On March 21, Jason Pride, Chief of Investment Strategy at Glenmede, and Stephen DeNichilo, Portfolio Manager at Federated Hermes, appeared on CNBC’s ‘Power Lunch’ to discuss the current market dynamics. Pride cautioned against overemphasizing the MAG7 tech stocks and noted that this market is one of the most concentrated in history, which is similar to the levels seen in 1999–2000 and the Roaring Twenties. He argued that this extreme concentration suggests that future market performance is more likely to come from areas outside these dominant stocks. Pride emphasized the importance of diversification in this environment. He advised investors to focus on the remaining stocks in the S&P 500 index beyond the MAG7. He highlighted small-cap stocks, international equities, and bonds as better opportunities for future returns. According to him, moving away from over-concentrated segments of the market is essential for achieving better long-term performance.
DeNichilo added his perspective by explaining what drives stock prices over time. He noted that for a stock to rise in value, someone must be willing to buy it at a higher price. With the MAG7 being some of the most widely owned stocks in history, he questioned who else is left to buy them. He pointed out that markets dislike uncertainty, and today’s environment is filled with it, ranging from tariffs and inflation to interest rate policies and unpredictable forecasts from big companies. This lack of clarity has created a self-imposed economic slowdown. DeNichilo shifted focus to small-cap stocks, which he described as significantly undervalued based on historical metrics. He suggested that if interest rates decline and market confidence improves over the next 6 to 12 months, small-cap stocks are likely to perform well. He argued that smaller companies often drive innovation due to their agility and ability to grow earnings faster than massive corporations like those in the MAG7.
Both Pride and DeNichilo agreed that diversification and looking beyond dominant tech giants are critical strategies for navigating today’s uncertain market environment. With that being acknowledged, we’re here with a list of the 11 best performing stocks so far in 2025.
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Our Methodology
We used the Finviz stock screener to compile a list of all the best-performing stocks. We then picked the 11 stocks with the highest year-to-date gains, as of March 21. The stocks are ranked in ascending order of their year-to-date performance. We have also added the hedge fund sentiment for each stock which was sourced from Insider Monkey’s database.
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).
11 Best Performing Stocks So Far In 2025
11. China Yuchai International Ltd. (NYSE:CYD)
Year-to-Date Performance as of March 21: 100.73%%
Number of Hedge Fund Holders: 6
China Yuchai International Ltd. (NYSE:CYD) specializes in the production and sale of diesel and natural gas engines for a range of applications. It primarily focuses on its Yuchai segment which manufactures powertrain solutions for on and off-road vehicles, while also engaging in hospitality and property development through its HLGE segment.
The company’s primary revenue driver is its truck and bus engine sales. In 2024, despite the overall Chinese truck and bus vehicle market declining by 2.6%, China Yuchai International Ltd.’s (NYSE:CYD) engine sales in this sector increased by 17.2%. In H2 2024 alone, its truck and bus engine sales rose by 1.6%, while the market saw a 9.9% decline. This helped the full-year 2024 overall revenue at the company to reach RMB 19.1 billion, which was a 6.6% increase year-over-year. The company sold 356,586 engines in 2024, which was up by 13.7%.
The company is developing next-generation emission standard engines and exploring alternative fuels like hydrogen. Its joint venture, MTU Yuchai Power, is expanding the company’s product line. MTU Yuchai Power is a 50-50 joint venture between China Yuchai International Ltd. (NYSE:CYD) and Rolls-Royce Power Systems and is focused on producing and selling high-power generator engines.
10. Accolade Inc. (NASDAQ:ACCD)
Year-to-Date Performance as of March 21: 104.97%
Number of Hedge Fund Holders: 25
Accolade Inc. (NASDAQ:ACCD) provides technology-enabled healthcare navigation and advocacy solutions for employers and employees across the US. Its platform integrates cloud-based technology with personalized support from clinicians and advocates to simplify healthcare and benefits utilization.
