13 Stocks to Buy with Exponential Growth Heading into 2026

6. Clearwater Analytics Holdings, Inc. (NYSE:CWAN)

Average Upside Potential: ~63.9%

Number of Hedge Fund Holders: 51

Clearwater Analytics Holdings, Inc. (NYSE:CWAN) is one of the Stocks to Buy with Exponential Growth Heading into 2026. On October 16, analyst Michael Infante from Morgan Stanley maintained a “Buy” rating on the company’s stock and has a $27.00 price target. The analyst’s rating is backed by a combination of factors demonstrating that Clearwater Analytics Holdings, Inc. (NYSE:CWAN) is well-placed for growth. As per the analyst, the company is expected to witness a rise in organic net new ARR as large deals contribute favourably and sales efficiency witnesses an improvement post-integration.

Furthermore, the analyst opines that Clearwater Analytics Holdings, Inc. (NYSE:CWAN)’s stock price demonstrates a conservative growth estimate. This means that any positive developments can result in stock appreciation. Clearwater Analytics Holdings, Inc. (NYSE:CWAN) continues to trade at an attractive valuation versus its competitors, considering the faster revenue growth and margin expansion, added Infante.

In a separate release, the company announced that T. Rowe Price Associates, Inc. successfully implemented the CWAN platform to help the stable value operations, providing advanced capabilities.

TimesSquare Capital Management, an equity investment management company, released its Q2 2025 investor letter. Here is what the fund said:

“Among the wide variety of Information Technology companies, we prefer critical system providers, specialized component designers, systems that improve productivity or efficiency for their clients, and others that are growing their shares of corporate IT budgets. Clearwater Analytics Holdings, Inc. (NYSE:CWAN) provides software-as-a-service solutions for automated investment data aggregation, reconciliation, accounting, and reporting. The company delivered strong results, including revenue growth. They recently acquired Enfusion, Beacon, and Bistro assets that serve to broaden the product offering. The integration of these assets is the company’s focus in support of their vision of a front-to-back asset management platform. In the near term, there will be a dilutive impact on Clearwater’s financial profile and that caused its shares to drop by -18%.”