Wall Street’s third-quarter earnings season is nearly over, and the profit numbers are large. With about 88% of S&P 500 companies reported as of November 10, earnings are tracking 31.4% above a year earlier, according to FactSet. That would be the third straight quarter of growth above 25%.
On November 10, inflation took over the conversation, and the Federal Reserve’s next move moved to the center of it.
Hot Inflation Revives Rate Hike Fears
The Labor Department said on November 10 that consumer prices rose 0.4% in October, above the 0.3% economists had forecast and the third straight monthly gain of 0.4% or more. Core prices, which leave out food and energy, rose 0.3% against a forecast of 0.2%. Prices for services other than housing climbed 0.5%, the biggest jump since May.
Federal Reserve officials did little to calm the market. Governor Christopher Waller said the central bank should raise rates by a quarter point in December even if inflation had cooled, and should consider a half-point move if price pressures worsen. Dallas Fed President Lorie Logan said the Fed needs at least two more quarter-point increases to bring inflation down.
Edward Jones senior economist James McCann said, “There are some fears that underlying price pressures are starting to build again.” Traders saw almost a 99% chance of a December increase, according to the CME FedWatch tool. Our ranking of affordable stocks Wall Street analysts like best looks at the analyst side of the market.
Strong Profits Meet a Firmer Fed
Stocks gave back ground after the report. The Dow Jones Industrial Average fell 0.30% to 52,231.89 on November 10, the S&P 500 lost 0.38% to 7,520.93, and the Nasdaq Composite dropped 0.74% to 25,065.87.
Trading stayed choppy on November 12. The S&P 500 slipped 0.35% to 7,592.40 as Treasury yields climbed, and an index of semiconductor stocks fell 0.5%.
Economists disagree on how far the Fed will go. Thomas Ryan of Capital Economics said the broad rise in core prices should all but confirm a December hike, and he flagged the risk of a half-point move. Deutsche Bank chief economist Matt Luzzetti expects quarter-point hikes in December, January and March, and sees a half-point move as possible.
Jason Pride, chief of investment strategy and research at Glenmede, warned that rates may stay at or above current levels well into 2027. Some analysts’ reading of the pullback appears in our list of oversold AI stocks with 50%+ upside.
Luzzetti also warned that a tech sell-off or wider credit spreads could push the Fed to pause.
Photo by Mizuno K on pexels
Our Methodology
To compile this list, we reviewed analyst rating upgrades announced on Thursday, November 12, 2026. We have ranked these stocks in ascending order of their average upside potential, based on analysts’ average price target, as of November 12. We also list each stock’s number of hedge fund holders as of Q2 2026, from our database of 1,006 hedge funds.
At Insider Monkey, we are obsessed with what hedge funds do. 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. Insider Monkey’s quarterly newsletter strategy selects 14 small-cap and large-cap stocks every quarter and has returned 612% since May 2014, beating its benchmark by 375 percentage points (see more details here).
Buy Alert: 10 Stocks Analysts Upgraded on Thursday
10. Republic Services (NYSE:RSG)
Average Upside Potential: 2%
Number of Hedge Fund Holders: 58
Argus upgraded Republic Services to Buy from Hold on November 12 and set a price target of $275, pointing to faster expected growth. Republic collects, transfers, recycles, and disposes of non-hazardous solid waste, and it runs an environmental solutions business that handles more specialized waste.
The company reported third-quarter 2026 results on October 29. Revenue rose 8.2% from a year earlier. Higher prices added 5.3% to revenue, while lower volume took off 0.6%. Earnings were $1.93 per diluted share, up from a year earlier, and adjusted earnings rose as well. Republic also spent on acquisitions throughout the first nine months of 2026. Organic growth in recycling and waste led the gain, with acquisitions and environmental solutions adding smaller amounts.
Chief Executive Officer Jon Vander Ark said the third quarter of 2026 “underscored the resilience of our business model.” In short, the company is growing by raising prices while hauling slightly less waste. The board authorized a $5 billion share repurchase program, effective January 1, 2027, and running through December 31, 2029, and Republic raised its full-year guidance.
Read our analysis on Republic Services (RSG) here: Republic Services is winning on price while volumes slip
9. Reliance (NYSE:RS)
Average Upside Potential: 3%
Number of Hedge Fund Holders: 41
Barclays moved Reliance up to Overweight from Equal Weight on November 12 and raised its price target to $507 from $445. The firm cited expectations for continued benefits from tight supply and strong demand, and it said a border wall contract with the U.S. government should help Reliance grow volumes ahead of the market in 2027. Reliance runs metal service centers that stock and process carbon steel, stainless steel, aluminum, copper, titanium, and other metals.
Reliance reported results for the third quarter ended September 30, 2026, on October 21. It earned $8.02 per diluted share on a non-GAAP basis, well above the range it had guided to. Net sales reached a record $5.21 billion, and tons sold rose 4.3% from the second quarter of 2026 to a record as well.
