On December 19, Ben Narasin, Tenacity Venture Capital founder, joined ‘Squawk Box’ on CNBC to discuss the state of the IPO market and the 2026 IPO pipeline outlook. While Narasin admitted his previous prediction of a blow-up year for IPOs was slightly off, he remained highly optimistic about the coming year. He described a pipeline filled with high-quality products and noted that bankers and venture capitalists are excited about potential listings from companies like SpaceX and Anthropic. However, he remained uncertain regarding whether OpenAI will go public within the next calendar year.
Discussing whether the market is in a bubble, Narasin viewed the then-current environment as a natural cycle rather than a bubble, where progress involves growth followed by regression before getting stronger again. He stated that world-changing technologies naturally attract the best and brightest entrepreneurs and capital. While he acknowledged that many companies might fail, he also asserted that the successful ones will provide tremendous value, similar to the long-term impact of the internet. He referenced Jeff Bezos’s view on the uniqueness of the American capital bench, which is willing to risk billions on ventures with only a 10% chance of success, provided the winners pay for the losers, and more. He classified OpenAI as the white whale of future IPOs but noted that their access to vast amounts of private capital makes their path uncertain.
That being said, we’re here with a list of the 11 best young stocks to buy and hold for 3 years.
Our Methodology
We used the Finviz stock screener to compile a list of stocks that went public in the past 3 years and used SeekingAlpha to pick stocks that had an average EPS growth rate of at least 30%. We then selected 11 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q3 2025.
Note: All data was sourced on January 12.
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).
11 Best Young Stocks to Buy and Hold For 3 Years
11. Infinity Natural Resources Inc. (NYSE:INR)
EPS Forward Long Term Growth (3-5 Year CAGR): 33.00%
Number of Hedge Fund Holders: 15
Infinity Natural Resources Inc. (NYSE:INR) is one of the best young stocks to buy and hold for 3 years. On December 9, Roth Capital raised the firm’s price target on Infinity Natural Resources to $18 from $17 with a Buy rating on the shares. The firm believes that the company’s recent Ohio Utica deal is a compelling expansion. By acquiring midstream operations and under-utilized drilling assets that sit adjacent to its existing acreage, the company effectively boosted its inventory and operational control in a single move.
In other news, Infinity Natural Resources Inc. (NYSE:INR) announced a transformational $1.2 billion acquisition of upstream and midstream assets in the Ohio Utica Shale from Antero Resources Corporation and Antero Midstream Corporation. To facilitate the deal, Northern Oil & Gas Inc. (NYSE:NOG) will acquire an undivided 49% interest for $588 million, leaving Infinity Natural Resources with a 51% interest for a net purchase price of $612 million.
The acquired assets include ~71,000 net acres located in Ohio’s Guernsey, Belmont, and Harrison counties. As of Q3 2025, these assets produced approximately 133 MMcfe/d (81% gas and 19% liquids) from 255 producing laterals. The deal also adds significant inventory, including over 110 undeveloped laterals totaling 1.6 million lateral feet and 764 billion cubic feet of undeveloped reserves. Pro forma, Infinity Natural Resources will control ~102,000 net horizontal acres in Ohio with 1.4 Tcfe of undeveloped net reserves.
Infinity Natural Resources Inc. (NYSE:INR) acquires, explores, and develops properties to produce oil, natural gas, and natural gas liquids from underground reservoirs in the US.
10. Fidelis Insurance Holdings Limited (NYSE:FIHL)
EPS Forward Long Term Growth (3-5 Year CAGR): 53.80%
Number of Hedge Fund Holders: 16
Fidelis Insurance Holdings Limited (NYSE:FIHL) is one of the best young stocks to buy and hold for 3 years. On January 7, Goldman Sachs raised the firm’s price target on Fidelis Insurance to $18 from $17 and kept a Sell rating on the shares. The firm expects strong profitability for Americas Insurance in the near term, but warned that the P&C market is now solidly in the softening phase. This transition likely means a drop in pricing and margins due to increased competition.
