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.
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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.
8. NANO Nuclear Energy Inc. (NASDAQ:NNE)
6-Months Performance: 189.06%
Analyst Upside Potential: 46.20%
Number of Hedge Fund Holders: 10
NANO Nuclear Energy Inc. (NASDAQ:NNE) is a nuclear energy company that focuses on developing advanced nuclear technology. They aim to be a commercial, diversified, and vertically integrated company involved in multiple aspects of the nuclear industry. The company is creating portable microreactors, including the ZEUS solid core battery reactor and the ODIN low-pressure coolant reactor. Moreover, they are also developing the stationary KRONOS Micro Modular Reactor Energy System and the space-focused Pylon Transportable Reactor Platform.
On February 18, the company reported having filed four new utility patent applications with the United States Patent and Trademark Office for its Annular Linear Induction Pump (ALIP) technology. The ALIP technology, a thermal management and distribution system using electromagnetic pumps, is crucial for developing advanced molten-salt and liquid-metal nuclear reactors. The stock has gained around 190% over the past 6 months to become one of the hot new stocks to buy now. However, it still has a negative net income and is yet to generate revenue.
7. Sezzle Inc. (NASDAQ:SEZL)
6-Months Performance: 166.86%
Analyst Upside Potential: 6.19%
Number of Hedge Fund Holders: 19
Sezzle Inc. (NASDAQ:SEZL) is a financial technology company that provides “buy now, pay later” services. It allows customers to split purchases into smaller installments, typically four interest-free payments, and makes money by collecting processing fees from merchants. It aims to empower consumers, especially Gen Z and Millennial customers, by providing tools to manage spending and promote financial independence.
The stock has been under the spotlight for its impressive gains in 2024. Sezzle Inc. (NASDAQ:SEZL) has been growing its subscriber count, which reached 529,000 in the fiscal third quarter of 2024 after rising by 67,000 in a single quarter. As a result, the revenue increased 71.3% year-over-year, with margins at 22.1%. Its ‘Pay-in-4’ product is gaining traction as it allows customers to use Sezzle anywhere Visa is accepted, even without a subscription.
On January 16, Michael Grondahl, an analyst at Northland Securities, maintained a Buy rating on the stock with a price target of $360. The consensus of analysts rating provides a 6.19% upside from the current levels making Sezzle Inc. (NASDAQ:SEZL) a hot new stock to buy now. Looking ahead, management has raised its full-year guidance for 2024 and now expects net income to be around $71.5 million against the previous guidance of $55 million.
6. LandBridge Company LLC (NYSE:LB)
6-Months Performance: 97.78%
Analyst Upside Potential: 11.81%
Number of Hedge Fund Holders: 20
LandBridge Company LLC (NYSE:LB) manages land and resources in the Permian Basin, specifically the Delaware Basin, which is a hotspot for oil and gas activity. The company owns around 273,000 surface acres in Texas and New Mexico. Instead of focusing on drilling, the company leases its land to oil and gas companies and for other industrial operations34. This strategy allows them to have a diverse income stream, which reduces their dependency on fluctuating oil prices.
On January 28, Raymond James raised their price target on the company from $80 to $85, while maintaining an Outperform rating on the stock. The firm noted that while the recent quarter was satisfactory for midstream companies, it wasn’t exceptional. They noted that 2024 was a significant year for midstream suppliers, with continued growth anticipated into 2025.
During the fiscal third quarter of 2024, LandBridge Company LLC (NYSE:LB) experienced a 60% year-over-year increase in revenue and a 62% increase in adjusted EBITDA. The company has successfully shifted its revenue streams to reduce direct exposure to commodity price fluctuations. Non-oil and gas royalty revenue, which includes surface use royalties, revenues, and resource sales, now constitute 90% of overall revenues, up from 83% in the last quarter. It is one of the hot new stocks to buy now.
