On January 9, Yahoo Finance reported that US stock markets are trading at high valuations. Tom Essaye, founder of Sevens Report Research, pointed out that the market is “richly valued trading at a high multiple” and this “presents a major risk if lofty earnings expectations fail to be delivered.”
The forward price-to-earnings ratio of the S&P 500 stands at 22 times, which is higher than its 10-year average of 18.7 times. Valuations are now close to levels last seen in early January 22, when the market peaked before entering a nine-month bear market, with the benchmark index falling by about 19%.
Despite these concerns, Wall Street is optimistic and expects a strong year for corporate earnings while betting that factors like economic conditions, AI productivity, and geopolitics will support growth.
According to FactSet data, S&P 500 earnings are forecasted to rise at double-digit rates in every quarter of 2026. Earnings growth is expected to be the strongest in Q4, with an estimated rise of 18.1%. For the full year, earnings are estimated to grow 15%.
As per the report by Yahoo Finance, bottom-up strategists have set a price target of 8,010 for the S&P 500, which is around 18% higher than current levels.
With this outlook in mind, let’s take a look at the 10 best NYSE stocks to buy according to analysts.
Our Methodology
To compile our list of the 10 best NYSE stocks to buy according to analysts, we used the Finviz stock screener to look for stocks that are listed on the New York Stock Exchange. We sorted our results based on market capitalization and picked the top 50 stocks. Next, we focused on the stocks that analysts believe have the most potential for growth. Finally, we ranked the 10 best NYSE stocks to buy based on their average price target upside potential according to analysts as of January 9, 2026.
Additionally, we mentioned the hedge fund sentiment surrounding each stock, which was taken from Insider Monkey’s Q3 2025 database of 978 elite hedge funds.
Why do we care about what hedge funds do? 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 NYSE Stocks to Buy According to Analysts
10. Alibaba Group Holding Limited (NYSE:BABA)
Average Price Target Upside Potential According to Analysts: 34.63%
Number of Hedge Fund Holders: 130
Alibaba Group Holding Limited (NYSE:BABA) is one of the best NYSE stocks to buy according to analysts. On January 8, Morgan Stanley cut its price target on Alibaba Group Holding Limited (NYSE:BABA) from $200 to $180 and maintained its Overweight rating. The firm pointed to a weaker outlook for the company’s core e-commerce business even when cloud momentum is still strong.
Morgan Stanley’s analyst, Gary Yu, said that “core e-comm businesses have started to worsen, due to weak consumption.” Yu also noted that this segment could be staying “under pressure in 1HF27 due to a high base.” Despite the lower price target, the research firm pointed out that momentum in the cloud reinforces Alibaba Group Holding Limited’s (NYSE:BABA) position as “China’s Best AI Enabler.”
On January 8, Jefferies also lowered its price target on Alibaba Group Holding Limited (NYSE:BABA) from $231 to $225 and kept its Buy rating. Jefferies still sees the company as its “top pick in 2026” because of opportunities in AI and cloud, as well as the company’s one-stop consumption platform.
Jefferies believes that the company made strong progress during the December quarter in its Quick Commerce business. The firm also noted that cloud revenue growth continues to accelerate year-over-year, supported by “solid AI demand.”
Alibaba Group Holding Limited (NYSE:BABA) is a Chinese multinational technology company focused on e-commerce, retail, AI, digital media and entertainment, cloud, and technology.
9. Arista Networks, Inc. (NYSE:ANET)
Average Price Target Upside Potential According to Analysts: 36.30%
Number of Hedge Fund Holders: 92
Arista Networks, Inc. (NYSE:ANET) is one of the best NYSE stocks to buy according to analysts. On January 5, Piper Sandler upgraded its rating on Arista Networks, Inc. (NYSE:ANET) from Neutral to Overweight and lifted its price target from $145 to $159. The firm expects 2026 to be a “year of refresh” with increasing mentions of enterprise spending, supported by the company’s exposure to hyperscalers and AI giants.
Piper Sandler pointed out that visibility into Arista Networks, Inc.’s (NYSE:ANET) business is improving from different angles. This includes coverage from inventory and purchase commitments. According to the research firm, the company is “holding its ground with its key customers, gaining with large enterprise accounts across datacenter and campus, and typically sees capex on a delayed basis relative to others in the datacenter.”
Previously, on December 17, Morgan Stanley reduced its price target on Arista Networks, Inc. (NYSE:ANET) from $171 to $159 while keeping an Overweight rating. The firm noted that AI trade expanded from semiconductor stocks in 2025 and benefited infrastructure companies, especially in the optical segment.
Morgan Stanley believes this trend could continue through the first half of 2026. However, the firm cautioned that investors may “need to get more selective for full year returns given multiples.”
Arista Networks, Inc. (NYSE:ANET) is a cloud networking company that provides data-driven solutions for large data centers, AI, campus, and routing environments.
