In this article, we will discuss the 10 Most Promising Stocks with Highest Upside Potential.
On June 16, Savita Subramanian, BofA Securities, joined CNBC’s ‘Power Lunch’ to discuss the overall market environment and whether earnings momentum can continue. While she clarified that she is not outright bearish and sees several attractive opportunities within the S&P 500, specifically recommending the Russell Large Cap Value index, she contended that it has become increasingly difficult to clock further gains from current levels. She outlined several reasons for this stance: good news is already priced in, tech sectors are beginning to experience multiple compressions, and supply-demand dynamics are shifting, with buybacks slowing down among hyperscalers.
Furthermore, Subramanian noted that the shrinkage of available public equity appears to be a trend of the past, and the liquidity spigot is being turned off as the market pivots from expecting Fed and central bank rate cuts to receiving none. She emphasized that while last year saw a record-breaking liquidity environment fueled by buying from individual investors, corporations, and the government, this year features less of that liquidity machine.
In response to a mention of Ed Yardeni’s recent FEMO (fabulous earnings momentum) thesis, Subramanian acknowledged that earnings have been strong, with a 30% increase in Q1, and that strong earnings can indeed fuel gains. However, she argued that the market reacts not just to earnings, but to surprises relative to expectations. She pointed out that analysts are currently forecasting close to the highest long-term earnings growth rates in the history of her data, making it difficult for companies to continue delivering the massive positive surprises that have previously driven the market. She notes that the market’s recent gains were driven by specific, major surprises, like the arrival of ChatGPT, the recovery from COVID, and government or Fed stimulus, and suggested that unless these levers are re-amplified, such as through a ChatGPT part 2, the potential for further upside surprises is limited.
Our Methodology
We used screeners to identify promising stocks that had an average upside potential of at least 45%. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among elite hedge funds and are ranked in ascending order of their upside potential.
Note: All data was sourced on June 19.
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. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points ().
10 Most Promising Stocks with Highest Upside Potential
10. Accenture (NYSE:ACN)
Average Upside Potential: 45.34%
Accenture (NYSE:ACN) is one of the most promising stocks with highest upside potential. On June 18, Accenture announced agreements to acquire a majority stake in Dragos, alongside full acquisitions of runZero and NetRise, for a combined enterprise value of ~$4.175 billion. This move aims to deliver a unified, end-to-end cybersecurity platform for “xOT” environments, which include the critical infrastructure and industrial systems that power energy grids, manufacturing, and data centers.
By integrating Dragos’s OT threat detection with runZero’s attack-surface intelligence and NetRise’s firmware and software supply chain visibility, Accenture aims to create a comprehensive solution for industrial operators. The combined platform will provide a single, vendor-neutral control plane that helps organizations visualize their networks, identify vulnerabilities, and proactively defend against AI-driven cyber threats and geopolitical risks.
These acquisitions significantly expand Accenture’s (NYSE:ACN) footprint from cybersecurity services into the broader OT software market, a sector projected to reach ~$59 billion by 2031. Dragos will continue to operate as an independent business under its current CEO, Robert M. Lee, while using Accenture’s global scale and deep industrial expertise to accelerate the protection of critical infrastructure worldwide.
Accenture (NYSE:ACN) is a global professional services company specializing in strategy, consulting, technology, and digital transformation. Headquartered in Dublin, Ireland, the company provides services in cloud computing, artificial intelligence, security, and operations, helping organizations modernize systems and drive innovation across industries.
9. Veeva Systems Inc. (NYSE:VEEV)
Average Upside Potential: 53.29%
Veeva Systems Inc. (NYSE:VEEV) is one of the most promising stocks with highest upside potential. On June 3, Veeva Systems reported strong financial results for its FQ1 2027, with total revenues reaching $882.9 million, a 16% increase year-over-year. Subscription revenues also saw steady growth, rising 15% to $730.2 million. The company exceeded its guidance across all metrics, leading to an increase in its full-year financial outlook.
The company is undergoing a strategic transformation from an industry-specific application provider to an AI agent company. Key progress includes the integration of conversational AI through the acquisition of Ostro, the upcoming expansion of Vault AI, and the planned early adopter release of Veeva Falcon in November, a platform designed to provide agentic labor for clinical, regulatory, and safety workflows.
Veeva Systems Inc.’s (NYSE:VEEV) commercial sector momentum remains strong, adding 27 new Vault CRM customers this quarter to surpass 150 live implementations. With raised guidance for the remainder of the fiscal year, management remains focused on using these agentic AI capabilities to help life sciences customers accelerate drug development and improve patient outcomes.
Veeva Systems Inc. (NYSE:VEEV) is a provider of cloud-based solutions for the global life sciences industry. Its offerings include cloud software, AI, data, and business consulting.