On October 7, Drew Pettit, Citi research director of US equity strategy, and Keith Lerner, Truist Wealth Co-CIO, appeared on CNBC’s ‘Closing Bell Overtime’ together. Keith Lerner stated that his firm has been overweight tech and communications for most of the year and remains so. He acknowledged that there may be some similarities to the late 90s, but pointed out several quantifiable differences. First, the overall tech sector is currently trading at a risky valuation of around 30x, which is lower than the 50x seen in the late 90s. Second, heading into the March 2000 peak, the market was up over 100% on a year-over-year basis, compared to the tech sector’s current year-over-year increase of about 28%. Third, he noted that earners’ momentum today is stronger than it was back then.
Lerner concluded that while the current infrastructure and spending suggest a potential move toward 90s dynamics, fundamentally and technically, we’re not there yet, and the bull market has longer to go. The host then asked Pettit also agreed with Lerner that the NASDAQ has strong earnings momentum and that his team is raising its infrastructure investment estimates for AI. However, to hedge that risk, he recommends pairing tech with some cyclical beta. Pettit stated that his firm would have exposure beyond just tech, but still maintains a bias toward tech and growth because he believes the market remains an AI-dominant bull market and that trend ultimately continues.
Although, on October 1, Dan Primack, business editor at Axios, appeared on CNBC’s ‘The Exchange’ to discuss how the government shutdown impacts IPOs. Primack suggested that the impending government shutdown would cause companies to put their plans on hold, leading to the floodgates opening again once the shutdown ends. He noted that about a dozen companies are currently on file to go public.
That being said, we’re here with a list of the 9 best performing new tech stocks to invest in.
Our Methodology
We sifted through the Finviz stock screener to compile a list of companies that went public in the last 3 years (including spinoffs) and had a high 6-month performance of over 30%. We then narrowed down our selection to 9 stocks with the most hedge fund ownership. The stocks are ranked in ascending order of their year-to-date performance. We’ve also added the hedge fund sentiment for each stock, as of Q2 2025.
Note: All data was sourced on October 7.
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).
9 Best Performing New Tech Stocks to Invest In
9. SailPoint Inc. (NASDAQ:SAIL)
Number of Hedge Fund Holders: 27
6-Month Performance as of October 7: 33.25%
SailPoint Inc. (NASDAQ:SAIL) is one of the best performing new tech stocks to invest in. On September 30, SailPoint announced a series of new enhancements to its SailPoint Identity Security Cloud platform, which is designed to extend visibility, control, and scale across all enterprise identities. The new capabilities focus on cloud identity security, non-employee risk management, machine identity security, and connectivity updates.
A core focus of the enhancement is to govern not just human identities (both employees and non-employees), but also the growing number of machine and agent identities, which often pose security gaps due to being undiscovered or under-governed by legacy tools. The SailPoint Identity Security Cloud is built to cover every identity type and combines precise lifecycle controls with intelligent automation to provide adaptive identity security.
For instance, SailPoint Non-Employee Risk Management is strengthened so that the extended workforce is governed with the same accuracy as employees. A new integration with Microsoft Entra Verified ID allows for using third-party verifiable credentials and biometric verification for faster onboarding for non-employees. For the rapidly multiplying number of machine identities, SailPoint Machine Identity Security is designed for enterprise scale, delivering clear discovery, classification, and ownership.
SailPoint Inc. (NASDAQ:SAIL) delivers solutions to enable identity security for the enterprise in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific.
8. Oddity Tech Ltd. (NASDAQ:ODD)
Number of Hedge Fund Holders: 36
6-Month Performance as of October 7: 52.23%
Oddity Tech Ltd. (NASDAQ:ODD) is one of the best performing new tech stocks to invest in. On October 8, KeyBanc lowered the firm’s price target on Oddity to $80 from $90, while keeping an Overweight rating on the shares. This sentiment came ahead of the company’s Q3 2025 earnings report, as KeyBanc believes that the setup is mixed across the Healthcare Information Technology landscape.
Earlier in Q2, Oddity Tech generated a net revenue of $241 million, which marked a 25% year-over-year increase from $193 million in Q2 2024. Gross profit also rose by 25% to $174 million, which resulted in a gross margin of 72.3%, up by 0.01%. Net income for the quarter was $49 million, and adjusted net income was $57 million, which was a 12% rise.
Due to the momentum and high-visibility backlog of repeat orders, Oddity raised its financial outlook for the full year ending December 31, 2025. Net revenue is now projected to be between $799-$804 million, which implies a 23% to 24% annual growth. This is higher than the prior forecast of $790 to $798 million. Oddity’s growth is driven by double-digit online revenue growth in both Il Makiage and SpoiledChild, as well as the accelerating international expansion.
Oddity Tech Ltd. (NASDAQ:ODD) is a consumer tech company that builds digital-first brands for the beauty and wellness industries in the US and internationally.
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