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.
8. Vistra Corp. (NYSE:VST)
Average Price Target Upside Potential According to Analysts: 39.45%
Number of Hedge Fund Holders: 112
Vistra Corp. (NYSE:VST) is one of the best NYSE stocks to buy according to analysts. On January 6, BMO Capital reduced its price target on Vistra Corp. (NYSE:VST) from $245 to $230 but maintained its Outperform rating. This update comes after the company announced that it has entered into agreements to acquire Cogentrix Energy for a net purchase price of about $4 billion.
This deal includes 10 modern natural gas generation facilities and a total capacity of around 5,500 megawatts. According to Vistra Corp. (NYSE:VST), this acquisition is expected to close in mid-to-late 2026. BMO Capital increased its adjusted EBITDA forecasts for the company to $8.204 billion in 2027, $8.334 billion in 2028, and $8.510 billion in 2029.
On January 6, KeyBanc also reaffirmed its Overweight rating on Vistra Corp. (NYSE:VST) with a price target of $217 after the acquisition news. KeyBanc noted that the company expects the transaction to deliver mid-single-digit accretion in 2027, with average accretion reaching high-single-digit levels for the 2027 to 2029 period.
Vistra Corp. (NYSE:VST) is a retail electricity and power generation company that serves customers, businesses, and communities. It operates a portfolio of natural gas, nuclear, coal, solar, and battery energy storage facilities.
7. SAP SE (NYSE:SAP)
Average Price Target Upside Potential According to Analysts: 40.63%
Number of Hedge Fund Holders: 34
SAP SE (NYSE:SAP) is one of the best NYSE stocks to buy according to analysts. On January 8, Wells Fargo released its 2026 outlook for the software sector and pointed out that established platforms are in a strong position to benefit from increased adoption of AI. The firm said that as AI becomes a top priority for company executives, businesses are increasingly moving towards trusted, mission-critical platforms, particularly in areas like enterprise resource planning (ERP) systems.
Wells Fargo explained that software vendors that already manage critical business data systems are best placed to attract additional AI spending. As companies consolidate vendors and move AI tools from pilot programs into production, trust and existing customer relationships are expected to play a bigger role. The research firm identified SAP SE (NYSE:SAP) as its preferred name in this space.
Earlier, on January 7, SAP SE (NYSE:SAP) announced the appointment of David Robinson, who has 22 years of experience at the company, as president of SAP North America. Robinson recently served as president and chief revenue officer for Cloud ERP and acting managing director for SAP US Public Services. His focus will be on improving customer outcomes, supporting business transformation, and helping organizations realize the true value of SAP SE’s (NYSE:SAP) solutions.
SAP SE (NYSE:SAP) is a German multinational software company with a leading position in enterprise applications and business AI. The company is one of the world’s largest providers of enterprise resource planning software.
6. Spotify Technology S.A. (NYSE:SPOT)
Average Price Target Upside Potential According to Analysts: 41.44%
Number of Hedge Fund Holders: 116
Spotify Technology S.A. (NYSE:SPOT) is one of the best NYSE stocks to buy according to analysts. On January 7, Reuters reported that Spotify Technology S.A. (NYSE:SPOT) is growing its monetization program for creators and launching new tools for video podcasters. The company is looking to compete more strongly with YouTube and Netflix in the fast-growing video podcast industry.
Over the past five years, Spotify Technology S.A. (NYSE:SPOT) has invested more than $10 billion in the podcast industry to increase creator earnings, boost engagement, and build infrastructure. The company is now lowering the requirements for creators to join its monetization program, about a year after the program was first launched. Under the new rules, creators now qualify for the program with 1,000 engaged audience members, 2,000 hours of consumption in the past 30 days, and three published episodes.
This change comes as major platforms compete to attract video podcast creators, driven by rising demand and higher engagement levels. Roman Wasenmuller, global head of podcast at Spotify Technology S.A. (NYSE:SPOT), noted that monthly video podcast consumption on the platform has “nearly doubled” since the launch of the program.
