On July 3, Scott Wren, Wells Fargo senior global market strategist, and Adam Crisafulli, Vital Knowledge founder, joined ‘Closing Bell Overtime’ on CNBC to talk about the current market conditions. In a discussion regarding his notes on the “top 5 portfolio ideas for the balance of 2025,” Wren explained that Wells Fargo Investment Institute’s strategy involved sticking with quality, given that the market had come a long way and stocks were currently rich. They were actively trimming positions in sectors that had performed well recently, such as the consumer discretionary and industrial sectors.
Wren noted that clients were either holding cash in anticipation of a market pullback or reallocating funds into favored sectors, such as tech. He elaborated on the momentum trade and stated that while it had carried the market, the market’s breadth had not been good in recent months, which typically signals an impending pullback. Therefore, they were being patient instead of just jumping in. Their primary portfolio goal was to prepare for downside volatility by sticking with quality bonds in the 3 to 7-year intermediate part of the curve, large-cap US stocks (S&P 500), and US mid-caps. They sought to avoid overexposure to emerging markets or developed international markets.
That being said, we’re here with a list of the 16 most promising stocks according to Wall Street analysts.
An overhead view of a bustling stock exchange, with brokers and traders exchanging stocks.
Methodology
We sifted through the Finviz stock screener to compile a list of the top stocks that had the highest analysts’ upside potential. We then selected the 16 stocks with an upside potential of over 25% as of July 7. The stocks are ranked in ascending order of their upside potential. We’ve also added the hedge fund sentiment for each stock, as of Q1 2025, which was sourced from Insider Monkey’s database.
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).
16 Most Promising Stocks According to Wall Street Analysts
16. Riot Platform Inc. (NASDAQ:RIOT)
Number of Hedge Fund Holders: 35
Average Upside Potential as of July 7: 31.52%
Riot Platform Inc. (NASDAQ:RIOT) is one of the most promising stocks according to Wall Street analysts. Earlier in May, Riot Platforms announced that it expanded its credit facility with Coinbase Credit, which is a subsidiary of Coinbase Global Inc. (NASDAQ:COIN). The existing $100 million credit facility has been upsized to a total commitment of up to $200 million. This aims to diversify Riot’s financing sources and potentially lower its cost of capital.
Key terms, including the interest rate, remain identical to the previous facility. Borrowed amounts will bear interest at an annual rate equal to the greater of the federal funds rate (upper limit) or 3.25%, plus an additional 4.50%. The credit facility has a maturity of 364 days from the effective date, with an option for a 364-day extension subject to Coinbase’s approval. The loan is secured by a portion of Riot’s Bitcoin holdings.
The expansion of the credit facility comes in the middle of the recent shifts for Riot Platforms, which include its removal from several major indices as of June 28. However, the company also reported an increase in Bitcoin production for May 2025 and mined 514 Bitcoin, which is an 11% increase from the past month.
Riot Platform Inc. (NASDAQ:RIOT) operates as a Bitcoin mining company in the US. Coinbase Global Inc. (NASDAQ:COIN) operates a platform for crypto assets in the US and internationally.
15. Teva Pharmaceutical Industries Limited (NYSE:TEVA)
Number of Hedge Fund Holders: 64
Average Upside Potential as of July 7: 35.45%
Teva Pharmaceutical Industries Limited (NYSE:TEVA) is one of the most promising stocks according to Wall Street analysts. On June 16, Teva Pharmaceutical announced a collaboration agreement with China-based Shanghai Fosun Pharmaceutical Group Co., Ltd. (better known as Fosun Pharma) to co-develop TEV-56278, which is an investigational anti-PD1-IL2 ATTENUKINE therapy.
The partnership will accelerate clinical data generation for TEV-56278, which is currently in a Phase 1 study for various forms of cancer, such as melanoma. TEV-56278 is an internally developed Teva product and is an anti-PD-1 antibody-cytokine fusion protein that uses Teva’s proprietary ATTENUKINE technology.
