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3 Stocks With the Most Upside by the End of 2026

2026-07-30 20:30 James Brumley The Motley Fool Positive Axe Cap view: Selective EquitiesEarningsTechnologyAISemiconductorsHealthcare CRSPMSFTRXRX

Axe Cap view

Three Stocks with Clear Upside Potential by 2026

Gene editing, cloud restructuring, and AI drug discovery offer tangible growth stories worth watching.

Looking ahead to 2026, three stocks stand out for their significant upside. CRISPR Therapeutics is finally moving beyond the lab phase with its Casgevy treatment ramping up—revenues are set to quadruple next year, which could be a game changer if patient trials go as planned. Microsoft has been beaten down on worries about its cloud and AI segments but is actively reshaping its business with cost cuts and refocus efforts; the current price seems to underestimate its long-term growth potential by about 40%. On the smaller, riskier side, Recursion Pharmaceuticals is flying well under most analyst radars as its AI-driven drug pipeline readies for key milestones in late 2026. For South African investors, there’s no direct trade, but the USD/ZAR is likely to be affected by how these global tech and biotech firms perform, as foreign inflows can sway the rand strongly, especially with persistent risk aversion. this is just our opinion and not financial advice

How I would invest

Buy CRISPR and Microsoft for exposure to innovation with improving fundamentals. Watch Recursion for potential outsized gains but only allocate small risk capital. Hedging USD/ZAR exposure remains prudent here.

What I would watch
  • CRSP
  • MSFT
  • USD/ZAR
What could go wrong
  • Regulatory setbacks for CRISPR could derail growth expectations
  • Microsoft’s restructuring may fail to fully restore investor confidence
  • Recursion’s drug milestones could be delayed or fail clinical trials
How strongly I feel

6/10

The article identifies three stocks with significant upside potential by end of 2026: CRISPR Therapeutics, expected to generate $40M in revenue this year and $160M+ next year as its Casgevy treatment gains traction; Microsoft, trading 40% below analyst price targets as management addresses cloud/AI business challenges; and Recursion Pharmaceuticals, an AI-driven drug discovery platform trading over 100% below analyst consensus with multiple developmental milestones approaching.

Our take is based on reporting first published by The Motley Fool.

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