According to the report by Reuters, the company is also going to introduce new sponsorship management tools in April to help creators publish and monetize video podcasts directly from third-party hosting platforms like Acast, Audioboom, and Libsyn.
In other news, on January 2, BofA released its list of top 10 US stock ideas for the first quarter of 2026. The list includes nine Buy-rated stocks and one Underperform. The research firm included Spotify Technology S.A. (NYSE:SPOT) among the Buy recommendations.
BofA strategist Anthony Cassamassino believes that these 10 companies have “significant market and business-related catalysts in the quarter ahead.”
Spotify Technology S.A. (NYSE:SPOT) is a leading audio streaming subscription service provider. Through its platform, the company offers access to songs, podcasts, and audiobooks.
5. Cloudflare, Inc. (NYSE:NET)
Average Price Target Upside Potential According to Analysts: 41.70%
Number of Hedge Fund Holders: 63
Cloudflare, Inc. (NYSE:NET) is one of the best NYSE stocks to buy according to analysts. On January 5, RBC Capital reiterated its Outperform rating on Cloudflare, Inc. (NYSE:NET) with a price target of $265 on the stock.
Previously, on December 17, Stifel also reaffirmed its Buy rating on Cloudflare, Inc. (NYSE:NET), noting that the company is in a good position as the demand for AI security solutions grows. Stifel pointed out that organizations are increasingly using AI tools, which is creating new security challenges like unauthorized use, data loss, and AI output risks like hallucinations and prompt injection. These can lead to serious operational and regulatory risks.
Stifel believes that AI security is expected to play an increasingly important role in 2026 as generative AI and agentic AI are deployed more widely in production environments. Areas like visibility/monitoring, data security, model security, and governance are expected to see rising demand.
The research firm also highlighted the importance of strong Identity, Data, Cloud, and Zero Trust Security as organizations move toward AI-first strategies. Stifel noted that Cloudflare, Inc. (NYSE:NET) is well-positioned to benefit from this trend as threat actors increasingly use AI to accelerate and automate cyberattacks.
Cloudflare, Inc. (NYSE:NET) is a leading connectivity cloud company that specializes in improving the security, performance, and reliability of websites and applications.
4. Oracle Corporation (NYSE:ORCL)
Average Price Target Upside Potential According to Analysts: 46.08%
Number of Hedge Fund Holders: 122
Oracle Corporation (NYSE:ORCL) is one of the best NYSE stocks to buy according to analysts. On January 8, Wells Fargo released an update on the software sector for 2026 and noted that enterprise software spending appears to be stabilizing, with most of the growth coming from cloud infrastructure, cybersecurity, and generative AI.
In cloud and AI infrastructure, Wells Fargo expects demand to expand beyond AI labs to include hyperscalers, governments, and large enterprises. The research firm believes that the total addressable market for AI infrastructure could reach nearly $1 trillion by 2030. It added that access to financing, chips, and power will be key factors that will help determine which companies will succeed in this space. Wells Fargo named Oracle Corporation (NYSE:ORCL) as its top pick in this category.
Earlier, on January 5, UBS cut its price target on Oracle Corporation (NYSE:ORCL) from $325 to $280 and kept a Buy rating. The firm noted that concerns related to OpenAI have affected a group of stocks linked to the AI organization, including Oracle Corporation (NYSE:ORCL).
Despite this, UBS pointed to positive developments, including the company’s “material pending revs growth acceleration” and the ramp-up of Abilene data center capacity.
Oracle Corporation (NYSE:ORCL) is an American multinational computer technology company specializing in database software, cloud infrastructure, and enterprise software solutions. The company offers one of the industry’s broadest and deepest suites of AI-powered cloud applications.
3. Sea Limited (NYSE:SE)
Average Price Target Upside Potential According to Analysts: 46.79%
Number of Hedge Fund Holders: 102
Sea Limited (NYSE:SE) is one of the best NYSE stocks to buy according to analysts. On January 2, Maybank upgraded its rating on Sea Limited (NYSE:SE) from Hold to Buy while keeping its price target at $156.
