Saira Malik, Nuveen’s Head of Equities and Fixed Income, recently joined CNBC’s ‘Closing Bell’ on February 18 to discuss opportunities outside the tech sector and her outlook for the markets. She began by addressing the two primary factors driving markets this year: technology and tariffs. Malik highlighted that while tech stocks have dominated the narrative, recent developments, such as DeepSeek’s announcement, have raised concerns about the immense spending in AI and the uncertainty surrounding its monetization and returns. Malik emphasized looking beyond tech to areas like infrastructure. She mentioned utility companies as a promising investment. When asked about momentum stocks, Malik explained that the momentum trade has propelled markets over the past few years, with the S&P 500 delivering over 20% annual gains during that period. However, this growth was largely concentrated in the MAG7, which resulted in an S&P 500 valuation premium of 20% above historical averages entering this year. She noted that the momentum trade is now unwinding, partly due to inflated expectations around AI and the lack of productivity gains despite tens of billions of dollars spent in the space.
Malik pointed out that international markets are outperforming US markets this year. European markets, in particular, entered 2025 with a 40% valuation discount compared to US markets and have a more cyclical bias. She stated that year-to-date returns suggest investors would benefit from owning international equities. While she expects the S&P 500 to post about 7% earnings growth for 2025 (following a strong Q4 with 12% year-over-year earnings growth), she believes international markets may continue to outperform due to their discounted valuations and cyclical exposure. Malik concluded by emphasizing the importance of being selective in this market environment. She recommended focusing on smaller mid-cap companies with profits, lower leverage, reduced refinancing risks, or economic sensitivity. Sectors like financials could thrive if deregulation or increased mergers and acquisitions activity materialize. She advised investing in stocks with upward earnings estimate revisions rather than those facing downward adjustments to capitalize on current market conditions.
Methodology
We first sifted through threads and posts on WSB and similar subreddits to compile a list of the top trending stocks among retail investors. We then selected the 11 stocks that analysts were bullish on and had an average upside potential over 40% as of March 3. We also added the hedge fund sentiment for each stock, as of Q4 2024, which was sourced from Insider Monkey’s database. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them.
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. KULR Technology Group Inc. (NYSEAMERICAN:KULR)
Upside Potential as of March 3: 267.65%
Number of Hedge Fund Holders: 6
KULR Technology Group Inc. (NYSEAMERICAN:KULR) develops and commercializes innovative thermal management solutions for a range of critical applications. Specializing in technologies like lithium-ion battery thermal runaway shields and advanced heat dissipation materials, it serves sectors like EVs, energy storage, and 5G communication.
It provides thermal management solutions for the AI infrastructure market. The core focus is on the KULR Xero Vibe and KULR ONE product lines, which are designed to address the cooling needs of AI servers and edge computing devices. The company recently partnered with EDOM Technology, which is an NVIDIA Channel Partner, on January 27. This collaboration allows it to distribute its cooling solutions in Taiwan, which is a hub for AI supply chain development.
The company recently secured a $2.35 million licensing deal for its Xero Vibe technology, which is designed for data center cooling and advanced semiconductor applications. It also has a licensing partnership with a Japanese corporation for data center cooling and HVAC systems. This resulted in a Q3 2024 revenue of ~$3.19 million. It’s now capitalizing on the growing demands of AI infrastructure, which includes potential involvement in large-scale projects like The Stargate Project.
10. enCore Energy Corp. (NASDAQ:EU)
Upside Potential as of March 3: 138.10%
Number of Hedge Fund Holders: 9
enCore Energy Corp. (NASDAQ:EU) is a US focused uranium exploration and development company with a substantial portfolio of resource properties. It holds 100% interests in projects like Crownpoint, Hosta Butte, Dewey Burdock, and Gas Hills, alongside significant land positions in the Grants Uranium District. It aims to capitalize on its extensive acreage and resource base to advance uranium production.
Its primary revenue comes from uranium extraction and sales. It operates two In-Situ Recovery (ISR) uranium processing plants in South Texas: Rosita and the newly commissioned Alta Mesa. This makes it the only US company with two operational uranium processing plants. In the first nine months of 2024, the company generated $45 million in revenue from yellowcake (U3O8) sales. It extracted and packaged 100,261 pounds of yellowcake from its plants. It also delivered 530,000 pounds of yellowcake to fulfill contracts. It secured a new contract to sell 300,000 pounds of yellowcake in 2028-2029.
enCore Energy Corp. (NASDAQ:EU) is expanding production by developing the Upper Spring Creek Project in South Texas. It’s planning a satellite ion exchange (IX) facility to feed the Rosita plant. This project aims for a late H1 2025 start. The company now projects increased revenue due to higher production at Alta Mesa.