trials. With the VAX-24 meeting non-inferiority criteria for most serotypes, the study demonstrated robust immune responses and a dose-dependent increase in immunogenicity, with no evidence of carrier suppression. With Phase III results expected in 2026, she believes the data reinforce Vaxcyte, Inc. (NASDAQ:PCVX)’s optimized dosing approach for its VAX-31 program. Moreover, she believes the vaccine’s competitive edge over Prevnar is further enhanced by its potential to deliver improved titers when co-administered with a flu vaccine.
On the other hand, on November 4, 2025, Vaxcyte, Inc. (NASDAQ:PCVX) released its Q3 2025 results. Closing the quarter with $2.7 billion in cash, the company noted consistent Phase II results for VAX-24 in infants. On that note, Vaxcyte reaffirmed its plans to initiate the VAX-31 critical adult trial in December.
Vaxcyte, Inc. (NASDAQ:PCVX), a vaccine innovation company, develops high-fidelity conjugate vaccines. It helps prevent invasive pneumococcal disease, with its lead candidates, VAX-31 and VAX-24, aiming to provide broad-spectrum bacterial protection.
2. Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE)
Number of Hedge Fund Holders: 60
Upside Potential: 164.48%
Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE) is one of the 15 stocks set to explode in 2026.
On November 5, 2025, analyst Maxwell Skor from Morgan Stanley reaffirmed his “Buy” rating on Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE) with a $55 price target.
The analyst’s bullish stance stemmed from Ultragenyx Pharmaceutical Inc.’s (NASDAQ:RARE) strong financial position, alongside its pivotal late-stage pipeline. Having secured $400 million in non-dilutive financing from OMERS recently, the company strengthened its liquidity to advance multiple product launches while deferring payments until 2028.
Skor believes this financing will critically support Ultragenyx Pharmaceutical Inc.’s (NASDAQ:RARE) goal to become profitable by 2027. Furthermore, the analyst highlighted the significance of the upcoming Phase 4 Orbit and Cosmic trials for Setrusumab. The antibody is a potential breakthrough therapy for Osteogenesis Imperfecta, which is expected to deliver significant reductions in fractures and improvements in patient outcomes.
On the previous day, Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE) announced the expansion of its 2022 partnership with OMERS. With this expansion, the company made a royalty sale, granting OMERS an additional 25% royalty interest in Crysvita sales in the U.S. and Canada. This reinforced investor confidence in the company’s rare-disease portfolio and provided strategic capital to fund its growth trajectory.
Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE), a biopharmaceutical company, develops and commercializes innovative therapies. These therapies target patients suffering from serious and ultra-rare genetic diseases with no or limited existing treatment options.
1. Viking Therapeutics, Inc. (NASDAQ:VKTX)
Number of Hedge Fund Holders: 43
Upside Potential: 169.19%
With significant upside potential and hedge fund interest, Viking Therapeutics, Inc. (NASDAQ:VKTX) secured a spot on our list of the 15 stocks set to explode in 2026.
On November 6, 2025, Viking Therapeutics Inc. (NASDAQ:VKTX) discussed new VK2735 data at ObesityWeek 2025, highlighting that results from its Phase 2 VENTURE trial showed 78% of treated patients with prediabetes achieved normal glycemic status after 13 weeks, compared to 29% in the placebo group. These results reflected the drug’s cardiometabolic benefits, strengthening confidence in its ongoing Phase 3 program.
Following the trials, William Blair’s Andy Hsieh reaffirmed his “Buy” rating on the company without assigning a price target. He cited the potential cardiometabolic benefits of VK2735 in the treatment of obesity. Moreover, he highlighted that the upcoming Phase III trial aims to reduce gastrointestinal side effects, thus improving tolerability, which could enhance the drug’s overall commercial profile.
Hsieh had also reiterated his “Buy” rating on Viking Therapeutics Inc. (NASDAQ:VKTX) in his earlier note on October 30. The analyst’s bullish stance reflected the company’s strong footing in the fast-growing obesity drug market. He believes that Viking’s VK2735 program, with its oral and subcutaneous formulations, holds significant potential due to its efficacy.
Furthermore, he had highlighted the company’s expanding obesity pipeline, which boasts strategic optionality. This, he believes, could help attract interest from big pharmaceutical players amid heightened deal activity in the sector. Excluding any acquisition scenarios, Viking Therapeutics, Inc. (NASDAQ:VKTX)’s outlook remains strong amid growing interest in the direct-to-consumer market.
Viking Therapeutics Inc. (NASDAQ:VKTX) is focused on developing innovative therapies for metabolic and endocrine disorders.
While we acknowledge the potential of VKTX 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 VKTX and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: Bill Gates’s Stock Portfolio: Top 15 Stock Picks and 10 Best Non-Tech Stocks to Buy According to Reddit.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email below.