Ave Maria Focused Fund stated the following regarding LandBridge Company LLC (NYSE:LB) in its Q3 2024 investor letter:
“LandBridge Company LLC (NYSE:LB): LandBridge is a land management company that operates in the Permian Basin, where it owns ~220,000 acres. Similar to another Fund holding, Texas Pacific Land Corp., it receives royalties from oil and gas produced on its land. It also sells water for the fracking of oil and gas wells and receives payments for the surface use of its land. LandBridge is at the forefront of bringing data center operators to the Permian Basin, given the area’s abundance of land, water, and low-cost natural gas. Since the Fund purchased a position, LandBridge’s stock price is up 130% through the end of the third quarter.”
5. BrightSpring Health Services, Inc. (NASDAQ:BTSG)
6-Months Performance: 85.49%
Analyst Upside Potential: 12.28%
Number of Hedge Fund Holders: 29
BrightSpring Health Services, Inc. (NASDAQ:BTSG) provides health care services to people in their homes and communities. The company focuses on offering both pharmacy and healthcare provider services for individuals with complex health needs. It operates through two main segments: pharmacy solutions and provider services across all 50 states in the United States.
On January 29, Whit Mayo analyst at Leerink Partners reiterated a Buy rating on the stock while maintaining a price target of $26.5. The analyst noted that BrightSpring Health Services, Inc. (NASDAQ:BTSG) demonstrates strong organic growth, especially in specialty areas like oncology, projecting top-line growth above 20%. Moreover, Mayo suggests that the sale of the community living segment has simplified the business, reduced risk, and sharpened focus on higher-margin, faster-growing segments.
During the fiscal third quarter of 2024, the company’s Pharmacy Solutions segment generated $2.3 billion in revenue, up 35% year-over-year. Management attributed growth to strong prescription volumes as the company processed 10.9 million prescriptions during the quarter, up 15% during the same time. It is one of the hot new stocks to buy now.
4. Amer Sports, Inc. (NYSE:AS)
6-Months Performance: 154.01%
Analyst Upside Potential: 5.48%
Number of Hedge Fund Holders: 48
Amer Sports, Inc. (NYSE:AS) is an international sports and outdoor brands company based in Finland. It has a wide reach with products being sold in over 100 countries. The company operates through a portfolio of well-known brands such as Arc’teryx, Salomon, Wilson, Atomic, and Peak Performance. In addition to sports apparel, it also develops and sells equipment for team sports, individual sports, and fitness training.
During the fiscal third quarter of 2024, the company reported strong sales and adjusted margins. The revenue increased 17% year-over-year to reach $1.35 billion mostly driven by a robust performance by its Arc’teryx brand. Amer Sports, Inc. (NYSE:AS) is set to report full-year results on February 25, for which management expects revenue growth between 16% to 17% and profit margins at around 55.3% to 55.5%.
Moreover, on February 13, Bernstein SocGen Group resumed coverage on the stock, with their Outperform rating and a price target of $38. The firm noted that the company has demonstrated strong growth in the luxury sports apparel segment, with a 47% growth in 2023 compared to the overall market’s 14%. They believe that China’s expanding sportswear market will be a primary factor in Amer Sports, Inc.’s (NYSE:AS) success as the company’s performance in the region has been remarkable with sell-through growing at a 51% CAGR from 2021 to 2024.
3. Astera Labs, Inc. (NASDAQ:ALAB)
6-Months Performance: 120.22%
Analyst Upside Potential: 38.14%
Number of Hedge Fund Holders: 51
Astera Labs, Inc. (NASDAQ:ALAB) specializes in creating connectivity solutions that are essential for cloud computing and artificial intelligence (AI) systems. Their key offerings include an Intelligent Connectivity Platform that includes both hardware (like chips and modules) and software (COSMOS) designed to enhance connectivity in AI and cloud environments.
On February 11, Quinn Bolton, an analyst at Needham, maintained a Buy rating on the stock with a price target of $140. The analyst sees growth potential and expects a strong performance from the company. During the fiscal fourth quarter of 2024, Astera Labs, Inc. (NASDAQ:ALAB) achieved a record quarterly revenue of $141 million, indicating a 25% increase from the previous quarter and a 179% increase year-over-year. Management attributed the growth to be primarily driven by the Aries PCIe Retimer and Taurus Ethernet Smart Cable Module product families. There was also strong demand for both AI scale-up and scale-out connectivity solutions. Looking ahead, Astera Labs, Inc. (NASDAQ:ALAB) expects 2025 to be a breakout year, with revenue driven by all four of its product families. It is one of the hot new stocks to buy now.
