In this article, we’re going to talk about the 11 Reddit stocks with biggest upside potential.
Paul Hickey, Bespoke co-founder, together with Dana D’Auria, Envestnet co-chief Investment Officer, joined CNBC’s ‘Closing Bell: Overtime’ on November 12 to discuss the market’s reaction to the election results and earnings. Paul Hickey believes that the AI bull market is likely to continue now.
This recent conversation centered around the key forces to watch in the current political and economic landscape, particularly in light of potential energy impacts from Ukraine, shifts in Middle Eastern policies, and possible market effects from trade policies with China. Hickey thinks that as President-elect Donald Trump’s cabinet begins to take shape, it will provide clearer insights into future expectations. He emphasized that while election results can lower barriers to the market and reduce speed bumps, their impact is often overstated. He notes that over the past 16 years, the market has shown strong performance under different administrations, with annualized returns of 16.3% during both Barack Obama’s and Donald Trump’s first terms, and 14% under Joe Biden. This consistency, according to Hickey, suggests that market returns have remained relatively stable despite varying political landscapes.
The conversation also highlighted the ongoing AI bull market, which has been broadening since the summer and is expected to continue. The S&P 500 recently closed above 6,000, reflecting positive momentum in the markets, including gains in the NASDAQ. There was a discussion about how a sweeping victory for one party could have been perceived as detrimental to equities; however, Republicans achieved this outcome and equities responded positively. To maintain this momentum, D’Auria suggested that Republicans might need to exercise more fiscal responsibility. The implication is that a single party cannot implement all its plans without consideration of fiscal implications.
D’Auria thinks that as tax cuts from 2017 are likely to be extended under Republican leadership, inflation concerns may arise due to higher tariffs and increased government spending. The Republican stance thus far has been viewed as pro-business, which is reflected in current market performance. However, a potential challenge lies ahead; she is of the idea that stocks are now being priced with expectations of a low regulatory environment. This regulatory landscape will be crucial for sustaining market growth moving forward.
As the market continues to react positively to political developments and the ongoing AI bull market, investors should consider focusing on stocks with significant upside potential. In that context, we’re here with a list of the 11 Reddit stocks with biggest upside potential to help you diversify your portfolio.
Methodology
We sifted through Reddit threads to compile a list of 30 trending stocks with high upside potentials. We then selected the 11 stocks with the biggest upside potential according to analysts. The stocks are ranked in ascending order of their analysts’ upside potential.
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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
11 Reddit Stocks with Biggest Upside Potential
11. Enphase Energy Inc. (NASDAQ:ENPH)
Average Upside Potential as of November 11: 59.76%
Enphase Energy Inc. (NASDAQ:ENPH) designs, develops, and sells home energy solutions, including solar microinverters, batteries, and EV chargers. It offers cloud-based monitoring and control and sells its products to distributors, installers, and homeowners.
A microinverter is a small electronic device that converts direct-current electricity produced by a solar panel into alternating-current electricity that homes and businesses can use. This company’s IQ microinverters are expanding into new markets, including Japan, where the company is targeting a 1.3 gigawatt market. The IQ8P commercial microinverter is gaining traction in the US, with over 380 sites installed. It is also developing the IQ9 microinverter, powered by Gallium Nitride technology, which will offer higher power output and support elevated AC grid voltages.
The company reported a 30.89% year-over-year revenue decline in Q3, reaching $380.87 million. Despite this, Enphase Energy Inc. (NASDAQ:ENPH) saw a 13% sequential growth, shipping 1.73 million microinverters and 172.9 megawatt-hours of IQ batteries. It is poised to capitalize on international markets, especially in Brazil, India, Vietnam, and the Philippines. Currently, the main driver for its growth remains the US market, where revenue increased 43% sequentially.
While the company has faced challenges due to the declining solar demand and rising interest rates, its long-term growth prospects remain promising.
