In this article, we will discuss the 13 Best Fundamental Stocks to Buy According to Analysts.
Goldman Sachs Research anticipates that the US stocks will post a fourth-straight year of gains in 2026. Notably, the earnings growth is likely to be a key driver amid a strong economy and continued easing by the US Fed. The firm’s strategists expect the S&P 500 to report a 12% total return in 2026 (as of January 6) as compared to 18% last year.
Furthermore, they anticipate EPS to increase 12% in 2026 and then 10% the following year.
Valuation Scenario of S&P 500
Goldman Sachs Research added that the stock market’s valuations are elevated. The S&P 500 has been trading at a forward P/E ratio of 22x (on consensus forward 12-month EPS). Notably, this matches the peak multiple in 2021 and marches towards the record 24x multiple in 2000. In the base case outlook, steady long-term interest rates as well as earnings growth rates demonstrate that there will be little change in the equity valuations during 2026, adds Ben Snider (chief US equity strategist).
Amidst such trends, we will now have a look at the 13 Best Fundamental Stocks to Buy According to Analysts.
Our Methodology
To list the 13 Best Fundamental Stocks to Buy According to Analysts, we sifted through the holdings of SPDR® S&P 500® ETF Trust and shortlisted the ones that have a 5-year revenue growth rate of at least 15% and a 5-year net income growth of at least 10%. Next, we chose the ones in which analysts see upside to. We also mentioned the hedge fund sentiments around each stock, as of Q3 2025. The stocks are ranked in an ascending order of their average upside potential.
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).
Note: All the data is as of January 9
13 Best Fundamental Stocks to Buy According to Analysts
13. Diamondback Energy, Inc. (NASDAQ:FANG)
5-year Revenue Growth: ~37.3%
5-Year Normalized Net Income Growth: ~50.9%
Average Upside Potential: ~21%
Number of Hedge Fund Holders: 42
Diamondback Energy, Inc. (NASDAQ:FANG) is one of the Best Fundamental Stocks to Buy According to Analysts. On January 5, Bernstein reduced the firm’s price objective on the company’s stock to $190 from $199, while keeping an “Outperform” rating, as reported by The Fly. The firm starts 2026 by having a balanced view of oil. It expects choppiness in the near term and is seeing strength in the longer term.
In a different update, Piper Sandler’s Mark Lear reiterated an “Overweight (Buy)” rating on Diamondback Energy, Inc. (NASDAQ:FANG)’s stock with a price objective of $219. The analyst highlighted that the company is its top large-cap E&P, considering its position as a low-cost operator in the Permian, long runway of low breakeven projects, consistent execution, as well as a line of sight on further improvements in efficiency.
Diamondback Energy, Inc. (NASDAQ:FANG) consistently delivered the strongest asset-level performance even though it shifted to full-stack development a long time ago.
Diamondback Energy, Inc. (NASDAQ:FANG) is an independent oil and natural gas company.
12. Amazon.com, Inc. (NASDAQ:AMZN)
5-year Revenue Growth: ~15%
5-Year Normalized Net Income Growth: ~33.59%
Average Upside Potential: ~21.2%
Number of Hedge Fund Holders: 332
Amazon.com, Inc. (NASDAQ:AMZN) is one of the Best Fundamental Stocks to Buy According to Analysts. On January 8, Cantor Fitzgerald reduced the price objective on the company’s stock to $260 from $315, while keeping an “Overweight” rating. As per the analyst, although there are lingering macro-economic concerns, the outlook for global internet stocks into 2026 remains favourable as AI enters a Synergy phase.
The analyst believes that this can fuel accelerating revenue growth, improvement in value capture, and clearer long-term returns on capex. The firm added that the group remains well-positioned to outperform in 2026 amidst favourable estimate revisions and improvement in sentiments.
In a different update, on January 5, Jefferies increased its price objective on Amazon.com, Inc. (NASDAQ:AMZN)’s stock to $300.00 from $275.00 while maintaining a “Buy” rating. As per the firm, the potential for negative sentiment is expected to reverse, considering the accelerating AWS growth and improvement in AI capabilities.