Its novel mechanism of action is designed to selectively deliver interleukin-2 (IL-2) to PD-1-expressing T cells within the tumor microenvironment. Under the terms of the agreement, Fosun Pharma has been granted an exclusive license to develop, manufacture, and commercialize TEV-56278 in mainland China, the Hong Kong SAR, Macau SAR, Taiwan region, and select Southeast Asian countries.
Teva Pharmaceutical Industries Limited (NYSE:TEVA) develops, manufactures, markets, and distributes generic & other medicines and biopharmaceutical products internationally. Fosun Pharma is a global healthcare company in pharmaceuticals, medical devices & diagnostics, and healthcare services.
14. Maximus Inc. (NYSE:MMS)
Number of Hedge Fund Holders: 35
Average Upside Potential as of July 7: 43.02%
Maximus Inc. (NYSE:MMS) is one of the most promising stocks according to Wall Street analysts. On June 9, Maximus announced the latest version of its Total Experience Management/TXM solution, which is now enhanced with new Amazon Web Services/AWS integrations. Maximus TXM was originally launched in 2024 and is designed to help government agencies deliver services more efficiently by providing a FedRAMP-authorized solution for next-gen customer experience/CX.
Through its collaboration with AWS, Maximus TXM uses a range of AWS services, such as Amazon Bedrock, Amazon Lex, and Amazon Textract. These functionalities enable Maximus to help governments achieve mission outcomes and derive valuable insights. Maximus TXM is built on a cloud-based, modular, flexible, and scalable architecture. This allows agencies to customize the solution to their specific needs.
It’s already in use by several federal agencies, such as the Office of Personnel Management. For instance, at the Department of Veterans Affairs/VA, through Maximus company Veterans Evaluation Services/VES, they co-developed a proprietary AI-powered system for intelligent document processing. The system transformed a manual claims review process into a fast, scalable digital operation, and is now also being used to improve outcomes for the Centers for Medicare & Medicaid Services/CMS.
Maximus Inc. (NYSE:MMS) provides government services worldwide. It operates through 3 segments: US Federal Services, US Services, and Outside the US.
13. Viper Energy Inc. (NASDAQ:VNOM)
Number of Hedge Fund Holders: 40
Average Upside Potential as of July 7: 47.57%
Viper Energy Inc. (NASDAQ:VNOM) is one of the most promising stocks according to Wall Street analysts. On June 5, Viper Energy, which is a subsidiary of Diamondback Energy Inc. (NASDAQ:FANG), announced a definitive agreement to acquire Sitio Royalties Corp. (NYSE:STR) in an all-stock transaction valued at ~$4.1 billion. The valuation includes Sitio’s net debt of about $1.1 billion as of March 31 this year.
The acquisition will expand Viper’s Permian Basin footprint by 42%. Sitio Royalties currently holds ~34,300 net royalty acres in total, with about 25,300 net royalty acres located within the Permian Basin, and an additional 9,000 net royalty acres concentrated in other major US basins such as the Eagle Ford and Williston Basins. ~50% of Sitio’s Permian acreage overlaps with existing Viper gross-producing horizontal wells.
Following the closure of the deal, the combined entity will own ~85,700 net royalty acres in the Permian Basin, with about 43% operated by Diamondback. Pro forma Viper’s average production in the fourth quarter of 2025 is expected to range between 122-130 thousand barrels of oil equivalent per day.
Viper Energy Inc. (NASDAQ:VNOM) owns and acquires mineral and royalty interests in oil & natural gas properties in the Permian Basin, North America. Diamondback Energy Inc. (NASDAQ:FANG) is an independent oil & natural gas company that acquires, develops, explores, and exploits unconventional, onshore oil & natural gas reserves in the Permian Basin in West Texas. Sitio Royalties Corp. (NYSE:STR) acquires, owns, and manages mineral & royalty interests across premium basins in the US.
12. Caesars Entertainment Inc. (NASDAQ:CZR)
Number of Hedge Fund Holders: 63
Average Upside Potential as of July 7: 49.45%
Caesars Entertainment Inc. (NASDAQ:CZR) is one of the most promising stocks according to Wall Street analysts. On July 3, a coalition comprising SL Green, Caesars Entertainment, Roc Nation, and Live Nation formally submitted their official proposal for Caesars Palace Times Square/CPTS. The $5.4 billion direct investment will transform an existing office building at 1515 Broadway into a world-class hotel and gaming destination in Times Square.
