On December 10, Meghan Shue, Wilmington Trust chief investment strategist, appeared on CNBC’s ‘The Exchange’. Given the then-upcoming Fed meeting scheduled for that day, Shue thought that the Fed should cut interest rates (the Fed did cut interest rates by 25 basis points). Shue also stated that she believed there would be more cuts after that day, specifically three more cuts next year, which she noted is largely in line with market expectations. She then provided justification based on the Fed’s dual mandate. On the inflation side, she acknowledged that inflation is still above target but is decelerating slowly and getting there. She dismissed the underlying drivers of inflation, believing that they are not present, apart from tariffs, which she thinks the Fed has generally viewed as transitory and expected to pass through. Conversely, she argued that the labor market is still operating in a data fog. She asserted that a cut would make sense because there were signs of weakness in the job market, especially within smaller firms, highlighting a two-speed economy between large and small firms. She concluded that this weakness is worth hedging against.
Shue also expressed an optimistic outlook for next year, not foreseeing a top in the market anytime soon, but rather expecting more volatility around tech names and non-tech names. She still expects the bull market to continue. She projected that the first quarter may be a digestion phase, potentially involving rebalancing or other global issues like interest rates, which would act as a sort of reset before moving into a better, healthier next leg of the bull market.
Later on December 12, Chris Vermeulen, Founder & Chief Investment Officer of The Technical Traders, appeared on Schwab Network to suggest that growth stocks and small caps will lead the Santa Claus rally. Vermeulen noted that the MAG7 aren’t that magnificent anymore in terms of their price action. He stated that as a whole, the basket of these stocks has been struggling for the last couple of months. He contrasted this by mentioning that some stocks are hitting all-time highs while Nvidia is struggling. He emphasized that if the MAG7 stocks do not move higher, they will definitely hold the stock market down because the majority of other stocks are not hitting all-time highs. Vermeulen then identified a rotation of money away from the MAG7 into small caps and micro caps, such as the Russell 2000 or the micro-cap stocks themselves. He noted a very diverse mix now and attributed this to the holiday season sentiment, where people become bullish and excited about the markets. He pointed out that this is precisely what is currently being seen, with the MAG7, the NASDAQ, and the S&P 500 showing some signs of weakness, while money rotates into growth stocks and individual sectors.
That being said, we’re here with a list of the 10 best growth stocks to buy in 2026.
Our Methodology
We used the Finviz stock screener to find growth stocks with a 5-year EPS CAGR of at least 20% and a forward EPS diluted growth rate (1-year estimate) of at least 15%. We then selected 10 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q3 2025.
Note: All data was sourced on December 18.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10 Best Growth Stocks to Buy in 2026
10. Insulet Corporation (NASDAQ:PODD)
5-Year EPS CAGR: 51.00%
Forward EPS Diluted Growth (1-Year Estimate): 31.01%
Number of Hedge Fund Holders: 56
Insulet Corporation (NASDAQ:PODD) is one of the best growth stocks to buy in 2026. On December 18, Truist lowered the firm’s price target on Insulet to $390 from $412 with a Buy rating on the shares. This sentiment was posted as part of the firm’s broader research note that previewed 2026 for MedTech. Truist expressed a more positive outlook on the healthcare sector for 2026 due to increasingly attractive relative valuations. However, the firm cautioned that the sector might act as a source of funds rather than a primary destination for new capital. Consequently, Truist advised investors to prioritize companies with specific 2026 catalysts.
A day prior, on December 17, Canaccord raised the firm’s price target on Insulet to $450 from $432 with a Buy rating on the shares. This was announced as Canaccord reaffirmed its bullish stance on the MedTech sector for 2026. The firm’s positive outlook is built on several key pillars: consistent demand from an aging demographic, a heightened focus on acute healthcare requirements, a robust M&A environment, and a market increasingly open to new IPOs. The firm particularly highlighted Insulet as a top pick and asserted that the company is primed for a multi-year cycle of outperformance due to the recent label expansion and the commercial rollout of Automated Insulin Delivery systems to the Type 2 diabetes patient population.
Earlier on December 16, Evercore ISI initiated coverage of Insulet with an Outperform rating and $370 price target. Despite the arrival of new competitors, the firm believes that Insulet’s unique tubeless design is effectively revolutionizing the insulin pump market and fueling substantial growth.
Insulet Corporation (NASDAQ:PODD) develops, manufactures, and sells insulin delivery systems for people with insulin-dependent diabetes in the US and internationally.