The company’s healthcare navigation and advocacy platform uses technology and human support to help clients manage healthcare costs and improve patient outcomes. It has shown strong results with clients like DeVry University, where it achieved a 2% medical cost trend compared to the industry’s 6-10%. Accolade Inc. (NASDAQ:ACCD) now has over $234 million in cash and equivalents as of FQ2 2025.
The company uses AI-driven technology to enhance its human care teams, making its services scalable. It’s focused on disrupting the US healthcare market by creating a collaborative ecosystem that improves patient experiences and lowers costs. Accolade Inc. (NASDAQ:ACCD) is also diversifying its client base across different sectors, including strategic, enterprise, health plan, and government. The company reaffirmed its full-year 2025 revenue guidance of $460 to $475 million.
9. Digital Turbine Inc. (NASDAQ:APPS)
Year-to-Date Performance as of March 21: 108.28%%
Number of Hedge Fund Holders: 12
Digital Turbine Inc. (NASDAQ:APPS) provides a mobile growth platform that operates through On Device Solutions and an App Growth Platform. It connects advertisers, publishers, carriers, and device manufacturers across global markets. Its platform facilitates mobile application delivery, content distribution, and advertising monetization.
In the FQ3 2025, the company’s On-Device Solutions (ODS) segment revenue hit $92 million, which was an 11% improvement year-over-year. International ODS revenue doubled year-over-year. This segment focuses on pre-installing apps and ads on mobile devices. The company is expanding its global device partnerships. It has partnered with companies like Motorola, Nokia, and T-Mobile to increase its device footprint.
It’s also developing new On-Device capabilities, particularly in alternative app distribution, which aims to capitalize on changing regulations worldwide. Digital Turbine Inc. (NASDAQ:APPS) reported $135 million in total revenue for the quarter. The company also implemented a cost reduction program that has already saved $25 million. It’s projecting revenue of $485 to $490 million for the full FY2025.
8. Alpha Technology Group Ltd. (NASDAQ:ATGL)
Year-to-Date Performance as of March 21: 112.16%
Number of Hedge Fund Holders: 1
Alpha Technology Group Ltd. (NASDAQ:ATGL) provides cloud-based IT services. It focuses on customized CRM and ERP systems, web and mobile app development, and AI-powered OCR. It serves diverse industries, which include property, logistics, and social services.
The company is focusing on its AI-driven cloud IT solutions, with a particular emphasis on its Enterprise Resource Planning (ERP) systems. The company’s strategy revolves around integrating AI into these ERP systems to promote digital transformation and sustainable practices. Alpha Technology Group Ltd. (NASDAQ:ATGL) is capitalizing on the current market enthusiasm for AI stocks, particularly those from Chinese companies.
A key aspect of the company’s structure is its high insider ownership, with 67% of shares held by insiders. This insider ownership signifies a strong alignment between management and shareholders. The company reported an annual revenue of HKD 12.35 million for the year ending September 30, 2024. However, it’s currently operating at a loss. It reported a net loss of $705,140 for the year.
7. Root Inc. (NASDAQ:ROOT)
Year-to-Date Performance as of March 21: 110.28%
Number of Hedge Fund Holders: 16
Root Inc. (NASDAQ:ROOT) provides automobile and renters insurance products directly to consumers in the US. Using a mobile-first and online approach, it streamlines insurance services through its app and website. This is supplemented by digital media, agents, and referral partnerships.
The company’s DTC auto insurance is driven by advanced technology. In 2024, the company grew its customer base by 21%, bringing its total number of active insurance policies to over 414,000. The company also demonstrated effective risk management and paid out less in claims than expected. Specifically, it has a gross loss ratio of 59% and a gross combined ratio of 95%.
2024 marked the company’s first full year of net income profitability. It achieved $31 million in GAAP net income. In Q4 2024 alone, the net income was $22 million. Root Inc. (NASDAQ:ROOT) is reducing rates in select states due to its strong loss ratio. It’s also expanding its market reach, and now covers 76% of the US population. The company is investing in data-rich marketing and technology to fuel continued growth with a focus on long-term profitability over short-term gains.
