5 Best Up and Coming Stocks To Look Out For

Introduction

Ever wonder why some stocks skyrocket while others just fizzle out, even when the numbers don’t quite add up? You’re not alone, I’ve seen this puzzle play out countless times while digging into market trends.

The truth is, it’s not just about the financials, it instead has more to do with momentum, hype, and investor sentiment. With years of watching the market’s ups and downs, I’ve learned to spot those hidden gems, up and coming stocks, that display real potential.

Below I’ll show you five picks that could potentially get you future gains.

What are up and coming stocks?

So, what exactly are up and coming stocks? They’re shares in companies that aren’t household names yet but are showing serious signs of growth. Something similar to the underdogs of the stock market.

These types of stocks can be categorized as businesses in emerging industries or those shaking things up with innovation. Unlike blue-chip giants, these stocks often fly under the radar, offering you a chance to get in early before the crowd catches on.

List of the best up and coming stocks

Below is an overview of the up-and-coming selected stocks based on an array of criteria such as market trends, sentiment, and innovation.

• Palantir Technologies - Best for data-driven investors
• Rivian Automotive - Best for EV enthusiasts
• Celsius Holdings - Best for health-conscious investors
• Duolingo - Best for EdTech fans
• Axon Enterprise - Best for safety sector bets

Introducing the criteria for great up and coming stocks

Finding and identifying these stocks can be a troublesome process, which is why I focused on the following key criteria to ensure I have singled out the creme of the crop.

• Growth potential: Strong revenue increases or untapped markets.
• Innovation: Cutting-edge products or services setting them apart.
• Market buzz: Positive sentiment from analysts and investors.
• Financial health: Solid fundamentals to back up the hype.

Best for Data-Driven Investors

Palantir Technologies (PLTR)

Palantir has shown impressive growth throughout 2024, with revenue up 27% year-over-year (YoY), reaching approximately $2.5 billion for the full year. Its revenue from the commercial sector grew by 64% YoY in Q4 2024, leading to successful market penetration.

The company also posted a record quarterly profit of $106 million in Q1 of 2024, signaling an improvement in the company's profitability. By Q4, US revenue growth hit 52% YoY, and Palantir raised its 2025 revenue guidance to 31% YoY growth, crushing overall consensus estimates.

Future growth potential:

Palantir’s growth trajectory looks strong, with analysts eyeing a potential $3.2 - $3.5 billion revenue target for 2025. Its expansion into the private sector, alongside steady government contracts, suggests a CAGR of 25-30% over the next 3-5 years, gearing Palantir up for explosive growth.

The company may also see growth across these areas:

• AI Analytics Boom
• Commercial Pivot
• High Valuation Risk
• Government Stability

The stock’s premium valuation reflects market confidence in its AI-driven platforms, though it could face pressure if growth slows or competition intensifies.

Best for EV Enthusiasts

Rivian Automotive (RIVN)

Rivian’s 2024 financials reflect a company still scaling up. Revenue nearly doubled in Q4 2023 to $1.3 billion, but losses widened due to production costs, producing flat production for 2024 disappointing investors.

By 2025, Rivian’s $5 billion Amazon delivery van deal and R1T/R1S sales are driving revenue, though profitability remains elusive. The stock has struggled, dropping 18% after Q4 2023 results, signaling execution challenges.

Why Rivian?

Rivian aims for 150,000 vehicles annually by 2026, implying a revenue potential of $10 - $12 billion if it hits targets, assuming they sell at an average of $70,000 per vehicle. The EV market is projected to grow at a 15-20% CAGR through 2030, but Rivian’s success hinges on overcoming production hurdles and competing with Tesla.

Its Amazon partnership and niche in adventure EVs could drive out a $20 billion market cap by 2030 if execution improves, but this is based on numerous ifs, and if we see strong market penetration, then Rivian may climb to new heights.

Best for Health-Conscious Investors

Celsius Holdings (CELH)

Celsius posted a stellar 2024, with sales up 68% YoY, translating to roughly $1.8 - $2 billion in annual revenue. The stock rose 50% in the past year, reflecting strong consumer penetration and user growth. Partnerships with retailers such as Target have boosted distribution, and its zero-sugar, fitness-focused branding has driven margins higher than traditional energy drink peers.

