In this article, we will discuss the 12 hot stocks to buy according to analysts.
What’s the US Stock Market Like in 2025?
While the stock market in the United States remained closed on January 20 for Martin Luther King, Jr. Day, the day was happening with Donald Trump’s inauguration on the same date. Previously, the stock market enjoyed a rally following Trump’s win as the election uncertainty dissolved and the investor sentiment experienced a boost, looking forward to a pro-business environment.
As reported by Kiplinger, LPL’s chief technical strategist, Adam Turnquist, pointed towards plenty of reasons to be optimistic for the future, considering that the economy is doing well and that earnings are expected to grow again in the new year by double digits while AI simultaneously drives market enthusiasm. Turnquist referred to the Trump admin potentially having a ‘pro-growth agenda, less regulatory oversight, and potentially lower taxes’. Chief Investment Officer at UBS Global Wealth Management, reiterated the optimism, stating:
“The solid U.S. economy bodes well for corporate profits, the Fed remains on an easing path, and AI investment and monetization should continue to lead growth. We rate U.S. equities and quality bonds as Attractive.”
Although lower Fed rates, slowing inflation, and economic growth are factors building optimism, the uncertainty regarding policies, especially potential tariffs on imports from President-elect Trump, could impact the stock market rally. While the new admin is expected to impose up to 20% on all imports, this could depress the profits of American companies having robust sales abroad and hurt stocks. According to Federal Reserve Bank of New York research, Trump’s tariffs during his first term negatively impacted U.S. equities exposed to countries where tariffs were targeted, for instance, a negative shift was witnessed in equity prices on the days Trump tariffs were announced, while the effect was the most on businesses exposed to China. Thus, the past implies tariffs being implemented on Donald Trump’s second term’s day one could act as a downside catalyst for the S&P 500, Dow, and the Nasdaq.
With that being said, let’s take a look at the 12 hot stocks to buy according to analysts.
Our Methodology:
In order to compile a list of the 12 hot stocks to buy according to analysts, we first used a stock screener to create a list of stocks that had gained over 30% over the past 6 months. Moving on, we shortlisted the top 12 stocks from our list which had the highest average upside potential, as of January 17. The 12 hot stocks to buy according to analysts have been arranged in ascending order of their average upside potentials.
At Insider Monkey we are obsessed with 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).
12 Hot Stocks to Buy According to Analysts
12. ZEEKR Intelligent Technology Holding Limited (NYSE:ZK)
Average Upside Potential: 27.01%
Gain Over Past 6 Months: 30.69%
ZEEKR Intelligent Technology Holding Limited (NYSE:ZK) is a global premium electric mobility technology brand owned by Geely Holding Group. ZEEKR started delivering vehicles in October 2021 and aims to become a true mobility solution provider. The company operates its R&D centers and design studios in Hangzhou, Ningbo, Gothenburg, and Shanghai.
As a brand specializing in EVs, ZEEKR has built a diversified product portfolio and aims to sell vehicles in global markets and pursue its roll-out plan over the next 5 years to cater to the rapidly growing global EV demand. While the firm continues to grow its product lineup and fortify each model’s position in its category, it recently marked a significant milestone in the highly competitive mainstream SUV market with ZEEKR 7X’s deliveries surpassing 20,000 units within 50 days since its launch.
ZEEKR Intelligent Technology Holding Limited (NYSE:ZK) continued its growth trajectory over the past year as it recorded a strong 87% year-over-year growth in vehicle deliveries for the full year 2024. The firm delivered 27,190 vehicles in the last month of 2024, marking a 102% year-over-year increase. The firm has plans to achieve deliveries of 320,000 vehicles, looking ahead to the new year 2025.
11. Telephone and Data Systems, Inc. (NYSE:TDS)
Average Upside Potential: 28.93%
Gain Over Past 6 Months: 60.12%
Telephone and Data Systems, Inc. (NYSE:TDS) is a telecommunications company that offers comprehensive telecommunications services and products to consumers and businesses across the US through its portfolio of companies. The company was founded in 1969 and is headquartered in Chicago.
TDS serves approximately 6 million customers nationwide through its businesses, UScellular and TDS Telecom, by providing wireless products and services, cable and wireline broadband, as well as video and voice services. The company delivers 1.2 million high-speed internet, TV entertainment, and phone service connections to small to mid-sized urban, suburban, and rural communities. TDS has the privilege of running the fourth-largest full-service wireless carrier in the United States, UScellular.