6. Palvella Therapeutics Inc. (NASDAQ:PVLA)
Year-to-Date Performance as of March 21: 128.58%
Number of Hedge Fund Holders: 9
Palvella Therapeutics Inc. (NASDAQ:PVLA) is a clinical-stage biopharmaceutical company that develops novel therapies for rare genetic skin diseases. Its lead product, which is QTORIN rapamycin, is in late-stage clinical trials for microcystic lymphatic malformations (LMs) and cutaneous venous malformations. It targets mTOR-driven skin conditions.
Microcystic LMs currently affect an estimated 30,000 people in the US, and there are no approved treatments. QTORIN rapamycin, which is a topical gel, targets the disease’s underlying pathway. Palvella Therapeutics Inc. (NASDAQ:PVLA) aims to make this the first approved therapy for patients with microcystic LMs.
The company is currently running a Phase 3 clinical trial under the name of SELVA for this lead product. It has about 40 participants and expects results in Q1 2026. This trial has been expanded to include children aged 3-5 years old. Positive results from a Phase 2 trial, which showed 100% of participants improving, boosted investor confidence. The FDA has granted multiple designations to QTORIN rapamycin, which include Breakthrough Therapy, Fast Track, and Orphan Drug. The SELVA trial also received a grant of up to $2.6 million from the FDA.
5. Agilon Health Inc. (NYSE:AGL)
Year-to-Date Performance as of March 21: 115.79%
Number of Hedge Fund Holders: 20
Agilon Health Inc. (NYSE:AGL) provides healthcare services for seniors in the US through primary care physicians. It utilizes a subscription-based model and manages the total healthcare needs of patients on a per-member and per-month basis.
In Q4 2024, the company’s Medicare Advantage (MA) membership reached 527,000, which was a 36% increase year-over-year. However, for 2025, the company is strategically reducing membership to a midpoint of 505,000, which will be a 4% decrease. This adjustment aims to balance risk and opportunities. In Q4, the company’s total revenue was $1.52 billion, which contributed to a full-year total of $6.06 billion. For 2025, revenue is projected to be $5.925 billion.
The company’s strategic adjustments to its MA segment include reducing Medicare Part D exposure to under 30% of membership, focusing on measured growth, and improving clinical and operational capabilities. The company is investing in clinical programs and aiming for 4+ star quality ratings. It has a focus on medication adherence and chronic disease management. These adjustments aim to navigate the challenging Medicare Advantage environment and drive long-term profitability.
Artisan Mid Cap Fund stated the following regarding Agilon Health, inc. (NYSE:AGL) in its Q4 2023 investor letter:
“We ended our investment campaigns in Agilon Health, inc. (NYSE:AGL) and BioNTech during the quarter. We initiated a GardenSM position in Agilon in early 2023 with a view that the company’s health care delivery model had the potential to provide both higher quality and lower cost care to seniors, which is a growing market due to an aging population. The company’s ability to scale while expanding margins was our biggest point of uncertainty, and it came to fruition as membership growth has tracked well but medical margins have struggled. After concluding that our probability of success has decreased, we decided to move on in favor of higher conviction ideas.”
4. Chimerix Inc. (NASDAQ:CMRX)
Year-to-Date Performance as of March 21: 143.39%
Number of Hedge Fund Holders: 17
Chimerix Inc. (NASDAQ:CMRX) is a biopharmaceutical company that develops therapies for life-threatening diseases. Its pipeline includes ONC201 for glioma and neuroendocrine tumors, ONC206 for CNS tumors, ONC212 for oncology indications, and CMX521 for SARS-CoV-2.
The company’s main focus is securing FDA approval for Dordaviprone, which is a potential treatment for a rare and aggressive brain cancer. The FDA has accepted the company’s application and granted it Priority Review, with a decision expected by August 18 this year. If approved, Dordaviprone would be the first specific treatment for this type of cancer. The company is preparing for a potential commercial launch as well.
Dordaviprone has received Rare Pediatric Disease Designation and has applied for a Rare Pediatric Disease Priority Review Voucher (PRV). Dordaviprone also has Fast-Track Designation in the US and Orphan Drug Designation in the US, Europe, and Australia. At the end of 2024, the company had $140.1 million in available capital. Jazz Pharmaceuticals is set to acquire Chimerix Inc. (NASDAQ:CMRX) for $935 million in Q2 of 2025, which underscores the value of Dordaviprone.
