In this article, we will look at the 10 Best Stocks to Buy for High Returns in 2026.

​On January 6, Brian Belski, the CEO and chief investment officer of Humilis Investment Strategies, appeared on a CNBC Television interview to talk about his outlook for 2026. He expects the S&P 500 to end the year between 7,300 and 7,500. He had released a note earlier, saying that his firm sees the US stock market transitioning towards an earnings-driven and fundamentally performance-driven trajectory. Belski noted that the past two years of the bull market have been mainly driven by Momentum trading strategies.

​Belski expects 2026 to be bumpier than 2025. He elaborated that usually the 3rd year of the bull market is more volatile; under the current circumstances, the third year, which was 2025, went well. However, Belski expects 2026 to experience the natural volatility of the 5-year bull market. He sees some fundamental issues with the technology sector, and he has neutralized his exposure to the sector. Belski noted that his firm is overweight on communication services, financials, and utilities for 2026. He added that these sectors provide much more visibility under the current market environment and, therefore, are easier to track. He also believes that these sectors would be in an earnings growth mode driven by secular trends.

​With that, let’s take a look at the 10 Best Stocks to Buy for High Returns in 2026.

​Our Methodology

To compile the list of 10 Best Stocks to Buy for High Returns in 2026, we used Finviz stock screener, Yahoo Finance, CNN, and Insider Monkey’s Q3 2025 database. Using the screener, we aggregated a list of stocks with more than 25% forward EPS growth and more than 30% analyst upside potential. Next, we cross-checked the EPS growth from Yahoo Finance and the upside potential from CNN. Lastly, we ranked these stocks in ascending order of the number of hedge fund holders sourced from Insider Monkey’s hedge fund database. Please note that all data was recorded on January 8, 2026.

​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 in 2026

​10. Arm Holdings plc (NASDAQ:ARM)

EPS Growth Next Year: 62.37%

Upside Potential: 55.80%

Number of Hedge Fund Holders: 41

​Arm Holdings plc (NASDAQ:ARM) is one of the Best Stocks to Buy for High Returns in 2026. On January 7, Reuters reported that Arm Holdings plc (NASDAQ:ARM) is reorganizing its business to expand its presence in the robotics industry by creating a new Physical AI unit.

​According to the report, this decision comes at a time when companies of all scales and sizes demonstrated development around humanoid robots at the Las Vegas CES event. After the creation of this new unit, the company will operate through three main lines of business, including the Cloud and AI, Edge, and Physical AI units.

​As per the report, management of Arm Holdings plc (NASDAQ:ARM) sees immense potential for growth in the robotics industry. The head of the newly formed Physical AI unit, Drew Henry, told Reuters that the advancements in robotics have the potential to enhance labor and free up extra time for humans. He believes that this would be a key contributing factor to boosting the GDP in the future.

​That said, recently on January 5, Stephane Houri from Oddo BHF upgraded the stock from Hold to Buy with a $170 price target. Earlier on December 16, Vivek Arya from Bank of America Securities also reiterated a Buy rating on the stock, but lowered the price target from $205 to $145.

​Arm Holdings (NASDAQ:ARM) architects, develops, and licenses central processing unit products and related technologies for semiconductor companies and original equipment manufacturers.

​9. Marvell Technology, Inc. (NASDAQ:MRVL)

EPS Growth Next Year: 26.67%

Upside Potential: 36.01%

Number of Hedge Fund Holders: 77

​Marvell Technology, Inc. (NASDAQ:MRVL) is one of the Best Stocks to Buy for High Returns in 2026. On January 7, Aaron Rakers from Wells Fargo reiterated a Buy rating on Marvell Technology, Inc. (NASDAQ:MRVL) with a $135 price target. Earlier, on January 6, Harlur Sur from J.P. Morgan reiterated a Buy rating on the stock without disclosing any price targets.

​The renewed bullish sentiment around the stock stems from the company’s decision to acquire XConn Technologies, announced on January 6. Management noted that they have entered a definitive agreement to acquire XConn, which specializes in advanced PCIe and CXL switching silicon for roughly $540 million (60% cash, 40% stock).

​This strategic move is anticipated to boost Marvell Technology, Inc.’s (NASDAQ:MRVL) portfolio in high-performance data center connectivity. Management noted that AI systems are scaling massively and require efficient connections between accelerators. They added that traditional setups fall short, standards like the company’s UALink enable multiple accelerators to act as one large system with high bandwidth and low latency. The acquisition will add XConn’s proven PCIe 5/6 and CXL 2.0/3.1 switches, thereby expanding Marvell’s position as a leader in accelerated infrastructure.

​Marvell Technology, Inc. (NASDAQ:MRVL), along with its subsidiaries, supplies data infrastructure semiconductor solutions across the data center core and out to the network edge.