On the same day, Evercore ISI adjusted its outlook for Fidelis Insurance, raising the price target to $21, up from $20, while maintaining an In Line rating on the shares. In a 2026 sector preview, the firm warned that the Property & Casualty insurance industry faces a tough cyclical backdrop that will make the coming year particularly difficult. However, it noted that this volatility creates a stock picker’s market, where careful investors can still find opportunities in the sector despite broader challenges.
However, JPMorgan downgraded Fidelis Insurance Holdings Limited (NYSE:FIHL) from Neutral to Underweight, even as it raised its price target to $21 from $19. Despite the company’s discount valuation and de-risked exposures, the firm expressed concern over Fidelis Insurance Holdings ‘ high concentration in the property sector.
Fidelis Insurance Holdings Limited (NYSE:FIHL) provides insurance and reinsurance solutions in Bermuda, the Republic of Ireland, and the UK. It operates in two segments: Insurance and Reinsurance.
9. Kodiak Gas Services Inc. (NYSE:KGS)
EPS Forward Long Term Growth (3-5 Year CAGR): 71.20%
Number of Hedge Fund Holders: 32
Kodiak Gas Services Inc. (NYSE:KGS) is one of the best young stocks to buy and hold for 3 years. Earlier on December 3, Mizuho lowered the firm’s price target on Kodiak Gas Services to $44 from $47 and maintained an Outperform rating on the shares. The firm believes that the company’s capital plan aligns with its strategy to expand contracted margins amid tight natural gas supply in the Permian Basin. The rating also reflects updated projections following Kodiak’s Q3 2025 earnings report.
The company achieved total revenue of $322.7 million in Q3 2025, which was driven by record Contract Services revenue of $297.0 million, a 4.5% increase year-over-year. Kodiak Gas Services Inc. (NYSE:KGS) also reported an adjusted net income of $31.5 million, or $0.36 per diluted share. The company also implemented a new ERP system in Q3 on time and under budget, which management expects will integrate AI to further enhance real-time operational visibility and efficiency.
For 2026, Kodiak reported being effectively fully contracted for the coming year, supported by long lead times for new compression equipment that now stretch beyond 60 weeks. Despite a slight pullback in interest for electric-driven compression due to power grid access issues in the Permian Basin, the company deployed ~60,000 new horsepower this quarter. Consequently, management raised its full-year 2025 guidance for discretionary cash flow to a range of $450 to $470 million, while maintaining its Adjusted EBITDA guidance between $700 and $725 million.
Kodiak Gas Services Inc. (NYSE:KGS) operates contract compression infrastructure for customers in the oil and gas industry in the US. It operates in two segments: Contract Services and Other Services.
8. Cava Group Inc. (NYSE:CAVA)
EPS Forward Long Term Growth (3-5 Year CAGR): 33.08%
Number of Hedge Fund Holders: 34
Cava Group Inc. (NYSE:CAVA) is one of the best young stocks to buy and hold for 3 years. On January 9, Mizuho analyst Nick Setyan raised the firm’s price target on Cava Group to $64 from $52 with a Neutral rating on the shares. In its 2026 outlook, Mizuho adjusted price targets across the restaurant sector and predicted an ongoing price war as brands fight to regain foot traffic lost to grocery stores following significant post-pandemic price hikes. The firm favored Casual Dining as the top-performing sub-sector, followed by coffee and fast-casual, while remaining cautious on Quick Service.
On the same day, Telsey Advisory initiated coverage of Cava Group with an Outperform rating and an $85 price target. The firm noted that while the restaurant industry dealt with reduced consumer spending throughout 2025, it anticipates a moderate recovery in sector trends for 2026. This improvement is expected to be driven by a boost in consumer purchasing power from larger tax refunds and lower interest rates.