The proposed development includes a 992-room, five-star hotel, diverse restaurants, a wellness retreat, world-class gaming facilities, and entertainment curated by Roc Nation. The project is expected to generate over $7 billion in direct tax and fee revenue for New York City and State, as well as $26.7 billion in local economic impact within its first 10 years of operation.
CPTS is also expected to support over 3,000 construction jobs and more than 3,800 permanent CPTS jobs directly. CPTS is designed to drive over $26 billion in new spending. Guests are expected to generate excess demand for more than 13 million meals annually at local restaurants, over 2,400 hotel rooms each night in surrounding hotels, and more than $880 million in incremental annual retail purchases.
Caesars Entertainment Inc. (NASDAQ:CZR) is a gaming and hospitality company.
11. Arcutis Biotherapeutics Inc. (NASDAQ:ARQT)
Number of Hedge Fund Holders: 41
Average Upside Potential as of July 7: 51.23%
Arcutis Biotherapeutics Inc. (NASDAQ:ARQT) is one of the most promising stocks according to Wall Street analysts. On June 26, Arcutis Biotherapeutics Inc. announced that ZORYVE (roflumilast) cream 0.15% received a strong recommendation in the American Academy of Dermatology’s/AAD’s focused guideline update for the management of adult atopic dermatitis/AD.
This recommendation highlights ZORYVE’s proven efficacy, safety, and tolerability as a next-gen and steroid-free topical phosphodiesterase-4 (PDE4) inhibitor. Among newly evaluated branded topical therapies, ZORYVE is the only one with a strong recommendation for adults with mild to moderate AD in this updated guideline. It’s the first FDA-approved branded topical PDE4 inhibitor specifically indicated for mild to moderate atopic dermatitis in patients 6 years of age and older.
Atopic dermatitis is the most common type of eczema and affects ~16.5 million adults and 9.6 million children in the US. The AAD’s strong recommendation guides clinicians and patients toward treatments that offer clinically meaningful improvements in disease severity while being safe and well-tolerated for long-term use. The update integrates newly FDA-approved topical and biologic therapies into existing guidelines.
Arcutis Biotherapeutics Inc. (NASDAQ:ARQT) is a biopharmaceutical company that develops and commercializes treatments for dermatological diseases.
10. Alibaba Group Holding Limited (NYSE:BABA)
Number of Hedge Fund Holders: 125
Average Upside Potential as of July 7: 54.88%
Alibaba Group Holding Limited (NYSE:BABA) is one of the most promising stocks according to Wall Street analysts. On July 2, Alibaba.com, which is a leading global B2B marketplace, and Wix.com Ltd. (NASDAQ:WIX) announced a partnership to empower digital entrepreneurs, new businesses, and small and medium-sized enterprises/SMEs to expand their global reach. The collaboration will facilitate seamless global trade across over 200 countries and regions.
Under the partnership, Alibaba.com Seller App’s integration with Wix Marketplace will allow Wix merchants to seamlessly become Global Gold Suppliers on Alibaba.com by simply downloading the app. Plus, Wix merchants will gain access to a curated sourcing marketplace powered by Alibaba.com. Alibaba.com sellers will also have direct access to Wix’s powerful AI platform to build their own branded D2C and B2B storefronts.
Using Wix’s full suite of intuitive AI, design, marketing, and eCommerce tools, Alibaba.com sellers can easily expand their digital presence, strengthen brand identity, and directly engage with both consumers and business buyers globally through Single Sign-On capability. The partnership rollout will occur in phases, with future enhancements anticipated.
Alibaba Group Holding Limited (NYSE:BABA) provides technology infrastructure and marketing reach to help merchants, brands, retailers, and other businesses engage with their users and customers in China and internationally. Wix.com Ltd. (NASDAQ:WIX) operates a cloud-based web development platform for registered users and creators worldwide.
