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.
11. Doximity, Inc. (NYSE:DOCS)
Upside Potential as of January 12, 2026: 42.50%
Market Capitalization as of January 12, 2026: $8.26 billion
Number of Hedge Fund Holders: 44
On January 9, Raymond James reaffirmed a ‘Strong Buy’ rating on Doximity, Inc. (NYSE:DOCS) and a $65 price target. The firm highlighted OpenAI’s recent entry into healthcare AI tools, which it believes is creating a “knee-jerk reaction” among investors who appeared doubtful about AI competition throughout the past year.
This follows the company’s earlier stance on December 29, 2025, where Raymond James maintained a ‘Strong Buy’ rating on the company, along with a price target slightly above the consensus estimate. This came after a meeting with Co-founder and CEO Jeff Tangney in early December.
In the December research note, the analyst had highlighted that the company’s engagement is set to accelerate in the times ahead and thus will offer a “durable” revenue growth driver over time. The firm also believes that the investors are currently underappreciating Doximity, Inc. (NYSE:DOCS)’s “moat” in contrast to its competitors, saying that the company’s EBITDA margins are likely to expand further from 55%. Doximity’s “physicians-first ethos will offer a structural moat not fully appreciated by the Street,” asserted Raymond James.
Doximity, Inc. (NYSE:DOCS) is a California-based digital platform for medical professionals. Founded in 2010, the company serves a diverse range of customers, including physicians, medical students, pharmaceutical manufacturers, and healthcare systems.
10. Credo Technology Group Holding Ltd (NASDAQ:CRDO)
Upside Potential as of January 12, 2026: 47.37%
Market Capitalization as of January 12, 2026: $28.19 billion
Number of Hedge Fund Holders: 56
On January 9, Needham reaffirmed the ‘Buy’ rating on Credo Technology Group Holding Ltd (NASDAQ:CRDO), with a price target of $220. This reaffirmation, implying an upside potential of 41%, comes as the firm includes the company in its Conviction List, while naming it a Top Pick for 2026. Needham believes the company is an appealing way to benefit from the AI wave.
According to the firm, meaningful near-term opportunities position Credo Technology Group Holding Ltd (NASDAQ:CRDO) well to surpass analyst estimates. These prospects arise from the increased adoption of Active Electrical Cable (AEC) by hyperscalers and the introduction of new products into the production phase. That said, Needham has a FY28 non-GAAP EPS guidance of over $5 for the company.
“We encourage investors to Buy Credo on recent weakness and to focus on the signal in the current noise,” the analyst wrote. “With significant near-term opportunities ahead as AEC adoption proliferates across hyperscalers and as new products ramp to production, we expect Credo to beat current consensus estimates.”
Credo Technology Group Holding Ltd (NASDAQ:CRDO), based in Grand Cayman, the Cayman Islands, is a provider of high-speed connectivity solutions. Founded in 2008, the company offers its products to hyperscalers, original equipment manufacturers, and other companies in the enterprise and HPC markets.
9. Netflix, Inc. (NASDAQ:NFLX)
Upside Potential as of January 12, 2026: 47.86%
Market Capitalization as of January 12, 2026: $408.56 billion
Number of Hedge Fund Holders: 154
On January 9, TheFly reported that Goldman Sachs trimmed the price target on Netflix, Inc. (NASDAQ:NFLX) to $112 from $130, while maintaining a ‘Neutral’ rating on the stock. According to the leading bank, the company is expected to report a solid finish to 2025, with management committed to effectively advancing core strategies, such as original content, live entertainment, and gaming content.
Additionally, Goldman Sachs pointed out Netflix, Inc. (NASDAQ:NFLX)’s success with NFL Christmas Day programming, which it believes is a testament to the company’s expanding live entertainment capabilities. The bank also highlighted sustained progress in not only technology infrastructure, but also advertiser adoption of the ad platform.
Later on January 12, HSBC started coverage on Netflix, Inc. (NASDAQ:NFLX) with a ‘Buy’ rating and a price target of $107, asserting that the recent weakness presents an opportunity for investors. Despite a strong earnings profile and solid prospects for international growth, the company trades “33% below its summer 2025 peak,” said the bank. Over the last six months, the stock has dipped by nearly 29%.
