Up-and-coming stocks can offer investors something that established blue-chip companies often can’t: the potential for explosive growth. While dominant companies are more stable, agile upstarts can gain customers, launch new products or unlock earnings growth at much faster speeds.
That potential comes with clear risks, of course, as smaller companies with less-established business models don’t have the deep pockets or entrenched customer bases that Wall Street icons do. There’s also the risk of overhyped narratives convincing traders to buy for a short-term gain and then quickly sell and drive prices lower when they’ve given up.
Investors should carefully research any of these picks to find identifiable catalysts that could drive continued growth, such as new products, regulatory approvals or rapidly expanding markets. But if the risks seem worth the potential reward, these up-and-coming stocks could be attractive bets for those looking to unlock significant outperformance or uncorrelated returns in the future:
| Stock | Market capitalization | Year-to-date return as of Sept. 16 |
| AAR Corp. (ticker: AIR) | $4.6 billion | 41.6% |
| Applied Digital Corp. (APLD) | $7.6 billion | -0.5% |
| AxoGen Inc. (AXGN) | $2.7 billion | 38.8% |
| CG Oncology Inc. (CGON) | $6.6 billion | 78.5% |
| Dave Inc. (DAVE) | $4.6 billion | 65.2% |
| Intuitive Machines Inc. (LUNR) | $2.4 billion | -14.5% |
| Marex Group Ltd. (MRX) | $5.3 billion | 89.9% |
AAR is an interesting under-the-radar way to play the commercial aviation market. It provides aircraft maintenance, parts and supply-chain services without actually dealing with ticketing and consumer facing issues. That gives it exposure to a long-term trend that shows no sign of slowing down: Airline travel is persistently growing, and carriers need to keep every plane flying. The move toward third-party maintenance providers to supplement or replace operations is a megatrend across the sector as a result. The recent launch of AAR’s Airvoyant AI-powered procurement platform is helping to accelerate this growth, and the realities of an aging fleet make this stock a likely winner in the years ahead. Shares are up about 60% in the past 12 months and more than 250% in the last five years to prove this niche stock can still deliver impressive returns.
Applied Digital Corp. (APLD)
A direct beneficiary of the spending boom surrounding artificial intelligence, Applied Digital is cashing in as it helps build and operate high-performance data centers designed to provide the computing infrastructure that AI companies are hungry for. Unlike some hyped-up names, however, there’s compelling evidence in the long-term staying power of this mid-cap AI stock. Applied Digital forecasts almost 40% revenue growth this fiscal year that accelerates to about 130% growth next year. That will take total sales from about $600 million in fiscal year 2026 to almost $2 billion in 2028. The major risks here are valuation and execution, as a lot of that future success is priced in. But if AI computing demand continues growing at anything close to its current pace and Applied Digital delivers on its current outlook, it has the potential to jump from a mid-sized tech player to one of the dominant public companies benefiting from the long-term data center buildout.
AxoGen is a particularly compelling example of an up-and-coming medical technology company because its investment thesis is tied to a specific regulatory milestone that has already occurred: Food and Drug Administration approval. In December 2025, the company’s Avance peripheral nerve repair treatment got its regulatory approval and commercial availability began this year. AxoGen is now profitable, and more importantly has an opportunity to expand the market for its nerve-repair technology. What’s more, Medicare increased facility reimbursement for Avance procedures by 40% in hospital outpatient settings and 35% in ambulatory surgery centers, which could significantly increase adoption. Admittedly, AXGN is no longer an undiscovered stock; it has run up more than 170% in the past year on these headlines. However, there is a big addressable market in nerve repair, and this could be a top healthcare stock to watch in this category.
Speaking of big addressable healthcare markets, CG Oncology is an up-and-coming stock with high risk and high potential in the area of cancer treatment. Its experimental cretostimogene grenadenorepvec treatment from whence the company gets its name holds high promise for a specific form of bladder cancer, where there are incredibly limited options for doctors right now. CG Oncology is currently not profitable, as it has been advancing the drug through late-stage clinical development and is preparing for a biologics license application. Following discussions with the FDA, the company expects to win approvals in the fourth quarter and push into commercialization next year. While there is big risk for a stock that doesn’t currently have a revenue model, CG Oncology has received both FDA Fast Track and Breakthrough Therapy designations to highlight the potential of this treatment area. Shares have more than doubled in the past year thanks to strong investor optimism, so this is definitely a development stage drugmaker to watch.
Perhaps the most unconventional company on this list, Dave sits at the intersection of fintech, consumer finance and artificial intelligence. The company’s CashAI technology uses data and machine learning to evaluate customers and determine the size of cash advances and short-term loans. That gives Dave the potential to limit risks and make better lending decisions all while rapidly expanding the number of customers it serves. Recent operating performance provides some support for this thesis as Dave has been expanding ExtraCash originations while continuing to grow revenue, with predictions of more than 30% growth on both the top and bottom lines this fiscal year. The most obvious downside is that consumer lending is inherently risky and cyclical, and the kinds of customers Dave tends to serve don’t have much room for error if the economy tanks. But despite being one of the more speculative choices on this list, the 65% year-to-date return proves this fintech stock is on the way up.
Intuitive Machines Inc. (LUNR)
Intuitive Machines is a space stock with a clever ticker symbol, offering investors exposure to the development of a potential commercial space economy. Though not yet profitable, the company is rapidly scaling up with staggering revenue growth of about 330% this fiscal year. That’s in part because Intuitive Machines has already made inroads with NASA on the use of its products for lunar missions, and that relationship has given others a lot of confidence. As proof, this summer the firm reported a second-quarter backlog of approximately $1.8 billion, a dramatic increase that included a major satellite contract, as well as news that it is broadening into missile-defense applications and national security satellite infrastructure. There’s obviously a lot of uncertainty around commercial space opportunities, but Intuitive Machines is steadily becoming a regular part of the conversation.
Marex is perhaps the best example of a stock on this list that could surprise investors, simply because the underlying business is a bit arcane and won’t draw as many headlines as commercial space flight or AI. Marex is a London-based financial services company that provides trading, clearing and liquidity services across commodities and financial markets – making it a kind of market utility that serves the global financial system. This includes “market making,” where the firm helps match buyers and sellers of securities without actually taking a position itself. This model creates an interesting catalyst for growth, as increased trading activity across a host of markets is causing continued demand for infrastructure companies like Marex. What’s more, Marex benefits from volatility and uncertainty while some of the other names on this list may see pressure if the stock market gets rocky. As a result, MRX may be the safest bet, even if it’s not the sexiest. The company is expecting earnings to surge 80% this year, and it has deep relationships with mega-cap financial institutions that give it a bit more certainty than healthcare or tech stocks.