Also, the firm believes that Amazon.com, Inc. (NASDAQ:AMZN)’s robust market position in cloud computing and the shift in AI from model training to running AI applications in production places AWS to be a critical provider of AI development as well as inferencing solutions for enterprises.
11. Block, Inc. (NYSE:XYZ)
5-year Revenue Growth: ~25.6%
5-Year Net Income Growth: ~58.8%
Average Upside Potential: ~22.2%
Number of Hedge Fund Holders: 64
Block, Inc. (NYSE:XYZ) is one of the Best Fundamental Stocks to Buy According to Analysts. On January 2, Keefe Bruyette reduced the firm’s price target on Block, Inc. (NYSE:XYZ)’s stock to $85 from $90, while keeping an “Outperform” rating, as reported by The Fly. Notably, the firm adjusted its price targets in the broader consumer finance and payments groups.
In a different update, Citi analyst Bryan Keane reiterated the “Buy” ratings on Affirm, Klarna, and Block, Inc. (NYSE:XYZ). The firm is bullish on buy now pay later in 2026. Citi opines that BNPL happens to be an increasingly embedded payment and budgeting tool throughout both online as well as offline commerce. The company expects that the broader sector is well-positioned for strong share gains.
Elsewhere, Block, Inc. (NYSE:XYZ) announced that it expanded its partnership with Thrive. This expansion gives sellers a seamless way to manage catalogs, sales, as well as stock between their in-store and e-commerce platforms, which include Shopify.
Block, Inc. (NYSE:XYZ) builds ecosystems focused on commerce and financial products and services.
10. DexCom, Inc. (NASDAQ:DXCM)
5-year Revenue Growth: ~19.9%
5-Year Normalized Net Income Growth: ~31%
Average Upside Potential: ~26.1%
Number of Hedge Fund Holders: 71
DexCom, Inc. (NASDAQ:DXCM) is one of the Best Fundamental Stocks to Buy According to Analysts. On January 12, the company released its preliminary, unaudited results for Q4 2025, with total revenue coming at ~$1.260 billion, reflecting an increase of 13% YoY. Notably, the US revenue is projected to be ~$892 million, demonstrating 11% growth compared to Q4 2024.
DexCom, Inc. (NASDAQ:DXCM) ended 2025 on a healthy note, with revenue surpassing the high-end of its guidance and the initial launch of its latest sensor technology with the G7 15 Day system. Since clinical momentum continues to build throughout the CGM category, DexCom, Inc. (NASDAQ:DXCM) is looking forward to extending its growth runway through continued innovation as well as evidence generation in 2026.
For 2026, DexCom, Inc. (NASDAQ:DXCM) expects total revenue of between $5.16 billion – $5.25 billion, exhibiting expected growth of ~11%-13% over 2025. Notably, this outlook takes into consideration the sensor volume growth because of increasing CGM awareness for people with diabetes, the rollout of Stelo, further international expansion, and broader market dynamics.
DexCom, Inc. (NASDAQ:DXCM) is a medical device company, which focuses on the design, development, and commercialization of continuous glucose monitoring (CGM) systems.
9. Meta Platforms, Inc. (NASDAQ:META)
5-year Revenue Growth: ~19.1%
5-Year Normalized Net Income Growth: ~23.1%
Average Upside Potential: ~26.3%
Number of Hedge Fund Holders: 273
Meta Platforms, Inc. (NASDAQ:META) is one of the Best Fundamental Stocks to Buy According to Analysts. On January 9, the company announced that its commitments to Oklo and TerraPower help the next generation of American developers in creating safer, advanced nuclear reactors as well as accelerating the development of nuclear technologies.
Through Meta Platforms, Inc. (NASDAQ:META)’s partnership with Vistra, the company is offering financial support to operate nuclear power plants, extend operational lifespan, as well as increase energy production at Perry and Davis-Besse plants in Ohio and the Beaver Valley plant in Pennsylvania.
