In this article, we will look at the 10 Best Stocks to Buy for High Returns Heading into 2026.
On October 27, Nicolas Janvier, Head of North America Equities at Columbia Threadneedle Investments, joined CNBC television for an interview. He discussed the factors leading the market amidst the trade deal talks between the United States and China. Janvier noted that despite all the headlines regarding some framework trade policy between the United States and China, he is focused on earnings. He believes ultimately earnings are going to drive the market. However, he agrees that market performance is impacted by trade, and he expects the current dialogue to at least kick extreme outcomes off the table.
While talking about whether the trade deal details are important for the market, Janvier noted that the details of the deal will matter. However, currently the investors and the market are looking forward to some discussion or mediation that takes out the extreme outcomes off the table. He adds that once some framework is reached, then the details of the deal will matter in terms of its impact on the market.
Regarding the markets and his outlook for 2026, Janvier noted that he sees the market getting more cyclical from 2026. This is mainly because of the Federal Reserve entering an easing cycle, which is benefiting small caps and other previously underperforming sectors of the market.
With that, let’s take a look at the 10 Best Stocks to Buy for High Returns Heading into 2026.
Our Methodology
To compile the list of 10 Best Stocks to Buy for High Returns Heading into 2026, we used Insider Monkey’s Q2 2025 hedge fund database Seeking Alpha, and CNN. First, we sifted through the top 70 stocks, most widely held by hedge funds as of Q2. Next, from this list, we shortlisted growth stocks with more than 15% upside and FWD EPS growth rate of at least 15%. Lastly, after cross-checking the EPS growth rate from Seeking Alpha and analyst upside from CNN, we ranked the stocks in ascending order of the number of hedge fund holders.
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 Stocks to Buy for High Returns Heading into 2026
10. Pfizer Inc. (NYSE:PFE)
FWD EPS Growth: 19.88%
Analyst Upside Potential: 17.15%
Number of Hedge Fund Holders: 83
Pfizer Inc. (NYSE:PFE) is one of the Best Stocks to Buy for High Returns Heading into 2026. On October 27, Berenberg Bank analyst Luisa Hector maintained a Hold rating on Pfizer Inc. (NYSE:PFE) with a price target of $25.
Earlier on October 22, Tim Andreson from Bank of America Securities reiterated a Hold rating with a price target of $30. He noted that the cautious rating reflects the anticipated decline in the company’s revenue and EPS estimates for the coming years.
In addition, the COVID product sales are also anticipated to decrease in the United States. Anderson noted that the company’s long-term growth outlook is clouded with uncertainties, which include patent expirations and competitive pressure from other franchises.
Pfizer Inc. (NYSE:PFE) is set to release its fiscal third quarter results on November 4, 2025. During the second quarter earnings call, management reaffirmed its full-year revenue guidance of $61 billion to $64 billion and raised the adjusted diluted EPS guidance by $0.10.
However, management noted that the fiscal third quarter results are expected to include a one-time expense of $1.35 billion charges related to a licensing deal with 3SBio, Inc. The expense is expected to reduce the quarterly earnings per share by around $0.20.
Pfizer Inc. (NYSE:PFE) is a global biopharmaceutical company focused on discovering, developing, manufacturing, and marketing medicines.
9. Fiserv, Inc. (NYSE:FI)
FWD EPS Growth: 16.17%
Analyst Upside Potential: 35.82%
Number of Hedge Fund Holders: 94
Fiserv, Inc. (NYSE:FI) is one of the Best Stocks to Buy for High Returns Heading into 2026. On October 29, Fiserv, Inc. (NYSE:FI) released its fiscal third quarter results for 2025. The company grew its GAAP revenue by 1% year-over-year to $5.26 billion and GAAP EPS by 49% to reach $1.46.
Management noted the increase in revenue was driven by a 5% growth in Merchant Solutions but was offset by a 3% decline in the Financial Solutions Segment. Moreover, the company also announced One Fiserv action plan through which it will prioritize five strategic pillars.
