In this article, we examine Point72 Asset Management’s top 10 Mid-Cap stocks with the highest upside potential.
Steven Cohen has established himself as a leading figure in the hedge fund industry. His career began with the founding of S.A.C. Capital Advisors in 1992. In 2014, he transitioned his investments to Point72 Asset Management, where he serves as Chairman and CEO. Point72 leverages Cohen’s expertise in active trading while integrating cutting-edge advancements in technology, data analytics, and artificial intelligence, positioning itself at the forefront of modern finance. The firm employs a discretionary investment approach across multiple strategies, including long/short equities, global macroeconomic investing, systematic trading, and venture capital & growth equity. As of January 1, 2025, Point72 manages approximately $36.9 billion in assets and has a workforce of 2,800 employees worldwide. The firm has a good performance history, with the fund’s top 50 stocks boasting a three-year annualized return of 14.47%.
The U.S. economy plays a pivotal role in shaping the stock market and hedge fund performance, with macroeconomic trends influencing investor sentiment, capital flows, and risk management strategies. The current economic uncertainty facing the US economy continues to worry investors. Last week, according to the National Bureau of Economic Research, the US economy’s GDP for the first quarter of 2025 contracted by 0.3%, a sharp contrast to the previous quarter’s 2.4% growth. While a recession is officially confirmed only after consecutive quarters of negative GDP growth, many market analysts caution that the economy is on the brink of one.
Economic data released over the past few days provided some clarity to investors. Investor sentiment was boosted by Friday’s employment data, which showed the U.S. unemployment rate holding steady at 4.2%, suggesting that the labour market remains resilient despite growing macroeconomic headwinds. This week, the Federal Open Market Committee voted unanimously to maintain the Fed rate between 4.25% to 4.5%. Federal Reserve Chair Jerome Powell reassured investors that the central bank is prepared to wait for greater clarity before adjusting interest rates, citing persistent uncertainty stemming from President Trump’s escalating tariff agenda.
Given the heightened volatility, investors focus on a balanced portfolio to mitigate risks. In the long run, hedge funds thrive on inefficiencies, volatility, and sector rotations, adjusting their portfolios to exploit divergences between economic fundamentals and market behaviour. As the U.S. economy evolves, hedge funds continuously recalibrate their strategies to align with changing market conditions and investor expectations. This strategy is applied by Point72 Asset Management through its discretionary investment approach to give higher returns to its shareholders.
One approach to achieving a balanced portfolio is through mid-cap stocks, which offer a compelling blend of growth potential and relative stability. Unlike large corporations, mid-cap companies are often more agile in adapting to shifting economic conditions, enabling them to foster innovation and expansion at a faster pace. Mid-Cap stocks are past the uncertainty associated with early-stage start-ups, thus offering ample room for growth and higher returns compared to large-cap companies, which tend to have slower growth trajectories. Mid-cap companies also have the potential to evolve into large-cap firms over time, allowing investors to benefit from significant capital appreciation. According to S&P Global, the mid-cap S&P index has consistently outperformed the large-cap broader index since 1994, delivering an annualized return of 12% compared to the latter’s 11%.
Given this, we will take a look at some of the best mid-cap stocks in billionaire Steve Cohen’s portfolio.
Steven Cohen of Point72 Asset Management
Our Methodology
For this article, we examined Point 72’s Q4 2024 13F filings to identify billionaire Steve Cohen’s 10 Mid-Cap stock picks with huge upside potential. Our focus was on stock with a market cap ranging between $10 billion and up to $40 billion. We then picked stocks that had the best upside potential, based on analyst rankings.
At Insider Monkey, we are obsessed with hedge funds. 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).
10. Entergy Corporation (NYSE:ETR)
Upside Potential: 5.93%
Market Cap: $36.39 billion
Entergy Corporation (NYSE:ETR) is a Fortune 500 integrated energy company with over a century of operation, serving approximately 3 million customers across Arkansas, Louisiana, Mississippi, and Texas. The company’s extensive infrastructure supports a diverse power generation portfolio, boasting around 24,000 megawatts from sources like natural gas, nuclear, coal, oil, and hydroelectric power. Notably, its fleet of nuclear reactors contributes approximately 5,000 megawatts of clean, carbon-free energy to its grid.
This established operational strength was reflected in Entergy Corporation (NYSE:ETR)’s financial performance during the first quarter of 2025, which demonstrated a solid start to the year. In the latest earnings report, management revealed revenue of $2.85 billion (an increase of 1.87% YoY) and an EPS of $0.82. This positive outcome was driven by several key factors, including higher retail sales volume, the impact of weather conditions, favorable regulatory developments across its operating companies, and a reduction in other operational and maintenance expenses.
