On January 21, Lynn Martin, the President of the NYSE, joined the Davos 2026 coverage to discuss a robust outlook for global capital markets and describe 2026 as a potential super cycle for IPO activity. She noted a massive pipeline of companies at the one-yard line ready to go public. Martin expects this momentum to accelerate in the latter half of the first quarter and into the second quarter of the year. Regarding high-profile mega IPOs like OpenAI, Anthropic, and SpaceX, she suggested these firms may be more selective and measured due to their significant capital needs, although they remain a potential part of the 2026 story. Furthermore, she clarified that the IPO pipeline is diversified across multiple sectors; while every company is now using AI for revenue generation and efficiency, non-AI companies are also tapping the market.
On January 13, James Demmert, CIO of Main Street Research, appeared on CNBC to suggest that 2026 could be groundbreaking for IPOs and M&A. Demmert noted a robust pipeline of companies waiting to go public after being delayed by a recent government shutdown. He believes that 2026 will be a groundbreaking year for IPOs and M&A activity due to pent-up demand. He advised investors to favor banks with high-tier talent in these areas, specifically JPMorgan and Morgan Stanley. While traditional, consumer-focused banks are expected to beat expectations, Demmert argued that they will only do so by a narrow margin. He suggested that investors looking for the juice of earnings power should lean into investment banks, which are better positioned for high performance.
That being said, we’re here with a list of the 7 most profitable new stocks to buy right now.
Our Methodology
We sifted through the Finviz stock screener to compile a list of new stocks that went public in the last 5 years. Then, we narrowed our list to profitable stocks that had a TTM net income of over $1 billion and a TTM profit margin of over 15%. From that, we selected 7 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q3 2025.
Note: All data was sourced on February 6.
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 Most Profitable New Stocks to Buy Right Now
7. Venture Global Inc. (NYSE:VG)
Number of Hedge Fund Holders: 27
Venture Global Inc. (NYSE:VG) is one of the most profitable new stocks to buy right now. On February 2, Raymond James initiated coverage of Venture Global with an Outperform rating and an $11 price target. This decision was made as the firm highlighted the company’s position as a fast-growing US LNG provider.
The firm noted that Venture Global’s innovative, scalable development model allows for faster project delivery compared to industry standards. While acknowledging near-term macro and arbitration risks, the analyst suggests these concerns are largely priced in, with expanding contracts and long-term global gas demand supporting a resilient growth outlook.
On January 28, RBC Capital analyst Elvira Scotto lowered the price target for Venture Global Inc. (NYSE:VG) to $11 from $13 with an Outperform rating as part of a Q4 2025 preview for US Midstream. The adjustment was driven by commodity prices and production curtailments, though the firm remains positive on the natural gas growth story despite recent underperformance due to AI bubble concerns. RBC expects natural gas growth to be a significant theme throughout the upcoming earnings season.
Venture Global Inc. (NYSE:VG) develops, constructs, and produces natural gas liquefaction and export projects near the US Gulf Coast in Louisiana. It is involved in natural gas transport, shipping, and regasification, as well as sells LNG.
6. Joint Stock Company Kaspi.kz (NASDAQ:KSPI)
Number of Hedge Fund Holders: 40
Joint Stock Company Kaspi.kz (NASDAQ:KSPI) is one of the most profitable new stocks to buy right now. On February 2, Susquehanna downgraded Kaspi.kz from Positive to Neutral, while reducing its price target from $130 to $87.
Earlier on December 4, JPMorgan analyst Reginald Smith maintained a Hold rating on Kaspi.kz while cutting the price target from $96 to $88. This adjustment reflected the firm’s 2026 fintech outlook, which anticipates slower sector growth driven by a softening labor market and the impact of tariffs. Although these macroeconomic factors present headwinds, Smith noted that the projected deceleration is expected to be partially mitigated by federal tax rate cuts in 2026.
