3 High-Risk Stocks That Soared in 2025 But Can Still Fly Higher

Key Points

• High-risk stocks may be out of favor in 2026, but select growth stocks that surged in 2025 still offer upside in a stock picker’s market.
• FTAI Aviation, Kratos Defense, and Monte Rosa Therapeutics each gained over 100% in 2025 and remain supported by strong sector tailwinds and upcoming catalysts.
• Despite elevated valuations, analysts continue raising price targets, suggesting these speculative stocks could keep climbing in 2026.

There is a growing sentiment that high-risk stocks—particularly some high-growth tech stocks—will be out of favor in 2026. It’s helpful to look at a statement like this on two levels.

Broadly speaking, the statement is largely true. Investors can already see evidence of sector rotation. Industrial stocks and large-cap blue-chip dividend stocks remind investors that boring can be beautiful. Plus, many of these stocks are undervalued—at least relative to themselves.

However, this will continue to be a stock picker’s market. That means some high-risk stocks that made investors rich in 2025 will continue to be good choices in 2026. But investors need to be selective.

If you have room in your portfolio for a little speculation, here are three stocks that soared over 100% in 2025 but continue to have upside in 2026. 

All of these stocks might be considered expensive if they were in different sectors. But because of the sectors they play in and the catalysts that lie ahead, investors seem willing to overlook their lofty valuations.

Aerospace Demand and AI Partnerships Fuel Ongoing Momentum

FTAI Aviation NASDAQ: FTAI is an aircraft equipment manufacturer and lessor. The company’s stock has been surging due to strong demand for new aircraft. FTAI announced two partnerships in 2025 that have boosted the stock.

A collaborative arrangement with GE Aerospace NYSE: GE allows it to service engines from CFM International, a joint venture between GE Aerospace and Safran. And a separate partnership with Palantir Technologies Inc. NASDAQ: PLTR is helping FTAI use artificial intelligence (AI) to achieve “faster production turnaround times and improved unit economics.”

Those partnerships are helping investors overlook FTAI stock’s valuation, which is elevated. As of Feb. 5, FTAI is up over 125% in the last 12 months, and the stock is up 34% in 2026. That’s pushed it close to the consensus price target of analysts.

But looking closer, analysts have been raising their price targets since the beginning of the year. Royal Bank of Canada NYSE: RY has the highest price target of $350. That would be a 32% increase.

Investors will hear more from the company when it reports earnings on Feb. 22. Analysts forecast year-over-year (YOY) growth in revenue and earnings by 34% and 48% respectively.

Defense and Drone Spending Drive a High-Risk Growth Story

The next company on this list is Kratos Defense & Security Solutions, Inc. NASDAQ: KTOS. The company specializes in national security and defense solutions for government and military customers. It’s perhaps best known for supplying drones.

As investors would expect, Kratos has seen solid YOY revenue gains. For now, investors are overlooking the lack of corresponding growth in earnings per share (EPS) and the company’s sky-high valuation. That enthusiasm stems from the company’s position in the defense and space industries.

KTOS stock has a similar story to FTAI. It’s up over 150% in the last 12 months and more than 16% in 2026. It’s also within about 7% of its consensus price target of $95.28 as of this writing. However, once again, analysts have been raising their price targets in the last month, with Stifel Nicolaus having the highest target of $134. Kratos will report earnings on Feb. 25.

Biotech Breakout Powered by AI-Driven Drug Discovery

Biotech stocks have been a hot sector. Investors have to be careful about the risk-reward proposition with each stock. That said, Monte Rosa Therapeutics NASDAQ: GLUE has been a favorite of investors.

This is a clinical-stage company that focuses on drug discovery by integrating single-cell genomics and AI. GLUE stock is up 183% in the last 12 months and 23% year-to-date.

The recent gains have been due to positive interim data that Monte Rosa announced for its ongoing Phase 1 clinical study for its MRT-8102, which is being developed for the treatment of inflammatory conditions.

Despite the strong gains, GLUE stock still trades for less than $20 and has a consensus price target of $31.33, which would be a 61.7% increase from its price on Feb. 5.

Piper Sandler recently matched Wedbush with a $37 price target. Investors will hear more from the company’s progress when it reports earnings on March 19.

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