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.
13. Bloom Energy (NYSE:BE)
Number of Hedge Fund Holders In Q3 2024: 25
Bloom Energy (NYSE:BE) is a renewable energy company that provides solid oxide fuel cell systems. It can run on various fuels, and its customers include data center companies.
BE stock is up significantly year-to-date due to a major deal with American Electric Power for 1 gigawatt of Bloom’s fuel cell products. The first order includes 100 megawatts for AI data centers. More orders will likely follow in 2025.
Analysts have also raised price targets due to the growth opportunity here, especially when it comes to data centers and cloud computing. Bloom also has a collaboration with SK Ecoplant in South Korea that could fuel more growth due to its focus on large-scale fuel cell deployments.
The company is still unprofitable, but there have been solid margin improvements here. COGS has been reduced, and the gross margin has increased.
Analysts have a consensus price target of $24.5, implying 16.6% downside risk. That said, price targets are likely to be raised more.
BE stock is up 25.6% year-to-date.
12. Qorvo Inc (NASDAQ:QRVO)
Number of Hedge Fund Holders In Q3 2024: 40
Qorvo Inc (NASDAQ:QRVO) is a semiconductor company. It also has power management tools and transistors.
The stock has risen sharply after Starboard Value disclosed a 7.7% stake in this stock worth over $500 million. The company is known for making operational changes that tend to increase share prices. This is why QRVO stock moved higher on speculation that this fund could improve margin and make operations more efficient down the line.
Market sentiment improved significantly again after Morgan Stanley upgraded the stock from “Equal Weight” to “Overweight.” Some analysts also think that any turnaround effort will succeed, as Starboard engaged with Qorvo’s predecessor TriQuint in the past.
Analysts have a consensus price target of $85.5 on the stock, implying 3.66% downside.
QRVO is up 26.8% year-to-date.
11. Life Time Group Holdings (NYSE:LTH)
Number of Hedge Fund Holders In Q3 2024: 27
Life Time Group Holdings (NYSE:LTH) is a health and wellness company. It runs a network of athletic clubs and offers memberships to fitness facilities. The business mostly relies on recurring membership revenue, along with some revenue from personal training and nutritional programs.
LTH rose significantly so far in 2025 due to Life Time posting stellar 2024 results and optimistic guidance for 2025. Total revenue for 2024 grew by about 18%, and net income rose by almost 100%. It also plans to open 10 to 12 new centers this year and another double-digit revenue increase. It projects 75% net income growth.
As such, many analysts see it as a solid buy and have increased their price targets. The current consensus price target on the stock is at $33.4, implying 16.4% upside.
LTH stock is up 28.3% year-to-date.
10. Summit Therapeutics (NASDAQ:SMMT)
Number of Hedge Fund Holders In Q3 2024: 21
Summit Therapeutics (NASDAQ:SMMT) is a biopharmaceutical company. It focuses on oncology and has therapies for non-small cell lung cancer.
The lead product here is ivonescimab, which is a bispecific antibody designed to block PD-1 and inhibit VEGF. The company has already reached multiple Phase III studies after the HARMONi banner in patients with EGFR-mutated NSCLC who have progressed after TKI therapy.
SMMT stock has risen significantly so far in 2025 due to it completing enrollment for its HARMONi Phase III trial and announcing that the FDA granted it fast-track designation for ivonescimab. This fueled a lot of optimism around the company.
Moreover, Summit Therapeutics has a cash reserve of around $410 million. That said, it is still pre-revenue, with a net loss of $56.3 million.
The average analyst price target is at $35.4, implying 49% upside.
SMMT stock is up 29.6% year-to-date.
9. Kratos Defense & Security Solutions (NASDAQ:KTOS)
Number of Hedge Fund Holders In Q3 2024: 21
Kratos Defense & Security Solutions (NASDAQ:KTOS) is a tech company focused on satellites, unmanned systems, and space system products. It also has missile defense and hypersonic systems.
The stock is up significantly so far in 2025 due to the announcement of a $24.85 million contract modification from the U.S. Marine Corps to help integrate mission systems and subsystems for the MQ-58 Valkyrie drone variant. It is a tactical UAP. It can support electronic warfare and also carry weapons.
