Five Stocks Showing Explosive Growth in January
No need to wait for the next big thing in the markets—these five stocks have already broken out in early 2025

- Five stocks have already delivered impressive gains in 2025: Akero Therapeutics,Guardant Health, Hims & Hers Health, MP Materials and Tempus AI.
- Biotech and tech are dominant these days, but other industries seem sure to grab the market’s attention in the coming months.
- Staying attuned to trends at the single-stock level will help identify high-growth opportunities.
Some breakout stocks are capturing attention with impressive performances and compelling potential for growth. From biotech breakthroughs to leaders in AI and rare earth materials, these companies are poised to excel. Five at the forefront have posted standout year-to-date returns and have solid business models: Akero Therapeutics (AKRO), Guardant Health (GH), Hims & Hers Health (HIMS), MP Materials (MP) and Tempus AI (TEM).

Akero Therapeutics
Akero Therapeutics has had a remarkable 92% gain year-to-date, driven by the success of its Phase 2b SYMMETRY study. The data from this mid-stage trial demonstrated that Akero’s lead drug, efruxifermin (EFX), could reverse cirrhosis in patients with compensated cirrhosis because of metabolic dysfunction-associated steatohepatitis (MASH)—a critical breakthrough in liver disease treatment. With a market capitalization of $4 billion and shares trading around $54, Akero is attracting growing interest among investors, especially as it advances through its Phase 3 SYNCHRONY program.
The 96-week results from the SYMMETRY study are especially promising, with 39% of patients receiving 50mg EFX experiencing cirrhosis reversal without worsening MASH, compared to just 15% in the placebo group. This achievement in MASH, a market projected to reach $9.5 billion by 2025, positions Akero well for continued growth. The company’s Phase 3 SYNCHRONY trials—including SYNCHRONY Real-World and SYNCHRONY Histology—are expected to provide additional critical data, solidifying the potential for EFX to become a leading treatment for MASH.
Akero’s performance has caught the attention of analysts, with Bank of America recently upgrading the stock to a “buy” and raising its price target to $63 per share from $35, calling the data “game-changing.” Analyst sentiment is strong, with all 12 analysts covering the stock rating it a “buy” and an average price target of $72 per share. This collective optimism highlights Akero’s potential to continue growing in the near term.
While Akero’s Price-to-Book (P/B) ratio stands at 5.2, above the sector median of 2.3, it’s a premium that can arguably be justified given the groundbreaking nature of the company’s clinical progress and the large market opportunity in MASH. The company’s financial position is strong, with $787 million in cash, ensuring it has the resources to fund its Phase 3 trials and continue development through the coming years. With major competitors like Novo Nordisk (NVO) and Madrigal Pharmaceuticals (MDGL) also targeting MASH, the niche is becoming more competitive. However, with its strong clinical data and analyst support, shares of Akero look compelling for investors looking to capitalize on the potential of its promising pipeline.

Guardant Health
Guardant Health, trading around $47 per share with a market cap of $6 billion, has delivered a strong performance this year, with a 50% increase in its stock price. Q3 2024 revenue of $191.5 million was up 34% year over year, driven by strong performances in both clinical and biopharma tests. Guardant Health also raised its full-year revenue guidance to $720-$725 million, marking growth of approximately 28%-29%, compared to 2023. The company’s promising innovations, including its blood-based cancer detection tests like Guardant360 and Shield, have contributed to the momentum.
Guardant360, a liquid biopsy test that offers a non-invasive method to detect genetic mutations in cancers, continues to drive the company’s success. Additionally, Shield, the company’s blood test for colorectal cancer screening, has received Medicare pricing approval, setting the stage for greater adoption. While these products are gaining traction, the company remains unprofitable and is still grappling with heavy cash burn. For instance, in Q3 2024, Guardant reported a net loss of $107.8 million, though its free cash flow did improve compared to the previous year.
Despite its solid growth in the number of tests performed and positive early feedback on Shield, the company faces challenges. The stock is trading near its average analyst price target of $46 per share, meaning the near-term upside may already be priced in. Guardant Health’s Price-to-Sales (P/S) ratio of 8.75 is also elevated compared to the sector median of 3.75, which raises concern about valuation. With 25 analysts covering the stock, 23 have a “buy” or “overweight” rating, highlighting broad consensus in favor of the stock.
The outlook for Guardant Health remains promising, particularly with its Shield test and other cancer detection innovations. However, the elevated valuation and continuing unprofitability, compounded by potential dilution risk from future funding requirements, suggest the stock could be more volatile in the near term. While it has considerable long-term potential, its high valuation and the risks tied to its heavy investments in research and development (R&D) and capital expenditures may warrant a more cautious stance.