10. Bitfarms Ltd. (NASDAQ:BITF)
Average Upside Potential as of November 11: 65.37%
Bitfarms Ltd. (NASDAQ:BITF) is a global Bitcoin mining company that develops, owns, and operates vertically integrated mining farms with in-house management and company-owned electrical engineering, installation service, and multiple onsite technical repair centers. It mines cryptocurrency through server farms in Canada, the US, Paraguay, and Argentina.
The company has embarked on a strategic shift, expanding its operations beyond traditional Bitcoin mining to embrace the burgeoning high-performance computing (HPC) and artificial intelligence (AI) market. In the third quarter of 2024, it identified two US sites for 1-2 megawatt HPC/AI pilot projects. These sites are strategically located, with access to reliable and cost-effective power, making them ideal for data center operations.
The acquisition of Stronghold Digital Mining, a vertically integrated Bitcoin mining company focused on environmentally friendly operations, significantly strengthened Bitfarms Ltd.’s (NASDAQ:BITF) energy portfolio, adding over 300 megawatts of US power capacity. This expansion positions the company to capitalize on the growing demand for data center infrastructure and provides a solid foundation for HPC and AI initiatives. Expansions as such have resulted in strong revenue growth for the company, including a 29.65% improvement in Q3 2024.
By leveraging its extensive energy infrastructure, strategic partnerships, and organizational expertise, the company is well-positioned to capitalize on the growing demand for HPC and AI services.
9. Celsius Holdings Inc. (NASDAQ:CELH)
Average Upside Potential as of November 11: 68.13%
Celsius Holdings Inc. (NASDAQ:CELH) produces a range of fitness and energy beverages under the brand name Celsius. Its products are marketed as healthy and are designed to boost metabolism and energy levels. It distributes its drinks through various channels, including stores, online, and fitness centers.
To support its growth, the company is investing in organizational excellence, scaling operations, advancing technology, and developing its workforce. The recent November acquisition of Big Beverage, a long-term co-packer, aims to enhance innovation capabilities, improve supply chain control, and generate long-term financial benefits. It also established a new center of excellence in Ireland to drive innovation, global procurement, supply chain, and marketing efforts. Additionally, Celsius Holdings Inc. (NASDAQ:CELH) is implementing AI-assisted selling tools and optimizing vehicle routes to improve efficiency.
Despite such strides, the company’s revenue declined 30.93% year-over-year in Q3 2024, recording an amount of $265.75 million, primarily due to strategic distributor inventory optimization. Yet, Celsius’ retail sales surged 7.1% year-over-year, fueled by a 7.3% increase in unit sales. Celsius was a key driver of category growth, contributing over 16% to the total. It remains committed to its long-term growth strategy, focusing on energizing customers in more places and more often.
Artisan Mid Cap Fund stated the following regarding Celsius Holdings, Inc. (NASDAQ:CELH) in its Q3 2024 investor letter:
“Among our top detractors were Dexcom, iRhythm and Celsius Holdings, Inc. (NASDAQ:CELH). Celsius is an energy drink company viewed as providing a healthier option than its large competitors. Our thesis was that Celsius’ product portfolio appeals to a broad demographic, creating new consumers and generating more frequent usage occasions for the category. Unfortunately, in recent months we have witnessed a sudden slowdown in both the company’s market share gains and growth in the broader energy drink category. We had expected its progress and overall market expansion to continue in 2024. With evidence to the contrary, we significantly trimmed our position.”
8. AST SpaceMobile Inc. (NASDAQ:ASTS)
Average Upside Potential as of November 11: 70.84%
AST SpaceMobile Inc. (NASDAQ:ASTS) and its subsidiaries develop and provide access to a space-based cellular broadband network for smartphones in the US. Its SpaceMobile service provides cellular broadband services to end-users without terrestrial cellular coverage.
This company made significant strides in the third quarter of 2024. Its first five BlueBird satellites successfully unfolded and entered initial operations. These are a series of satellites designed to provide global cellular broadband coverage directly to smartphones. This achievement marks a crucial step towards providing global cellular broadband coverage directly to smartphones.
