In this article, we will take a look at the most promising growth stocks according to analysts.
In today’s market, shaped by continuous innovation and evolving macro backdrops, investors are wondering: which stocks to invest in? While many believe in investing in low-risk stocks, a large proportion of investors continue to focus their attention on growth stocks. As the name suggests, these stocks feature sustained revenue and earnings expansion, increasing market share, and favorable long-term trends.
An article by Goldman Sachs, published on January 8, 2026, and titled “Global Stocks Are Projected to Return 11% in the Next 12 Months,” anticipates a continued bullish momentum in the global market, driven by earnings and continued economic growth. The report goes on to cite Peter Oppenheimer, Goldman Sachs Research’s chief global equity strategist, who attributes returns in 2026 to fundamental profit growth rather than to increasing valuations. According to Oppenheimer’s evaluation, stocks are currently in the optimism phase of the cycle, as investor sentiment rises.
The report concludes by advising investors to pursue opportunities for broad geographic exposure, particularly focusing on emerging markets. As written in the article,
“Investors should look for opportunities for broad geographic exposure, including an increased focus on emerging markets. They should seek a mix of growth and value stocks and look across sectors. And they may watch for the possibility that stocks move less in lockstep, creating a good opportunity for picking individual names.”
Keeping this in mind, we have compiled a list of the most promising growth stocks to invest in according to analysts. These stocks belong to a range of sectors, including real estate, technology, healthcare, communication services, and consumer cyclical.
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Our methodology
For this article, we considered stocks with a market capitalization of over $2 billion and an average daily volume of more than 2 million. Next, we filtered for stocks with a 5-year forward EPS growth rate over 20%, a minimum 10% revenue growth rate next year, and an upside potential of at least 20%. We then shortlisted the thirteen companies with the highest upside potential and ranked them in ascending order. We also included data on hedge fund holdings in these companies based on Insider Monkey’s database, as of Q3 2025.
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).
13. CoStar Group, Inc. (NASDAQ:CSGP)
Upside Potential as of January 12, 2026: 37.44%
Market Capitalization as of January 12, 2026: $25.13 billion
Number of Hedge Fund Holders: 57
On January 12, Ryan Tomasello from Keefe Bruyette reduced the price target on CoStar Group, Inc. (NASDAQ:CSGP) to $75 from $100, while maintaining an ‘Outperform’ rating. As the analyst notes in a research note, the likelihood of activism may help maintain a floor in the stock price over the coming period.
This downward readjustment in target price follows the company’s preliminary 2026 guidance and medium-term targets, which the firm calls disappointing yet indicative of “consistent and strong earnings expansion” that could provide the foundation for a stock surge in the future. Additionally, Keefe, Bruyette highlighted the company’s ongoing 0.8x growth-adjusted multiple, which it believes is relatively cheap given its growth profile.
Recently, several analysts have revised their outlooks for CoStar Group, Inc. (NASDAQ:CSGP) negatively. On January 8, Wells Fargo trimmed the price target on the company to $55.00 from $60.00 and maintained an ‘Underweight’ rating on the stock. On the same day, BMO Capital also cut the price target on the company to $72.00 from $77.00, keeping the rating of ‘Market Perform’ unchanged.
CoStar Group, Inc. (NASDAQ:CSGP) is a Virginia-based provider of information, analytics, and online marketplace services. Founded in 1987, the company offers CoStar Property, CoStar Leasing, CoStar Owners, CoStar Markets, and CoStar Tenant, among others.
12. Oracle Corporation (NYSE:ORCL)
Upside Potential as of January 12, 2026: 41.68%
Market Capitalization as of January 12, 2026: $588.07 billion
Number of Hedge Fund Holders: 122
On January 11, Oracle Corporation (NYSE:ORCL) announced Oracle Retail Supply Chain Collaboration, facilitating retailers to easily navigate an otherwise complex supplier landscape to improve “operational oversight, efficiency, vendor coordination, and compliance to help protect margins and customer satisfaction.”
The solution will help mitigate supply chain risk by providing insights that enhance forecast accuracy and inform retailers of potential supply chain disruptions. As stated by Paul Woodward, global vice president, Oracle Retail Products,
“This solution gives retailers the AI-and data-driven visibility and intelligence needed to navigate complex supply chain and vendor relationships to help mitigate financial, operational, and reputational risks.”
Later, on January 12, Goldman Sachs upgraded Oracle Corporation (NYSE:ORCL) to ‘Buy’ from ‘Neutral’ and kept an unchanged price target of $240. The analyst cited the company’s solid tech advantage in AI compute workloads and its potential to increase new cloud revenue contribution from less than 10% today to nearly 25% within three years.
Oracle Corporation (NYSE:ORCL) is a Texas-based company that provides solutions for enterprise information technology environments. Incorporated in 1977, the company offers Oracle Cloud SaaS, cloud-based industry solutions, Oracle Cloud license and on-premise license, and Oracle license support services.
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