In Q3 2025, Joint Stock Company Kaspi.kz (NASDAQ:KSPI) reported a 10% increase in overall revenue and a 12% rise in net income, supported by strong performance in its Fintech and Payments segments. Fintech revenue grew by 24%, while Payments saw an 18% increase in Total Payment Volume. The company also highlighted significant momentum in its E-grocery business, which saw a 53% surge in GMV, and its advertising sector, which grew 56% year-over-year.
Joint Stock Company Kaspi.kz (NASDAQ:KSPI), together with its subsidiaries, provides payments, marketplace, and fintech solutions for consumers and merchants in Kazakhstan, Azerbaijan, and Ukraine. It operates in three segments: Payments, Marketplace, and Fintech.
5. Solventum Corporation (NYSE:SOLV)
Number of Hedge Fund Holders: 42
Solventum Corporation (NYSE:SOLV) is one of the most profitable new stocks to buy right now. On January 20, Mizuho upgraded Solventum from Neutral to Outperform, raising its price target to $100 from $85. The firm’s decision is supported by its annual dental industry survey, which revealed a more optimistic outlook for consumables and patient volumes compared to previous years. Additionally, the upgrade reflects higher valuation estimates following Solventum’s acquisition of Acera.
On January 7, Stifel raised its price target for Solventum to $105 from $88 and maintained a Buy rating. The firm believes that the outlook for large-cap MedTech in 2026 is favorable following the pressures faced in 2025.
On December 23, Solventum Corporation (NYSE:SOLV) finalized its acquisition of Acera Surgical, which is a bioscience company that specializes in synthetic tissue matrices for regenerative wound care, for an upfront cash payment of $725 million. The deal, which includes up to $125 million in additional milestone-based payments, is designed to enhance Solventum’s MedSurg portfolio in US acute care settings. While the transaction is expected to be slightly dilutive to adjusted EPS in 2026, it is projected to become accretive starting in 2027.
Solventum Corporation (NYSE:SOLV) is a healthcare company that develops, manufactures, and commercializes a portfolio of solutions to address critical customer and patient needs in the US and internationally. It has three segments: Medsurg, Dental Solutions, and Health Information Systems.
4. Coinbase Global Inc. (NASDAQ:COIN)
Number of Hedge Fund Holders: 73
Coinbase Global Inc. (NASDAQ:COIN) is one of the most profitable new stocks to buy right now. On February 5, ahead of Coinbase’s Q4 2025 earnings report, BTIG lowered its price target for the stock to $340 from $420 while keeping a Buy rating. The firm noted that Coinbase shares plummeted 49% since the Q3 report, outpacing the broader crypto market’s 32% decline, primarily due to expectations of weakened transaction volumes in Q4.
Despite the selloff, BTIG views the current share price as an attractive entry point, highlighting the company’s progress in building a flywheel between its trading business and digital asset applications. The firm anticipates the upcoming earnings report will demonstrate successful revenue diversification away from volatile transaction fees.
On January 23, Compass Point maintained a Sell rating on Coinbase Global Inc. (NASDAQ:COIN) while lowering its price target to $190 from $230. The firm anticipates a 4% revenue miss for Q4 2025 across both trading and subscription segments, alongside concerns regarding a potential decline in stablecoin revenue by early 2026. This outlook is compounded by stalled legislative progress on the CLARITY Act and a valuation ~30x the estimated 2026 EBITDA, which is higher than the 15x to 20x multiples seen during previous market downturns.
Coinbase Global Inc. (NASDAQ:COIN) operates a platform for crypto assets in the US and internationally. It offers the primary financial account in the crypto economy, a brokerage platform, and a suite of products granting access to build on-chain.
3. Robinhood Markets Inc. (NASDAQ:HOOD)
Number of Hedge Fund Holders: 77
Robinhood Markets Inc. (NASDAQ:HOOD) is one of the most profitable new stocks to buy right now. On February 6, Truist lowered its price target for Robinhood from $155 to $130 and maintained a Buy rating. The adjustment was made as the stock experienced significant pressure alongside falling cryptocurrency prices; however, the firm believes the market reaction is excessive.