Kratos has also posted solid growth. Q3 2024 revenue reached $276 million. EPS also beat analyst expectations and reached $0.02. Management has a forecast base-case scenario where revenue grows 10% in fiscal 2025.
Analysts have a $32.38 consensus price target on the stock, implying 5.46% downside.
KTOS stock is up 30.2% year-to-date.
8. BridgeBio Pharma (NASDAQ:BBIO)
Number of Hedge Fund Holders In Q3 2024: 46
BridgeBio Pharma (NASDAQ:BBIO) is a biopharma company that makes treatments for genetic disorders. It has programs for cardiomyopathy, muscular dystrophy, skeletal dysplasias, gene therapy, and more.
BBIO stock has risen sharply so far in 2025 due to it receiving FDA approval for its leading drug called acoramidis, which is now branded as Attruby. It treats transthyretin amyloid cardiopathy (ATTR-CM). This approval took effect in late 2024. The commercial uptake so far seems to be strong, and BridgeBio disclosed that 430 prescriptions were written by 248 unique physicians. Moreover, the drug is being adopted at both academic centers and community sites.
In addition, early demand seems pretty solid. They also see three other Phase 3 trials in advanced stages, and these trials target conditions like limb-girdle muscular dystrophy type 2I/R9, autosomal dominant hypocalcemia type 1, and achondroplasia, so there is broad potential for additional approvals in 2025.
BridgeBio ended its last quarter with about $406 million cash on hand. It then secured “up to $1.25 billion of capital” from Blue Owl and CPP Investments in exchange for a 5% royalty on future global net sales of acoramidis.
The average analyst price target on the stock is at $50.6, implying 37% upside potential.
BBIO stock is up 31.2% year-to-date.
7. Blueprint Medical (NASDAQ:BPMC)
Number of Hedge Fund Holders In Q3 2024: 37
Blueprint Medical (NASDAQ:BPMC) is a biopharma company that makes medicine for allergies, inflammation, and a number of cancers.
The lead product here is AYVAKIT (avapritinib). It is approved for several forms of systemic mastocytosis, and the company’s pipeline includes an oral KIT inhibitor called BLU-808, which is in development for allergic and inflammatory diseases.
BPMC stock surged in 2025 due to it updating its long-term outlook and announcing new data. It reaffirmed a large revenue opportunity for its systemic mastocytosis franchise. In January 2025, it said that AYVAKIT’s launch showed momentum and that new epidemiology data showed systemic mastocytosis was more common than previously thought. Not only that, Phase 1 results for BLU-808 came in positive.
Recent filings also show revenue gains have been solid, and losses have narrowed a lot more than previously expected. Management also guided for $475 million to $480 million in full-year 2024 AYVAKIT revenue. That means over 130% year-over-year growth. It forecasts AYVAKIT alone could reach $2 billion in annual revenue by 2030. Revenue from the overall systemic mastocytosis franchise could approach some $4 billion at its peak.
The consensus analyst price target on BPMC stock is at $126, implying 8.9% upside.
BPMC stock is up 32.57% year-to-date.
6. Option Care Health (NASDAQ:OPCH)
Number of Hedge Fund Holders In Q3 2024: 31
Option Care Health (NASDAQ:OPCH) provides home and alternative site infusion treatments. It has therapies for heart failure and many other diseases. The company also offers nursing services.
The stock has spiked so far in 2025 due to management reporting strong preliminary financial results for 2024 at about $5 billion in revenue and net income in the range of $208.5 million and $212.6 million. The guidance for 2025 calls for $5.2 billion to $5.4 billion in net revenue.
The company also announced a $500 million stock repurchase program in January and completed the last $90 million of an earlier repurchase plan.
Some analysts have also upgraded the stock, with Jefferies raising its price target to $35 due to the consistent execution along with fewer pricing worries for its Stelara drug.
The analyst consensus price target is $30.8, implying 2.33% upside.
OPCH stock is up 32.62% year-to-date.
5. IES Holdings (NASDAQ:IESC)
Number of Hedge Fund Holders In Q3 2024: 25
IES Holdings (NASDAQ:IESC) provides electrical systems in the U.S. The company also sells them to the booming data center industry.
