The S&P 500 is up 10.3% YTD, and Wall Street is convinced the markets have more room to run, particularly for this group of stocks we have uncovered. JPMorgan just tagged CECO Environmental (NASDAQ:CECO) with a $130 price target, implying roughly 65% upside from where the stock closed Friday. Bigger and more interesting calls landed on other desks this week. Here are the five names sell-side desks are pounding the table on right now, ranked by conviction and catalyst timing.
1. Perimeter Solutions: The Fire Retardant Monopoly Nobody Talks About
Start with the name most portfolios do not own. Perimeter Solutions (NYSE:PRM) makes the red fire retardant dumped from tanker planes onto wildfires, and it is effectively the only US supplier of scale. JPMorgan initiated coverage at Overweight with a $50 price target representing roughly 50% upside, calling it a “niche market leader” with a “disciplined M&A playbook proving portable beyond fire.” Translation: the government has to buy from them, and they just bought a second monopoly.
The Medical Manufacturing Technologies (MMT) acquisition, a $685 million bolt-on deal that closed in January, drove Specialty Products revenue up 128% to $79.6 million in Q1. Fire Safety alone grew 22% to $45.5 million and adjusted EBITDA jumped 128% to $41.2 million. Meanwhile, management signed fresh five-year contracts with the US Defense Logistics Agency and the California Department of Forestry in April. Total Q1 revenue of $125.07 million was up 73.6% year over year, with EPS of $0.06 surpassing the $0.02 estimate.
The surprise pick has government contracts, monopoly pricing, and a 50% analyst target sitting on top of an already M&A-supercharged quarter. Now for the heavyweight everyone is chasing.
2. CECO Environmental: The AI Data Center Pick Hiding in Industrials
CECO is the classic “why did I not own this” call. The company sells industrial air, water, and energy transition equipment, and it is suddenly ground zero for AI-driven data center power buildout. JPMorgan’s $130 target is built on the recently announced Thermon acquisition, which the desk calls “transformative,” lifting recurring short-cycle revenue to about 40% of the mix and effectively doubling adjusted EBITDA. Independent 2026 outlooks peg data center equipment growth as roughly 25% annually and “essentially locked in for the next four to five years,” and CECO sits directly in that revenue stream.
The company’s Q1 numbers already reflect the shift. Orders exploded 97% year over year to $449.5 million, while backlog “eclipsed” $1.04 billion, up 72%. Management raised FY26 guidance to a range of $940 million to $1 billion in revenue with adjusted EBITDA of $120 million to $140 million. CEO Todd Gleason called out data centers, AI computing, industrial reshoring, and electrification as the demand stack driving orders: April alone delivered more than $450 million in new bookings, including the largest-ever Natural Gas Power order.
Shares have advanced 175.4% over the past year, which means the $130 call is a bet that the multi-year AI power cycle is nowhere near priced in. The next name pays you regardless of what the AI trade does.
3. Ligand Pharmaceuticals: The Royalty Compounder Wall Street Just Repriced
Ligand Pharmaceuticals (NASDAQ:LGND) owns royalty streams on other companies’ drugs rather than selling its own. Bank of America just raised its target to $388 from $266, a 46% increase, arguing the growth story is still underappreciated even after the run. The catalyst: Ligand’s pending acquisition of XOMA Royalty at $39 per share, closing in Q3 2026, which folds in more than 120 commercial, clinical, and preclinical assets including Vabysmo, Ojemda, and Miplyffa.
The engine underneath is already humming. Q1 royalty revenue climbed 56% year over year, coming in at $43 million, and adjusted EPS came in at $1.63. Filspari, now the largest royalty contributor after receiving full FDA approval in focal segmental glomerulosclerosis, posted 88% year-over-year growth to $105 million in US net product sales. Management reaffirmed FY26 guidance of $270 million to $310 million in total revenue and adjusted EPS per diluted share of $8.50 to $9.50.
The stock is already up 67.26% year to date, and BofA is telling you that is still cheap. To keep things interesting, the next pick is the exact opposite setup: a stock that has been left for dead.
4. Toast: The Comeback Trade Goldman Just Called
Toast (NYSE:TOST | TOST Price Prediction), a digital tech platform for restaurants, has gotten crushed. Shares are down 34.1% over the past year on competitive fears in SMB payments and margin pressure from hardware. Goldman Sachs looked at the wreckage and upgraded to Buy with a $36 target, arguing the reset is done and the AI product cycle is starting. If you want the trade of Wall Street’s greatest hits, the Breakout Buyer’s Rulebook is where these bounce setups get pressure-tested.
The Q1 report was better than the stock chart suggests. Revenue grew 21.9% year over year to $1.63 billion, net income doubled to $126 million, and ARR crossed $2.2 billion, up 26%. Toast added about 7,000 net new locations, bringing the total to roughly 171,000, and launched its first AI agent dubbed Toast IQ Grow. Management raised FY26 adjusted EBITDA guidance to $790 million to $810 million. The company also bought back $378 million in stock through May 6 in an attempt to return value to shareholders.
CEO Aman Narang says the platform can scale to “$5 billion and $10 billion in ARR over the next decade.” The last name on this list is playing for a bigger number in a shorter window.
5. Revolution Medicines: The Binary Payoff Wall Street Cannot Stop Talking About
Save the biggest swing for last. Revolution Medicines (NASDAQ:RVMD) just posted Phase 3 data in previously treated metastatic pancreatic cancer that could reset expectations for one of oncology’s toughest markets. Its lead oncology candidate, daraxonrasib, delivered median overall survival of 13.2 months versus 6.7 months for chemotherapy in the overall study population, with a hazard ratio of 0.40 and p<0.0001. Management plans to submit the data to the FDA as part of a future New Drug Application under the Commissioner’s National Priority Voucher program.
The setup around the filing is loaded. Revolution raised roughly $2.1 billion in net proceeds from April financings, leaving it with about $4 billion in pro forma cash to support launch preparation and a wider RAS(ON) pipeline. The company has four clinical-stage RAS(ON) inhibitors in development, with multiple registrational Phase 3 trials advancing across pancreatic cancer and lung cancer.
Wall Street has piled in, with analyst coverage overwhelmingly bullish and few skeptics left on the sidelines. The stock has climbed sharply, up more than 130% year to date and roughly 385% over the past year, turning Revolution into one of biotech’s biggest swing stories of 2026.
The Thread
Five names, five different catalysts, one pattern: every call sits on a hard-dated 2026 event. PRM’s MMT integration and government contracts. CECO’s Thermon close and AI power backlog. Ligand’s XOMA acquisition and Filspari ramp. Toast’s raised guidance and AI product cycle. Revolution’s FDA submission on Phase 3 pancreatic cancer data. Wait for the next earnings cycle and these setups will already have moved.
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