In this article, we will look at the 10 Hot New Stocks to Buy Now.

According to a report published by EY on January 15, the IPO activity in the United States remained strong in 2024 and is expected to continue at an accelerated pace in 2025. The market made a significant recovery last year. This recovery was both in terms of the number of IPOs and the proceeds raised when compared to 2023. While the number of IPOs increased 38% year-over-year, the proceeds rose 48% during the same time. The report further highlighted that around 20 deals raised more than $500 million, whereas, seven deals stood out by topping $1 billion. During the fourth quarter of 2024 alone, the proceeds almost doubled year-over-year, driven by a single deal that raised $1.7 billion, around 30% of the overall proceeds from Q4 2023.

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During the last year, 176 IPO deals led the total proceeds for the year to $33 billion. The healthcare technology and media and telecommunication sectors were the key leaders for the US IPO activity as these sectors accounted for around 61% and 49% of the overall proceeds. Moreover, companies with advancements in artificial intelligence technology were found to be significant attention gainers among investors. Looking ahead, the report predicts continued growth for the IPO market, with substantial success for companies with proven AI-driven results. In addition, cross-border IPOs also came under the spotlight as they accounted for around 64% of the deals conducted in Q4 2024, with two non-US companies making it to the top 10 largest deals of 2024.

With that let’s take a look at the 10 hot new stocks to buy now.

Our Methodology

To curate the list of 10 hot new stocks to buy now we conducted our initial research using the Finviz stock screener. We searched for companies that went public in the last 2 years and then sorted the list by their past 6 months performance. Next, we cross-checked the past 6 months’ performance from Google and the analyst upside potential for each stock sourced from CNN. Lastly, we ranked the stocks based on the number of hedge fund holders as per Insider Monkey’s Q4 2024 database. Please note that the data was collected on February 18, 2025.

Why do we care about 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. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

10 Hot New Stocks to Buy Now

10. Unusual Machines, Inc. (NYSE:UMAC)

6-Months Performance: 613.21%

Analyst Upside Potential: 24.22%

Number of Hedge Fund Holders: N/A

Unusual Machines, Inc. (NYSE:UMAC) makes and sells parts for drones and complete drones. It offers a range of products through brands like Fat Shark and Hypetrain Motors. The company also sells small, acrobatic first-person-view drones and gear directly to customers through their Rotor Riot online store. Rotor Riot is an online marketplace with a community of FPV drone enthusiasts that sells FPV drones, goggles, parts, and accessories made by other companies.

On February 3, Unusual Machines, Inc. (NYSE:UMAC) announced entering into a definitive agreement to acquire Aloft Technologies in a deal valued at $14.5 million, primarily in stock. Aloft Technologies is a leading FAA-approved provider of unmanned aerial system services, managing over 70% of FAA-approved LAANC airspace authorizations in the US. The acquisition will strengthen the company’s position in the US drone industry.

During the fiscal third quarter of 2024, the company generated approximately $1.53 million in sales, primarily through its business-to-consumer sales channel. This figure reflects a 9% increase compared to the previous quarter. Moreover, Unusual Machines, Inc. (NYSE:UMAC) maintained a 26% gross margin on these sales, indicating a healthy profit relative to its revenue. It is one of the hot new stocks to buy now.

9. U.S. GoldMining Inc. (NASDAQ:USGO)

6-Months Performance: 130.66%

Analyst Upside Potential: 123.16%

Number of Hedge Fund Holders: 2

U.S. GoldMining Inc. (NASDAQ:USGO) is a Canadian exploration company focused on advancing the Whistler Gold-Copper Project, located in Alaska, United States. On February 10, the company reported having found a new high-grade zone at the Raintree Prospect, which is part of their Whistler Gold-Copper Project in Alaska. The discovery was made during the 2024 drilling program and the Drill hole WH24-05 intercepted multiple zones of high-grade gold and silver polymetallic mineralization.

On February 4, H.C. Wainwright reiterated a Buy rating on the stock and kept the price rating of $26.5. The firm’s bullish sentiment is based on the positive results from the recent drilling program, particularly WH24-03 and WH24-04 which found high-grade mineralization zones. Moreover, the firm also pointed towards an executive order designed to unlock Alaska’s resource potential which is anticipated to be advantageous for U.S. GoldMining Inc. (NASDAQ:USGO). This order aims to streamline procedures and ease restrictions on resource development, which could expedite the permitting and development of the Whistler Project. It is one of the hot new stocks to buy now as analysts’ sentiment points towards a 123% upside from the current levels.