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.
8. Sea Limited (NYSE:SE)
EPS Growth Next Year: 44.73%
Upside Potential: 37.17%
Number of Hedge Fund Holders: 102
Sea Limited (NYSE:SE) is one of the Best Stocks to Buy for High Returns in 2026. On January 2, Hussaini Saifee from Maybank upgraded Sea Limited (NYSE:SE) from Hold to Buy with a price target of $156. Earlier on December 19, Scott Devitt from Wedbush reiterated a Buy rating on the stock, but lowered the price target from $190 to $170.
Saifee from Maybank noted that the share price of Sea Limited (NYSE:SE) has fallen more than 36% from its peak in October 2025. The analyst noted that this sharp pullback means that most of the near term risks have already been priced in. Saifee added that while the stock price has fallen, the long-term growth drivers for Sea Limited remain intact.
Moreover, the firm also noted that the company continues to invest in its Shopee VIP programme fulfilment network. This investment is strengthening the company’s position in the e-commerce market of Southeast Asia, which accounts for roughly 75% of Shopee’s GMV. Considering these factors, Maybank noted that Sea Limited (NYSE:SE) provides an attractive risk/reward profile at current levels.
Sea Limited (NYSE:SE) is a consumer internet company that operates through three segments: e-commerce, digital financial services, and digital entertainment. It runs Shopee, a popular e-commerce platform, Garena, a gaming and eSports platform, and SeaMoney, which offers digital financial services.
7. Vistra Corp. (NYSE:VST)
EPS Growth Next Year: 43.06%
Upside Potential: 36.85%
Number of Hedge Fund Holders: 112
Vistra Corp. (NYSE:VST) is one of the Best Stocks to Buy for High Returns in 2026. On January 7, Goldman Sachs reiterated a Hold rating on Vistra Corp. (NYSE:VST) with a $200 price target. Earlier on January 6, Ross Fowler from Bank of America Securities reiterated a Buy rating on the stock with a $231 price target.
The ratings follow the company’s decision to acquire Cogentrix on December 5. Management noted that it has entered a definitive agreement to acquire Cogentrix Energy from funds managed by Quantum Capital Group. The deal adds roughly 5,500 MW of modern natural gas-fired power plants to the company’s portfolio, thereby enhancing its capacity in key US electricity markets like PJM, ISO New England, and ERCOT. The total value of the deal is around $4 billion.
Ross Fowler from Bank of America Securities noted that they view the deal as a strategic step for Vistra Corp. (NYSE:VST). The analyst added that the deal is structured with a mix of cash, stock, debt, and some meaningful tax benefits. BofA expects the deal to generate roughly $550 million in EBITDA. The firm acknowledged risk regarding potential divestitures in ISO-NE and scrutiny in PJM, but views these challenges as manageable.
Vistra Corp. (NYSE:VST) operates as an integrated retail electricity and power generation company, supplying essential power resources to customers.
6. Advanced Micro Devices, Inc. (NASDAQ:AMD)
EPS Growth Next Year: 62.88%
Upside Potential: 35.29%
Number of Hedge Fund Holders: 115
Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the Best Stocks to Buy for High Returns in 2026. On January 5, Advanced Micro Devices, Inc. (NASDAQ:AMD) launched a new family of x86 chips for AI applications at the edge. The new family of processors is called Ryzen AI Embedded, which includes the P100 and X100 Series processors.
Management noted that the new series targets automotive, industrial automation, healthcare, and physical AI systems such as humanoid robotics. Moreover, it stands out because the company has packed a high-performance CPU, GPU, and NPU into a single chip. Management noted that they have packed three components, including Zen 5 CPU cores, RDNA 3.5 GPU, and XDNA 2 NPU, into a single chip for compact and power-constrained environments.
That said, Wall Street remains bullish on Advanced Micro Devices, Inc. (NASDAQ:AMD). On January 4, Blayne Curtis from Jefferies reiterated a Buy rating on the stock without disclosing any price targets. Earlier, on December 19, William Stein from Truist Financial also reiterated a Buy rating on the stock with a $277 price target.
Advanced Micro Devices, Inc. (NASDAQ:AMD) is a global semiconductor company that manufactures GPUs, microprocessors, and high-performance computing solutions and serves a number of high-growth industries like gaming, data centers, and AI.
5. Spotify Technology S.A. (NYSE:SPOT)
EPS Growth Next Year: 62.77%
Upside Potential: 33.68%
Number of Hedge Fund Holders: 116
Spotify Technology S.A. (NYSE:SPOT) is one of the Best Stocks to Buy for High Returns in 2026. On January 8, Citizens reiterated a Buy rating on the stock with a $800 price target. On the same day, Deepak Mathivanan from Cantor Fitzgerald reiterated a Hold rating on Spotify Technology S.A. (NYSE:SPOT) but lowered the price target from $675 to $615.
Citizens noted that they see the company’s multi-vertical audio platform to be strategically structured for long-term delivery, compounding engagement, free cash flow, and revenue growth over time. The firm added that through the personalization and product innovation over-time the company has built a differentiating audio platform, which gives it significant pricing power. Moreover, Citizens also see the company reaching its inflection point in the second half of 2026, driven by the company’s advertising business and the change in business model from brand-led to a more programmatic platform.
