In this article, we will discuss the 9 Best Upside Stocks to Buy According to Analysts.

On April 16, Fundstrat’s Tom Lee joins ‘Closing Bell’ to discuss what to expect from equity markets going forward. Lee argued that the stock market is currently in a superior position compared to earlier in the year when it reached its all-time high. He supported this by noting that the US market has proven resilient against surging oil prices that have negatively impacted other nations. Furthermore, he observed that rising earnings suggest the ongoing war is actually acting as an economic stimulant. Lee also pointed out that historical data on oil spikes indicates a smaller-than-expected impact on core inflation, leading him to believe the coming inflation shock will be less severe. Consequently, he maintained a base case for the market to reach 7,300 before any significant drawdown occurs.

Lee agreed with the characterization of the US as the ‘best house in a now more uncertain neighborhood,’ identifying the current situation as the seventh black swan event for investors since 2020. He emphasized that the US economy remains functional even as a Middle East catastrophe has resulted in closed straits and unavailable oil, conditions that are forcing shutdowns and factory closures in other countries. While acknowledging the existence of downside tail risks, Lee asserted that the size of these risks has shrunk. He also mentioned the possibility of positive tail risk, noting that a lasting ceasefire would render any economic shocks too brief to damage his primary base case.

Additionally, Lee confirmed that tech is expected to deliver the best earnings growth, while current valuations have become more attractive due to recent price declines. He described these companies as having true moats and a history of growing earnings faster than the S&P 500. He views these firms as primary winners in the AI sector. Lee suggests that buying these companies at a market multiple now will likely result in future investors being surprised by how cheaply they were available.

Our Methodology

We used screeners to identify stocks with an average upside potential of at least 50%, and limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.

Note: All data was sourced on April 21. 

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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).

9 Best Upside Stocks to Buy According to Analysts

9. Klaviyo Inc. (NYSE:KVYO)

Average Upside Potential: 52.63%

Klaviyo Inc. (NYSE:KVYO) is one of the best upside stocks to buy according to analysts. On April 16, Klaviyo and Canva announced an expanded integration designed to streamline the creative process for marketers. This deepened partnership allows users to design full campaign layouts within Canva and import them directly into Klaviyo’s autonomous B2C CRM. By connecting design assets with customer data, the integration helps brands move from initial concept to campaign execution more efficiently.

The update builds on a successful two-year partnership, with the Canva integration currently among the fastest-growing in Klaviyo’s ecosystem. More than 20% of Klaviyo’s customer base already uses the connection between the two platforms. The new capabilities focus on eliminating the need to rebuild assets from scratch, allowing teams to refine and personalize visual content using Klaviyo’s segmentation and automation tools.

By bridging the gap between creative and marketing workflows, the collaboration helps teams maintain brand consistency while delivering personalized customer experiences. Klaviyo Inc. (NYSE:KVYO) will also see increased visibility within the Canva interface to encourage easier discovery and design exports.

Klaviyo Inc. (NYSE:KVYO) delivers an AI-first SaaS platform for B2C clients that supports customer relationship management. The platform enables data storage, campaigns, marketing automation, and analytics. It also enables customer service integration and omnichannel marketing tools, such as email, SMS, and WhatsApp campaigns.

8. Churchill Downs Incorporated (NASDAQ:CHDN)

Average Upside Potential: 53.02%

Churchill Downs Incorporated (NASDAQ:CHDN) is one of the best upside stocks to buy according to analysts. On April 21, Churchill Downs, or simply CDI, entered into a definitive agreement to acquire the intellectual property rights for the Preakness Stakes and the Black-Eyed Susan Stakes from 1/ST Maryland LLC. The purchase price is set at $85 million and includes all trademarks and associated rights. This transaction is expected to close following the running of the 2026 Preakness Stakes, with funding provided by CDI’s cash on hand and existing credit facilities.

Following the acquisition, Churchill Downs Incorporated (NASDAQ:CHDN) will enter into an exclusive license agreement with the State of Maryland. This arrangement allows the state to continue conducting these historic races in exchange for an annual fee paid to CDI. The Preakness Stakes, established in 1873, serves as the second leg of the Triple Crown, while the Black-Eyed Susan remains a premier event for three-year-old fillies held annually at Pimlico Race Course.

The move aligns with CDI’s broader strategy to invest in elite Thoroughbred racing assets with high growth potential. CEO Bill Carstanjen emphasized that keeping the brand ownership within the racing industry supports the ongoing redevelopment of Pimlico. The company aims to maximize the commercial and entertainment value of these iconic sports brands within the Triple Crown framework and the wider sports landscape.

Churchill Downs Incorporated (NASDAQ:CHDN) is a racing, online wagering, and gaming entertainment company. It is anchored by its flagship event, the Kentucky Derby. The company operates through three segments: Live and Historical Racing, Wagering Services and Solutions, and Gaming.