Chief Executive Officer Karla Lewis said healthy demand and tight supply lifted prices for most carbon steel products. She said the Department of Homeland Security border wall contract, awarded earlier in 2026, kept ramping up and added meaningfully to earnings. Customer optimism improved across infrastructure, semiconductor, general manufacturing, and aerospace work, she added. Reliance also raised its share repurchase program to $2.5 billion.
8. Mid Penn Bancorp (NASDAQ:MPB)
Average Upside Potential: 14%
Number of Hedge Fund Holders: 15
Raymond James raised Mid Penn Bancorp to Strong Buy from Outperform on November 12, lifting its price target to $42 from $39. The firm expects the bank’s recent senior management hires from TD Bank to speed up growth and improve earnings over time. It added that investments in bankers and infrastructure will lift expenses in the near term. Mid Penn, based in Harrisburg, Pennsylvania, offers banking, financing, and planning services to individuals, businesses, and nonprofits.
The bank reported third-quarter 2026 results on October 21. Total loans grew 16.9% from a year earlier to $5.6 billion, with the 1st Colonial acquisition accounting for much of the increase. Earnings were $0.84 per diluted share, up from a year earlier, helped by the William Penn and 1st Colonial acquisitions. Deposits grew during the third quarter of 2026, led by interest-bearing transaction accounts, while time deposits and noninterest-bearing deposits declined. The board declared a quarterly cash dividend, the bank’s 64th consecutive quarterly payout. Mid Penn trades at a forward price-to-earnings ratio of 9.78.
Readers following the group can find more banking names in our list of the best bank stocks to buy according to billionaires.
7. Cleveland-Cliffs (NYSE:CLF)
Average Upside Potential: 15%
Number of Hedge Fund Holders: 53
On November 12, Barclays upgraded Cleveland-Cliffs to Equal Weight from Underweight and raised its price target to $15 from $12, citing expectations for tight steel supply and strong demand. Cleveland-Cliffs is a North America-based steel producer focused on value-added sheet products, especially for automakers. It is vertically integrated, from iron ore mining and pellet production through steelmaking and downstream finishing, stamping, tooling, and tubing.
The company reported third-quarter 2026 results on October 19. It earned net income of $165 million, a swing from a net loss of $134 million in the second quarter. Adjusted EBITDA was $612 million, above the company’s own guidance.
Chairman and Chief Executive Officer Lourenco Goncalves said selling prices, shipment volumes, and unit costs all moved in the right direction from the second quarter. He said imports remain well below historical levels and customers increasingly value a domestic supply chain. Based on contracts already signed, he expects 2027 adjusted EBITDA to exceed $4 billion. He also said a major debt reduction is expected in the fourth quarter of 2026.
Read our analysis on Cleveland-Cliffs (CLF) here: its strongest quarter in three years
6. MDU Resources Group (NYSE:MDU)
Average Upside Potential: 18%
Number of Hedge Fund Holders: 32
Freedom Broker upgraded MDU Resources to Buy from Hold on November 12 and raised its price target to $23 from $21. It cited the Bakken East pipeline project, which it said adds about $1.30 per share to MDU’s valuation. MDU runs electric and natural gas utilities in Montana, North Dakota, South Dakota, Wyoming, and other states, along with pipeline operations.
The company reported third-quarter 2026 results on November 5. Net income was $14.0 million, down from a year earlier. MDU reaffirmed its 2026 earnings guidance of $0.93 to $1.00 per share.
Chief Executive Officer Nicole Kivisto said electric utility earnings rose on new rates, the Badger Wind Farm, and higher retail sales volumes. She also said the company continued to execute its CORE strategy during the third quarter of 2026. Natural gas distribution and pipeline results fell on the decision to discontinue the Knott Landfill renewable natural gas project. Advisory costs tied to the Bakken East Pipeline also weighed on them. MDU also made a positive final investment decision on Bakken East, which Kivisto said positions the company well for long-term growth.
5. Advanced Micro Devices (NASDAQ:AMD)
Average Upside Potential: 24%
Number of Hedge Fund Holders: 164
On November 12, William Blair upgraded Advanced Micro Devices to Outperform from Market Perform. The firm pointed to scrutiny and a possible leadership vacuum at Nvidia as an opening for AMD to win share in AI chips. It expects AMD revenue to rise more than 80% in 2027. AMD designs the processors, accelerators, and graphics chips used in data centers, PCs, and game consoles.
The company reported third-quarter 2026 results on November 3. Revenue was $13.4 billion, up 45% from a year earlier. Data Center revenue set a record at $8.5 billion, on sales of EPYC server processors and the launch of the Instinct MI450 Series GPUs. Client revenue also rose, helped by Ryzen mobile processors, and Embedded revenue grew on aerospace and defense, automotive, communications, and industrial demand. Gaming was the weak spot, with revenue down 40% on lower semi-custom and graphics sales.
AMD guided fourth-quarter 2026 revenue to about $17 billion and said it expects growth to accelerate. On forward earnings, AMD carries a price-to-earnings ratio of 29.67.
