“Up-and-coming stocks” refers to stocks of companies that are showing great potential for future growth and success. These companies are often in the early stages of their development and are not yet well-known or widely recognized. They may be introducing innovative products or services, expanding into new markets, or benefiting from favorable industry trends. Investing in up-and-coming stocks can be risky, as there is no guarantee that these companies will achieve their full potential. However, if they do succeed, the returns for investors can be substantial. Some characteristics of up-and-coming stocks include having a promising business model, a strong management team, and the potential for significant revenue growth.
The following seven companies all offer tremendous potential despite their modest sizes. They are certainly not sure things, as the big-picture trends may never pay off – and even if they do, there’s no guarantee these stocks will be on top of the heap anyway. But for those interested in up-and-coming stocks to buy in 2025 instead of the same old megacap leaders, here’s a list of companies to watch:
Exelixis Inc. (EXEL)
Market cap: $10.6 billion
Sector: Health care
Exelixis is a biotech stock that has made a name for itself as a cancer treatment specialist. Its Cabometyx treats several forms of kidney, liver and thyroid cancer, and its Cometriq drug also treats thyroid cancer. These drugs are driving significant sales and earnings now that they are approved and out in the market, with EXEL comfortably profitable and plotting preliminary 20% revenue growth in fiscal 2024. While sales of these drugs are only a start, the proven success and significant profits from these treatments are fueling research into a future pipeline of drugs. What’s more, they also make EXEL an attractive acquisition target from a Big Pharma firm looking to beef up its own oncology business in the years ahead.
Innodata Inc. (INOD)
Market value: $1.1 billion
Sector: Technology
A bit older than some of the stocks on this list, Innodata was founded back in 1988 and previously operated as a small and relatively straightforward IT services company. However, INOD has focused its operations on data mining and artificial intelligence recently, and these efforts have big future potential. Proof of that potential comes from a September earnings report that showed a record 136% revenue growth year over year. Shares have surged more than 300% in the last 12 months, proving this up-and-coming stock has big potential as it continues to tap into the massive opportunities of AI.
Mercurity Fintech Holding Inc. (MFH)
Market cap: $490 million
Sector: Financials
There are many established crypto players out there, from exchange leader Coinbase Inc. (COIN) to multibillion-dollar crypto miners. But Mercurity is a stock that allows investors to get in on the ground floor of a digital assets revolution in another way. Specifically, MFH provides business consultation, distributed storage and computing services to miners and other firms in the space – in other words, it provides infrastructure instead of competing for a piece of the pie. The firm has no significant revenue or profits just yet, as it was recently formed and funded with a goal of future growth, but shares have more than doubled over the last several months in anticipation of that initial financing yielding big returns down the road.
Natural Grocers by Vitamin Cottage Inc. (NGVC)
Market value: $913 million
Sector: Consumer staples
It’s hard to imagine a grocery store operating as a dynamic business. But NGVC has a unique niche, operating both the Natural Grocers market and Vitamin Cottage dietary supplements brand. Two trends have converged to create a massive opportunity for this small-cap stock: a continued focus on healthier eating habits across the U.S., along with dissatisfaction with what many see as overinflated prices at mainstream staples retailers. After the opening of its latest Texas location in January, the company now has about 170 total stores in operation and continues to expand into new markets. It’s also seeing brisk sales growth at existing stores, as evidenced by a more than 7% bump in same-store sales across fiscal 2024. This one-two punch makes Natural Grocers an up-and-coming stock to watch in the New Year.
Rigetti Computing Inc. (RGTI)
Market cap: $2.9 billion
Sector: Technology
A specialist in quantum computers and next-gen computer processors, Rigetti is a key component in the modern technology ecosystem. It also offers cloud data support, algorithm development, and other enterprise-level services on top of the circuits and hardware. Quantum computing – that is, high-tech applications that use principles of quantum mechanics to solve complex problems faster than single-task traditional computing – is a potentially transformational technology. But admittedly, we’re still in the early phases. As such, RGTI is still operating in the red as it scales up to meet demand. But from a top-line perspective, the company is predicting 40% revenue growth in 2025. It also has seen shares rise more than 500% in the last 12 months.
Rush Street Interactive Inc. (RSI)
Market value: $3.5 billion
Sector: Consumer discretionary
Rush Street is growing rapidly thanks to tailwinds created for digital gambling activity across the U.S. The online betting business has been picking up steadily since a 2018 Supreme Court ruling that overturned federal prohibitions on sportsbooks. What’s more, Rush Street has established operations in markets such as Pennsylvania, New Jersey and Michigan that previously allowed digital casino gaming, and these business lines are also growing rapidly. In fact, its most recent earnings report in October showed 37% year-over-year revenue growth, and a modest operating profit compared to losses in the prior year. Perhaps unsurprisingly, shares are up more than three-fold in the last 12 months. The stock is still relatively small in scale despite these gains, however, and has plenty of room for continued growth.
Serve Robotics Inc. (SERV)
Market cap: $917 million
Sector: Industrials
A manufacturer of self-driving delivery robots, Serve is a startup that just entered public markets in 2023. That said, its robots have already completed tens of thousands of deliveries for prominent partners such as Uber Eats and 7-Eleven. That proves this is not just a fly-by-night firm with a pipe dream, but a real business with a practical technology solution it has brought to market. Admittedly, there isn’t a heck of a lot of financial history to dissect. But investors should be interested in the fact that shares have surged 250% in the last year or so, as revenue is set to explode from just a few hundred thousand dollars per quarter to a projected $13 million in fiscal year 2025.