3. Collective Mining Ltd. (NYSEAMERICAN:CNL)
Year-to-Date Performance as of March 21: 136.30%
Number of Hedge Fund Holders: 3
Collective Mining Ltd. (NYSEAMERICAN:CNL) is an exploration and development company that focuses on gold projects in South America. Its primary asset is the Guayabales project in Colombia, where it explores for gold, silver, copper, and tungsten deposits.
The company’s primary focus is the Apollo system within its Guayabales Project, where it’s uncovering significant high-grade gold. The Ramp Zone, which is a recent discovery, is a major highlight. Its drill hole, under the name of APC105-D1, hit 75.80 meters at 8.01 g/t gold equivalent, which is the company’s best result yet. This zone spans at least 75 meters in strike, up to 480 meters in width, and 150 meters vertically, and it’s still expanding.
The company is also exploring high-grade sub-zones within Apollo, with drill hole APC104-D5 returning 106.35 meters at 9.05 g/t gold equivalent within a larger 497.35-meter interval at 3.01 g/t gold equivalent. This is Apollo’s best hole to date based on gold accumulation. Other holes also showed strong results and validated the company’s geological model. Collective Mining Ltd. (NYSEAMERICAN:CNL) is also conducting a 60,000-meter drill program in 2025. It currently has 7 drill rigs operating, with 2 more expected soon.
2. Fubotv Inc. (NYSE:FUBO)
Year-to-Date Performance as of March 21: 144.44%
Number of Hedge Fund Holders: 13
Fubotv Inc. (NYSE:FUBO) operates a live TV streaming platform. It offers a mix of live sports, news, and entertainment content, and enables users to access programming across various devices. These include streaming devices, SmartTVs, and mobile platforms.
The company’s main growth engine is its North American streaming service, which is built around live sports. In 2024, the company hit a record $1.6 billion in revenue, which was up 19% year-over-year and included double-digit revenue growth in North America. The company’s subscribers were also up 4% and reached 1,676,000. In Q4 2024, the average revenue per user (ARPU) was a record $87.90.
For Q1 2025, the company expects 1,430,000 to 1,460,000 subscribers and revenue of $400 million to $410 million in North America. A major development is the company’s deal with Disney to combine Hulu + Live TV with fuboTV. This move will make Fubotv Inc. (NYSE:FUBO) the sixth largest pay TV player in the US.
1. Xunlei Ltd. (NASDAQ:XNET)
Year-to-Date Performance as of March 21: 154.77%
Number of Hedge Fund Holders: 4
Xunlei Ltd. (NASDAQ:XNET) operates an internet platform for digital media content using cloud technology. Its services include download acceleration tools, mobile applications, media players, online gaming, advertising, and live streaming. It also offers cloud computing services through OneThing Cloud and StellarCloud, edge computing hardware, and blockchain infrastructure via ThunderChain.
In Q4 2024, the company’s subscription service brought in $34.4 million, which was a 9% improvement from the year before. The company now has 6.38 million subscribers, which is up from 5.99 million year-over-year. 77% of these subscribers are paying for the premium service. For the entire year of 2024, the subscription service generated $133.7 million, which showed a 12% growth.
Xunlei Ltd. (NASDAQ:XNET) is partnering with mobile phone companies to reach new users and adding new features to its service. It has also acquired Hupu, which the company expects will bring in even more users. Hupu is a sports media and data platform in China which is known for its strong online community and comprehensive coverage of sports news and discussions. Xunlei Ltd.’s (NASDAQ:XNET) total revenue for Q4 2024 was $84.3 million, which was up 9.3%. For the first quarter of 2025, the company expects total revenue to be between $85 and $89 million.
While we acknowledge the growth potential of Xunlei Ltd. (NASDAQ:XNET), our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than XNET but that trades at less than 5 times its earnings, check out our report about the 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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