Hims & Hers Health
Hims & Hers Health has seen its stock jump by 55% year-to-date, reflecting strong growth and expanding subscriber numbers. Trading at around $37 per share with a market cap of roughly $8 billion, the company’s performance continues to impress, particularly with revenue growth and an expanding suite of health and wellness offerings. The company’s telehealth platform boasts over two million subscribers, with its core offerings extending beyond sexual health and hair loss into areas like mental health, weight loss and skincare. Despite its success, Hims & Hers faces headwinds, including regulatory concern over its compounded GLP-1 agonist business and increasing competition, particularly from giants like Amazon (AMZN).
Hims & Hers reported robust Q3 earnings, with revenue reaching $402 million, a 77% increase year-over-year. The company continues to scale, with its subscriber base growing 44% year-over-year. A major contributor to this growth has been the introduction of compounded GLP-1 agonists, although this could be subject to FDA scrutiny, adding a layer of uncertainty. Adjusted EBITDA for Q3 was $51.1 million, an increase of 317% compared to the previous year, and the company expects full-year 2024 revenue to exceed $1.46 billion, representing 32% annual growth. However, with the stock trading well above the average analyst price target of $29 per share, valuation concerns loom.
The stock is debated on Wall Street, with eight analysts rating it a “buy” or “overweight,” while six maintain a “hold” and two rate it “underweight.” This divided opinion highlights the volatility surrounding Hims & Hers. Its business model relies on compounded GLP-1s. While the company has diversified its portfolio somewhat, some analysts remain cautious about the future of its GLP-1 offerings. The price-to-book ratio of 17 is quite high compared to the sector median of 2, and the price-to-sales (P/S) ratio of 5 is also above the sector average of 3.5. These numbers suggest the stock might be overvalued. But at the same time, the company’s strong revenue growth and expanding market presence cannot be ignored.
Looking ahead, Hims & Hers offers substantial growth potential, especially if it continues to expand beyond its GLP-1 business and leverages its telehealth platform for personalized care. However, the stock’s high valuation and the mixed analyst outlook make it a riskier play for investors. The stock could exhibit elevated volatility as it navigates the regulatory landscape and tightening competition. Regulatory decisions related to GLP-1s could have a profound effect on its stock price. Considering all of these factors, investors may want to approach the company with caution—especially those more averse to risk.

