Generally speaking, investors tend to keep to tried and true investments, devoting the majority of their stock allocations to large caps and index funds that make up the bedrock of a prudent portfolio. However, investors who can set aside a small portion of their cash to finding “10-baggers” — stocks with the potential to gain more than 1,000% — may find the gamble could very well be worth the risk, according to Bespoke Investment. Correctly identifying even just one 10-bagger could have a “dramatic” effect on a portfolio, the firm said. Of course, they specified investors should only be allocating less than 10% of their capital into these “longshots.” And when they do, the bets should be well researched, smaller cap stocks with hypergrowth potential. “Hypothetically, if you invested $10k each in 10 ‘longshot’ stocks and nine of them went down 50% while just one went up 1,000%, your overall return would still be a gain of 55%,” read a note from the firm. “If nine of them went down 90% and you still had the one 10-bagger, you’d still be up 19%.” “And finally, if you’re good enough to find two 10-baggers out of ten ideas, the other eight could all go to zero and you’d still be up 120%,” it continued. Here are some of the names they said are just the starting point for further research. SoundHound AI, the independent voice artificial intelligence company that boasts clients such as Hyundai and Mercedes, is a consensus buy on the Street, according to CNBC’s analyst consensus tool. The stock is down more than 50% in 2025, but has still surged 93% on a one-year basis. SOUN 1Y mountain SoundHound AI Life Time Group , which sells memberships to high-end fitness and recreational sports centers, has rallied 32% this year, and 82% over the last 12 months. On Monday, Mizuho maintained an outperform rating on Life Time, saying it would use any pullback in the stock to add exposure. Analyst John Baumgartner noted the fitness company’s strong programming and member loyalty can help it outperform even in a softening macro backdrop. Airship AI , an edge AI provider of security and surveillance applications, also has growth potential, Bespoke said. The stock is down more than 20% year to date, but it’s up about 5% over the past 12 months.