To focus its resources appropriately throughout the enterprise, Telephone and Data Systems, Inc. (NYSE:TDS) is currently trying to strategically optimize its portfolio. While the firm completed the sale of its OneNeck operations in the recent quarter, UScellular announced the sale of select spectrum assets for $1 billion to Verizon in 2024’s October, and the sale of additional spectrum to two other mobile network operators. Meanwhile, TDS Telecom successfully hit the milestone of 50% of service addresses now served with fiber. To take a look at how the stock soared to 52-week highs in the prior year, you can view our discussion on the best 52-week high stocks to buy according to analysts.
10. Futu Holdings Limited (NASDAQ:FUTU)
Average Upside Potential: 30.97%
Gain Over Past 6 Months: 40.79%
Futu Holdings Limited (NASDAQ:FUTU) serves as an advanced fintech company that provides fully digital financial services in multiple markets. FUTU offers investment services such as trade execution and clearing, margin financing and securities lending, as well as wealth management, through its proprietary digital platforms, Futubull, and moomoo.
The leading tech-driven online brokerage and wealth management platform, FUTU, boasts solid client momentum. In the first nine months of the preceding year, the firm acquired 487,000 paying clients, driven by strong momentum in newer markets and robust growth in established markets. While client acquisition has accelerated in Hong Kong and Singapore, Malaysia was another top contributor of new paying clients with FUTU elevating its brand image in the country and becoming the first broker in Malaysia to offer U.S. options trading.
The financials remain robust for Futu Holdings Limited (NASDAQ:FUTU) as the company closed the third quarter of 2024 with a total revenue of HK$3.4 billion, up 30% over the year. Brokerage commission and handling charge income was up 51.5% over the year, driven by the 74.7% year-over-year rise in total trading volume, partially offset by the decline in the blended commission rate.
9. Atour Lifestyle Holdings Limited (NASDAQ:ATAT)
Average Upside Potential: 31.16%
Gain Over Past 6 Months: 42.53%
Atour Lifestyle Holdings Limited (NASDAQ:ATAT) is a hospitality and lifestyle company in China. The firm has a diverse and distinct portfolio of hotel brands spanning the whole spectrum of midscale to luxury hotels.
According to Frost & Sullivan, Atour serves as the first hotel chain in China to create a scenario-based retail business while being the largest upper midscale hotel chain in the country in terms of room numbers as of 2023’s end. As of September 30, 2024, Atour’s hotel network boasted a total of 1,533 hotels or 175,199 hotel rooms in operation, witnessing robust year-over-year boosts of 37.9% and 36.1% in terms of the number of hotels and hotel rooms respectively. The firm set a quarterly record by carrying out 140 new hotel openings during its most recent quarter.
While the hotel network growth story is promising, the future potential stands bright with a continuous increase in new signings and a steady pipeline growth while the existing offerings are performing well. The firm’s midscale offering introduced in February 2023, Atour Light 3.0, continues to solidify its competitive edge in the midscale market. Simultaneously, the flagship upper midscale hotel brand, Atour 4.0, is gaining favor among both consumers and franchises.
8. Yum China Holdings, Inc. (NYSE:YUMC)
Average Upside Potential: 33.29%
Gain Over Past 6 Months: 37.04%
Yum China Holdings, Inc. (NYSE:YUMC) serves as China’s largest restaurant company which now operates more than 15,000 restaurants under six brands across nearly 2,200 cities in China and started off as a single restaurant in 1987.
With a vision of becoming the world’s most innovative pioneer in the restaurant industry, the company has the privilege of operating the leading restaurant concepts in China such as KFC and Pizza Hut brands, and emerging brands such as Taco Bell, Huang Ji Huang, and Little Sheep. YUMC has been one of the world’s largest QSR operators by equity store count since it has successfully accelerated growth in store footprint despite a slow Chinese GDP growth in the last decade.
While the company demonstrated a robust performance during the pandemic and emerged from it better positioned, it has continued its momentum. YUMC recently recorded seven consecutive quarters of same-store transaction growth. In the third quarter, the total membership of KFC and Pizza Hut surpassed 510 million. Delivery sales rose 18% over the year thereby enabling Yum China Holdings, Inc. (NYSE:YUMC) to maintain the double-digit annual growth it has sustained over the past 10 years.
7. JD.com, Inc. (NASDAQ:JD)
Average Upside Potential: 40.66%
Gain Over Past 6 Months: 30.37%
JD.com, Inc. (NASDAQ:JD) is a Chinese e-commerce company that entered into the e-commerce sector in 2004 and became the first major e-commerce company from China to be listed on NASDAQ in 2014. JD has transformed from a pioneering e-commerce platform into a leading technology and service provider with supply chain at its core, and has moved into sectors such as retail, technology, logistics, and healthcare, among others.
