10 Best Stocks to Buy for High Returns in 2026

4. Alibaba Group Holding Limited (NYSE:BABA)

EPS Growth Next Year: 41.78%

Upside Potential: 35.16%

Number of Hedge Fund Holders: 130

Alibaba Group Holding Limited (NYSE:BABA) is one of the Best Stocks to Buy for High Returns in 2026. On January 5, Bloomberg reported that Alibaba Group Holding Limited (NYSE:BABA) is launching AI services for restaurants to showcase their interiors.

According to the report, this strategic move comes as Alibaba competes with Meituan in the Chinese food and dining sector. This new AI service will be launched in the company’s map and location services app called Amap. The Amap app will allow restaurants to render 3D images by simply uploading videos or images.

Moreover, the report cited an anonymous source familiar with the matter, who noted that Alibaba Group Holding Limited (NYSE:BABA) is planning to offer this new feature based on its visual WAN model, to select businesses for free for a period of time.

That said, Wall Street has a positive outlook on the stock. Recently, on January 8, Gary Yu from Morgan Stanley reiterated a Buy rating on the stock, but lowered the firm’s price target from $200 to $180. On the same day, Thomas Chong from Jefferies also reiterated a Buy rating on the stock with a $225 price target.

​Alibaba Group Holding Limited (NYSE:BABA) is a multinational tech giant focused on e-commerce, retail, cloud computing, and digital services. It aims to make it easy to do business anywhere by connecting buyers and sellers globally through platforms like Alibaba.com (B2B wholesale).