5 Best Upside Stocks to Buy According to Hedge Funds

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1. Cogent Biosciences Inc. (NASDAQ:COGT)

Average Upside Potential: 53.74%

Number of Hedge Fund Holders: 77

Cogent Biosciences Inc. (NASDAQ:COGT) is one of the best upside stocks to buy according to hedge funds. On June 12, Cogent Biosciences presented promising preclinical data at the 2026 EHA Congress for its novel inhibitor, CGT1145, which targets the JAK2 V617F mutation. This candidate is designed to be a best-in-class therapy, showing over 100-fold selectivity for the mutant protein compared to wild-type JAK2 and other isoforms. These properties suggest a potential to treat myeloproliferative neoplasms/MPNs more effectively while reducing the off-target side effects often seen with currently approved treatments.

The data indicates that CGT1145 exhibits high oral bioavailability and could potentially induce molecular remission by eradicating disease-propagating cells. By addressing the primary mutational driver of these conditions with improved hematological tolerability, the program aims to offer a significant advancement over existing JAK inhibitors.

Cogent Biosciences Inc. (NASDAQ:COGT) is currently advancing the development of this program and remains on schedule to submit an Investigational New Drug (IND) application later in 2026. This progress underscores the company’s commitment to developing precision therapies for patients with genetically defined diseases, particularly in the MPN space where JAK2 V617F remains a prevalent and critical target.

Cogent Biosciences Inc. (NASDAQ:COGT) is a biotechnology company that develops precision therapies for genetically defined diseases.

While we acknowledge the potential of COGT 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 COGT and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 12 Best NASDAQ Stocks with High Upside Potential and 10 Best New Stocks to Buy With Huge Upside Potential.

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