10 Best Growth Stocks to Buy in 2026

8. DexCom Inc. (NASDAQ:DXCM)

5-Year EPS CAGR: 24.33%

Forward EPS Diluted Growth (1-Year Estimate): 17.71%

Number of Hedge Fund Holders: 71

DexCom Inc. (NASDAQ:DXCM) is one of the best growth stocks to buy in 2026. On December 2, Morgan Stanley upgraded DexCom to Overweight from Equal Weight with a price target of $75, which was up from $63. The firm noted that the company is overcoming recent operational hurdles while its stock remains at historical lows. Morgan Stanley expects the full scope of this recovery to be visible by early next year and believes that investors are currently undervaluing the G7 rollout’s margin potential.

Earlier on November 25, Evercore ISI initiated coverage of DexCom with an In Line rating and $68 price target. While acknowledging that DexCom operates in a large and vastly underpenetrated diabetes market, the firm maintained an In Line rating due to expectations of continued headwinds. Evercore ISI believes that a combination of product quality concerns, manufacturing challenges, and intensifying competitive threats will likely hinder DexCom’s ability to capture additional market share through 2026.

In other news, on November 19, DexCom announced that the FDA cleared Dexcom Smart Basal, making it the first and only CGM-integrated basal insulin dosing optimizer for adults aged 18 and older with Type 2 diabetes. Specifically designed for patients using glargine U-100 long-acting insulin, this new tool simplifies the often difficult process of insulin initiation and management. The system uses data from the Dexcom G7 15 Day sensor and logged insulin doses to generate personalized daily recommendations. The technology is intended to remove common barriers to insulin therapy, such as the fear of hypoglycemia and the months of trial and error typically required to find an effective dose.

DexCom Inc. (NASDAQ:DXCM) is a medical device company that designs, develops, and commercializes continuous glucose monitoring/CGM systems in the US and internationally.