MP Materials
MP Materials trades at about $22 per share with a market capitalization of $3.5 billion, after rising 36% year-to-date. As the largest rare earth producer in the Western Hemisphere, MP plays a pivotal role in supplying critical materials for industries such as electric vehicles (EVs), renewable energy and high-tech electronics. The company is rapidly expanding its operations, moving from upstream mining to midstream refining and, more recently, downstream production of magnets. It’s positioned to become a key player in restoring the U.S. supply chain for rare earth magnets, with its facility in Fort Worth, Texas, expected to start producing neodymium-iron-boron (NdFeB) magnets by the end of 2025.
The company’s Q3 earnings results revealed a 20% increase in revenue to $62.9 million, driven by higher sales of separated NdPr and increased rare earth oxide (REO) production volumes. However, despite this growth, the company posted an Adjusted EBITDA loss of $11.2 million and a net loss of $25.5 million. The losses were mainly attributable to rising costs as the company attempted to ramp up production, as well as some production inefficiencies discovered at its Stage II facilities.
MP Materials’ Price-to-Sales ratio of 20+ is considerably higher than the sector median of 1.3, and its Price-to-Book ratio of 3.30 also exceeds the sector’s 1.70 median. These high valuation multiples reflect the company’s growth potential but also signal caution, especially in light of the company’s current unprofitability and cyclical pressures on rare earth pricing.
Despite the current financial challenges, MP Materials looks well-positioned for long-term growth. That’s in part because tensions between the U.S. and China have increased the strategic importance of MP’s operations. The company’s efforts to expand its production capacity, coupled with its involvement in restoring the U.S. supply chain for critical rare earth materials, should support future demand. However, it faces risk related to commodity price fluctuations and global economic conditions because of the cyclical nature of the rare earth market and its need for capital investment to expand its operations.
For investors with this long-term conviction, there may be opportunities for gains as the company continues to grow and capitalize on its position in the rare earth market. Of the 13 analysts who cover the stock, nine rate the shares a “buy.” At the same time, this stock offers an intriguing opportunity for traders who are looking to capitalize on shifts in U.S.-China relations because of its sensitivity to geopolitical developments. As a result, MP Materials presents a dual opportunity: One for those who see the potential for growth and profitability, and another for those looking to trade around near-term geopolitical volatility.

Tempus AI
Tempus AI (TEM), a leader in AI-powered precision medicine and diagnostics, has seen an impressive 80% gain year-to-date, reflecting growing investor confidence as the company continues to push boundaries in healthcare technology. The stock trades at around $57 per share, with a market capitalization of $9 billion, and has made notable strides in its genomics and data services businesses. The company’s ability to leverage its vast datasets to offer actionable insights for healthcare professionals and pharmaceutical companies is at the heart of the recent rally. The company is on track to reach profitability in 2025, bolstered by its expanding partnerships and the recent acquisition of privately held Ambry Genetics.
Tempus’ Q3 earnings showed solid growth, with revenue increasing 33% year-over-year to $180.9 million. The company’s data services segment, which includes its AI-driven platforms like Tempus NOW and COHORTS, saw impressive growth of 64% year-over-year, signaling strong demand for its offerings. However, Tempus is still posting a net loss of $75.8 million in the quarter, although that figure reflects notable improvement compared to previous periods. Tempus expects its full-year 2024 revenue to reach $700 million, with a projected 32% annual growth, putting it on a solid trajectory for success.
The company’s price-to-sales ratio (P/S) stands at 8, which is reasonable in the context of its growth trajectory and compared to the sector median of 4. However, the P/B ratio of 165 is quite high, reflecting the market’s high expectations for Tempus. The company’s Price/Book ratio of 31—compared to the sector median of 2.75—indicates the company’s valuation is based more on its potential than its current performance.
Analysts are notably optimistic about Tempus’ growth potential, with 8 out of 11 rating the stock a “buy.” This confidence is likely fueled by the company’s robust cash position of $466 million and the support of prominent pharmaceutical partners. However, the average price target among analysts is around $57 per share, indicating the stock’s upside may be limited at its current price. Another critical factor is broader sentiment in the AI sector, which could affect the stock price to a greater degree than the company’s individual fundamentals.

Honorable Mention and takeaways
Besides these five standout stocks, several others have emerged as strong performers. The growing interest in expanding the country’s power-generating capacity through nuclear energy, stocks like Oklo (OKLO) has helped push its shares up an impressive 90% so far this year. Read more about this exciting story here. Additionally, M&A activity has benefited companies like H&E Equipment Services (HEES) and Inari Medica l (NARI), which have seen their stock prices rise by 84% and 54%, respectively, year-to-date, thanks to buyouts.
Looking ahead, stay on the lookout for emerging narratives at the single-stock level. While sectors like biotech, AI and rare earth materials are leading so far in 2025, other industries could quickly rise. And by staying attuned to trends, investors can quickly identify opportunities with high-growth potential. For those interested in the small cap niche, these five companies have also marked strong gains over the last 52 weeks.
Andrew Prochnow has more than 15 years of experience trading the global financial markets, including 10 years as a professional options trader. Andrew is a frequent contributor Luckbox magazine.
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