Additionally, Truist increased the price target for Cava Group Inc. (NYSE:CAVA) to $78 from $66 while maintaining a Buy rating on January 8. The firm described a complex outlook for the restaurant industry in 2026 following a difficult year. Truist noted that while factors like tax refunds and cooperative weather could provide a short-term boost, the sector still faces significant challenges.
Cava Group Inc. (NYSE:CAVA) owns and operates a chain of restaurants under the CAVA brand in the US. It also offers dips, spreads, and dressings through grocery stores.
7. Fortrea Holdings Inc. (NASDAQ:FTRE)
EPS Forward Long Term Growth (3-5 Year CAGR): 45.12%
Number of Hedge Fund Holders: 37
Fortrea Holdings Inc. (NASDAQ:FTRE) is one of the best young stocks to buy and hold for 3 years. On January 9, Mizuho raised the firm’s price target on Fortrea to $15 from $13, while keeping a Neutral rating on the shares. In its Q4 2025 preview for healthcare facilities and managed care, Mizuho adjusted its price targets following a physician survey that showed a sequential slowdown in healthcare utilization. Despite facing easier comparisons from the previous year, the decelerating growth suggested that the peak of the utilization trend may have already passed.
Additionally, on January 8, Truist also upgraded Fortrea from Hold to Buy, setting a new price target of $22. The firm’s decision is based on the company’s enhanced operational performance under its new leadership, emerging commercial strength, and a more transparent route toward improving profit margins. Truist believes investor confidence is growing as the CEO prioritizes commercial success, streamlined operations, and stricter financial management.
On January 6, as well, Evercore ISI upgraded Fortrea Holdings Inc. (NASDAQ:FTRE) from In Line to Outperform and significantly raised its price target to $25 from $14. The firm pointed to an accelerating biopharma cycle and the company’s own improved execution as the primary drivers for the upgrade. The firm noted that Fortrea is currently delivering revenue and margins that exceed market expectations while simultaneously benefiting from its efforts to reduce debt.
Fortrea Holdings Inc. (NASDAQ:FTRE) is a contract research organization that provides biopharmaceutical product and medical device development solutions to pharmaceutical, biotech, and medical device customers worldwide.
6. BrightSpring Health Services Inc. (NASDAQ:BTSG)
EPS Forward Long Term Growth (3-5 Year CAGR): 35.05%
Number of Hedge Fund Holders: 48
BrightSpring Health Services Inc. (NASDAQ:BTSG) is one of the best young stocks to buy and hold for 3 years. On January 9, Mizuho analyst Ann Hynes raised the firm’s price target on BrightSpring Health to $45 from $42, while keeping an Outperform rating on the shares. As part of its Q4 2o25 preview, Mizuho revised targets for healthcare facilities and managed care after a physician survey revealed a sequential slowdown in utilization growth. The firm noted that because this deceleration occurred despite favorable year-over-year comparisons, it likely signals that the current peak in healthcare demand is behind us.
On January 7, Wells Fargo increased its price target for BrightSpring Health Services Inc. (NASDAQ:BTSG) to $43 from $39, while maintaining an Overweight rating. In a broader assessment of the healthcare sector, the firm expressed the highest confidence in Medicare Advantage among managed care organizations, while noting significant uncertainty regarding Medicaid and Exchange markets.
Wells Fargo anticipated a more difficult environment for hospitals in 2026 as post-pandemic growth trends fade and legislative risks increase. For medical distributors, the firm noted an ongoing debate in the market over whether earnings revisions or valuation multiples will drive stock performance.
BrightSpring Health Services Inc. (NASDAQ:BTSG) operates as a home and community-based healthcare services platform in the US. It operates through two segments: Pharmacy Solutions and Provider Services.
