Investors who have only been holding index funds in 2025 are breathing sighs of relief now that stocks have rebounded more than 30% from their April lows. But for those investors who are a bit more aggressive and have sought out smaller and more dynamic companies, it’s time to pop the champagne after some of these investments have doubled or even tripled over the last several months.
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To be clear, it’s no easy task to find the up-and-coming stocks that can put up those kinds of numbers. It’s not uncommon for these aggressive investments to currently run at a loss as they seek future growth, and just one misstep can cause a previously impressive rise to end with a crashing fall.
But if you’re looking for the best up-and-coming stocks to buy in 2025 and don’t mind the risk, the following stocks are all valued at under $10 billion and have put up returns of more than 100% since Jan. 1:
| Stock | Market value | Sector | YTD returns |
| Avis Budget Group Inc. (ticker: CAR) | $5.9 billion | Industrials | +108% |
| Dave Inc. (DAVE) | $3.2 billion | Technology | +175% |
| Centrus Energy Corp. (LEU) | $3.8 billion | Energy | +233% |
| Kratos Defense & Security Solutions Inc. (KTOS) | $9.9 billion | Industrials | +122% |
| Pagaya Technologies Ltd. (PGY) | $2.3 billion | Technology | +229% |
| Power Solutions International Inc. (PSIX) | $2.1 billion | Industrials | +212% |
| Sezzle Inc. (SEZL) | $5.2 billion | Financials | +268% |
Avis Budget Group Inc. (CAR)
Market value: $5.9 billion Sector: Industrials YTD returns: +108%
Car rental king Avis is one of the top performers of 2025, more than doubling since Jan. 1. This surge is thanks to a unique but substantial benefit to an otherwise challenging auto market: Challenges with new car inventory and a lack of used cars naturally increases the resale value of the Avis Budget fleet once models roll off the rental lot to be replaced by newer vehicles. It’s also an open question whether U.S. tariffs exacerbate the problem, but the average age of a car is currently nearly 13 years old, so clearly, folks are looking to drive older cars longer rather than buy new.
Dave Inc. (DAVE)
Market value: $3.2 billion Sector: Technology YTD returns: +175%
Dave is a self-described “neobank” fintech company that offers a variety of unique financial services on a mobile platform. The company provides ExtraCash short-term cash advances, digital checking accounts, financial management tools and even a Side Hustle job application portal. This kind of new-age financial platform has really connected with younger consumers or those who don’t trust traditional banks, with Dave projecting 35% revenue growth this year and almost 20% next year. The stock is soundly profitable, too, unlike other fintech startups, making it an up-and-coming stock to watch.
[READ: 7 of the Best Growth Funds to Buy and Hold]
Centrus Energy Corp. (LEU)
Market value: $3.8 billion Sector: Energy YTD returns: +233%
Thanks to the impact of policies in Washington that are looking favorable for nuclear power, Centrus has been on the rise lately. The company provides technical support for reactors as well as supplying uranium. This energy source is in a sweet spot between fossil fuels and more modern green energy sources and is favored by those who don’t trust wind or solar. Formerly known as USEC Inc., short for the United States Enrichment Corporation, that was born right out of the Department of Energy, LEU is one of the few suppliers for the industry. It is seeing big investor interest lately, rising more than 250% year to date.
Kratos Defense & Security Solutions Inc. (KTOS)
Market value: $9.9 billion Sector: Industrials YTD returns: +122%
In an age of geopolitical uncertainty, it’s no surprise that drone specialist Kratos is a go-to stock for many investors. A massive U.S. Air Force contract worth $80 million came through at the end of 2024, and the defense contractor is predicting 12% to 15% revenue growth across the next two years, even as other federal spending areas suffer cutbacks. Beyond unmanned aircraft for the government, Kratos also recently completed a successful trial of a new driverless system for convoys of logging trucks that traverse remote forest regions where traditional GPS and data connectivity aren’t as reliable via “leader follower” platooning. With 14% revenue growth this year expected to accelerate to 17% growth in fiscal year 2026, KTOS is an up-and-coming stock to watch.
Pagaya Technologies Ltd. (PGY)
Market value: $2.3 billion Sector: Technology YTD returns: +229%
Data science and artificial intelligence firm Pagaya is quickly proving itself a very real player in the future of AI. Its unique technology is tailor-made for financial services, ranging from traditional banks to auto lenders and real estate firms, and helps screen lenders and connect firms with the most qualified borrowers to maximize their business. Unlike some of the more pie-in-the-sky applications for AI, this is a proven business with proven profits. Back in 2020, PGY had less than $100 million in total revenue, but is projecting more than $1.2 billion in fiscal year 2025 — which grows to almost $1.5 billion in fiscal 2026. Small wonder that investors have piled into this stock, then, considering it’s one of the few firms that is truly delivering on the promise of disruptive AI technology.
Power Solutions International Inc. (PSIX)
Market value: $2.1 billion Sector: Industrials YTD returns: +212%
Power Solutions manufactures and sells engines and (you guessed it) power systems for applications ranging from vehicles to industrial equipment to backup power generators. The company is growing tremendously, including a first-quarter report that showed sales growth of more than 40% and net income that expanded roughly 170%. Though the potential impact of tariffs remains a concern, PSIX continues to put up tremendous performance with in-demand energy solutions. That makes this one of the best up-and-coming stocks for 2025.
Sezzle Inc. (SEZL)
Market value: $5.2 billion Sector: Financials YTD returns: +268%
Sezzle is a technology-enabled payments company that is best known for its buy-now, pay-later platform. This is not only a dynamic and disruptive business that is gaining momentum over traditional payment channels, but it’s also a business that tends to hold up even in tough times as consumers look for other ways to pay the bills. In May, SEZL delivered strong results in its first-quarter earnings and raised forward guidance even as other stocks on Wall Street are playing their cards close to the vest amid tariff-related disruptions. That, plus tremendous share price momentum, makes Sezzle an up-and-coming stock to buy in 2025.
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7 Up and Coming Stocks to Buy in 2025 originally appeared on usnews.com
Update 07/31/25: This story was published at an earlier date and has been updated with new information.
