2 New ‘Strong Buy’ IPO Stocks J.P. Morgan Is Bullish On
As 2026 opened, investors were upbeat on the prospects for new IPOs. Markets were stable, capital costs were declining, and several high-profile “mega-IPOs” seemed imminent – conditions that pointed toward a breakout year.
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The backdrop became more complicated as the quarter progressed. A new round of tariff uncertainties emerged, concerns about private credit grew, and the ‘SaaSpocalypse’ hit the software sector. And that was all before the Middle East conflict added pressure to energy prices and increased market volatility.
The upshot is that the number of IPOs declined in the first quarter of this year, while the total sums invested increased. 1Q26 saw 32 IPOs in the American markets, compared to 63 in 1Q25; at the same time, the IPO proceeds grew year-over-year from $9 billion to $11 billion.
The analysts at JPMorgan are closely following recent IPO activity, looking for new stocks that could excite investors. While much of the attention has focused on AI, aerospace, and defense, the firm is finding opportunity in a different corner of the market: energy. Using TipRanks’ database, we looked up the details on two of their new IPO picks. Let’s take a closer look at what makes them compelling opportunities.
X-Energy(XE)
The first new stock on JPMorgan’s radar is X-Energy, a leading company in the next generation of advanced nuclear technology. X-Energy’s work focuses on small modular reactors, or SMRs. These reactors are designed as self-contained units, producing 80 megawatts of electric power per module. X-Energy’s standard commercial configuration combines four modules to generate about 320 megawatts of electricity, or about one-third the output of a traditional large-scale nuclear power plant. SMRs are designed to be manufactured and assembled as standardized, self-contained units and transported by rail from the factory to the installation site.
X-Energy’s chief product is the Xe-100 reactor, a high-temperature gas-cooled helium cycle reactor. The reactor is built to operate with a pebble-bed architecture, based on X-Energy’s second product, the TRISO-X pebble fuel. The design delivers a combination of high thermal efficiency and operational versatility, with safety features based on proven, durable materials and innovative design principles.
The company has also received substantial backing from the U.S. Department of Energy. In 2020, X-Energy was selected for the DOE’s Advanced Reactor Demonstration Program, which includes up to $1.2 billion in support aimed at accelerating deployment of the Xe-100 reactor and TRISO-X fuel technology.
Beyond reactor sales, X-Energy is also building a nuclear fuel business through its proprietary TRISO-X fuel platform, which the company manufactures internally. Between the Xe-100 and the TRISO-X fuel, X-Energy is bringing a reliable, zero-carbon energy source to the market and making it available to customers worldwide.
The company is already advancing commercial deployment plans. Its flagship project involves supplying a four-reactor Xe-100 facility for Dow’s Seadrift manufacturing site in Texas, a project that could become the first advanced nuclear installation at a U.S. industrial facility.
Pursuing its mission, the company has also received important corporate backing from Amazon, which led a $500 million financing round in 2024 through its Climate Pledge Fund. Amazon has a direct interest in the success of X-Energy, as the company’s SMRs have high potential as power sources for the tech giant’s expanding data centers.
X-Energy first announced its IPO on April 15, saying it would put 42,857,143 shares on the market. On April 23, the company upsized the offering to 44,254,659 shares and set a price of $23 per share, well above the originally expected range of $16 to $19 per share. XE shares started trading on the NASDAQ on April 24, and the company raised approximately $1.02 billion in the IPO.
This stock has caught the eye of JPM’s Jeremy Tonet, a 5-star analyst who lays out a clear, upbeat case for the stock.
“In a nascent industry in which the market will ultimately pick a few select winners, XE’s 11.5GW backlog with Dow (FOAK), Amazon (5GW), Centrica (6GW) establishes the company as a frontrunner. Leveraging a high-temperature gas-cooled reactor (HTGR) design operating at 750°C, X-Energy’s Xe-100 platform addresses a broader set of use cases than conventional SMR designs, enabling industrial process heat applications in addition to traditional power generation. Beyond reactors, XE’s TRISO fuel business presents vertical integration, in which licensing (part 70 in hand) and a multi-year head start on peers create a durable competitive moat. The company’s asset-light, non-owner/operator business model, earning revenue from technology licensing, engineering services, lifecycle services, and recurring fuel sales, offers a more manageable risk profile than peers that retain construction and operational risk,” Tonet opined.