Netflix, Inc. (NASDAQ:NFLX) is a California-based entertainment service provider incorporated in 1997. The main offerings of the company are streaming services including television (TV) series, documentaries, feature films, and games. With a presence across 190 countries, the company is committed to entertaining the world.
8. Bentley Systems, Incorporated (NASDAQ:BSY)
Upside Potential as of January 12, 2026: 48.23%
Market Capitalization as of January 12, 2026: $12.18 billion
Number of Hedge Fund Holders: 27
On January 12, Guy Hardwick, an analyst at Barclays, cut the price target on Bentley Systems, Incorporated (NASDAQ:BSY) to $47 from $57, while keeping an ‘Equal Weight’ rating on the stock. According to TheFly, this downward revision is part of the firm’s revised outlook for industrial technology and distribution in 2026. The firm remains optimistic about the group, forecasting growth drivers in end markets, including data centers, warehouse automation, electronics, and semiconductors.
Earlier on January 5, Matthew Hedberg from RBC Capital also trimmed the price target on Bentley Systems, Incorporated (NASDAQ:BSY) to $48 from $65 and maintained an ‘Outperform’ rating.
As stated in the research note, 2026 is expected to be a year when AI tailwinds become clearer for companies with a solid standing in enterprise AI adoption, while less-prepared companies could continue to face pressure from the “AI is the death of software” narrative. With GenAI powering innovation, enterprise spending seems to be stabilizing and improving in select areas, despite management’s conservative guidance for early 2026.
Bentley Systems, Incorporated (NASDAQ:BSY) is a Pennsylvania-based provider of infrastructure engineering software solutions. Founded in 1984, the company is committed to providing innovative software and services.
7. ServiceNow, Inc. (NYSE:NOW)
Upside Potential as of January 12, 2026: 56.90%
Market Capitalization as of January 12, 2026: $148.12 billion
Number of Hedge Fund Holders: 104
On January 12, Goldman Sachs assumed coverage on ServiceNow, Inc. (NYSE:NOW) with a ‘Buy’ rating and a price target of $205, which suggests an upside potential of about 44%. According to the firm, AI adoption will be a “positive tailwind” to the software total addressable market over the next ten years. That said, the analyst believes the company is poised to lead the agent orchestration market.
Gabriela Borges, analyst at Goldman Sachs, forecasts a higher chance of ServiceNow, Inc. (NYSE:NOW) maintaining an organic compound annual growth rate of 20% through 2029. This positive stance follows the company’s expansion into new areas, particularly Customer Relationship Management, Enterprise Resource Planning, and Human Capital Management.
What’s even more interesting is ServiceNow, Inc. (NYSE:NOW)’s emergence in the tech stack, along with its appetite for M&A, which strengthens the company’s position to explore the Security space.
Overall, ServiceNow, Inc. (NYSE:NOW) is a Buy among 92% of the analysts covering the stock. The stock’s recent dip to $142.64 makes it worth watching, given its long-term potential.
ServiceNow, Inc. (NYSE:NOW) is a California-based provider of cloud-based solutions for digital workflows. Incorporated in 2004, the company operates the Now platform and delivers a diverse range of products, including customer service management, field service management applications, and source-to-pay operations.
6. Arm Holdings plc (NASDAQ:ARM)
Upside Potential as of January 12, 2026: 61.96%
Market Capitalization as of January 12, 2026: $117.92 billion
Number of Hedge Fund Holders: 37
On January 13, Vivek Arya at BofA downgraded Arm Holdings plc (NASDAQ:ARM) to ‘Neutral’ from ‘Buy’ and maintained a $120 price target, according to TheFly. The analyst believes global smartphone units could witness a dip in the low single digits YoY due to high memory costs and supply issues, which will adversely impact ARM Client royalty sales.
Since Reuters announced that Arm Holdings plc (NASDAQ:ARM)’s restructuring to create a Physical AI unit to strengthen its position in the robotics space, the stock has declined by nearly 3%. According to the statement by executives, the company will now operate through three segments: Cloud and AI, Edge, and Physical AI.
Earlier, on December 16, 2025, BofA reduced the price target on Arm Holdings plc (NASDAQ:ARM) to $145 from $205 and maintained a ‘Buy’ rating on the stock. Despite the firm being confident about the smartphone and data center v9/CSS adoption and content expansion, the enhanced SoftBank contribution and dependence to achieve its growth outlook for the foreseeable future raises concerns. BofA also notes the limited visibility into the new CPU chipset/silicon business.