9. The GEO Group Inc. (NYSE:GEO)
Number of Hedge Fund Holders: 45
Average Upside Potential as of July 7: 55.38%
The GEO Group Inc. (NYSE:GEO) is one of the most promising stocks according to Wall Street analysts. On July 1, the GEO Group announced that it has entered into a purchase agreement to acquire the 770-bed Western Region Detention Facility in San Diego, California, for $60 million. GEO currently leases this facility for ~$5.1 million annually, with the existing lease agreement set to expire on March 31, 2029.
The San Diego Facility generates ~$57 million in annualized revenues for GEO, through an exclusive contract with the US Marshals Service. The acquisition of the San Diego Facility is anticipated to close on July 31 this year. The purchase is expected to be funded as a like-kind real estate property exchange using proceeds from the previously announced sale of the GEO-owned Lawton Correctional Facility in Oklahoma. The sale of the Lawton Facility is projected to close on July 25.
Following the completion of both the Lawton Facility sale and the San Diego Facility purchase, GEO expects to have ~$222 million in net proceeds. These proceeds are intended to be used for paying off senior secured debt, which includes about $300 million in floating-rate debt.
The GEO Group Inc. (NYSE:GEO) owns, leases, operates, and manages secure facilities, processing centers, and community-based reentry facilities in the US, Australia, the UK, and South Africa.
8. Clearwater Analytics Holdings Inc. (NYSE:CWAN)
Number of Hedge Fund Holders: 41
Average Upside Potential as of July 7: 55.69%
Clearwater Analytics Holdings Inc. (NYSE:CWAN) is one of the most promising stocks according to Wall Street analysts. On July 2, Clearwater Analytics announced that Versicherungskammer Group selected Clearwater Analytics’ cloud-based platform to enhance its middle, back-office, and risk functions for investment operations.
The Versicherungskammer Group is the largest public insurer in Germany active in Bavaria, the Palatinate, Saarland, as well as in Berlin and Brandenburg. The decision to select Clearwater Analytics’ cloud-based platform follows an operating model review initiated in 2024 and a subsequent rigorous selection process.
The partnership shifts Versicherungskammer’s investment operations strategy and is central to its goal of future-proofing the company’s investment capabilities. Additionally, the partnership allows the company to now focus on enhancing data quality, supporting decision-making processes, and improving risk and performance management.
Clearwater Analytics Holdings Inc. (NYSE:CWAN) develops and provides a SaaS solution for automated investment data aggregation, reconciliation, accounting, and reporting services internationally.
7. DigitalBridge Group Inc. (NYSE:DBRG)
Number of Hedge Fund Holders: 38
Average Upside Potential as of July 7: 56.25%
DigitalBridge Group Inc. (NYSE:DBRG) is one of the most promising stocks according to Wall Street analysts. On July 1, DigitalBridge Group and La Caisse (formerly known as CDPQ) announced the completion of their acquisition of Yondr Group from Cathexis Holdings. Yondr Group is a global developer, owner, and operator of hyperscale data centers, whereas Cathexis is a private investment holding company based in Puerto Rico.
The investment strengthens the existing partnership between DigitalBridge and La Caisse in digital infrastructure to accelerate Yondr’s expansion and address the demand for hyperscale and AI-driven data center solutions. La Caisse is investing alongside DigitalBridge-managed investment vehicles and has assumed joint control of Yondr.
Yondr currently has over 420MW of committed capacity to hyperscalers and holds significant land to support a total potential capacity exceeding 1GW. This positions Yondr to capitalize on the increasing demand for advanced data processing driven by ongoing digital transformation, the expansion of cloud solutions, and the rise of AI.
DigitalBridge Group Inc. (NYSE:DBRG) is a private equity firm. La Caisse is a global investment group.
6. Zeta Global Holdings Corp. (NYSE:ZETA)
Number of Hedge Fund Holders: 40
Average Upside Potential as of July 7: 63.93%
Zeta Global Holdings Corp. (NYSE:ZETA) is one of the most promising stocks according to Wall Street analysts. On July 1, Zeta Global released its Zeta Economic Index/ZEI. The report indicates that US consumers are in a holding pattern due to mounting macro risks, particularly as the trade war pause approaches its end.
