In this article, we will take a look at the top 7 hidden multibagger stocks to invest in.
Multibaggers often take the limelight because of their stellar returns, but it isn’t always easy to catch these multibaggers while they are in the process of generating these returns. The market usually discovers them late, which is why we continuously look for hidden multibagger stocks to invest in.
One way to identify such stocks is to look for those quietly strengthening their finances and gaining customers or market share. Quite often, the stock price slowly creeps up as investors start betting on the company’s growth. This is why multibaggers aren’t just beaten-down stocks that will generate incredible returns when the tide turns. They’re usually the ones who are improving themselves, quarter by quarter. This is an important part of how we identify these stocks.
In the current market, it is clear that artificial intelligence is driving most of the market gains. Yet AI isn’t the only play right now, and multibaggers can be found in non-AI stocks too. Goldman Sachs, in its 2026 outlook, noted that reducing uncertainty around tariffs could boost economic security, aided by interest rate cuts. The firm stated:
“After a year dominated by tariff headlines, we expect the theme of economic security will be prominent in 2026, catalyzing large-scale capital deployment into defense, energy, and infrastructure across developed markets.”
When betting on stocks that have already delivered decent gains, a question investors often ask is whether they are investing at the peak. The S&P 500 index is set to register the third straight year of positive performance after a disappointing 2022. Morgan Stanley recently highlighted how the continued adoption of AI could lead to another productivity boom, similar to the one in the late 90s, when, after two positive years in 1995 and 1996, the market continued its upward momentum over the next 3 years as well. Such views support a constructive outlook for the coming months and strengthen the case for staying invested in the fundamentally strong, well-performing stocks that still offer substantial upside.
With that background, let’s explore our selection of 7 hidden multibagger stocks to invest in.
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Our Methodology
To compile our list of 7 hidden multibagger stocks to invest in, we first looked at stocks that had returned at least 75% over the last year with a market capitalization of at least $1 billion. We then shortlisted stocks from this list with at least 30% potential upside. We then ranked the top 7 stocks in ascending order of their potential upside. We also included data on hedge fund holdings in these stocks as of Q3 2025 using 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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
7 Hidden Multibagger Stocks to Invest In
7. Praxis Precision Medicines, Inc. (NASDAQ:PRAX)
Price Return over 1-Year: 264%
Potential Upside: 33%
Number of Hedge Fund Holders: 33
Praxis Precision Medicines Inc. (NASDAQ:PRAX) reported positive results from the registrational cohort of the EMBOLD study on December 4. This study is designed to examine relutrigine in patients diagnosed with SCN8A and SCN2A developmental and epileptic encephalopathies (DEEs). The trial was stopped earlier on the recommendation of the Data Monitoring Committee for efficacy.
President and Chief Executive Officer of PRAX, Marcio Souza, highlighted the importance of the positive outcome of the study by saying:
“SCN2A and SCN8A DEEs are devastating conditions with extremely high mortality due to the debilitating seizure burden they impose on patients, and there are currently no approved treatment options. Our progress represents an important milestone towards delivering the first therapy ever designed for these children and their families. We look forward to sharing the results at the American Epilepsy Society Annual Meeting.”
A meeting with the FDA has been scheduled to discuss next steps in the coming weeks. During the meeting, the data will also be reviewed.
On December 3, PRAX received a Buy rating from BTIG analyst Thomas Shrader. He assigned a target price of $424 to the stock.
Praxis Precision Medicines, Inc. develops therapies for central nervous system disorders. It operates as a clinical-stage biopharmaceutical company and has a license agreement with RogCon. The company also has a license agreement and research collaboration with Ionis Pharmaceuticals.
6. Solaris Resources Inc. (NYSEAMERICAN:SLSR)
Price Return over 1-Year: 139%
Potential Upside: 43.36%
Number of Hedge Fund Holders: 10
On Dec. 2, Maxim Group analyst Tate Sullivan reiterated his Hold rating on the stock. The rating comes after the stock has risen by 20% over the last month. This performance was aided by two back-to-back positive analyst ratings for the stock on November 7.
