The old adage that stock prices tend to rise early in the year after a slump in the final weeks of the preceding year—the so-called January effect—is not necessarily true in general and certainly not the case for every single company. Still, many investors approach a new year with a reinvigorated sense of optimism, and this exuberance can sometimes lead them to take on higher-risk bets in the hopes of earning a more significant reward.

Besides general optimism around the start of 2025, many investors are particularly bullish due to the potential for a relaxed regulatory environment, favorable corporate tax policies, and continued economic momentum this year. Whatever the reasons for bullishness, optimistic investors might look to any number of companies that are not well-established but nonetheless offer exciting, if uncertain, growth prospects. Three notable examples include Blue Bird Corp. (NASDAQ:BLBD), UiPath Inc. (NYSE:PATH), and Zeta Global Holdings Corp. (NYSE:ZETA).

There are many reasons to expect Blue Bird to thrive in the new year. The company posted record revenue of $350.2 million for the most recent quarter on a 16.5% year-over-year increase in units sold. Adjusted EBITDA of $41 million was $1 million greater than the prior-year period and a fourth-quarter record. Based on these results, the company increased its guidance. Continued robust market demand, a stable supply chain, and healthy increases in both bus prices and backlog may also help to drive performance in the year ahead.

UiPath is a software developer specializing in robotic process automation (RPA), technology used to automate tasks for other businesses so that they can be accomplished without human intervention. RPA is a fast-growing branch of the AI industry and one that is not yet fully consolidated. UiPath is an emerging leader in this space based on recent results—for the latest quarter (the third quarter of the company's fiscal 2025, ended in October 2024), revenue climbed by 9% year-over-year to $355 million and annualized renewal run-rate (ARR) surged by 17% to $1.6 billion.

Zeta Global is the company behind Zeta Marketing, a platform using machine learning and other AI tools to develop consumer insight and marketing tools. The platform has grown substantially in popularity; in early December 2024, the company announced a 108% increase in platform usage year-over-year. The company enjoys a Moderate Buy rating with a consensus price target more than twice the current share price level, based on a series of optimistic analyst ratings in the last several weeks of 2024.

On the other hand, Zeta Global also faces a class action lawsuit alleging securities fraud between February and November 2024. For this reason, ZETA may represent the largest risk of the three companies on this list. However, investors who are bullish about the company's ability to use AI to transform consumer profiling and directed marketing may not find it to be an insurmountable barrier.