The headline Economic Index Score for June this year slipped to 68, which marked a 1.3% month-over-month decline. Despite this, the Economic Stability Index remained steady at 65.8, which suggested that households are maintaining financial stability in the middle of all the rising geopolitical uncertainty.
The ZEI is powered by Zeta’s proprietary GenAI and analyzes real-time behavioral data from over 245 million US consumers, incorporating 20+ proprietary indicators such as spending, Browse, and credit signals across key sectors. This high-frequency view offers marketers early insights into shifting consumer intent and activity, distinguishing it from lagging benchmarks or survey-based gauges.
Zeta Global Holdings Corp. (NYSE:ZETA) is an AI Marketing Cloud. It operates an omnichannel data-driven cloud platform that provides enterprises with consumer intelligence and marketing automation software globally.
5. Merus (NASDAQ:MRUS)
Number of Hedge Fund Holders: 53
Average Upside Potential as of July 7: 72.97%
Merus (NASDAQ:MRUS) is one of the most promising stocks according to Wall Street analysts. The 2025 Annual Meeting of the American Society of Clinical Oncology/ASCO, held in Chicago, the US, from May 30 to June 3, featured presentations on two highly anticipated trials for head and neck squamous cell carcinoma/HNSCC. The announcements for these presentations were made earlier in May.
Merus presented data from its Phase II study of petosemtamab, which is a bispecific monoclonal antibody targeting epidermal growth factor receptor/EGFR and Leucine-rich repeat containing G-Protein coupled receptor 5/LGR5, in combination with Merck’s Keytruda (pembrolizumab) for PDL1+ first-line (1L) HNSCC.
Bicara presented Phase I/Ib data for its ficerafusp alfa, a bispecific fusion protein targeting EGFR and transforming growth factor beta (TGF-β), also in combination with Keytruda in the same patient population. Both Merus and Bicara are progressing their assets into Phase III clinical development. However, Bicara’s ficerafusp alfa is being advanced with a narrower patient population, specifically excluding those positive for human papillomavirus/HPV.
Merus (NASDAQ:MRUS) is a clinical-stage immuno-oncology company that develops antibody therapeutics in the Netherlands.
4. Apellis Pharmaceuticals Inc. (NASDAQ:APLS)
Number of Hedge Fund Holders: 43
Average Upside Potential as of July 7: 83.38%
Apellis Pharmaceuticals Inc. (NASDAQ:APLS) is one of the most promising stocks according to Wall Street analysts. On July 1, Apellis Pharmaceuticals announced a capped royalty purchase agreement with Sobi. Under this agreement, Apellis will receive up to $300 million in exchange for 90% of its future ex-US royalties for Aspaveli (systemic pegcetacoplan).
This non-dilutive financing includes an upfront payment of $275 million in cash and up to $25 million in milestone payments contingent upon European Medicines Agency/EMA approval of Aspaveli for C3 glomerulopathy (C3G) and primary immune complex membranoproliferative glomerulonephritis (IC-MPGN). Apellis will retain exclusive commercialization rights for systemic pegcetacoplan in the US, where it is marketed as EMPAVELI.
The transaction reinforces the shared confidence between Apellis and Sobi in the growth potential of Aspaveli/EMPAVELI in rare kidney diseases. Aspaveli/EMPAVELI is currently approved in the European Union, other global countries, and the US for the treatment of paroxysmal nocturnal hemoglobinuria/PNH, which is a rare blood disorder.
Apellis Pharmaceuticals Inc. (NASDAQ:APLS) is a commercial-stage biopharmaceutical company that discovers, develops, and commercializes novel therapeutic compounds for diseases with unmet needs.
3. Revolution Medicines Inc. (NASDAQ:RVMD)
Number of Hedge Fund Holders: 61
Average Upside Potential as of July 7: 94.23%
Revolution Medicines Inc. (NASDAQ:RVMD) is one of the most promising stocks according to Wall Street analysts. On June 23, Revolution Medicines announced that the US FDA granted Breakthrough Therapy Designation to daraxonrasib (RMC-6236). This designation is for daraxonrasib, which is a RAS(-ON) multi-selective inhibitor, for the treatment of previously treated metastatic pancreatic ductal adenocarcinoma/PDAC in patients with KRAS G12 mutations.
