Stock gains always get people talking, and 2025 is no exception. Markets have moved higher for a while due to a shift toward tech innovation. The pace might slow after two years of significant returns, but investors have regained their confidence after the Stargate project was announced.
Small and mid-sized companies have started to pick up pace recently and are landing on investors’ radars as mega-cap stocks are now trading at nosebleed valuations. These companies have higher growth potential than their mega-cap rivals, and that explains the sudden surge of interest.
Smaller and mid-tier stocks did face challenges in prior years when corrections and interest rate hikes weighed on market sentiment. However, now that inflation seems more contained and Trump pushes for more rate cuts, things look even better for these mid-sized stocks.
A close-up of a chart of company stock prices rising, reflecting its market capitalization.
Methodology
For this article, I screened the top-performing stocks year-to-date in the $5 billion to $20 billion market capitalization bracket. Stocks that I have covered recently will be excluded from this list.
I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds invest in? 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).
15. Hims & Hers Health (NYSE:HIMS)
Number of Hedge Fund Holders In Q3 2024: 31
Hims & Hers Health (NYSE:HIMS) is a telehealth company. It offers prescription and over-the-counter medications.
HIMS stock has climbed significantly so far in 2025, partly due to analysts raising expectations for revenue growth and profitability. That is due to new product launches. Moreover, Needham & Company reiterated its Buy rating and increased its price target to $31. It called Hims & Hers a top digital health pick for the year and sees a growing lineup for treatments for weight loss.
Hims & Hers also has a partnership with Eli Lilly to expand obesity medication access and boost growth. Q3 sales jumped 77% year-over-year to $400 million, and adjusted EBITDA came in above $50 million. Management also forecasts Q4 2024 revenue between $465 million and $470 million, up about 89% to 91%.
Analysts have a consensus price target of $27.8, implying 10% downside risk.
HIMS stock is up 22.86% year-to-date.
14. Onto Innovation (NYSE:ONTO)
Number of Hedge Fund Holders In Q3 2024: 25
Onto Innovation (NYSE:ONTO) is a process control and semiconductor manufacturing tools supplier. This company sells tools that can detect and optimize semiconductor manufacturing.
ONTO is up sharply due to the company delivering strong growth in its advanced node and advanced packaging segments. These segments are key for AI chips. Analysts at Needham then named the stock their 2025 Top Pick and placed it on their Conviction List.
Needham noted that Onto’s limited dependence on China and its exposure to TSMC’s CoWoS packaging approach boosted investor confidence. Cantor Fitzgerald and Oppenheimer have also reiterated positive ratings and price targets.
Onto Innovation reported Q3 2024 revenue of $252 million, up 22% year-over-year. Gross margins reached around the mid-50% range.
Analysts have a consensus price target of $246.7, implying 17% upside.
ONTO stock is up 22.9% year-to-date.