Looking forward, Entergy Corporation’s (NYSE:ETR) management has highlighted significant catalysts for future growth in its sales volume. It announced three substantial new customer projects poised to considerably increase energy demand. These include the Hyundai Motor Group’s $5.8 billion steel facility, CF Industries’ $4 billion ammonia plant, and Woodside’s $17.5 billion LNG facility. Entergy Corporation (NYSE:ETR) has also secured regulatory approval for critical projects, including a significant $0.5 billion West Bank transmission project and the development of a combined cycle gas plant in Mississippi, both strategically aimed at addressing anticipated demand growth within its service territories.
Entergy Corporation (NYSE:ETR) is a new holding by Point72 Asset Management, with over 3 million shares, valued at $243. million at the time of writing this article, representing 0.53% of the fund’s portfolio.
9. EQT Corporation (NYSE:EQT)
Upside Potential: 9.01%
Market Cap: $31.04 billion
EQT Corporation (NYSE:EQT) was originally founded nearly 140 years ago under the name of Equitable Resources Inc., formerly changing its name to EQT Corporation (NYSE:EQT) in 2009. The company is engaged primarily in the production, gathering, and transmission of natural gas to marketers and industrial customers, located in the Appalachian Basin.
EQT Corporation (NYSE:EQT) reported robust financial performance with revenue in the first quarter of 2025 at $1.74 billion, up by 23.20% on a year-on-year basis. The company also surpassed analysts’ estimates for EPS by $0.17 at $1.18. CEO Toby Rice attributed its performance to improved synergies within the company, as a result of collaborative efforts between the upstream and downstream teams. Building on this momentum, EQT also announced during the latest earnings call that it had acquired Olympus Energy’s upstream and midstream assets for $1.8 billion. This strategic acquisition is expected to bolster the company’s regional dominance and enhance its vertical integration, positioning EQT as an even stronger player in the natural gas industry.
In terms of future outlook, the majority of analysts following the company have a positive outlook on the company, with a consensus of the average twelve-month trading price of $56.31 (an upside of 9.01%). At the end of Q4 2024, Point72 Asset Management has over 4 million shares in EQT at a value of $185.7 million, representing 0.40% of the fund’s portfolio.
8. Seagate Technology Holdings plc (NASDAQ:STX)
Upside Potential: 15.70%
Market Cap: $19.75 billion
Seagate Technology Holdings plc (NASDAQ:STX) has been in operation since 1978, and is engaged in the provision of data storage technology and infrastructure solutions to customers in Singapore, the United States, the Netherlands, and internationally. STX provides a diverse portfolio of hardware & including HDDs, SSD, enterprise nearline systems, video and image HDDs, and network-attached storage drives. The company is home to brands such as Seagate Ultra Touch, One Touch, Expansion, and Basics product lines, as well as under the LaCie brand name, among others.
Recent trade tariffs and global uncertainties have introduced volatility in tech markets. Some analysts raised questions on the future demand for STX’s hard disk drives, one of Seagate’s core products. However, the company’s strong financial performance has alleviated these concerns. In the third quarter of 2025, Seagate surpassed analysts’ revenue expectations by $30.94 million, reporting $2.16 billion, a remarkable year-over-year growth of 30.51%. Point72 Asset Management held more than 1.82 million shares in the company with a value of $157,653,026. STX represents 0.34% of the fund’s portfolio as the fund boosted its position in the company by 51% during the quarter. Looking forward, management provided guidance for revenue in the upcoming quarter to be $2.4 billion, an increase of 11%. Erik Woodring, an analyst at banking giant Morgan Stanley, commented on the company’s results, stating:
“Stepping back, we expected a good quarter, and we got a great quarter.”
7. Keysight Technologies, Inc. (NYSE:KEYS)
Upside Potential: 19.84%
Market Cap: $25.67 billion
Keysight Technologies, Inc. (NYSE:KEYS) was founded in 1939, tracing its origins back to Hewlett-Packard (HP). KEYS is a market leader in electronic design and test solutions, with clients in the automotive, semiconductor, aerospace, and defense sectors. The company has operations in the United States, Europe, and the Asia Pacific region, with over 3,500 patents. It operates primarily under 2 segments, Communications Solutions Group and Electronic Industrial Solutions Group.
Keysight Technologies, Inc. (NYSE:KEYS) continues to grow with the acquisition of Spirent Communications for $1.46 billion in March 2024. This acquisition aims to expand Keysight’s capabilities in the communications sector and strengthen its presence in automation. According to Reuters, this strategic move is expected to enhance both companies’ offerings significantly.