Meta Platforms, Inc. (NASDAQ:META) also announced that such projects are anticipated to offer numerous construction jobs and hundreds of long-term operational jobs, helping up to 6.6GW of new as well as existing clean energy by 2035. These projects add reliable and firm power to the grid and reinforce America’s nuclear supply chain.
In a different update, Guggenheim reduced the firm’s price objective on Meta Platforms, Inc. (NASDAQ:META)’s stock to $800 from $875, while keeping a “Buy” rating. Notably, the reduced target exhibits an assumption of increased investment levels.
8. Intuit Inc. (NASDAQ:INTU)
5-year Revenue Growth: ~19.9%
5-Year Normalized Net Income Growth: ~16.5%
Average Upside Potential: ~26.7%
Number of Hedge Fund Holders: 96
Intuit Inc. (NASDAQ:INTU) is one of the Best Fundamental Stocks to Buy According to Analysts. On January 11, Goldman Sachs analyst Gabriela Borges assumed coverage of the company’s stock with a “Neutral” rating and a price objective of $720. According to the firm, the adoption of AI will be a positive tailwind for the software total addressable market. However, the analyst awaits Intuit Inc. (NASDAQ:INTU)’s assisted tax share gains before recommending its shares.
On January 8, Wells Fargo downgraded Intuit Inc. (NASDAQ:INTU)’s stock to “Equal Weight” from “Overweight” with a price objective of $700, down from the prior target of $840. As per the firm, the company’s strong rebound in tax last year will be a tough act to follow. The analyst believes that higher expectations and difficult comparisons exhibit a tough setup for Intuit Inc. (NASDAQ:INTU) in 2026.
Elsewhere, TD Cowen analyst Jared Levine initiated coverage of the company’s stock with a “Buy” rating and price objective of $802. The firm is seeing upside potential to estimates and opines that Intuit Inc. (NASDAQ:INTU)’s perceived AI risks are overdone.
Intuit Inc. (NASDAQ:INTU) offers financial management, payments and capital, compliance, and marketing products and services.
7. Salesforce, Inc. (NYSE:CRM)
5-year Revenue Growth: ~15%
5-Year Normalized Net Income Growth: ~108.8%
Average Upside Potential: ~28.8%
Number of Hedge Fund Holders: 119
Salesforce, Inc. (NYSE:CRM) is one of the Best Fundamental Stocks to Buy According to Analysts. On January 12, Goldman Sachs analyst Gabriela Borges assumed coverage of the company’s stock with a “Buy” rating and a price objective of $330. Notably, the firm assumed coverage of 12 stocks in the broader software sector.
Furthermore, the firm opines that AI adoption will act as a positive tailwind to the software total addressable market over the upcoming 10 years. As per the analyst, Salesforce, Inc. (NYSE:CRM)’s key performance indicators are inflecting.
Elsewhere, on January 5, RBC Capital lifted the price target on Salesforce, Inc. (NYSE:CRM)’s stock to $290 from $250, while keeping a “Sector Perform” rating. The analyst believes that 2026 can be a year when AI tailwinds become more evident for companies that are well-placed for enterprise AI adoption. On the other hand, the less-prepared companies might witness pressures. According to the firm, enterprise spending seems to be stabilizing and improving in certain areas.
Salesforce, Inc. (NYSE:CRM) offers customer relationship management technology, connecting companies and customers.
6. Microsoft Corporation (NASDAQ:MSFT)
5-year Revenue Growth: ~15%
5-Year Normalized Net Income Growth: ~18.8%
Average Upside Potential: ~31.4%
Number of Hedge Fund Holders: 312
Microsoft Corporation (NASDAQ:MSFT) is one of the Best Fundamental Stocks to Buy According to Analysts. On January 8, the company announced agentic AI solutions, which are designed to bring intelligent automation to the retail business. Microsoft Corporation (NASDAQ:MSFT) believes that such new capabilities are expected to help retailers move faster, serve shoppers with greater relevance, and operate with resilience and efficiency.