9. Block Inc. (NYSE:XYZ)
5-Year EPS CAGR: 49.99%
Forward EPS Diluted Growth (1-Year Estimate): 21.99%
Number of Hedge Fund Holders: 64
Block Inc. (NYSE:XYZ) is one of the best growth stocks to buy in 2026. On December 16, Bank of America analyst Mihir Bhatia lowered the firm’s price target on Block to $86 from $88 and kept a Buy rating on the shares. This sentiment was announced after BofA adjusted estimates among the firm’s overall consumer finance coverage following pre-quiet period IR catchups.
Earlier on November 21, Morgan Stanley raised the firm’s price target on Block to $72 from $71 with an Equal Weight rating on the shares. The decision followed the company’s investor day, where it met anticipated gross profit targets through improvements in the Square and Cash App segments. While Morgan Stanley is now more optimistic about product developments and increased share buybacks, the firm continues to view Bitcoin and ecosystem integration as low-return investments.
In Q3 2025, Block highlighted an 18% year-over-year increase in gross profit to $2.66 billion. While the company missed analyst expectations for revenue by $196.93 million (totaling $6.11 billion) and adjusted EPS by $0.12 (totaling $0.54), it demonstrated strong operational momentum, particularly within the Cash App ecosystem. Cash App’s gross profit surged 24%, driven by increased user engagement and the scaling of high-margin financial services.
The Square segment reported a 9% increase in gross profit, supported by a 12% rise in Gross Payment Volume/GPV. Growth was particularly strong in international markets, which saw a 26% GPV increase, and among mid-market sellers, who now account for 45% of total GPV.
Block Inc. (NYSE:XYZ), together with its subsidiaries, builds ecosystems focused on commerce and financial products and services in the US and internationally. It operates through two segments: Square and Cash App.
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.
7. Autodesk Inc. (NASDAQ:ADSK)
5-Year EPS CAGR: 21.72%
Forward EPS Diluted Growth (1-Year Estimate): 15.11%
Number of Hedge Fund Holders: 83
Autodesk Inc. (NASDAQ:ADSK) is one of the best growth stocks to buy in 2026. On November 26, BMO Capital raised the firm’s price target on Autodesk to $343 from $333 and kept a Market Perform rating on the shares. Despite a difficult sales environment, Autodesk delivered strong Q3 2025 results marked by improving growth and impressive Q4 guidance. BMO Capital remains optimistic due to the continued success of Construction Cloud and the company’s ongoing efforts to unify siloed workflows for its industrial and construction clients.
A day before this rating, the company announced its Q3 2025 earnings results. Autodesk reported non-GAAP EPS of $2.67, which exceeded analyst expectations of $2.50. Total revenue grew 18% year-over-year to $1.85 billion. This performance was supported by a $124 million contribution from the company’s new transaction model; excluding this impact and currency fluctuations, underlying revenue growth remained a healthy 12%.
Strategic momentum at Autodesk was driven by the convergence of design and make workflows within the Autodesk Construction Cloud/ACC and the integration of AI-powered automations. In the Architecture, Engineering, Construction, and Operations/AECO segment, revenue remained strong as investments in data centers and infrastructure offset softness in commercial sectors. Management highlighted that AI adoption is yielding tangible productivity gains, noting that the acceptance rate for AI-powered auto-constraints in Fusion has surpassed 60%, with 90% of those sketches becoming fully constrained.
Autodesk Inc. (NASDAQ:ADSK) provides 3D design, engineering, and entertainment technology solutions worldwide.
6. GE Aerospace (NYSE:GE)
5-Year EPS CAGR: 21.29%
Forward EPS Diluted Growth (1-Year Estimate): 36.88%
Number of Hedge Fund Holders: 102
GE Aerospace (NYSE:GE) is one of the best growth stocks to buy in 2026. On December 11, Citi initiated coverage of GE Aerospace with a Buy rating and $386 price target. This decision was made as Citi launched coverage on the aerospace and defense sector and predicted that current industry megatrends would lead to a trillion-dollar market cap leader (potentially GE Aerospace) within half a decade.
Earlier on December 4, Susquehanna also initiated coverage of GE Aerospace with a Positive rating and $350 price target. According to the firm, the company maintains a dominant global presence, powering 75% of all commercial flights through its proprietary engines and its CFM International joint venture with Safran. The company boasts a massive installed base of more than 45,000 commercial and 25,000 military engines, with both segments currently expanding at mid-single-digit rates.
In other news, on December 10, GE Aerospace announced that it secured orders to supply eight LM2500 marine gas turbine engines to power the US Navy’s newest Flight III Arleigh Burke-class guided-missile destroyers. These engines will be installed on the future USS Intrepid (DDG 145) and USS Robert Kerrey (DDG 146), with each vessel requiring four turbines for its propulsion system. This contract reinforces the LM2500’s status as the primary mover for the Arleigh Burke class, which has served as the core of the US Navy’s surface fleet for over 30 years.