IESC stock has increased significantly so far in 2025 due to its announcement that it doubled its revolving credit facility from $150 million to $300 million and extended the maturity date to 2030. Moreover, it switched from an asset-based structure to one that is cash-flow based which will allow it to borrow more easily.
It also released its 2024 full-year earnings. Revenue grew 21% year-over-year to $2.9 billion, and net income doubled to $219.1 million, up from $108.3 million in 2023. Not only that, management commented that there was strong demand from data centers.
Analyst coverage is pretty limited here.
IESC stock is up 35.9% year-to-date.
4. Nebius Group (NASDAQ:NBIS)
Number of Hedge Fund Holders In Q3 2024: 17
Nebius Group (NASDAQ:NBIS) is a tech company that makes AI infrastructure like GPU clusters and cloud platforms for machine learning.
The stock surged in 2025 due to it completing a $700 million equity financing round. It was oversubscribed and is helping the company with its global AI infrastructure roll-out. Moreover, it is expanding in the U.S. with GPU clusters in Kansas City and has offices in San Francisco.
It generated $9.1 billion in TTM revenue. It isn’t profitable yet, but investors think the rapid scale-up will lead to profitability down the line.
There is only one price target on the stock. It is $51, which implies 22% upside.
NBIS stock is up 36.6% year-to-date.
3. Guardant Health (NASDAQ:GH)
Number of Hedge Fund Holders In Q3 2024: 28
Guardant Health (NASDAQ:GH) is an oncology company that makes blood and tissue tests for cancer.
The stock is up significantly in 2025 due to its announcement that its revenue for all of 2024 was $737 million, up 31%. Q4 revenue also reached $200 million. Test volumes have increased in both its clinical and biopharma segments.
Moreover, Guardant Health has obtained Medicare coverage for its minimal residual disease (MRD) test. Plus, it launched a blood test for colorectal cancer.
The average analyst price target for the stock is $44, implying 6.8% downside.
GH stock is up 48.6% year-to-date.
2. Tempus AI (NASDAQ:TEM)
Number of Hedge Fund Holders In Q3 2024: 7
Tempus AI (NASDAQ:TEM) is a healthcare company that uses AI for sequencing tests and has a data platform.
It has jumped significantly so far in 2025, mostly due to Nancy Pelosi disclosing that she bought 50 call options here at a $20 strike price. The company also has a concierge app called Olivia. Many now think that the AI theme is spilling into healthcare, especially as it was mentioned a lot during the Stargate announcement.
Tempus’ latest preliminary financials for 2024 showed $693 million in annual revenue, up 30% year-over-year. It also reached $200 million in Q4 revenue. Genomics was up 30% in Q4, plus data and services revenue grew 45%. That said, there was some softness in the contract research organization work.
Management is guiding positive adjusted EBITDA in the near term, and the company’s acquisition of Ambry Genetics may boost revenue more.
Analysts have an average price target of $59, implying 14.8% upside.
The stock is up 50% year-to-date.
1. Intra-Cellular Therapies (NASDAQ:ITCI)
Number of Hedge Fund Holders In Q3 2024: 44
Intra-Cellular Therapies (NASDAQ:ITCI) is a biopharma company that makes small-molecule drugs. These drugs are mostly for CNS conditions, and the main product here is already approved in the U.S. for schizophrenia and depressive episodes linked to bipolar disorder.
The stock rose sharply in 2025 after Johnson & Johnson announced that it would acquire Intra-Cellular Therapies for $14.6 billion in cash at $132 per share.
Intra-Cellular Therapies continued to post strong gains in Caplyta sales. In its Q3 2024 report, the company recorded net product sales of $175.2 million, up 39% from the same quarter in 2023. Total quarterly revenues were $175.4 million, and the net loss was $26.3 million.
In addition, management has their 2024 sales guidance at $655 million to $685 million and says the company has more than $1 billion in “cash, cash equivalents, investment securities, and restricted cash.”
The average analyst price target for ITCI is $120.9, which implies 5% downside.
ITCI stock is up 51.2% year-to-date.
While we acknowledge the potential of ITCI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ITCI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 10 Hottest Mid-Cap Stocks So Far in 2025 and 10 Hottest Smid-Cap Stocks So Far In 2025
Disclosure: None. This article was originally published at Insider Monkey.