Throughout merchandising, marketing, store operations as well as fulfillment, such solutions result in a connected layer of intelligence, transforming fragmented workflows into a coordinated execution.
In a different update, on January 8, Wells Fargo reduced the price target on Microsoft Corporation (NASDAQ:MSFT)’s stock to $665 from $700, while keeping an “Overweight” rating, as reported by The Fly. As per the firm, AI is expected to remain in momentum in 2026. Therefore, the firm expects 3 key ways to play the game, i.e., infrastructure, incumbents, and innovation. Wells Fargo added that, while adoption is expected to be uneven, the secular trend will ultimately fuel 2026 performance.
5. Insulet Corporation (NASDAQ:PODD)
5-year Revenue Growth: ~23.7%
5-Year Normalized Net Income Growth: ~62.6%
Average Upside Potential: ~31.4%
Number of Hedge Fund Holders: 56
Insulet Corporation (NASDAQ:PODD) is one of the Best Fundamental Stocks to Buy According to Analysts. On January 9, Bernstein analyst Lee Hambright reduced the firm’s price objective on Insulet Corporation (NASDAQ:PODD)’s stock to $380 from $410, while keeping an “Outperform” rating, as reported by The Fly.
As per the firm, after a low point in September 2025, the US healthcare stocks are now performing well over the past couple of months. The firm expects better days ahead for the healthcare stocks in 2026 as the market gets more clarity on numerous macro/policy uncertainties.
Elsewhere, on January 9, Goldman Sachs analyst David Roman reduced the firm’s price objective on Insulet Corporation (NASDAQ:PODD)’s stock to $365 from $388, while keeping a “Buy” rating, as reported by The Fly. As per the analyst, after a year when fundamentals diverged from stock performance, 2026 is expected to demonstrate a return to normalized patterns, wherein organic growth explains relative valuation.
Insulet Corporation (NASDAQ:PODD) is engaged in developing, manufacturing, and selling insulin delivery systems for people with insulin-dependent diabetes.
4. Broadcom Inc. (NASDAQ:AVGO)
5-year Revenue Growth: ~21.7%
5-Year Normalized Net Income Growth: ~55.02%
Average Upside Potential: ~33.9%
Number of Hedge Fund Holders: 183
Broadcom Inc. (NASDAQ:AVGO) is one of the Best Fundamental Stocks to Buy According to Analysts. On January 9, Mizuho analyst Vijay Rakesh lifted the firm’s price objective on Broadcom Inc. (NASDAQ:AVGO)’s stock to $480 from $450, while keeping an “Outperform” rating, as reported by The Fly. The firm adjusted its targets in the broader semiconductors and semiconductor capital equipment group as part of the 2026 outlook.
Notably, the firm is expecting upside for this group in 2026, considering the attractive valuations, but more modest compared to 2025.
In a different update, on January 6, Broadcom Inc. (NASDAQ:AVGO) announced the launch of next-generation BCM4918 accelerated processing unit (APU) as well as 2 new dual-band Wi-Fi 8 devices, the BCM6714 and BCM6719, marking another milestone in the company’s long legacy of Wi-Fi innovation.
With the combination of higher throughput and smart intelligence, Broadcom Inc. (NASDAQ:AVGO)’s unified Wi-Fi 8 platform tends to enable operators to deliver new real-time agentic applications for residential consumers with built-in security as well as improved power efficiency.
Broadcom Inc. (NASDAQ:AVGO) designs, develops, and supplies various semiconductor devices and infrastructure software solutions.