Arm Holdings plc (NASDAQ:ARM) is a U.K.-based semiconductor and software design company that designs central processing unit (CPU) products and associated technologies. Incorporated in 1990, the company offers its solutions to semiconductor companies and original equipment manufacturers.
5. Coupang, Inc. (NYSE:CPNG)
Upside Potential as of January 12, 2026: 62.38%
Market Capitalization as of January 12, 2026: $40.50 billion
Number of Hedge Fund Holders: 83
According to an Investing.com report, Morgan Stanley maintained an ‘Overweight’ rating on Coupang, Inc. (NYSE:CPNG), as well as a price target of $31. This reaffirmation, suggesting an upside potential of about 40%, follows earlier updates related to a user data breach.
The analysts pointed out that the recent breach, which happened over the past month, has led to increased regulatory risk for the South Korean e-commerce giant. Morgan Stanley believes these risks will continue to be a drag on the stock and thus, push for additional resources. With that said, the firm expects market sentiment to remain muted until there is a clear result of the current investigations into the data breach. Despite near-term headwinds, Morgan Stanley is optimistic about the company’s long-term prospects.
Earlier, on December 29, Coupang, Inc. (NYSE:CPNG) announced 1.69 trillion won ($1.18 billion) to holders of 33.7 million accounts as compensation for a huge data leak that disappointed both users and lawmakers. A day before, Coupang founder Kim Bom apologized for last month’s mishap and promised to expedite compensation measures.
Coupang, Inc. (NYSE:CPNG) is a Washington-based company with retail business through its mobile applications and websites in South Korea and internationally. Founded in 2010, the company operates in two segments: Product Commerce and Developing Offerings.
4. The Trade Desk, Inc. (NASDAQ:TTD)
Upside Potential as of January 12, 2026: 62.60%
Market Capitalization as of January 12, 2026: $17.84 billion
Number of Hedge Fund Holders: 42
According to a report by Investing.com, Stifel reaffirmed a ‘Buy’ rating on The Trade Desk, Inc. (NASDAQ:TTD), with analyst Mark Kelley labelling it as the firm’s top pick in the Ad Tech sector. Despite the stock’s over 50% decline in the last six months, TTD has a ‘Buy’ or equivalent rating from more than half of the analysts covering the stock.
Stifel noted that The Trade Desk, Inc. (NASDAQ:TTD) is getting past the rollout problems with its Kokai platform and is well-positioned to move beyond the tough comparison faced in the latter half of 2025 due to the U.S. presidential election cycle. When the company’s revenue calculation was viewed in isolation, without political spending, the underlying business surged approximately in-line with 2024 levels, the firm highlighted.
With The Trade Desk, Inc. (NASDAQ:TTD) now getting past election-associated impacts, Stifel anticipates the company’s headline revenue growth figures to “start to look significantly better in 2Q and beyond.”
Earlier on January 5, Shweta Khajuria from Wolfe Research trimmed the price target on The Trade Desk, Inc. (NASDAQ:TTD) to $45 from $60, and maintained an ‘Outperform’ rating. The firm attributes its optimistic outlook to AI developments and product catalysts, a comparatively favorable macro environment, and sound capital allocation.
The Trade Desk, Inc. (NASDAQ:TTD) is a California-based technology company that offers a self-service, cloud-based ad-buying platform, data, and other value-added services. Incorporated in 2009, the company is committed to transforming media by enhancing the relevance of advertising for consumers.
3. Magnite, Inc. (NASDAQ:MGNI)
Upside Potential as of January 12, 2026: 65.44%
Market Capitalization as of January 12, 2026: $2.34 billion
Number of Hedge Fund Holders: 40
On January 6, Magnite, Inc. (NASDAQ:MGNI) announced a real-time data integration with Cognitiv, an advanced performance partner powered by deep learning. This collaboration aims to strengthen curation capabilities available across ClearLine, the company’s unified activation and curation offering. Offering media buyers an effective way to plan, test, and activate custom-curated deals, this partnership will enhance flexibility in premium video inventory.
As stated by Andrew Bez, VP, Enterprise Sales at Magnite, Inc. (NASDAQ:MGNI),
“Buyers are turning to curated marketplaces to access high-quality supply with greater intelligence and Cognitiv’s deep learning capabilities set a new bar for what intelligent curation can deliver.”