Read our latest analysis on Advanced Micro Devices (AMD) here: how its premium valuation puts execution under the microscope
4. Maravai LifeSciences Holdings (NASDAQ:MRVI)
Average Upside Potential: 29%
Number of Hedge Fund Holders: 33
KeyBanc upgraded Maravai LifeSciences to Overweight from Sector Weight on November 12 with a price target of $11. The firm pointed to cost cuts that lowered annualized expenses by more than $65 million and to revenue running ahead of expectations this year. Maravai sells reagents and services that researchers use to build drugs, diagnostics, and vaccines. Its TriLink unit makes mRNA products, and its Cygnus unit sells testing kits for biologic drug production.
The company reported third-quarter 2026 results on November 4. Revenue was $45.9 million, up from a year earlier, and mRNA revenue rose 28%. TriLink growth came from demand for Discovery mRNA and GMP consumables, along with its contract manufacturing business. The net loss narrowed sharply, and adjusted EBITDA turned positive after a loss a year earlier.
Chief Executive Officer Bernd Brust said four mRNA customers moved from discovery into clinical-stage manufacturing during the third quarter of 2026. He added that Cygnus posted its sixth consecutive quarter of year-over-year growth. Maravai raised its full-year 2026 revenue guidance to a range of $212.0 million to $216.0 million.
Read our coverage of Maravai LifeSciences Holdings (MRVI) here: what its comeback is really worth to investors
3. Pattern Group (NASDAQ:PTRN)
Average Upside Potential: 33%
Number of Hedge Fund Holders: 29
Jefferies moved Pattern Group up to Buy from Hold on November 12 and raised its price target to $27 from $20. The firm said Pattern’s record of elevated growth among existing brand customers is now joined by larger contributions from new brands, and it sees a path to sustained growth. It raised its 2028 revenue and EBITDA estimates above the consensus. Pattern helps brands sell on online marketplaces, using data and AI to run advertising, pricing, logistics, and fulfillment.
The company reported third-quarter 2026 results on November 4. Revenue reached a record $886 million, up 38% from a year earlier. Net revenue retention among existing brand partners improved from a year earlier. Adjusted EBITDA and net income both grew, and operating cash flow and free cash flow rose over the trailing twelve months.
Pattern said the timing of marketplace promotional events moved some growth out of the third quarter of 2026 and into the second. It now expects 2026 revenue of $3.50 billion to $3.52 billion. Co-founder and Chief Executive Officer Dave Wright said, “We delivered another record quarter.”
For more small-cap ideas, see our list of strong buy small-cap stocks.
2. Anterix (NASDAQ:ATEX)
Average Upside Potential: 58%
Number of Hedge Fund Holders: 25
B. Riley Securities upgraded Anterix to Buy from Neutral on November 12 and raised its price target to $103 from $86. It cited growing demand for spectrum from satellite operators and the potential for better pricing on future spectrum deals. Anterix holds licensed spectrum in the 900 MHz band and works with utilities and other critical infrastructure operators that want private broadband networks.
The company reported results for the second quarter of fiscal 2027, ended September 30, 2026, on November 10. It recorded a $6.1 million gain from exchanging narrowband licenses for broadband licenses in 6 counties. It has about $33.1 million of contracted proceeds outstanding, with about $9.6 million expected during the rest of fiscal 2027. Cash stood at $107.5 million with no debt.
The iPhone 18 Pro and iPhone Duo are the first iPhones built to run on private LTE networks in the 900 MHz band, known as Band 106. On October 29, the Federal Communications Commission advanced a proposal to change its rules on supplemental coverage from space that would consider adding the 900 MHz band.
Readers can find more small caps in our list of the best small-cap stocks with strong balance sheets.
1. Alibaba Group Holding (NYSE:BABA)
Average Upside Potential: 98%
Number of Hedge Fund Holders: 97
DZ Bank upgraded Alibaba to Buy from Hold on November 12 with a price target of $140. Alibaba runs online shopping marketplaces in China and abroad, along with a large cloud business that sits at the center of its AI plans.
Alibaba reported results for the quarter ended June 30, 2026, on August 20. Alibaba Cloud’s external revenue growth accelerated to 45%, and revenue from AI-related products grew at a triple-digit rate for the twelfth quarter in a row. Total revenue rose 9%. The AI push has costs. Customer management revenue in China e-commerce fell 7%, partly because of a new business development program. Capital spending climbed 75%, and free cash flow was an outflow larger than a year earlier.
Chief Executive Officer Eddie Wu said Alibaba’s full-stack AI strategy has put it in a superior position to capture growing demand for AI and AI compute. Alibaba is expected to report its next quarterly results on November 19, and analysts expect earnings of $1.63 per share. Alibaba’s forward price-to-earnings ratio is 10.32.
Read our latest analysis on Alibaba Group Holding (BABA) here: whether it can cover the AI bill
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