GE Aerospace (NYSE:GE) designs and produces commercial and defense aircraft engines, integrated engine components, electric power, and mechanical aircraft systems. The company operates through two segments: Commercial Engines & Services and Defense & Propulsion Technologies.
5. Eli Lilly and Company (NYSE:LLY)
5-Year EPS CAGR: 27.31%
Forward EPS Diluted Growth (1-Year Estimate): 72.66%
Number of Hedge Fund Holders: 114
Eli Lilly and Company (NYSE:LLY) is one of the best growth stocks to buy in 2026. On December 15, Bank of America analyst Jason Gerberry lowered the firm’s price target on Eli Lilly to $1,268 from $1,286 with a Buy rating on the shares. BofA remains bullish on Eli Lilly’s stock due to the company’s successful obesity product launches and the steady expansion of its pipeline into new therapeutic areas. 2027 projected earnings are expected to better capture the company’s long-term growth potential.
In other news, on December 12, Eli Lilly and Company announced updated results from the Phase 3 EMBER-3 study for Inluriyo (imlunestrant), which is an oral estrogen receptor antagonist. The data highlighted the efficacy of Inluriyo both as a standalone treatment and in combination with Verzenio (abemaciclib) for patients with ER+, HER2- advanced or metastatic breast cancer whose disease progressed after prior endocrine therapy.
In patients with ESR1-mutated disease, imlunestrant monotherapy showed a clinically meaningful 38% reduction in the risk of progression or death. The combination of imlunestrant plus abemaciclib yielded even more robust results across the broader patient population. Safety profiles remained consistent with previous reports, with no new signals identified during this additional year of follow-up.
Lilly has already submitted the combination data for US regulatory review in ESR1-mutated metastatic breast cancer. Additionally, imlunestrant is being studied in the EMBER-4 trial, which has enrolled ~8,000 patients to investigate its potential in the adjuvant setting for early breast cancer.
Eli Lilly and Company (NYSE:LLY) discovers, develops, and markets human pharmaceuticals in the US, Europe, China, Japan, and internationally.
4. Advanced Micro Devices Inc. (NASDAQ:AMD)
5-Year EPS CAGR: 22.26%
Forward EPS Diluted Growth (1-Year Estimate): 34.45%
Number of Hedge Fund Holders: 115
Advanced Micro Devices Inc. (NASDAQ:AMD) is one of the best growth stocks to buy in 2026. On December 16, Bank of America lowered the firm’s price target on AMD to $260 from $300 and maintained a Buy rating on the shares. This sentiment was posted as BofA revised its targets for US semiconductor stocks, identifying 2026 as the midpoint of a decade-long transition toward AI-optimized IT infrastructure. While the firm warns of near-term volatility as investors scrutinize AI returns and hyperscaler spending, it expects this pressure to be mitigated by the expansion of AI factories and LLM development.
In other news, on December 2, AMD and Hewlett Packard Enterprise Co. (NYSE:HPE) announced an expanded collaboration to develop the next generation of open, scalable AI infrastructure. A central component of this partnership is the AMD Helios architecture, an open, full-stack, rack-scale AI platform. HPE will be among the first system providers to adopt this architecture, which is engineered to simplify the deployment of massive AI clusters for research, cloud, and enterprise environments.
The Helios platform is built on the OCP Open Rack Wide design and integrates a comprehensive suite of AMD technologies. This includes next-generation AMD EPYC Venice CPUs, AMD Instinct MI455X GPUs, and AMD Pensando Vulcano NICs for scale-out networking. By utilizing the open ROCm software stack, a single Helios rack can deliver up to 2.9 exaFLOPS of FP4 performance.
To ensure high-bandwidth and low-latency connectivity, HPE is contributing a purpose-built HPE Juniper Networking scale-up switch, developed in collaboration with Broadcom, which utilizes the Ultra Accelerator Link over Ethernet/UALoE standard. HPE plans to offer the AMD Helios architecture globally starting in 2026.
Advanced Micro Devices Inc. (NASDAQ:AMD) operates as a semiconductor company worldwide. It operates in three segments: Data Center, Client and Gaming, and Embedded.
3. Netflix Inc. (NASDAQ:NFLX)
5-Year EPS CAGR: 31.04%
Forward EPS Diluted Growth (1-Year Estimate): 49.76%
Number of Hedge Fund Holders: 154
Netflix Inc. (NASDAQ:NFLX) is one of the best growth stocks to buy in 2026. On December 11, Jefferies analyst James Heaney lowered the firm’s price target on Netflix to $134 from $150, while keeping a Buy rating on the shares. Jefferies recommended a selective stance on Internet stocks for 2026. Key headwinds include rising investment costs that threaten profitability and concerns that AI will cut out traditional middlemen, potentially limiting how high stock prices can climb relative to earnings.