3. NVIDIA Corporation (NASDAQ:NVDA)
5-year Revenue Growth: ~66.1%
5-Year Normalized Net Income Growth: ~93.5%
Average Upside Potential: ~35.2%
Number of Hedge Fund Holders: 234
NVIDIA Corporation (NASDAQ:NVDA) is one of the Best Fundamental Stocks to Buy According to Analysts. On January 9, Mizuho analyst Vijay Rakesh lifted the price objective on NVIDIA Corporation (NASDAQ:NVDA)’s stock to $275 from $245, while keeping an “Outperform” rating, as reported by The Fly. Notably, the firm adjusted targets in the broader semiconductors and semiconductor capital equipment group with respect to its 2026 outlook.
The firm is expecting continued upside for the group in 2026 because of attractive valuations, but more modest compared to 2025. Furthermore, the analyst’s top sectors in 2026 include AI accelerators and wafer fab equipment, Optical, and memory. However, the firm is cautious on electric vehicles, autos as well as analog and computers, and handsets.
In a different update, on January 6, Harlan Sur from J.P. Morgan maintained a “Buy” rating on NVIDIA Corporation (NASDAQ:NVDA)’s stock, with the analyst noting the company’s demand growth and expansion of growth drivers. As per the analyst, the current demand for NVIDIA Corporation (NASDAQ:NVDA)’s products surpasses CY 2027.
2. Super Micro Computer, Inc. (NASDAQ:SMCI)
5-year Revenue Growth: ~44.8%
5-Year Normalized Net Income Growth: ~56.7%
Average Upside Potential: ~42.8%
Number of Hedge Fund Holders: 42
Super Micro Computer, Inc. (NASDAQ:SMCI) is one of the Best Fundamental Stocks to Buy According to Analysts. On January 11, the company announced collaboration with technology partners for AI-powered intelligent in-store retail solutions, which have been designed to meet increasing customer expectations with scalability, improved productivity, and higher profitability.
Through combining Super Micro Computer, Inc. (NASDAQ:SMCI)’s complete as well as scalable AI platforms with NVIDIA RTX PRO accelerated computing solutions, Super Micro Computer, Inc. (NASDAQ:SMCI) is allowing retailers to build intelligent stores, which maximize the benefits of AI-driven applications.
The company is collaborating with ecosystem partners, such as Everseen, Kinetic Vision, ALLSIDES, LiveX, WobotAI, and Aible, in order to create intelligent stores. These stores positively impact day-to-day retail operations and long-term supply chain management.
In a different update, on January 9, Mizuho reduced the firm’s price objective on the company’s stock to $31 from $45, while keeping a “Neutral” rating. Notably, the firm adjusted targets in the broader semiconductors and semiconductor capital equipment group as part of the 2026 outlook.
Super Micro Computer, Inc. (NASDAQ:SMCI) develops and sells server and storage solutions based on modular and open-standard architecture.
1. The Trade Desk, Inc. (NASDAQ:TTD)
5-year Revenue Growth: ~30.6%
5-Year Normalized Net Income Growth: ~46.4%
Average Upside Potential: ~60.9%
Number of Hedge Fund Holders: 42
The Trade Desk, Inc. (NASDAQ:TTD) is one of the Best Fundamental Stocks to Buy According to Analysts. On January 12, Wells Fargo reduced the firm’s price objective on the company’s stock to $42 from $47, while keeping an “Equal Weight” rating, as reported by The Fly. The firm expects an in-line EPS.
In a separate release, on January 8, Cantor Fitzgerald reduced the firm’s price objective on the company’s stock to $43 from $52, while keeping a “Neutral” rating, as reported by The Fly. As per the analyst, while there are lingering macro-economic concerns, the outlook for global internet stocks into 2026 remains positive as AI is entering a Synergy phase.
This is expected to drive accelerating revenue growth, improved value capture, and clearer long-term returns on capex. The firm opines that the group is well-positioned to outperform in 2026 due to the favourable revisions in estimates and improvement in sentiment.
The Trade Desk, Inc. (NASDAQ:TTD) operates as a technology company.
While we acknowledge the potential of TTD 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 TTD and that has 100x upside potential, check out our report about this cheapest AI stock.
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