In this article, we will discuss the 13 Stocks to Buy with Exponential Growth Heading into 2026.
As per Fidelity, the tax law that was passed over the summer is projected to reduce the effective corporate tax rate. This is because of changes in the treatment of certain corporate expenses and deductions. Such tax cuts, coupled with the rate cuts from the US Federal Reserve, can offer a powerful dual tailwind to support broader equities.
How Tax Cuts Can Help?
Fidelity highlighted that, historically, tax cuts have supported stocks, with equities posting better-than-average performance in the year of the tax cut and the year following it. The firm believes that an increase in capex is the key reason. Historically, higher capex has led to positive cascading effects by resulting in more durable earnings growth.
Ameriprise Financial highlighted that, with stretched valuations, companies need to deliver on increased profit expectations to fuel stocks higher through the end of the year. As per the firm, the Q3 2025 earnings season can be crucial in setting the tone for the balance of the year, mainly for Big Tech.
Amidst such trends, we will now have a look at the 13 Stocks to Buy with Exponential Growth Heading into 2026
Our Methodology
To list the 13 Stocks to Buy with Exponential Growth Heading into 2026, we sifted through several online rankings to shortlist the stocks in which analysts see significant upside potential. After getting an extensive list, we chose the ones popular among hedge funds, as of Q2 2025. Finally, the stocks are arranged in 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 October 29, 2025
13 Stocks to Buy with Exponential Growth Heading into 2026
13. Atlassian Corporation (NASDAQ:TEAM)
Average Upside Potential: ~50.2%
Number of Hedge Fund Holders: 64
Atlassian Corporation (NASDAQ:TEAM) is one of the Stocks to Buy with Exponential Growth Heading into 2026. On October 27, TD Cowen analyst Derrick Wood maintained a “Neutral” stance on the company’s stock, giving a Hold rating and reducing the price objective to $205 from $220.
The analyst’s rating is backed by a combination of factors that demonstrate a positive and cautious outlook for Atlassian Corporation (NASDAQ:TEAM)’s stock. As per the analyst, the company demonstrated consistent demand trends and is well-positioned to report robust revenue performance for the upcoming quarter. This will be backed by recent revenue recognition changes and M&A activities.
Amidst such positive indicators, the analyst also noted there are some concerns related to its new go-to-market strategies and AI positioning, which still need time to fully prove their effectiveness. Furthermore, Atlassian Corporation (NASDAQ:TEAM)’s transition away from Data Center licenses and the related revenue recognition changes are some of the potential risks.
Artisan Partners, an investment management company, released its Q2 2025 investor letter. Here is what the fund said:
Among our top detractors were Baker Hughes, Argenx and Atlassian Corporation (NASDAQ:TEAM). Atlassian is a leading provider of innovative, customizable team collaboration software tools. The company reported modestly disappointing quarterly results in May, following two prior quarters of solid results, due in part to delays in signing some large enterprise contracts. Other potential headwinds, such as tariff pressure on customers’ software budgets and the potential impact of artificial intelligence (AI) on knowledge worker jobs, also weighed on investors. We have been monitoring these potential headwinds but don’t see any change in Atlassian’s long-term profit cycle, and we remain confident in the potential of several company-specific, multiyear growth drivers. And with the hiring of a new chief revenue officer in late 2024, Atlassian is working to enhance its senior management talent in sales, marketing, and R&D. With the stock trading at an attractive valuation, we added modestly to our position.