The pillars include goal to grow average revenue per client, to build a pre-eminent small business operating platform through Clover, create innovative platforms in finance and commerce, operational excellence through AI, and lastly, disciplined long term capital allocation.
Fiserv, Inc. (NYSE:FI) adjusted its full year and now expects organic revenue growth of 3.5% to 4%, versus the previous guidance of 10% organic growth. After the release, on October 29, Andrew Harte from BTIG reiterated a Buy rating on the stock with a price target of $180.
Fiserv, Inc. (NYSE:FI) is a leading fintech company that provides a range of solutions to help businesses process and manage payments and transactions. The company operates through two main business segments, namely Merchant Solutions and Financial Solutions.
8. Boston Scientific Corporation (NYSE:BSX)
FWD EPS Growth: 19.06%
Analyst Upside Potential: 28.57%
Number of Hedge Fund Holders: 100
Boston Scientific Corporation (NYSE:BSX) is one of the Best Stocks to Buy for High Returns Heading into 2026. On October 23, William Plovanic from Canaccord Genuity reiterated a Buy rating on Boston Scientific Corporation (NYSE:BSX) with a price target of $132.
The rating comes after the company, on October 22, released results for its fiscal third quarter 2025. The company topped EPS and revenue estimates by $0.04 and $90.87 million, respectively. The analyst noted that the EPS of $0.75 was also significantly higher than the firm’s estimation of $0.70. This was primarily driven by a substantial improvement in gross margins.
Moreover, Boston Scientific Corporation (NYSE:BSX) also raised its full-year guidance and now projects 20% growth and an adjusted EPS in the range of $3.02 to $3.04. The firm believes some of the key drivers of the company’s growth are its Watchman and Farapulse products, continued investment in growth, and expected label expansions of existing products.
Boston Scientific Corporation (NYSE:BSX) develops and markets medical devices for various interventional specialties. The company’s products address gastrointestinal, urological, neurological, and cardiovascular conditions using minimally invasive technologies.
7. ServiceNow, Inc. (NYSE:NOW)
FWD EPS Growth: 22.95%
Analyst Upside Potential: 25.51%
Number of Hedge Fund Holders: 106
ServiceNow, Inc. (NYSE:NOW) is one of the Best Stocks to Buy for High Returns Heading into 2026. Wall Street has a mixed opinion on ServiceNow, Inc. (NYSE:NOW) ahead of its Q3 2025 earnings release. The company is set to release its results on October 29, 2025.
On October 24, Derrick Wood from TD Cowen reiterated a Buy rating on the stock with a price target of $1,200. The analyst likes the company’s strong performance and its growth potential. The firm expects the fiscal third quarter to remain strong, driven by US federal bookings and a positive outlook on AI adoption.
Wood notes that strong results in Q3 2025 are expected to alleviate market concerns regarding government spending uncertainty. The analyst also noted that ServiceNow, Inc. (NYSE:NOW) has delivered strong growth in its enterprise segment, driven by increased AI demand and an increase in size deals.
On the other hand, earlier on October 22, John Difucci from Guggenheim reiterated a Sell rating on ServiceNow, Inc. (NYSE:NOW) with a price target of $734. Overall, the analyst’s 12-month price target reflects 25.5% upside from the current levels.
ServiceNow, Inc. (NYSE:NOW) provides a cloud-based AI platform that helps businesses automate and digitize workflows across various departments.
6. Salesforce, Inc. (NYSE:CRM)
FWD EPS Growth: 15.62%
Analyst Upside Potential: 29.50%
Number of Hedge Fund Holders: 121
Salesforce, Inc. (NYSE:CRM) is one of the Best Stocks to Buy for High Returns Heading into 2026. Wall Street has a mixed opinion on Salesforce, Inc. (NYSE:CRM) since its analyst day at Dreamforce 2025. On October 17, Michael Turrin from Wells Fargo reiterated a Hold rating on the stock with a price target of $265.