Looking at Keysight Technologies, Inc. (NYSE:KEYS)’s recent financial performance, the results for the first quarter of 2025 were met with mixed responses. The company achieved a revenue of $1.30 billion, which was a 3.1% increase compared to the previous year and exceeded analysts’ predictions by $21.81 million. Although the results were strong, the company’s share price dropped by 6% at the close of trading on the day the results were announced. Despite this, many analysts remain optimistic about the stock’s future outlook, with 99% suggesting a Buy recommendation, and a consensus of the average twelve-month price target at $177.16, an upside of 19.28%. At the end of Q4 2024, Point72 has acquired more than a million shares of KEYS, representing 0.35% of the hedge fund’s portfolio at a value of nearly $162 million. The hedge fund increased its position in the company by 344% during the quarter.
6. Performance Food Group Company (NYSE:PFGC)
Upside Potential: 20.17%
Market Cap: $12.90 billion
Performance Food Group Company (NYSE:PFGC) operates in North America and Canada, distributing food and related products. The company is divided into three segments: Foodservice, Vistar, and Convenience, serving over 40,000 clients, including schools, hospitals, government organizations, vending distributors, offices, retailers, and more. PFGC offers a vast portfolio of over 250,000 products, from meats, frozen and refrigerated foods, to dry and fresh groceries, disposable kitchen supplies, and other culinary items. Founded nearly 140 years ago, PFGC has established itself as a major player in the food distribution industry.
To further solidify its market presence, Performance Food Group Company (NYSE:PFGC) acquired Cheney Brothers for $2.1 billion in April 2024, a move that significantly boosted its financial performance. According to Reuters, this acquisition has been integral to PFGC’s growth. The company reported its earnings for the second quarter of 2025, with revenue reaching $15.64 billion, marking a year-on-year increase of nearly 10%. During the fourth quarter of 2024, the hedge fund increased its stake in the company by 31%. The fund owned more than 2.1 million shares of PFGC, representing 0.39% of its portfolio, at a current value of $178.5 million.
Looking towards the future, the company provided guidance of $15.41 billion for the upcoming quarter. Performance Food Group Company (NYSE:PFGC) has established itself as a resilient operator in the food industry. Despite the current economic uncertainty surrounding rising costs of living in the US, analysts have a positive outlook on the stock with an upside of 20.17%.
5. PG&E Corporation (NYSE:PCG)
Upside Potential: 22.93%
Market Cap: $37.21 billion
PG&E Corporation (NYSE:PCG) has been in operation since the start of the 20th century, and engages in the sale and delivery of electricity and natural gas to customers in northern and central California. The company generates electricity using nuclear, hydroelectric, fossil fuel-fired, fuel cell, and photovoltaic sources, and transmits it through its transmission lines. PCG serves all customer segments, whether it be residential, commercial, industrial, or agricultural.
Looking back over the past month, investors had taken the news of California wildfires around PCG’s service areas as a sign of worry. Moody’s (in contrast) recently upgraded its credit rating for PG&E Corporation (NYSE:PCG). Moody’s Ratings VP Jeff Casella made the following statement about this upgrade:
“It reflects the organization’s continued improvement in mitigating wildfire risk over the last few years as well as its ability to strengthen both its financial profile and its relationships with key stakeholders.”
In terms of financial performance, PG&E Corporation (NYSE:PCG) latest earnings for the first quarter of 2025 showed revenue of $5.98 billion (up by 2.8% YoY). Management also provided guidance for the revenue to be at an estimated $6.24 billion for the upcoming quarter. Point72 Asset Management owned more than 11.9 million shares, representing 0.53% of its portfolio.
4. Twilio Inc. (NYSE:TWLO)
Upside Potential: 29.05%
Market Cap: $15.28 billion
Twilio Inc. (NYSE:TWLO) is a cloud communications platform that enables businesses to build and scale customer engagement solutions. Headquartered in San Francisco, California, Twilio provides APIs for messaging, voice, video, and authentication, allowing companies to integrate real-time communication into their applications.
Regarding the current macroeconomic environment over trade tariffs, CEO Khozema Shipchandler provided some comfort to investors regarding the company’s ability to overcome volatility. He stated:
“Clearly, it’s a dynamic macroenvironment, and while we have not yet seen any notable adverse impacts to our business through the end of April, we’re continuing to monitor the situation closely.”