Investors are eyeing the company’s upcoming appearance at the Needham 28th Annual Growth Conference in New York City. Scheduled for Wednesday, January 14, the conference will feature in-person investor meetings hosted by the executive team of Magnite, Inc. (NASDAQ:MGNI).
On January 5, Matthew Swanson, an analyst at RBC Capital, reaffirmed a ‘Buy’ rating on Magnite, Inc. (NASDAQ:MGNI), while setting a price target of $27. Matching the consensus estimate, the firm’s price target reflects an upside potential of 65.44%.
Magnite, Inc. (NASDAQ:MGNI) is a New York-based company operating an independent omni-channel sell-side advertising platform. Founded in 2007, the company markets its offerings through sales teams based in various regions.
2. Datadog, Inc. (NASDAQ:DDOG)
Upside Potential as of January 12, 2026: 67.89%
Market Capitalization as of January 12, 2026: $44.38 billion
Number of Hedge Fund Holders: 72
On January 12, Eric Heath from KeyBanc maintained an ‘Overweight’ rating on Datadog, Inc. (NASDAQ:DDOG), while reducing the price target to $170 from $230, which suggests an upside potential of 34%. According to TheFly, the firm attributed its stance to modestly lower peer multiples, increased caution on security budgets, and growing competitive risks.
On the same day, Morgan Stanley upgraded Datadog, Inc. (NASDAQ:DDOG) to Overweight from Equal Weight and kept the price target at $180. The firm notes that, entering 2026, the company’s underlying growth trends are showing improvement. The company’s cloud migrations and digital transformation projects, along with an opportunity to monitor agentic apps, are powering its growth through 2027, the analyst tells investors in a research note.
Additionally, Morgan Stanley highlighted the company’s new product offerings, particularly cloud security, database monitoring, and incident management, which it believes are returning meaningfully to overall growth. The firm sees a CAGR of 23% for Datadog, Inc. (NASDAQ:DDOG)’s core revenue excluding OpenAI and free cash flow CAGR of 25% from 2025 through 2028.
Datadog, Inc. (NASDAQ:DDOG) is a New York-based company operating an observability and security platform for cloud applications. Incorporated in 2010, the company is committed to providing “observability, analytics, and insight into companies’ infrastructure environment.”
1. Corcept Therapeutics Incorporated (NASDAQ:CORT)
Upside Potential as of January 12, 2026: 154.28%
Market Capitalization as of January 12, 2026: $3.93 billion
Number of Hedge Fund Holders: 28
According to an Investing.com report, William Guyer, Chief Development Officer at Corcept Therapeutics Incorporated (NASDAQ:CORT), sold 20,000 shares of common stock valued at $703,656 on January 6.
Earlier on January 2, Swayampakula Ramakanth, an analyst at H.C. Wainwright, trimmed the price target on Corcept Therapeutics Incorporated (NASDAQ:CORT) to $90 from $145, while maintaining a ‘Buy’ rating on the stock. Slightly below the median price target of $95, the revised price target suggests an upside potential of nearly 141%.
According to TheFly, this downward stance follows the FDA’s Complete Response Letter (CRL) centering on the new drug application for relacorilant as a treatment for hypercortisolism in Cushing’s syndrome. The research firm reports that although the FDA acknowledged the company’s pivotal GRACE trial, which achieved the primary endpoint, and the GRADIENT trial provided some confirmatory evidence, the regulatory agency still requires additional confirmatory evidence to evaluate the benefit-risk profile of relacorilant. That said, the stock is currently trading at the lowest levels since its abrupt drop on December 31, 2025.
In response, Corcept Therapeutics Incorporated (NASDAQ:CORT) plans to request a Type A meeting with the FDA to clear the path ahead. This will give management the opportunity to provide insights into their strategy by the end of the first quarter of this year. H.C. Wainwright expects a three-year delay in the rollout of relacorilant, with a new expected launch in the first quarter of 2029.
Corcept Therapeutics Incorporated (NASDAQ:CORT) is a California-based company that discovers and develops solutions for serious endocrinologic, oncologic, metabolic, and neurologic disorders. Founded in 1998, the company is committed to unlocking “the potential of cortisol modulation.”
While we acknowledge the potential of CORT 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 CORT and that has 100x upside potential, check out our report about this cheapest AI stock.
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Disclosure: None.