That said, Bank of America on January 2 announced its top picks for the first quarter of 2026. Spotify Technology S.A. (NYSE:SPOT) is one of BofA’s top picks for Q1 2026. The firm has a Buy rating with a $900 price target on the stock.
Spotify Technology SA (NYSE:SPOT) is a global audio streaming company. The platform serves more than 600 million monthly active users worldwide, making it the largest music streaming service by market share. Spotify generates revenue from subscriptions, advertising, and partnerships.
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).
3. Netflix, Inc. (NASDAQ:NFLX)
EPS Growth Next Year: 27.87%
Upside Potential: 46.17%
Number of Hedge Fund Holders: 154
Netflix, Inc. (NASDAQ:NFLX) is one of the Best Stocks to Buy for High Returns in 2026. Netflix’s deal to acquire Warner Bros remains on track. In a recent update, on January 7, Reuters reported that Warner Bros Discovery turned down Paramount Skydance’s latest attempt to acquire the studio. The board of Warner Bros rejected the revised bid from Paramount of $108.4 billion, calling it a hostile bid that investors should reject.
The board released a letter to its shareholders explaining that Paramount’s bid heavily relies on extraordinary debt financing, which increases the risk of successfully closing the deal. Moreover, the board also reaffirmed its commitment to Netflix, Inc. (NASDAQ:NFLX) for its $82.7 billion deal.
That said, Wall Street has a mixed opinion on the stock since its deal with Warner Bros. Recently, on January 5, CRFA downgraded the stock from Buy to Hold, while maintaining a $100 price target. Earlier, on December 11, Jefferies maintained a Buy rating on Netflix, Inc. (NASDAQ:NFLX) but lowered the price target from $150 to $134.
Netflix Inc. (NASDAQ:NFLX) provides entertainment services and offers TV series, documentaries, feature films, and games across various genres and languages.
2. Broadcom Inc. (NASDAQ:AVGO)
EPS Growth Next Year: 38.49%
Upside Potential: 33.81%
Number of Hedge Fund Holders: 183
Broadcom Inc. (NASDAQ:AVGO) is one of the Best Stocks to Buy for High Returns in 2026. On January 6, Broadcom Inc. (NASDAQ:AVGO) launched new Wi-Fi products at CES 2026 in Las Vegas. The products include the BCM4918 accelerated processing unit and two Wi-Fi 8 chipsets, including BCM6714 and BCM6719.
Management noted that these new product launches are based on their earlier BCM6718, which is aimed at powering “agentic” AI apps in homes. Moreover, the Wi-Fi 8 Platform is the company’s next-generation wireless standard that combines ultra-high throughput, low latency, and AI-driven smarts for optimizing connections automatically. Management added that these advancements are a turning point as Wi-Fi merges broadband, computing, and AI intelligence.
That said, Wall Street has a positive opinion on Broadcom Inc. (NASDAQ:AVGO). Recently, on January 5, James Schneider from Goldman Sachs reiterated a Buy rating on the stock with a $450 price target. A day earlier, on January 4, Blayne Curtis from Jefferies also reiterated a Buy rating on the stock without disclosing any price target. Goldman Sachs has added Broadcom Inc. (NASDAQ:AVGO) to its US Conviction List, which is a list of 20 to 25 stocks that the firm believes are fundamental buy ideas for 2026.
Broadcom Inc. (NASDAQ:AVGO) designs, develops, and supplies various semiconductor devices and infrastructure software solutions worldwide. The company operates in two segments: Semiconductor Solutions and Infrastructure Software.
1. NVIDIA Corporation (NASDAQ:NVDA)
EPS Growth Next Year: 61.28%
Upside Potential: 33.52%
Number of Hedge Fund Holders: 234
NVIDIA Corporation (NASDAQ:NVDA) is one of the Best Stocks to Buy for High Returns in 2026. On January 8, Harsh Kumar from Piper Sandler reiterated a Buy rating on the stock with a $225 price target. Earlier on January 6, Harlan Sur from J.P. Morgan also maintained a Buy rating on NVIDIA Corporation (NASDAQ:NVDA) without disclosing any price targets.
Analyst Sur from J.P. Morgan noted that the company’s sustained demand growth and expanding growth drivers are the main factors behind his bullish rating. He added that the current demand for the company’s products exceeds the calendar year 2027. Management disclosed that its 2026 backlog for Blackwell, Rubin, and related networking products exceeds $500 billion for 2026. The analyst noted that this amount has seen significant upside, driven by new customer deals and agreements.
Sur added that the investment case for NVIDIA Corporation (NASDAQ:NVDA) remains strong, driven by its strategic position in the Physical AI segment, which substantially increases its total addressable markets. The analyst acknowledged that while the uncertainty regarding China export licenses persists, any approvals will only increase the company’s demand and will add to its market size.
NVIDIA Corporation (NASDAQ:NVDA) is a semiconductor company. It designs GPUs and data center solutions, which are widely used for training and running large-scale AI models. NVIDIA’s CUDA software platform and AI-focused hardware provide the computational power required for generative AI, machine learning, and high-performance computing applications.
While we acknowledge the potential of NVDA 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 NVDA and that has 100x upside potential, check out our report about this cheapest AI stock.
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