5. ServiceTitan Inc. (NASDAQ:TTAN)
EPS Forward Long Term Growth (3-5 Year CAGR): 81.50%
Number of Hedge Fund Holders: 48
ServiceTitan Inc. (NASDAQ:TTAN) is one of the best young stocks to buy and hold for 3 years. On December 17, BTIG initiated coverage of ServiceTitan with a Buy rating and $130 price target. The firm identified ServiceTitan as a premier high-growth software company operating at significant scale. By expanding into a broader range of trades and market segments, the company is building a significant runway for long-term, durable growth.
In FQ3 2026, ServiceTitan Inc. (NASDAQ:TTAN) achieved total revenue of $249.2 million, which was a 25% year-over-year growth. The growth was fueled by a 26% increase in subscription revenue, which reached $182.8 million, and a 24% rise in usage revenue to $56.8 million, driven by higher-than-expected utilization of fintech products.
Strategic initiatives centered on AI and market expansion remain at the forefront of ServiceTitan’s growth plan. The company is prioritizing its MAX program, which is an AI-driven initiative designed to automate complex workflows and optimize customer profitability. While currently in a cautious pilot phase with about 50 customers to ensure success, management plans a broader rollout soon. Beyond AI, the company is gaining traction in the commercial sector with its end-to-end platform and recently closed the acquisition of Conduit in October for $20 million to support its residential HVAC offerings.
ServiceTitan Inc. (NASDAQ:TTAN) provides an end-to-end cloud-based software platform in the US and Canada. Its platform connects and manages a range of business workflows.
4. Centuri Holdings Inc. (NYSE:CTRI)
EPS Forward Long Term Growth (3-5 Year CAGR): 36.40%
Number of Hedge Fund Holders: 49
Centuri Holdings Inc. (NYSE:CTRI) is one of the best young stocks to buy and hold for 3 years. On January 7, Wells Fargo analyst Joseph O’Dea raised the firm’s price target on Centuri Holdings to $30 from $25, while maintaining an Overweight rating on the shares. In its review of the Electrical Equipment & Multi-Industry sector, the firm anticipated that initial 2026 guidance would be largely underwhelming. Wells Fargo suggested that this stems from a prudent approach by management to set conservative targets and manage investor expectations early in the year.
Centuri Holdings Inc. (NYSE: CTRI) reported that its Q3 2025 revenue reached $850 million, which was an 18% year-over-year increase. This performance was supported by a 25% jump in base revenue and a 28% rise in base gross profit. The company’s future prospects also reached a milestone as its backlog grew to $5.9 billion, which was up from $5.3 billion in the previous quarter, and was supported by $815 million in new bookings during Q3 alone.
The company is prioritizing higher-margin opportunities over pure volume. Management highlighted that data center projects generally offer superior margins compared to traditional MSAs. In its current $3 billion pipeline of strategic bids, Centuri Holdings is managing a mix of $1.7 billion in new bid work and $1.3 billion in renewals, with a project split of 60% electrical and 40% gas. This data-driven approach allows the company to focus on profitable growth by tracking win rates and targeting projects that avoid the seasonality typical of utility work.
Centuri Holdings Inc. (NYSE:CTRI) operates as a utility infrastructure services company in North America. The company operates through four segments: US Gas Utility Services, Canadian Gas Utility Services, Union Electric Utility Services, and Non-Union Electric Utility Services.
3. Viking Holdings Ltd. (NYSE:VIK)
EPS Forward Long Term Growth (3-5 Year CAGR): 34.94%
Number of Hedge Fund Holders: 51
Viking Holdings Ltd. (NYSE:VIK) is one of the best young stocks to buy and hold for 3 years. On January 12, Bank of America raised the firm’s price target on Viking Holdings to $80 from $70 with a Buy rating on the shares. According to BofA credit and debit card data, monthly cruise spending surged 10.5% year-over-year in December. Analysts noted that the cruise sector remains a significant outlier in the travel industry; while cruise demand stayed strong, broader travel spending declined by 1.9%, with airlines and hotels dropping 4.1% and 2.4% respectively.
