3 Red-Hot Growth Stocks for Your Watch List

  • (0:15) - Should You Buy These Stocks Near Their 52-week Highs?
  • (1:55) - Tracey’s Top Investments For Your Watchlist
  • (16:40) - Episode Roundup: PLTR, INOD, OKLO
  •                 Podcast@Zacks.com

 

Welcome to Episode #461 of the Zacks Market Edge Podcast.

Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life.

This week, Tracey is going solo to talk about the red-hot growth stocks everyone is talking about in October 2025.

It’s not a surprise that all three companies are AI Revolution plays. The AI Revolution is still driving this bull rally from the semiconductors to the infrastructure to the companies that are making AI tools.

All three of these stocks are soaring this year.

But are they too hot to handle after the big rally?

3 Red-Hot Growth Stocks for Your Watch List

1. Palantir Technologies, Inc. (PLTR)

Palantir describes its business as the “foundational software of tomorrow.” It has deployed AI tools into the software. Revenue was up 50% in the second quarter of 2025.

Shares of Palantir are up 132% year-to-date. It’s not cheap. Palantir has a forward price-to-earnings (P/E) ratio of 271. But traders don’t care about the P/E. They care about Palantir’s growth.

Earnings are expected to jump 61% in 2025 and another 30.3% in 2026.

Is Palantir still a buy or is it too hot to handle?

2. Oklo Inc. (OKLO)

Oklo is a fission technology and nuclear fuel recycling company. It is one of the hottest stocks this year.

Shares of Oklo are up 657% year-to-date and 922% over the last year. But Oklo is expected to lose $0.50 in 2025 and another $0.56 in 2026.

Oklo is an AI Revolution play on the need for energy.

Is Oklo in a bubble or is the rally justified?  

3. Innodata Inc. (INOD)

Innodata is a global data engineering company mixing data and AI. It’s a rare small cap AI stock, with a market cap of just $2.6 billion.

Shares of Innodata are up 94% year-to-date and 320% over the last year. While earnings are expected to fall 6.7% in 2025, analysts are forecasting a rebound of 47.6% in 2026.

Innodata isn’t cheap. It trades with a forward P/E of 98.8.

Should a small cap like Innodata be on your watch list?

What Else Should You Know About these Red-Hot Stocks?

Tune into this week’s podcast to find out.

5 Stocks Set to Double

Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Innodata Inc. (INOD) : Free Stock Analysis Report

Palantir Technologies Inc. (PLTR) : Free Stock Analysis Report

Oklo Inc. (OKLO) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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