The firm pointed out that crypto accounts for only 19% of consensus revenue and 12% of growth, suggesting that Robinhood’s limited exposure allows it to maintain strong revenue and EPS growth even in a weakened crypto environment.
Earlier on January 8, Barclays maintained an Overweight rating on Robinhood Markets Inc. (NASDAQ:HOOD) while lowering the price target to $159 from $171. This adjustment was made as part of the firm’s broader target revision for brokers, asset managers, and exchanges ahead of Q4 2025 reporting. Despite the price target reduction, Barclays noted positive trends in the sector, including a sequential increase in volatility and higher sequential trading volumes across stocks, options, and futures.
Robinhood Markets Inc. (NASDAQ:HOOD) operates a financial services platform in the US. Its platform allows users to invest in stocks, ETFs, American depository receipts, options, gold, and cryptocurrencies.
2. Nu Holdings Ltd. (NYSE:NU)
Number of Hedge Fund Holders: 99
Nu Holdings Ltd. (NYSE:NU) is one of the most profitable new stocks to buy right now. As of February 6, Wall Street maintains a consensus Buy rating on Nu Holdings and analysts’ median price target implies a 15.91% upside from current levels.
On January 27, Susquehanna upgraded its price target for Nu Holdings Ltd. (NYSE:NU) to $22 from $19 with a Positive rating. The firm projects a strong 2026 as the company enters a global expansion phase, aiming to replicate its successful growth model from Latin America in the US market. This optimism is reinforced by the company’s stable delinquency rates and robust unit economics, alongside recent regulatory progress.
Earlier on December 18, Goldman Sachs reaffirmed its Buy rating on Nu Holdings with a $21 price target, designating the digital bank as one of its best ideas for the coming year. The firm highlighted the company’s growth prospects and noted that analyst consensus forecasts have already climbed 8% following the Q3 2025 financial results.
In Q3, Nu Holdings added 4.3 million customers, bringing its total base to 127 million, which was a 16% increase compared to the previous year. This highlighted the company’s expanding influence within the Latin American financial sector, particularly in Brazil, Mexico, and Colombia.
Nu Holdings Ltd. (NYSE:NU) provides a digital banking platform in Brazil, Mexico, Colombia, the Cayman Islands, and the US. It offers spending, transactional, savings & investing, borrowing, and protection solutions.
1. AppLovin Corporation (NASDAQ:APP)
Number of Hedge Fund Holders: 110
AppLovin Corporation (NASDAQ:APP) is one of the most profitable new stocks to buy right now. On February 5, Wedbush analyst Michael Pachter lowered the firm’s price target on AppLovin from $800 to $465, while keeping an Outperform rating. This valuation reset accounts for softer industry sentiment, regulatory headwinds, and recent competitor data in the e-commerce sector.
Despite these near-term pressures, Wedbush remains confident in AppLovin’s dominant position in mobile gaming advertising and believes its strategic expansion into e-commerce and Connected TV will provide long-term protection against competitive threats.
On January 26, Needham upgraded AppLovin to Buy from Hold with a $700 price target, citing increased confidence in the company’s 2026 e-commerce revenue trajectory. The firm raised its 2026 e-commerce sales estimates to $1.45 billion from $1.05 billion, projecting that growth from the self-service platform launch and increased advertiser spending will more than offset typical first-quarter seasonality. This upgrade also capitalizes on a recent stock pullback from its monthly highs, with Needham noting a bullish case where AppLovin’s revenue could follow a growth path similar to TikTok.
AppLovin Corporation (NASDAQ:APP) builds a software-based platform for advertisers to enhance the marketing and monetization of their content in the US and internationally. It operates through two segments: Advertising and Apps
While we acknowledge the potential of APP 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 APP and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.
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