We recently published a list of the 12 Best IPO Stocks to Buy in 2025. In this article, we are going to take a look at where OneStream, Inc. (NASDAQ:OS) stands against other best IPO stocks to buy in 2025.
On February 25, Hamilton Lane co-CEO Erik Hirsch joined ‘Closing Bell Overtime’ on CNBC to discuss the developments that currently hinder the IPO pipeline. Erik Hirsch noted that there are two competing factors at play. On one side, there is general market uncertainty, which is currently the dominant issue. While on the other side, there are positive factors: many high-quality businesses in private markets are ready for an exit. They are mature, cash flow positive, and growing. The IPO market is the logical conclusion for them, and the public markets need more new names to reduce concentration in a few technology businesses. For the public markets to be healthy, they need fresh blood.
Hirsch believes the IPO market can have a good year without relying solely on software. There is room for more software companies, but there is also interest in traditional non-tech businesses to balance market weightings. He identified sectors that could see growth, such as manufacturing, which could benefit from reshoring and reinvestment in the US. The food supply chain and healthcare are also expected to benefit from administrative changes. Regarding President Trump’s positioning on tariffs, Hirsch thinks it is more about negotiating tactics than actual tariffs. If negotiations cease and tariffs become the focus, there will likely be a market reaction. The uncertainty extends to government job cuts, with questions about the scale of reductions and where displaced workers will go. Despite some positive signs for certain sectors and businesses ready for IPOs, market uncertainty, and regulatory changes are holding back the IPO market and dealmaking. The environment of unpredictability makes it challenging for companies to pursue IPOs or M&A deals at present.
Still, the IPO market holds promise due to a strong backlog of mature and high-quality private businesses eager for public exits.
Our Methodology
We used the Finviz stock screener to compile a list of the top companies that went public in the last 2 years. We then selected 12 stocks with high analysts’ upside potential that were also the most popular among elite hedge funds. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey’s database which tracks the moves of over 900 elite money managers.
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).
A scientist at a computer station, surrounded by a neural network of artificial intelligence code.
OneStream, Inc. (NASDAQ:OS)
Average Upside Potential as of March 21: 55.62%
Number of Hedge Fund Holders: 34
OneStream, Inc. (NASDAQ:OS) offers a unified and AI-enabled Digital Finance Cloud platform. It provides solutions for financial close, planning, analysis, and reporting, and serves global enterprises and government entities. It helps organizations streamline financial processes and gain end-to-end visibility into their financial and operational data.
In 2024, the company’s total revenue reached $489 million, which represented a 31% year-over-year increase. Subscription revenue surged by 41% to $428 million. The platform’s value is evident in its 98% gross retention rate. The company’s core business is its cloud-based financial and operational data platform, which is driven by its Finance AI solutions. The company is actively expanding its Finance AI portfolio and developing new solutions like ESG reporting and Sales Performance Management (SPM).
The Finance AI segment grew with a quadrupling of bookings and customer adoption. It has a Sensible Machine Learning (SML) segment. Customers using SML reported an average 20% improvement in forecast accuracy and an 80% reduction in forecast cycle time. By the end of 2024, the company’s ARR reached $568 million. For 2025, OneStream, Inc. (NASDAQ:OS) projects total revenue to be between $583 and $587 million.
ClearBridge Mid Cap Growth Strategy saw positive returns from new investments, which included OneStream, Inc.’s IPO. This indicated successful stock selection and strong growth potential for the company. It stated the following in its Q3 2024 investor letter:
“We are encouraged by the high proportion of positive returns on new ideas added over the last five quarters of elevated new idea generation, with solid contributions to overall performance despite their representing a modest portion of the Strategy’s assets.
We continued to deliver strong new idea generation, adding four new investments in the quarter: OneStream, Inc. (NASDAQ:OS) (through participating in its IPO), Abercombie & Fitch, Wintrust Financial, and FTAI Aviation.
OneStream is a horizontal software company focused on back-office solutions for the office of the CFO. With a largely organically built platform offering, selling to the enterprise and competing against a variety of entrenched legacy providers, OneStream offers best-in-class growth and ramping profitability.”
Overall, OS ranks 8th on our list of the best IPO stocks to buy in 2025. While we acknowledge the growth potential of OS, 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 OS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