On the same day, TD Cowen reiterated a Buy rating on the stock with a price target of $335. The firm noted the company’s strength in enterprise software despite concerns regarding AI disruption. The firm also attended the Dreamforce event on October 15, where Salesforce, Inc. (NYSE:CRM) introduced its new FY30 revenue target of more than $60 billion, implying a 10% organic CAGR growth through 2026 to 2030.
TD Cowen noted that the strategic edge of the company lies in its ability to combine deterministic business logic through its application. Moreover, Salesforce, Inc. (NYSE:CRM) has also incorporated AI workflows through its Customer 360 platform across clouds. The firm appreciated management’s confidence in sharpening the adoption curve for its Agentforce platform. TD Cowen believes there is room for improvement in the company’s valuation as it executes on the AI strategies.
Salesforce, Inc. (NYSE:CRM) provides customer relationship management (CRM) technology that integrates AI to help businesses improve sales, service, marketing, and commerce.
5. Netflix, Inc. (NASDAQ:NFLX)
FWD EPS Growth: 39.05%
Analyst Upside Potential: 26.53%
Number of Hedge Fund Holders: 133
Netflix, Inc. (NASDAQ:NFLX) is one of the Best Stocks to Buy for High Returns Heading into 2026. Netflix, Inc. (NASDAQ:NFLX) reported FQ3 2205 results on October 21. The company missed EPS and revenue estimates by $1.10 and $881,280, respectively.
The stock price has dropped more than 11% since the announcement and Wall Street has a mixed opinion on the stock ever since.
On October 23, Laurent Yoon from Bernstein reiterated a Buy rating on Netflix, Inc. (NASDAQ:NFLX) with a price target of $1,390. The firm noted that the company is entering the fourth quarter with one of the best content lineups ever. Bernstein noted they are puzzled by the negative market reaction following the earnings release.
Analyst Yoon highlighted that the company has witnessed seven single day declines of 8% or more since COVID-19, however, most of these drops have been followed by recoveries driven by Netflix’s strong fundamentals.
On the other hand, earlier on October 22, Benchmark reiterated a Hold rating on Netflix, Inc. (NASDAQ:NFLX) without disclosing any price targets. The firm noted that the company’s quarterly revenue was in-line with its guidance and the operating income would also have exceeded the forecasts excluding the Brazilian tax impact.
While Benchmark appreciated the company’s strength in its mature markets citing record engagement, it also highlighted relative underperformance in emerging markets. Netflix, Inc. (NASDAQ:NFLX) expects FQ4 revenue to grow by 17%, which is $50 million more than Benchmark’s forecast.
Netflix Inc. (NASDAQ:NFLX) provides entertainment services. The company offers TV series, documentaries, feature films, and games across various genres and languages.
4. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
FWD EPS Growth: 33.92%
Analyst Upside Potential: 20.34%
Number of Hedge Fund Holders: 187
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the Best Stocks to Buy for High Returns Heading into 2026. Wall Street is bullish on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) since the company released its fiscal third-quarter results for 2025. The company topped EPS and revenue estimates by $0.29 and $732.48 million, respectively.
Recently, on October 27, Needham reiterated a Buy rating on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) with a $360 price target. The firm notes there are many factors suggesting strong growth potential for the company. The firm highlighted that demand for the company’s N3 capacity is anticipated to pick up significantly and is expected to drive revenue growth. As a result of this increased demand, Needham raised the company’s growth rate forecast from 20% to 25% and also increased capital expenditure estimates from $42 billion to $50 billion.
In addition to Needham, earlier on October 20, DBS also reiterated a Buy rating on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) with a price target of $346.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a semiconductor design and manufacturing foundry based in Taiwan.