H.C. Wainwright first raised its price target to $13.5 from $13 on November 7. This announcement came after the company released pre-feasibility study results for its Warintza project. The flagship project is expected to produce 4.5 million tonnes of Copper Equivalent through its 22-year mine life. The exact breakdown of the estimates includes 3.4 million tonnes of Copper, 26.6 million ounces of Silver, and 1.1 million ounces of Gold.
On the same day as the above rating, BMO Capital also maintained its Buy rating on the stock.
As of December 5, Solaris Resources Inc. (NYSE:SLSR) enjoys highly positive analyst opinions with more than 85% of analysts covering it assigning a Buy or equivalent rating. With a consensus 1-year median price target of $11.04, the stock still reflects around 43% potential upside.
Solaris Resources Inc. (NYSE:SLSR) is a Canadian mineral exploration firm that is focused on commodities like copper, zinc, lead, silver, and gold. In addition to exploration, they also acquire and develop other mineral properties.
5. Ouster Inc. (NASDAQ:OUST)
Price Return over 1-Year: 138.5%
Potential Upside: 55.37%
Number of Hedge Fund Holders: 32
On December 4, Oppenheimer assigned a $39 price target to OUST and reiterated its outperform rating. The research house is impressed by the company’s strong client base, spanning over 1000 clients. According to them, this provides visibility into the company’s product pipeline, helping assess the impact of its R&D spending.
The firm is confident of 30-50% growth in 2026 on the back of existing products and its customer base. Moreover, the company’s sensor fusion capabilities add to the bullish prospects, as they are a major contributor to customer retention according to Oppenheimer.
Despite the stock losing a significant chunk of its value over the last two months, analysts remained upbeat about the company’s prospects throughout November. On Nov. 6, Cantor Fitzgerald upgraded the stock to Overweight, and on Nov. 24, Northland Securities reiterated its Buy rating.
Ouster, Inc. provides lidar sensors for the industrial, automotive, robotics, and smart infrastructure industries. The company offers a wide range of products, including analog lidar sensors, software solutions, and high-resolution scanning and solid-state digital lidar sensors. It also provides Ouster Sensor, surround-view lidar sensors, and Digital Flash.
4. Xeris Biopharma Holdings, Inc. (NASDAQ:XERS)
Price Return over 1-Year: 75%
Potential Upside: 61.3%
Number of Hedge Fund Holders: 30
On Dec. 1, 2025, XERS announced progress on one of its pipeline products. The United States Patent and Trademark Office (USPTO) issued a Notice of Allowance for Xeris Pharmaceuticals, a subsidiary of Xeris Biopharma Holdings. The Notice pertains to the XP-8121 formulation, a once-a-week subcutaneous injection that utilizes Xeris’ proprietary XeriSol platform.
The company has pointed out that existing oral levothyroxine shows variable absorption in the gastrointestinal tract. XP-8121 solves this problem through the injection, making it viable. The CEO of the company, John Shannon, not only highlighted the achievement of this critical milestone but also praised the company’s XeriSol platform:
“We believe XP-8121 has tremendous potential to solve an unmet medical need for hypothyroidism, and this patent represents a key milestone in strengthening our intellectual property protection around this important pipeline program. It further demonstrates the ability of our XeriSol® platform to enable the development of difficult-to-formulate drugs into subcutaneous injections.”
Xeris continues to pursue additional IP protection for levothyroxine (LT4) alongside the above developments.
Xeris Biopharma Holdings Inc. (NASDAQ:XERS) is a fast-growing biopharmaceutical company with three commercially available medications. Recorlev treats endogenous Cushing’s syndrome, Gvoke helps treat severe hypoglycemia, while Keveyis is a therapy for primary periodic paralysis.
3. Applied Digital Corporation (NASDAQ:APLD)
Price Return over 1-Year: 192.6%
Potential Upside: 62.36%
Number of Hedge Fund Holders: 38
On Dec. 2, APLD announced that it was an investor in Corintis’s $25 million funding round. Corintis is a Switzerland-based company that develops advanced cooling systems for regulating the temperature of chips used in data centers, for instance. With APLD at the forefront of data center infrastructure, access to such technology could give it an edge over competitors.
The CEO of APLD, Wes Cummins, echoed a similar sentiment on the occasion. He stated:
“As a category leader in high-performance AI Factories, Applied Digital is further accelerating its leadership position through strategic investments in technologies that will set the industry’s pace and define the future.”