Summing up, Tonet sets an Overweight (i.e., Buy) rating on XE stock, along with a price target of $38, suggesting a one-year upside potential of 41%. (To watch Tonet’s track record, click here)
In its short time on the public markets, X-Energy’s stock has picked up 8 analyst reviews, with a breakdown of 6 Buys and 2 Holds, to give the stock a Strong Buy consensus rating. The shares are trading for $26.91, and the $39.57 average price target implies a 47% gain on the one-year horizon. (See XE stock forecast)
HMH Holding(HMH)
HMH is a relatively new name in the energy industry, but its heritage stretches back well over a century. The company, in its current form, was formed in 2021 through the merger of two important energy industry names, Baker Hughes’ Subsea and Surface Drilling Systems business and MHWirth AS, a wholly owned subsidiary of Akastor ASA. The result, HMH, today operates one of the most comprehensive portfolios in the hydrocarbon drilling industry – a set of products, systems, and services for both onshore and offshore drilling, subsea and onshore mining, and construction applications. HMH’s legacy brands include Hydril, VetcoGray, and Wirth, with some of their product lines tracing their origins back more than 125 years (Wirth itself dates to 1895).
HMH offers its customers access to a wide range of products and services, all to meet the specific needs of the drilling industry. These include drilling equipment; drilling lifecycle services; drilling digitalization, to take the industry to the next generation; drilling automation, to improve rig performance and consistency in operations; and proven training to make the best use of these offerings. In addition, HMH can provide and support the latest in mining and construction equipment. Notably, the company generates a significant portion of its revenue from aftermarket services, spare parts, maintenance, upgrades, and lifecycle support, providing a recurring revenue stream tied to its large installed base of equipment operating around the world.
The company has its headquarters in Houston, Texas, a city long associated with the oil drilling industry, and has additional operational centers in Kristiansand, Norway, another location deeply tied to the hydrocarbon industry. HMH serves a customer base in more than 80 countries around the world and has more than 30 work locations and facilities in 15 countries.
Looking at the IPO, we find that HMH announced its initial public offering on March 23, putting 10,520,000 shares on the market with an expected price range of $19 to $22 per share. Trading began on April 1; the 10,520,000 shares were initially priced at $20 each, and the company raised approximately $210 million in the offering.
HMH has released one set of financial results since going public – the 1Q26 figures were reported earlier this month. The company generated revenue of $171.3 million, down 14% year-over-year, and reported adjusted EBITDA of $30.1 million, essentially flat compared to 1Q25. Despite the revenue decline, first-quarter orders increased 10% year-over-year to $218 million, and the company reported a book-to-bill ratio of 1.3x, indicating demand outpaced revenue recognized during the period.
Arun Jayaram, another of JPM’s 5-star analysts, covers this stock and sees strength in the business model. Setting out those strengths, he writes: “HMH operates an asset-light business with historical capex averaging ~2% of revenue, requiring no major facility expansion even in a potential newbuild cycle. The company’s focus on aftermarket services supports strong EBITDA margins and an attractive return profile, with EBITDA margins expanding from 12% in 2022 to 19% in 2025. The low capital intensity contributes to an attractive FCF profile… We believe the company’s asset-light business model positions HMH to continue generating strong returns on capital and the ability to capitalize on offshore capital upcycles without substantial additional costs.”
Jayaram quantifies his bullish stance on this new stock with an Overweight (i.e., Buy) rating and a $26 price target that points toward a one-year share price gain of ~22%. (To watch Jayaram’s track record, click here)
All in all, there are 6 recent analyst reviews on record for HMH, and they are all positive, giving the stock a unanimous Strong Buy consensus rating from the Street. The stock is currently trading at 21.36, while its $28.40 price target implies ~33% upside by this time next year. (See HMH stock forecast)
Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