To expand its network and improve its service, the company booked slots on rockets to launch up to 60 more advanced satellites called Block 2 BlueBird satellites. These satellites are expected to launch in 2025 and 2026. Additionally, it made a significant technological advancement by successfully testing a new chip called the AST5000 ASIC chip. This chip will help the satellites transmit data faster and more efficiently.
The third quarter of 2024 was a successful one for AST SpaceMobile Inc. (NASDAQ:ASTS). It generated $1.10 million in revenue, which was $100,000 higher than Street estimates. The focus of the quarter remains on the BlueBird satellites that feature the largest commercial communications arrays ever deployed in low Earth orbit, aiming to deliver voice, data, and video services across select global markets. AST SpaceMobile Inc.’s (NASDAQ:ASTS) financial strength will enable the company to continue its ambitious plans to revolutionize global connectivity.
7. enCore Energy Corp. (NASDAQ:EU)
Average Upside Potential as of November 11: 76.17%
enCore Energy Corp. (NASDAQ:EU) is committed to providing clean, reliable, and affordable fuel for nuclear energy as the only US uranium producer with multiple production facilities in operation. It acquires, explores, and develops uranium properties and owns several projects in key uranium-rich regions like New Mexico, Utah, South Dakota, Wyoming, and Arizona.
It reported positive financial results and operational progress for the three and nine months ended September 30. The company’s revenue reached $45 million during the nine months, driven by increasing uranium extraction and yellowcake sales. The commissioning of its second uranium processing plant, Alta Mesa, further supported its production capabilities. Revenue for Q3 2024 alone was $9.20 million.
The company successfully met its contractual obligations by delivering 530,000 pounds of yellowcake during the period, utilizing both purchased and processed uranium. Additionally, it secured its 8th uranium supply contract with a US nuclear utility, guaranteeing the delivery of 300,000 pounds of yellowcake at a favorable price point.
enCore Energy Corp. (NASDAQ:EU projects to process over 1 million pounds of yellowcake annually by 2025. Continued supply disruptions and geopolitical tensions are also expected to contribute to a favorable contracting environment for uranium producers, positioning this company for growth.
6. 23andMe Holding Co. (NASDAQ:ME)
Average Upside Potential as of November 11: 85.02%
23andMe Holding Co. (NASDAQ:ME) provides genetic testing services to help people understand their ancestry, health risks, and medication responses. Its CLIA-certified lab extracts DNA from cells in saliva samples, then the lab processes the DNA on a genotyping chip that reads hundreds of thousands of locations in the genome. This genetic data is analyzed to generate personalized reports based on well-established scientific and medical research.
A very recent development at the company includes a significant restructuring, involving a 40% reduction in its workforce. This decision aims to streamline operations and reduce costs. The company will incur up to $12 million in restructuring costs but expects to realize annualized savings of over $35 million. As part of this restructuring, it will also cease its therapeutics development efforts and explore strategic options for these assets, including licensing agreements, asset sales, or other transactions.
Despite these challenges, it remains focused on its core consumer business and research partnerships. The company plans to prioritize recurring revenue through its subscription business to drive future growth. However, for FQ2 2025 revenue decreased by ~12% year-over-year to $44 million, primarily due to lower consumer and research services revenue.
In FQ2 2025, it launched the first AI chatbot available to 23andMe customers, “DaNA,” to highlight key health and other important results for customers, making actionable insights easier to identify. 23andMe Holding Co. (NASDAQ:ME) remains committed to its core mission of empowering individuals through genetics.
5. Luminar Technologies Inc. (NASDAQ:LAZR)
Average Upside Potential as of November 11: 85.19%
Luminar Technologies Inc. (NASDAQ:LAZR) is a technology company that develops vision-based LiDAR and machine perception technologies, primarily for self-driving cars. It also develops advanced technologies like specialized chips and lasers.