Why Celsius?

The functional beverage market is expected to grow at a 7-9% CAGR through 2030, and Celsius could double its revenue to $4 billion by 2028 if it maintains similar momentum we have seen throughout 2024. International expansion and new product lines (e.g., fitness supplements) could further lift growth, though saturation in the energy drink space poses a ceiling.

However, the energy drink sector is crowded, with giants like Monster and Red Bull dominating shelf space. Celsius’ 68% growth could slow as competition intensifies or consumer interest wanes. Furthermore, Celsius's $900 million debt from the Alani Nu acquisition could strain finances if growth falters, especially with high valuations (4.45x sales).

Celsius is certainly an up and coming stock to pay attention to, as one of the fastest-growing energy drinks on the market, we may see continued growth throughout 2025 that could translate to your portfolio.

Best for EdTech Fans

Duolingo (DUOL)

Duolingo’s revenue has doubled since 2022, hitting $600 - $700 million in 2024, driven by its 100 million+ monthly active users. Its freemium model, the free lessons it offers with premium upsells, has driven explosive user growth, while profitability is improving as subscription revenue scales.

Why Duolingo?

With EdTech projected to grow at a 13-15% CAGR through 2030, Duolingo could reach $1.5 billion of revenue by 2028, especially with its upcoming expansions into math and music. Its addictive, gamified approach could push its user base to 150 million, a 50% increase, over the next several years.

However, converting free users remains a big hurdle for the business, with only 8.8% of users paying. Scaling profitability depends on increasing conversions, which could alienate free users or face resistance from competitors offering free content. Furthermore, tariff-related economic pressures or reduced disposable income could lower subscription uptake, impacting Duo's growth.

Regardless, Duolingo is a strong up-and-coming contender, as it has quickly become a household name among all those looking to expand their language knowledge; combined with creative marketing, Duolingo may see strong stock growth in the foreseeable future.

Best for Safety Sector Bets

Axon Enterprise (AXON)

Axon’s revenue rose 30% YoY in 2024 to $1.8 - $2 billion, driven by government contracts for tasers and body cams. The stock climbed 40% year-to-date, reflecting strong demand and cloud software growth, designed as an evidence management system.

Why Axon?

The public safety tech market could grow at a 10-12% CAGR through 2030, with Axon potentially hitting $3 - $4 billion in revenue by 2028. Its niche dominance and push into AI-enhanced surveillance suggest sustained growth.

On the other side, body cam bans or privacy laws across the EU and the US could limit market adoption, especially if police reform gains traction amid public scrutiny, placing strain on Axon's market growth. In addition, emerging tech firms or larger players such as Motorola Solutions could challenge Axon’s niche, particularly in AI surveillance.

It's certainly an out-there-in-the-open stock, but if these hurdles can be overcome and a continued increase in revenue growth, then Axon will see strong future returns.

Conclusion

There we have it, the 5 best up-and-coming stocks to look out for. It might be refreshing to finally read about stocks that aren't dominating the tech sector, i.e., Nvidia, but with the growing uncertainty around the looming trade war, it is good to diversify your portfolio.

Palantir’s got the tech edge, Rivian’s driving the EV future, Celsius is riding the health wave, Duolingo’s teaching the world, and Axon’s keeping things safe. Each has its own flavor, so pick what vibes fit your goals.

Frequently Asked Questions

What makes a stock "up and coming"?

It all revolves around growth potential, its technological advantage, and strong market sentiment. Stocks such as these are capable of reaching skyrocketing increases, but are also prone to reversal shifts also.

How risky are up and coming stocks?

Moderately risky, up and coming stocks are not as risk-averse as penny stocks, but are not as stable as large-cap companies such as Nvidia, Tesla, etc...

Where can I research these stocks more?

You can utilize AI tools such as Intellectia to identify and analyze up and coming stocks. You can also use more popular channels such as news and listen to financial experts to gain a stronger understanding of these types of stocks.