JD has successfully built leading supply chain capabilities and fulfillment infrastructure over the past two decades. Based on an involvement in China’s national trade-in initiatives, the company is poised for substantial growth. The company introduced the 2025 trade-in initiative on January 1, which covers more than 200 product subcategories while reaching 90% of counties and rural areas.
Citi initiated a 90-day positive catalyst watch and maintained a Buy rating on JD.com, Inc. (NASDAQ:JD) while setting a price target of $51. According to Citi, factors such as the company’s robust supply chain, continuing the national trade-in programs for 2025 through collaboration with major provinces such as Hubei, Jiangsu, and Hunan, and an omnichannel strategy deem JD a preferred partner for local governments.
6. TG Therapeutics, Inc. (NASDAQ:TGTX)
Average Upside Potential: 46.86%
Gain Over Past 6 Months: 30.02%
TG Therapeutics, Inc. (NASDAQ:TGTX) is a biopharmaceutical company that focuses on the development, acquisition, and commercialization of novel treatments for B-cell diseases. While the company has a research pipeline encompassing different investigational medicines, it has secured U.S. Food and Drug Administration (FDA) approval for BRIUMVI for the treatment of adults with multiple sclerosis (RMS).
The firm’s novel therapy for relapsing forms of multiple sclerosis, BRIUMVI, has been quite a performer. While TGTX is engaging in label expansion opportunities for BRIUMVI entering into the new year, it could enhance the market share as well as the drug’s competitive position. Regarding TG Therapeutics, ClearBridge Small Cap Growth Strategy stated the following in its Q4 2024 investor letter:
“TG Therapeutics is a commercial-stage biotechnology company focused on multiple sclerosis (MS), a significant chronic disease end market. Its lead product, Briumvi, has the potential to grow its market share significantly within the largest drug class in the $8 billion MS market.”
While TG Therapeutics, Inc. (NASDAQ:TGTX) posted preliminary revenues for the fourth quarter and full year 2024 which surpassed the firm’s and consensus estimates, primarily driven by the sales of BRIUMVI, the stock received a Buy rating from H.C. Wainwright analyst Edward White who believes in the aforementioned factors driving a strong financial outlook for the company.
5. MicroStrategy Incorporated (NASDAQ:MSTR)
Average Upside Potential: 48.74%
Gain Over Past 6 Months: 121.82%
MicroStrategy Incorporated (NASDAQ:MSTR) offers industry-leading artificial intelligence-powered enterprise analytics software and services. MSTR claims to be the world’s first Bitcoin Treasury company and focuses on the development of the Bitcoin network through activities in the financial markets, advocacy, and technology innovation. The firm has adopted Bitcoin as its primary treasury reserve asset.
MicroStrategy serves as the largest corporate holder of Bitcoin in the world and has successfully acquired additional Bitcoin in every quarter since Q3 2020, thereby demonstrating growth in Bitcoin strategic treasury reserve. MicroStrategy Incorporated (NASDAQ:MSTR) positions itself as a leader in the digital asset as well as the enterprise analytics sectors, based on favorable factors including its strategic Bitcoin reserve, operational excellence, and a focus on technological innovation.
The company recently announced its 21/21 plan with the goal of raising $42 billion of capital over the next three years. This comprises $21 billion of equity and $21 billion of fixed-income securities. MSTR also revised its long-term target to unlock an annual BTC yield of 6% to 10% between the years 2025 and 2027 where BTC yield serves as a key performance indicator used by the firm to help gauge the performance of its strategy of acquiring bitcoin in a way the firm considers is accretive to its shareholders.
4. Corcept Therapeutics Incorporated (NASDAQ:CORT)
Average Upside Potential: 63.95%
Gain Over Past 6 Months: 39.04%
Corcept Therapeutics Incorporated (NASDAQ:CORT) serves as a commercial-stage company involved in the discovery and development of medications to treat severe oncologic, endocrinologic, neurologic, and metabolic disorders by modulating the effects of the hormone cortisol. The firm follows a mission to unlock the potential of cortisol modulation and revolutionize serious disease treatment.
The firm leads the way in the research and development of the molecules that regulate cortisol activity at the glucocorticoid receptor, cortisol modulators, having discovered over 1,000 selective proprietary cortisol modulators to date. Corcept is making strides in healthcare with things like its drug, Korlym, the first medication approved by the FDA to serve patients with endogenous hypercortisolism. While the firm logged a 48% revenue increase in the recent quarter, it increased Korlym prescribers and more patients received Korlym treatment than ever before.