In other news, on December 15, Netflix co-CEOs Greg Peters and Ted Sarandos issued a letter to employees confirming that the company’s plan to acquire Warner Bros. Discovery’s TV, film studios, and streaming assets remains unchanged. Netflix initially secured the $72 billion deal earlier in December, structured as a combination of cash and stock with an enterprise value of ~$82.7 billion. This commitment stands despite a subsequent, separate $108.4 billion hostile bid for the entirety of Warner Bros. Discovery made by Paramount Skydance.
The acquisition is expected to add nearly $11 billion in debt to Netflix’s balance sheet, a factor that will be closely monitored as the company works toward a closing timeline of 12 to 18 months. In a major strategic pivot, Netflix announced it will begin releasing Warner Bros. movies in theaters after the deal closes, moving away from its traditional streaming-only model. This shift will require Netflix to build new internal functions for theatrical marketing and global distribution, sectors currently handled by Warner Bros.’ integrated in-house teams.
Netflix Inc. (NASDAQ:NFLX) provides entertainment services. The company offers TV series, documentaries, feature films, and games across various genres and languages.
2. Alphabet Inc. (NASDAQ:GOOG)
5-Year EPS CAGR: 31.40%
Forward EPS Diluted Growth (1-Year Estimate): 24.51%
Number of Hedge Fund Holders: 186
Alphabet Inc. (NASDAQ:GOOG) is one of the best growth stocks to buy in 2026. On December 16, BMO Capital raised the firm’s price target on Alphabet to $343 from $340, while maintaining an Outperform rating on the shares. BMO is leaning into a more bullish outlook for Google Cloud, citing Cloud Expert calls that suggest a rapid acceleration in enterprise AI adoption. Reflecting this momentum, BMO Capital adjusted its Google Cloud growth targets upward for the coming quarters, peaking at 40% in the first quarter of the next year.
On the same day, Papua New Guinea confirmed that Google had been selected to construct three new undersea fiber-optic cables to modernize the nation’s digital infrastructure. The $120 million project is being fully funded by the Australian government under the provisions of the Pukpuk Treaty, a landmark mutual defense agreement signed in October 2025. This initiative, officially known as the Pukpuk Connectivity Initiative, aims to link PNG’s northern and southern regions to create a high-capacity, resilient digital backbone for the Pacific nation.
Earlier on December 11, Piper Sandler increased its price target for the company to $365 from $330 with an Overweight rating. Despite a premium valuation, analysts remain bullish due to the significant revenue contributions from Google’s AI-enhanced advertising suite.
A day before, on December 15, RBC Capital analyst Brad Erickson maintained a Buy rating on Alphabet with a price target of $315.
Alphabet Inc. (NASDAQ:GOOG) offers various products and platforms in the US, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America. It operates through Google Services, Google Cloud, and Other Bets segments.
1. Amazon.com Inc. (NASDAQ:AMZN)
5-Year EPS CAGR: 32.85%
Forward EPS Diluted Growth (1-Year Estimate): 39.40%
Number of Hedge Fund Holders: 332
Amazon.com Inc. (NASDAQ:AMZN) is one of the best growth stocks to buy in 2026. On December 16, BMO Capital raised the firm’s price target on Amazon.com to $304 from $300 with an Outperform rating on the shares. Based on feedback from former AWS executives, BMO Capital reported that cloud commitments are intensifying and developers are increasingly gravitating toward the Claude model. With enterprise AI expected to scale by 2027, the firm boosted its assumed AWS growth rate from 23% to 24%.
In other news, on December 9, Amazon announced a massive $35 billion investment in India to be deployed through 2030. This new capital builds upon the $40 billion the company has already invested since entering the market in 2010, bringing its total planned commitment to $75 billion. The strategy is built on three central pillars: AI-driven digitization, expanding export growth, and large-scale job creation.
According to an Economic Impact Report by Keystone Strategy released at the summit, Amazon’s operations have already digitized 12 million small businesses and enabled $20 billion in cumulative e-commerce exports. By 2030, the company aims to quadruple its export impact to $80 billion and bring the benefits of artificial intelligence to 15 million small businesses. To support this, Amazon is launching tools like Seller Assistant and Next Gen Selling, while enhancing customer experiences through Lens AI and the conversational assistant Rufus. With this new investment, Amazon also expects to support 3.8 million jobs by 2030, which includes the creation of 1 million new opportunities.
Amazon.com Inc. (NASDAQ:AMZN) engages in the retail sale of consumer products, advertising, and subscription services through online and physical stores in North America and internationally.
While we acknowledge the potential of AMZN to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AMZN and that has 100x upside potential, check out our report about this cheapest AI stock.
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