Earlier on December 15, Jefferies upgraded Viking Holdings from Hold to Buy, significantly raising the price target to $80 from $60. The firm based this decision on the company’s consistent growth, the high quality of its business model, and its advantageous position within the luxury travel market. For 2026, Jefferies anticipates that Viking Holdings will achieve industry-leading net yield growth of 5%, even as the company expands its capacity by low double digits.
Additionally, on December 12, Citi increased its price target for Viking Holdings to $85 from $74 and maintained its Buy rating. The firm observed that data from the cruise industry suggested either a slowdown in consumer demand or an increasingly crowded Caribbean supply market, and likely a mix of both. As a result, Citi expects cruise operators to provide more conservative financial outlooks during their upcoming Q4 2025 earnings reports.
Viking Holdings Ltd. (NYSE:VIK) engages in the passenger shipping and other forms of passenger transport in North America, the UK, and internationally. It operates through the River and Ocean segments.
2. Sandisk Corporation (NASDAQ:SNDK)
EPS Forward Long Term Growth (3-5 Year CAGR): 100.63%
Number of Hedge Fund Holders: 61
Sandisk Corporation (NASDAQ:SNDK) is one of the best young stocks to buy and hold for 3 years. On January 9, Goldman Sachs analyst James Schneider raised the firm’s price target on SanDisk to $320 from $280 and kept a Buy rating on the shares. This decision was made as market sentiment remains highly optimistic, supported by progress in enterprise SSD qualifications and sustained pricing strength.
Mizuho also increased its price target for Sandisk Corporation (NASDAQ:SNDK) to $410 from $250 on the same day, while maintaining an Outperform rating. This adjustment came as part of the firm’s broader 2026 semiconductor sector outlook, where Mizuho anticipated further growth driven by attractive valuations, though it expected gains to be more tempered than those seen in 2025.
For 2026, Mizuho identified AI accelerators, wafer fabrication equipment, optical components, and memory as the most promising sub-sectors. Conversely, the firm remained cautious regarding the outlook for electric vehicles, automotive and analog chips, as well as the personal computer and handset markets.
Sandisk Corporation (NASDAQ:SNDK) develops, manufactures, and sells data storage devices and solutions using NAND flash technology in the US, Europe, the Middle East, Africa, Asia, and internationally.
1. Amer Sports Inc. (NYSE:AS)
EPS Forward Long Term Growth (3-5 Year CAGR): 44.04%
Number of Hedge Fund Holders: 63
Amer Sports Inc. (NYSE:AS) is one of the best young stocks to buy and hold for 3 years. On January 8, Deutsche Bank resumed coverage of Amer Sports with a Buy rating and $49 price target. After a strong year for retail, Deutsche Bank resumed coverage of beauty and off-price sectors with a bullish stance. The firm forecasts solid top-line performance through H1 2026, citing a risk-on macro backdrop, better weather conditions compared to last year, and a boost from tax season.
On the same day, UBS increased its price target for Amer Sports to $58 from $54, while maintaining a Buy rating. The firm highlighted that the 2026 earnings potential for Softline stocks is likely to be supported by a surprisingly resilient US consumer and an emerging Health & Wellness 2.0 trend. UBS estimated that earnings for 16 companies in this category will exceed current market expectations by at least 4% and this growth momentum will continue into 2027, with EPS forecasts expected to average 5% above the broader market consensus.
In other news, on December 16, Wells Fargo also increased the price target for Amer Sports Inc. (NYSE:AS) to $45 from $40, while maintaining an Overweight rating. The firm noted that while the market continues to be divided between clear winners and losers, it has grown more optimistic about the retail space heading into 2026.
Amer Sports Inc. (NYSE:AS) designs, manufactures, markets, distributes, and sells sports equipment, apparel, footwear, and accessories. It operates through three segments: Technical Apparel, Outdoor Performance, and Ball & Racquet Sports.
While we acknowledge the potential of AS 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 AS and that has 100x upside potential, check out our report about the cheapest AI stock.
READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.
Disclosure: None.