Alger Small Cap Growth Fund stated the following regarding Astera Labs, Inc. (NASDAQ:ALAB) in its Q4 2024 investor letter:
“Astera Labs, Inc. (NASDAQ:ALAB) is a semiconductor company specializing in connectivity solutions for data-centric systems, including cloud computing, artificial intelligence, and machine learning. Its products optimize data flow and performance in servers, GPUs, and AI accelerators, addressing bottlenecks in high-performance computing environments. The company’s Intelligent Connectivity Platform (ICP) integrates advanced semiconductor hardware with the proprietary COSMOS software suite, delivering customizable and cost-effective solutions. Astera’s Platform-Specific Standard Products (PSSP) enhance flexibility with features such as predictive analytics, monitoring, and troubleshooting. Backed by strong relationships with leading cloud and AI providers, we believe Astera is well positioned in rapidly growing markets, demonstrating high profitability and industry-leading gross margins. During the quarter, shares contributed to performance after reporting better-than-expected fiscal third-quarter results, with revenues and gross margins exceeding analyst estimates. Specifically, revenue growth spanned all four product segments, led by accelerated custom silicon sales and robust GPU demand. Management also raised fiscal fourth-quarter guidance, citing expanding product ramps and a broader customer base.”
2. Reddit, Inc. (NYSE:RDDT)
6-Months Performance: 244.21%
Analyst Upside Potential: 12.07%
Number of Hedge Fund Holders: 87
Reddit, Inc. (NYSE:RDDT) operates the social media platform called Reddit. This platform is like a digital city where people can create communities and share content based on their interests. The company started trading on the New York Stock Exchange on March 21, 2024, making it a hot new stock to buy now.
Advertisement revenue is one of the primary modes through which the company makes money. During the fiscal third quarter of 2024, Reddit, Inc. (NYSE:RDDT) generated $315.1 million from its advertisement segment, indicating a 56% increase year-over-year. On February 13, John Colantuoni from Jefferies maintained a Buy rating on the stock with a price target of $225. Colantuoni noted that Reddit, Inc. (NYSE:RDDT) has strong potential for revenue growth, especially through advertising. The company has demonstrated significant growth in advertising revenue and Advertising Revenue per Logged-in User (ARPU), exceeding expectations. The analyst expects the company to maintain revenue growth through continued innovation in advertising formats and targeting, as well as diversification of its advertiser base.
1. GE Vernova Inc. (NYSE:GEV)
6-Months Performance: 101.19%
Analyst Upside Potential: 16.67%
Number of Hedge Fund Holders: 111
GE Vernova Inc. (NYSE:GEV) is a global energy company focused on creating a sustainable electric power system. It works to electrify and decarbonize the world through its Power, Wind, and Electrification segments.
On January 29, Maheep Mandloi analyst at Mizuho Securities reiterated his bullish sentiment on the stock with a Buy rating. The firm sees strong potential for growth and market position for the company. This is mainly because of the pricing power it has in the gas business. In addition, the analyst also likes the power and electrification segments of the company which have remained strong with expectations of continued improvement in free cash flow conversion.
During the fiscal fourth quarter of 2024, GE Vernova Inc. (NYSE:GEV) received record orders of $13.2 billion up 22% organically. The growth was led by a robust performance by the Power and Electrification segment. It is the top hot new stock to buy now.
Fidelity Dividend Growth Fund stated the following regarding GE Vernova Inc. (NYSE:GEV) in its Q3 2024 investor letter:
“Among individual holdings, the top relative contributor was an overweight stake in GE Vernova Inc. (NYSE:GEV). The company’s shares gained about 49% the past three months, as the power-generation business that split from General Electric on April 2 continued to fare well as a stand-alone entity. On July 24, the company reported quarterly earnings that were better than expected, boosted by its natural gas power-turbine business, and released an optimistic financial forecast for the rest of 2024.”
While we acknowledge the potential of GE Vernova Inc. (NYSE:GEV) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GEV but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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