This upgrade follows a decline in the company’s share price from its 2025 high, which has created what Maybank sees as “an attractive risk-reward skew.” The research firm also highlighted that Sea Limited (NYSE:SE) continued investments in its VIP program and fulfillment is helping strengthen Shopee’s competitive position in ASEAN markets.
Earlier, on December 19, Wedbush reduced its price target on Sea Limited (NYSE:SE) from $190 to $170 and maintained its Outperform rating on the stock. The firm’s analyst told investors in a research note that consumer internet stocks delivered a strong performance in 2025, with average returns of 23% among the 24 companies it covers. This compares with a 19% gain for the NASDAQ.
Wedbush expects performance to diverge in 2026 as investors consider factors like AV disruption, AI monetization, ongoing investment cycles, and the increasing adoption of agentic AI.
Sea Limited (NYSE:SE) is a global consumer internet company headquartered in Singapore. The company operates three core businesses across digital entertainment, e-commerce, and digital financial services.
2. ServiceNow, Inc. (NYSE:NOW)
Average Price Target Upside Potential According to Analysts: 57.97%
Number of Hedge Fund Holders: 104
ServiceNow, Inc. (NYSE:NOW) is one of the best NYSE stocks to buy according to analysts. On January 8, Wells Fargo reduced its price target on ServiceNow, Inc. (NYSE:NOW) from $255 to $225 but kept its Overweight rating on the stock.
Earlier, on January 5, RBC Capital also lowered its price target on ServiceNow, Inc. (NYSE:NOW) from $240 to $195 and maintained an Outperform rating. The firm believes that 2026 could be a year when the benefits of AI become more visible for companies that are well-positioned for enterprise AI adoption. In certain areas, enterprise spending appears to be stabilizing and improving. RBC Capital also noted that GenAI is driving innovation, even when management teams are still being conservative when giving guidance in early 2026.
Also on January 5, Cantor Fitzgerald reaffirmed its Overweight rating on ServiceNow, Inc. (NYSE:NOW) with a price target of $240. The research firm pointed out that the company’s shares are trading just above a three-year low based on enterprise value to estimated revenue for calendar year 2027. Cantor Fitzgerald also noted that the company’s recent merger and acquisition activity was not an attempt to buy growth, but instead it was to expand its total addressable market.
ServiceNow, Inc. (NYSE:NOW) is an American software and technology company. It provides an AI platform that helps organizations digitize, automate, and manage workflows for enterprise operations.
1. Roblox Corporation (NYSE:RBLX)
Average Price Target Upside Potential According to Analysts: 104.72%
Number of Hedge Fund Holders: 90
Roblox Corporation (NYSE:RBLX) is one of the best NYSE stocks to buy according to analysts. On January 8, Wells Fargo cut its price target on Roblox Corporation (NYSE:RBLX) from $141 to $107 but kept its Overweight rating. The firm expects the company’s December bookings growth to be in the mid-30% range, down from the previous high-60% growth seen in October and November.
Looking ahead, Wells Fargo forecasts Roblox Corporation (NYSE:RBLX) to guide full-year 2026 bookings between $7.85 billion and $8.0 billion, which would represent growth of about 19% to 21%. The research firm pointed out that bookings growth throughout 2026 is likely to be “highly variable,” with the strongest growth expected in the first quarter.
Earlier, on January 6, TD Cowen also lowered its price target on Roblox Corporation (NYSE:RBLX) from $77 to $70 and kept its Sell rating. The firm’s analyst, Doug Creutz, pointed to slowing user engagement throughout December.
Creutz noted that in December, year-over-year growth in hours spent fell to 74%. This compares with 99% growth in November and 110% growth in October. In the final week of December, hours spent saw a growth of only 66% year-over-year. According to the analyst, this slowdown marks the weakest holiday-season growth rate for Roblox Corporation (NYSE:RBLX) in at least four years.
Roblox Corporation (NYSE:RBLX) is an American video game company that developed Roblox, an immersive gaming and creation platform.
While we acknowledge the potential of RBLX as an investment, 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 RBLX and that has a 100x upside potential, check out our report about this cheapest AI stock.
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