The Breakthrough Therapy Designation was based on encouraging early clinical evidence from the Phase 1 RMC-6236-001 clinical trial, which evaluated daraxonrasib in patients with previously treated metastatic PDAC. Pancreatic cancer is a highly lethal malignancy, with PDAC accounting for ~92% of all cases.
In 2024, an estimated 60,000 people in the US will be diagnosed with pancreatic cancer, and about 50,000 will die from it. Over 90% of PDAC tumors carry a RAS cancer driver mutation, with ~85% having a KRAS G12 mutation. The 5-year survival rate for metastatic PDAC is about 3%.
Revolution Medicines Inc. (NASDAQ:RVMD) is a clinical-stage precision oncology company that develops novel targeted therapies for RAS-addicted cancers.
2. Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE)
Number of Hedge Fund Holders: 55
Average Upside Potential as of July 7: 109.50%
Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE) is one of the most promising stocks according to Wall Street analysts. On June 27, Ultragenyx Pharmaceutical announced that the US FDA granted Breakthrough Therapy Designation for GTX-102 (apazunersen) as a treatment for Angelman syndrome. The designation expedites the development and review of drugs for serious conditions when preliminary clinical evidence suggests substantial improvement over existing therapies.
The FDA’s decision is supported by positive data from a Phase 1/2 study that involved 74 patients, aged 4 to 17 years, all with a full maternal UBE3A gene deletion. Participants in this study showed consistent developmental gains with rapid, sustained, and continuous improvements across multiple symptom domains when treated for up to 3 years.
Angelman syndrome is a rare, neurogenetic disorder caused by the loss-of-function of the maternally inherited allele of the UBE3A gene. In almost all cases, the maternal UBE3A allele is either missing or mutated, leading to limited or no protein expression. This condition affects an estimated 60,000 people in commercially accessible geographies. It is a lifelong neurodevelopmental disorder characterized by cognitive impairment, motor impairment, balance issues, and debilitating seizures.
Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE) is a biopharmaceutical company that identifies, acquires, develops, and commercializes novel products for the treatment of rare and ultra-rare genetic diseases in North America, Latin America, Europe, the Middle East, Africa, and the Asia-Pacific.
1. Syndax Pharmaceuticals Inc. (NASDAQ:SNDX)
Number of Hedge Fund Holders: 51
Average Upside Potential as of July 7: 329.73%
Syndax Pharmaceuticals Inc. (NASDAQ:SNDX) is one of the most promising stocks according to Wall Street analysts. On June 24, Syndax announced that the US FDA granted Priority Review for its supplemental New Drug Application (sNDA) for Revuforj (revumenib). The sNDA seeks approval for the treatment of relapsed or refractory (R/R) mutant NPM1 (mNPM1) acute myeloid leukemia/AML.
The FDA is reviewing the sNDA under its Real-Time Oncology Review/RTOR program, which facilitates an efficient review process with close engagement between the sponsor and the FDA. The Prescription Drug User Fee Act/PDUFA target action date for this sNDA is set for October 25 this year. Revuforj is an oral, first-in-class menin inhibitor that received initial FDA approval in 2024 for the treatment of R/R acute leukemia with a KMT2A translocation in adult and pediatric patients aged one year and older.
If approved, this sNDA would expand Revuforj’s indication to include patients with R/R AML who have an NPM1 mutation. Mutations in the NPM1 gene are the most common genetic alteration observed in adults with AML, occurring in ~30% of cases. These mutations are crucial in the development of mNPM1 AML, which is an aggressive blood cancer. Currently, there are no approved therapies that specifically target the underlying disease mechanisms driving mNPM1 AM.
Syndax Pharmaceuticals Inc. (NASDAQ:SNDX) is a commercial-stage biopharmaceutical company that develops therapies for the treatment of cancer.
While we acknowledge the potential of SNDX 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 SNDX and that has 100x upside potential, check out our report about this cheapest AI stock.
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