The company’s management remains bullish on AI. The most significant driver of this bullish sentiment is the expected investment by hyperscalers, which could exceed $250 billion in 2025, according to APLD’s October 2025 investor presentation. The global data center demand, which stood at 55GW two years ago, is expected to go beyond 219GW by 2030.
APLD has taken several initiatives to address this demand. One of these is the Polaris Forge 1 campus in North Dakota. The first building has already come online, with the remaining two buildings scheduled for delivery in the second half of 2026 and 2027, respectively.
Applied Digital builds and operates data centers for AI, blockchain, and cloud-related workloads. The company is headquartered in Dallas, Texas, and was awarded the ‘Best Data Center in the Americas 2025’ award by Datacloud.
2. IREN Limited (NASDAQ:IREN)
Price Return over 1-Year: 190.5%
Potential Upside: 91.23%
Number of Hedge Fund Holders: 52
IREN’s downtrend continued this week, as on December 2, it announced $3.6 billion in fresh funding. Of this, $2 billion came from newly issued convertible notes, while the remaining came from the sale of common stock. As a result, shares fell 15%. Over the last month, the stock has lost more than half of its value.
Jim Cramer took to the social media platform X to announce his bearish stance on the company, asking investors to stay away from companies that are announcing fresh financing. However, on Morgan Brennan’s CNBC show ‘Closing Bell Overtime’, Dan Roberts, the Co-CEO of the company, talked about how the company was struggling to meet demand ‘fast enough’. This was at a time when the stock was approaching its all-time high.
During this bullish phase, the company’s fundamentals were also improving. The first fiscal quarter saw the company almost double its cash and cash equivalents to $1 billion. The $9.7 billion AI contract with Microsoft also helped support the optimistic view. These fundamentals remain intact, supporting the multibagger case for this stock.
IREN Limited (NASDAQ:IREN) is an Australian company that specializes in data centers for AI and bitcoin mining, among other things. It is committed to using 100% renewable energy to power its data center and is headquartered in Sydney, Australia.
1. UniQURE (NASDAQ:QURE)
Price Return over 1-Year: 186%
Potential Upside: 117.16%
Number of Hedge Fund Holders: 59
The company received final meeting notes from the FDA on December 4 regarding its pre-Biologics License Application (BLA) for AMT-130. uniQure is developing AMT-130, a gene therapy for the treatment of Huntington’s disease. Based on the FDA’s final notes, the data from the phase I/II studies of AMT-130 are unlikely to be accepted as the key evidence required for a BLA submission.
As a result of this feedback, the stock fell sharply. The company said that it is analyzing the feedback and planning to request another meeting with the FDA. QURE intends to hold a follow-up meeting in the first quarter of 2026.
Soon after the FDA’s remarks, a positive development came in the form of an analyst upgrade. On December 5, QURE received a Buy rating from a Stifel Nicolaus analyst, Paul Matteis. He assigned the stock a price target of $50.
Concerns remain about the stock, as evident in Leerink Partners’ report before the rating mentioned above. On November 10, the research house issued a report, lowering its earnings estimates. As per the report, Analyst J. Schwartz now anticipates EPS of -$3.97 for FY2025, which is meaningfully below the previous forecast of -$1.71.
In addition to FY2025 EPS estimates, analysts also lowered their earnings expectations for the next few quarters. They now expect the firm to report -$1.05 per share, -$1.12 per share, -$1.18 per share, and -$1.07 per share in Q4 2025, Q1 2026, Q2 2026, and Q3 2026, respectively. For the full year 2027, the company’s estimated EPS is -$1.37. This downward revision in earnings estimates came after UniQURE posted a loss of $1.38 per share in its latest quarter, released on November 10.
uniQure N.V. (NASDAQ:QURE) is a US-based biotechnology firm developing treatments for patients affected by rare and serious diseases. The company’s HEMGENIX treatment helps people with hemophilia B to produce factor IX, lowering their risk of bleeding. It is also developing AMT-260, AMT-130, AMT-162, and AMT-191. QURE is based in Amsterdam, the Netherlands.
While we acknowledge the potential of QURE 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 QURE and that has 100x upside potential, check out our report about this cheapest AI stock.
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