The company has a strong focus on growing partnerships with global automakers. Volvo Cars recently deepened its relationship with Luminar Technologies Inc. (NASDAQ:LAZR). Building on the successful launch of the Volvo EX90 equipped with this company’s LiDAR, Volvo has chosen it as standard equipment for an additional vehicle model. In Q3 2024, it successfully delivered a significant amount of product for the Volvo EX90, exceeding the combined shipments of the previous 3 quarters. Additionally, with global deliveries underway, Volvo is expanding the EX90’s reach beyond the US market.
It also secured a new advanced development contract with a prominent Japanese automaker. This collaboration focuses on integrating the company’s LiDAR technology and developing new software capabilities for the automaker’s next-generation advanced driver-assistance system (ADAS). It further underscores its position as a key player in enabling future ADAS and autonomous driving systems.
4. Viking Therapeutics Inc. (NASDAQ:VKTX)
Average Upside Potential as of November 11: 88.97%
Viking Therapeutics Inc. (NASDAQ:VKTX) is a clinical-stage biotech that develops drugs for metabolic and endocrine disorders. Its lead drug treats non-alcoholic fatty liver disease, and it has other drugs in development for conditions like hip fractures, type 2 diabetes, and rare genetic diseases.
It experienced a data-rich period during the first three quarters of 2024, with positive data emerging from four clinical trials and promising preclinical results from a new program.
The Phase 2 VENTURE trial evaluating subcutaneous VK2735 for obesity, a dual agonist of the GLP-1 and GIP receptors, demonstrated significant weight reduction after 13 weeks of treatment. Additionally, a Phase 1 trial investigating an oral formulation of VK2735 showed excellent tolerability and encouraged weight loss.
The Phase 2b VOYAGE study evaluating VK2809 for NASH (nonalcoholic steatohepatitis) and fibrosis achieved its primary and secondary endpoints, indicating reductions in liver fat and improvements in NASH resolution and fibrosis. It acts as a selective thyroid hormone receptor beta agonist to improve liver health and lipid metabolism.
A 28-day Phase 1b trial of VK0214 in patients with X-linked adrenoleukodystrophy (X-ALD), aiming to reduce the accumulation of very long-chain fatty acids (VLCFAs) in the body by activating the thyroid hormone receptor beta, showed safety, tolerability, and significant reductions in plasma levels of very long-chain fatty acids and other lipids compared to placebo.
Viking Therapeutics Inc. (NASDAQ:VKTX) is optimistic about its pipeline’s future and is committed to advancing these programs in the upcoming quarters.
Alger Mid Cap Focus Fund stated the following regarding Viking Therapeutics, Inc. (NASDAQ:VKTX) in its Q2 2024 investor letter:
“Viking Therapeutics, Inc. (NASDAQ:VKTX) is a clinical-stage biopharmaceutical company focused on developing novel therapies for patients suffering from metabolic and endocrine disorders. Their lead drug VK2809, a beta-selective thyroid hormone receptor agonist, is in development for nonalcoholic steatohepatitis and nonalcoholic fatty liver disease. Their VK2735 drug is a GLP-1 dual agonist being developed for patients with obesity. During the quarter, the company’s shares were negatively impacted by several factors: 1) a challenging environment for biotechnology stocks, exacerbated by Fed policy decisions to maintain elevated interest rates, 2) increased competition in the obesity treatment landscape, 3) manufacturability and scalability concerns regarding Viking’s obesity drug and 4) the absence of strategic partnerships from large pharmaceutical companies. Despite the challenging quarter, we continue to believe that the company’s GLP-1 drug has the potential to be a best-in-class obesity drug given its favorable efficacy and safety profile. Further, with approximately one-third of U.S. adults suffering from obesity, we believe the company’s GLP[1]1 drug has the potential to address a large market once approved.”