Following the announcement of its recent earnings report, analysts are optimistic about Twilio Inc.’s (NYSE:TWLO) future. The company’s revenue for the first quarter of 2025 exceeded expectations, reaching $1.17 billion, which was $33.90 million above the estimated $831 million, showcasing nearly 12% growth compared to the same quarter last year. Furthermore, HSBC upgraded Twilio’s rating from ‘Neutral’ to ‘Hold’, citing positive signs of growth. Out of the 30 analysts on Wall Street following the stock, 66% have a “Buy” recommendation.
3. ICON Public Limited Company (NASDAQ:ICLR)
Upside Potential: 31.55%
Market Cap: $11.36 billion
ICON Public Limited Company (NASDAQ:ICLR) is a global provider of outsourced development and commercialization services to the pharmaceutical, biotechnology, and medical device industries. The company employs over 41,900 employees across 106 locations in 55 countries, with headquarters in Ireland. Since it was founded in 1990, ICLR has achieved 18 drug approvals and conducted 1,465 clinical studies. It specializes in clinical research and consulting, helping companies bring innovative treatments to markets efficiently.
Financially, ICON Public Limited Company (NASDAQ:ICLR) has a market capitalization of approximately $11.36 billion and continues to expand its global footprint through strategic acquisitions and partnerships. The company reported revenue of $2 billion during the first quarter of 2025, which fell short of analysts’ expectations by $3.63 million. CEO Steve Cutler identified customer cancellations as the primary reason for the revenue shortfall, while citing a challenging environment in the coming year.
Despite disappointing results during the first quarter, experts continue to have a positive outlook on ICON Public Limited Company (NASDAQ:ICLR). Out of the 18 analysts on Wall Street following the stock, 61% have a recommendation of a “Strong Buy”, with an upside of 31.55%.
During the fourth quarter of 2024, Point72 increased its position in ICLR by 650% and now owns 856,700 shares in the company. These stakes are worth over $179.6 million and make up 0.39% of its portfolio.
2. Carnival Corporation & plc (NYSE:CCL)
Upside Potential: 41.54%
Market Cap: $25.39 billion
Carnival Corporation & plc (NYSE:CCL) has been a global provider of leisure travel services for more than five decades. CCL boasts about being the largest cruise company, with a fleet of more than 90 ships visiting over 800 ports worldwide. This includes the US, Europe, Australia, and other countries. CCL operates through four segments: NAA Cruise Operations, Europe Cruise Operations, Cruise Support, and Tour and Other.
Regarding the impact of the global tariff wars on the travel and leisure industry, Treasury Secretary Scott Bessent spoke in April to CNBC about the impact of tariffs on countries where CCL operates. He said:
“If they come to the table with solid proposals, I think we can end up with some good deals.”
The company has shown it is capable of mitigating these risks, nonetheless. In terms of financial performance, Carnival Corporation & plc (NYSE:CCL) results for the first quarter of 2025 are a testament to the company’s dominant market position. Revenue was up by 7.47% on a year-on-year comparison, beating forecasts by $66.68 million, with an EPS of $0.13. This was attributed to higher onboard sales across all categories. Management also provided guidance for the next quarter to an estimated $6.20 billion and EPS of $0.23.
1. DraftKings Inc. (NASDAQ:DKNG)
Upside Potential: 57.84%
Market Cap: $17.12 billion
DraftKings Inc.(NASDAQ:DKNG) operates as a global digital sports entertainment and gaming company. DKNG provides online sports betting, along with iGaming, or online casino products, and also engages in the design and development of sports betting and casino gaming software.
In its earnings report for the final quarter of 2024, DraftKings Inc.(NASDAQ:DKNG) announced revenue of $1.39 billion. This amount, while marking a 13.5% year-on-year (YoY) increase, fell short of analysts’ forecasts by $1.31 million.
Despite this, there were significant positives. DraftKings Inc.(NASDAQ:DKNG)’s client base grew by an impressive 42.25% YoY, driven by a substantial spike in customer acquisition on Super Bowl Sunday. On this day, DKNG’s app became the #1 most downloaded app, highlighting its popularity during the biggest betting event of the year. Reflecting this optimism, 63% of Wall Street analysts recommend a “Strong Buy” for the company’s stock, projecting an upside of 57.84%. Point72 Asset Management owned more than 5.3 million shares in DKNG, representing 0.43% of the fund’s portfolio. It is currently valued at $199.4 million. The fund increased its position in the company by 80% during the quarter.
Overall, DraftKings Inc.(NASDAQ:DKNG) ranks first on our list of Steve Cohen’s 10 mid-cap stocks with huge upside potential. While we acknowledge the potential of DKNG, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than DKNG but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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