Corcept Therapeutics Incorporated (NASDAQ:CORT) claimed to have set itself for a transformative last quarter of 2024, being all set to submit its NDA (new drug application) for relacorilant as a treatment for patients with hypercortisolism by the end of the year. CORT also expects to release data from its pivotal study in women with platinum-resistant ovarian cancer, its study in patients with amyotrophic lateral sclerosis, and the treatment phase of its CATALYST study in patients with Cushing’s syndrome. CATALYST is the largest study ever done of hypercortisolism in patients with difficult-to-control diabetes.
3. Summit Therapeutics Inc. (NASDAQ:SMMT)
Average Upside Potential: 73.55%
Gain Over Past 6 Months: 99.01%
Summit Therapeutics Inc. (NASDAQ:SMMT) is a biopharmaceutical oncology company that focuses on the development, discovery, and commercialization of medicinal therapies aimed at improving life quality, increasing potential life duration, and serving serious unmet medical needs. Summit Therapeutics was founded in 2003.
The company’s lead pipeline product candidate is ivonescimab, a novel drug that has been designed to improve the balance of anti-tumor activity and safety. More than 2,300 have been treated with the drug across all clinical trials globally. The novel drug is an investigational therapy not approved by any regulatory authority other than China’s National Medical Products Administration and is currently being investigated in global Phase 3 clinical trials.
Truist analyst Asthika Goonewardene assigned Summit Therapeutics Inc. (NASDAQ:SMMT) a buy rating and a $35 price target. The potential of ivonescimab was highlighted, stating that the drug could generate annual sales in the double-digit billions and could make an entry into the United States and Europe as early as 2026. Furthermore, Summit could be an attractive acquisition target for bigger biopharmaceutical companies with ivonescimab having the potential to go beyond just lung cancer and address an even larger market.
2. AST SpaceMobile, Inc. (NASDAQ:ASTS)
Average Upside Potential: 89.79%
Gain Over Past 6 Months: 55.07%
AST SpaceMobile, Inc. (NASDAQ:ASTS) is a US-based satellite designer and manufacturer. The company is building the first and only global cellular broadband network in space which would operate directly with standard, unmodified mobile devices and has been designed for both commercial and government applications.
The AST SpaceMobile differentiation stems from the firm being the only pure play low Earth orbit broadband communications company that is publicly traded, its novel technology solution applicable to a market of 5.6 billion mobile phones and, jointly going to market instead of competing with mobile network operators with hundreds of millions of subscribers. The firm has industry-leading strategic partners, boasting investment, development, and commercial relationships with AT&T, Google, American Tower, Verizon, Vodafone, and Rakuten.
The market opportunity for AST SpaceMobile, Inc. (NASDAQ:ASTS) is extensive, untapped, and expanding considering a $1.1 trillion global mobile wireless services market, a 42% global population without cellular broadband, and nearly 90% of Earth’s surface without cellular coverage.
1. Zai Lab Limited (NASDAQ:ZLAB)
Average Upside Potential: 96.31%
Gain Over Past 6 Months: 37.08%
Zai Lab Limited (NASDAQ:ZLAB) is a fully integrated, commercial-stage, global biopharmaceutical company based in China and the United States. The company came into being in 2014 to address the unmet medical needs in China. Thus, Zai Lab focuses on discovering, developing, and commercializing innovative products to cater to medical conditions with large unmet needs in the areas of oncology, immunology, neuroscience, and infectious diseases.
Zai Lab follows an integrated approach offering competitive advantages for the firm and its partners, with internal R&D centers, small-molecule and large-molecule manufacturing facilities, a strong clinical development team, a highly specialized commercial team for marketing innovative products, and an experienced regulatory affairs group. Although Zai aims to leverage its strength in China and scientific expertise to emerge as a global biopharma leader, it currently focuses on greater China, the second-largest pharmaceutical market in the world. The recent policy updates in China also tend to be supportive of innovation and hence offer a favorable environment to Zai.
The firm continues to advance its global pipeline of innovative medicines while delivering strong commercial results. In the most recent quarter, the net product revenues ended up growing 47% year-over-year to reach $101.8 million. Bank of America Securities has kept a Buy rating on the stock having a price target of $29.00. The stock is a strong buy according to analysts, with an average upside potential of 96.31%.
While we acknowledge the potential of ZLAB as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than ZLAB 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 Complete List of 59 AI Companies Under $2 Billion in Market Cap.
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