3. Archer Aviation Inc. (NYSE:ACHR)
Average Upside Potential as of November 11: 100.22%
Archer Aviation Inc. (NYSE:ACHR) designs and develops a fully electric vertical takeoff and landing eVTOL aircraft for use in UAM (Urban Air Mobility) networks. This means that these aircraft can take off and land vertically, and they’re meant to be used in a network of air travel routes. It is creating an electric airline that moves people throughout cities in a sustainable, and cost-effective manner.
The Federal Aviation Administration (FAA) recently made significant progress in regulating electric air taxis, paving the way for their commercial launch in the US by 2025. This is a major step forward for the future of urban air mobility. Archer Aviation Inc. (NYSE:ACHR) has been working closely with the FAA to certify its Midnight aircraft, an eVTOL aircraft.
The company has already completed the initial stages of the certification process and is now focused on meeting the specific safety requirements set by the FAA. It’s also working with international regulators to expand its global reach. To support its production goals, It’s building a manufacturing facility in Georgia and plans to start production in early 2025.
With strong industry partnerships and continued innovation, the future of electric air taxis looks promising, and so this company becomes a promising investment.
2. Altimmune Inc. (NASDAQ:ALT)
Average Upside Potential as of November 11: 167.76%
Altimmune Inc. (NASDAQ:ALT) is a clinical-stage biopharmaceutical company that develops peptide-based therapeutics for obesity and liver diseases. Its lead drug, Pemvidutide, targets obesity and liver inflammation.
The company reported positive developments for its drug candidate Pemvidutide, a novel GLP-1/glucagon dual agonist in its obesity program, designed to treat obesity and metabolic dysfunction-associated steatohepatitis (MASH). It finished enrolling patients in its Phase 2b IMPACT trial (~190 people). This trial assesses Pemvidutide’s effectiveness and safety in treating MASH. Top-line data on the drug’s success is expected in the second quarter of 2025. If successful, Pemvidutide could become the first MASH treatment to achieve both reduced liver fat and significant weight loss within 24 weeks.
Overall, it has finalized the design of four pivotal Phase 3 trials with the FDA to assess the impact on obesity-related comorbidities. Additionally, data from a Phase 2 study highlighted its ability to reduce body fat by 21.9% while preserving lean muscle mass, especially in older adults. To expand Pemvidutide’s potential, the company plans to submit IND applications for up to three additional indications by the end of 2024, with the first trial anticipated to start in H1 2025.
Altimmune Inc. (NASDAQ:ALT) is confident that 2025 will be a significant year for Pemvidutide and the company based on the progress made and upcoming milestones.
1. Wheels Up Experience Inc. (NYSE:UP)
Average Upside Potential as of November 11: 1512.09%
Wheels Up Experience Inc. (NYSE:UP) provides private aviation services, offering membership programs for individuals and businesses in the US, and is one of the largest private aviation companies in the world. It offers a complete global aviation solution with a large, modern, and diverse fleet, backed by an uncompromising commitment to safety and service.
The company reported stable third-quarter results, with revenue of $194 million, which was sequentially flat. It’s actively modernizing its fleet with newer, more efficient aircraft like the Phenom and Challenger, which will reduce operating costs and improve operational reliability.
To accelerate the transition process, the company acquired a fleet of 17 Phenom jets from GrandView Aviation. This acquisition will make Wheels Up Experience Inc. (NYSE:UP) the largest provider of on-demand Phenom aircraft globally. It plans to gradually phase out its older jets and replace them with the new Phenom and Challenger aircraft over the next three years.
This includes transitioning to Embraer Phenom 300 and 300E jets. This move will consolidate three different fleets into one, simplifying operations and reducing costs. Additionally, they plan to replace their Citation X fleet with Bombardier Challenger 300 and 350 aircraft while keeping their King Air fleet.
With a strong financial position and a focus on operational excellence, Wheels Up Experience Inc. (NYSE:UP) is well-positioned to capitalize on the growing demand for private aviation and achieve sustainable growth in the future.
While we acknowledge the growth potential of Wheels Up Experience Inc. (NYSE:UP), our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than UP but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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