3. Meta Platforms, Inc. (NASDAQ:META)
FWD EPS Growth: 26.56%
Analyst Upside Potential: 19.16%
Number of Hedge Fund Holders: 260
Meta Platforms, Inc. (NASDAQ:META) is one of the Best Stocks to Buy for High Returns Heading into 2026. On October 24, Stifel reiterated a Buy rating on Meta Platforms, Inc. (NASDAQ:META) with a price target of $900.
The firm noted that they found Meta Platforms, Inc. (NASDAQ:META) as one of their top picks for the long term. It also noted that there is a broad agreement among investors regarding the company’s long-term potential. Stifel believes continued Instagram strength to be one of the core drivers for the company’s performance.
The firm sees that 2026 capital expenditure and expense-related discussions are likely to take center stage in the company’s upcoming discussions. This is because Meta Platforms, Inc. (NASDAQ:META) usually discloses its guidance for the following year in its third quarter.
Meta Platforms, Inc. (NASDAQ:META) is a tech company that connects people through social media and immersive experiences.
2. Microsoft Corporation (NASDAQ:MSFT)
FWD EPS Growth: 15.58%
Analyst Upside Potential: 20.61%
Number of Hedge Fund Holders: 294
Microsoft Corporation (NASDAQ:MSFT) is one of the Best Stocks to Buy for High Returns Heading into 2026. Wall Street is bullish on Microsoft Corporation (NASDAQ:MSFT) ahead of its FQ1 2026 earnings release, scheduled to be released on October 29 (Post-Market).
On October 29, Patrick Colville from Scotiabank reiterated a Buy rating on the stock with a price target of $650. A day earlier on October 28, William Blair analyst Jason Ader also reiterated a Buy rating on Microsoft Corporation (NASDAQ:MSFT) without disclosing any price targets.
Ander highlighted the company’s recent agreement with OpenAI as a significant development noting that it ensures continued access to OpenAI’s technologies which are crucial for Microsoft’s Copilot and Azure monetization. In addition, the analyst also likes Microsoft Corporation’s (NASDAQ:MSFT) valuation which he believes indicates strong financial health and growth potential.
In addition to William Blair, On October 27, John Difucci from Guggenheim upgraded the stock from Neutral to Buy with a price target of $586. Difucci noted that it is evident that Microsoft Corporation (NASDAQ:MSFT) and its AI hyperscalers would benefit from the fast-growing technologies.
He believes that the growing adoption of AI will boost the company’s cloud services. He likes the company’s near monopoly in the productivity software space and notes that there are significant opportunities for the company to monetize AI.
Microsoft Corporation (NASDAQ:MSFT) is a leading technology company known for a wide range of devices, software, and services. Some of the core offerings by the company include productivity software, including Microsoft Office and Azure, the Windows operating system, and gaming devices.
1. Amazon.com, Inc. (NASDAQ:AMZN)
FWD EPS Growth: 37.91%
Analyst Upside Potential: 19.10%
Number of Hedge Fund Holders: 335
Amazon.com, Inc. (NASDAQ:AMZN) is one of the Best Stocks to Buy for High Returns Heading into 2026. On October 27, Reuters reported that Amazon.com, Inc. (NASDAQ:AMZN) plans to invest $1.4 billion euros (approx $1.63 billion) in the Netherlands over the next three years.
This is considered to be one of the largest investments by the company in the Netherlands since the launch of its operations in 2020. Management noted that this investment is partly aimed at developing artificial intelligence for entrepreneurs selling products on the company’s platform.
Moreover, Amazon.com, Inc. (NASDAQ:AMZN)’s head for Belgium and the Netherlands, Eva Faict, noted the Netherlands to be an important growth market and believes that this investment would allow the company to better serve its customers, while also improving the quality of services.
Amazon.com, Inc. (NASDAQ:AMZN) is a global retailer offering a wide range of products through online and physical stores, focusing on selection, price, and convenience.
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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