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.
12. Alaska Air Group, Inc. (NYSE:ALK)
Average Upside Potential: ~51.8%
Number of Hedge Fund Holders: 41
Alaska Air Group, Inc. (NYSE:ALK) is one of the Stocks to Buy with Exponential Growth Heading into 2026. On October 28, analyst Andrew Didora from Bank of America Securities reiterated a “Buy” rating on the company’s stock and has a price objective of $62.00. The analyst’s rating is supported by factors highlighting Alaska Air Group, Inc. (NYSE:ALK)’s healthy fundamentals and favourable long-term outlook. Despite the recent challenges, the analyst believes that its revenue trends have been showing improvement.
Alaska Air Group, Inc. (NYSE:ALK)’s Q3 2025 record revenue came in at $3.8 billion, resulting in a 1.4% YoY RASM increase, which it expects will continue to lead the industry. Also, the integration with Hawaiian Airlines continues to progress better than expected. Notably, such positive developments back the analyst’s rating, with the long-term prospects continuing to remain strong.
While the macroeconomic conditions expose the company to some risks, Alaska Air Group, Inc. (NYSE:ALK)’s strategic positioning and operational improvements offer a healthy foundation for future growth, added Didora.
Diamond Hill Capital, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
Other top contributors in Q4 included Alaska Air Group, Inc. (NYSE:ALK), Webster Financial and Liberty Media-Formula One. Shares of regional airline Alaska Air rose in the quarter as management provided more details about the company’s recent acquisition of Hawaiian Airlines, which investors received positively.
11. Matador Resources Company (NYSE:MTDR)
Average Upside Potential: ~52.3%
Number of Hedge Fund Holders: 39
Matador Resources Company (NYSE:MTDR) is one of the Stocks to Buy with Exponential Growth Heading into 2026. On October 21, the company reported its financial and operating results for Q3 2025, with record production of 209,184 barrels of oil and natural gas equivalent (BOE) per day for the quarter, surpassing the midpoint of July 2025 guidance of 199,750 BOE per day by 5%.
Matador Resources Company (NYSE:MTDR) highlighted its ‘brick-by-brick’ land acquisition strategy and selective lease acquisition program, which has been improving the quality and potential of the company’s more than 200,000 net acre land position in the Delaware Basin and increased its various working interests or mineral positions in key areas.
During Q3 2025, Matador Resources Company (NYSE:MTDR) completed more than $125 million in transactions in key areas. The company raised its FY 2025 full-year production guidance range from 200,000 to 205,000 BOE per day to 205,500 to 206,500 BOE per day. It also increased the number of operated wells that are anticipated to be drilled and turned to sales in FY 2025 from 106.3 net operated wells to 118.3 net operated wells.
10. Life Time Group Holdings, Inc. (NYSE:LTH)
Average Upside Potential: ~56.1%
Number of Hedge Fund Holders: 41
Life Time Group Holdings, Inc. (NYSE:LTH) is one of the Stocks to Buy with Exponential Growth Heading into 2026. On October 27, Morgan Stanley analyst Stephen Grambling upgraded the company’s stock to “Overweight” from “Equal Weight” with a price objective of $39, an increase from the prior target of $34, as reported by The Fly. The firm sees upside to consensus estimates as a result of accelerating new club growth.
As per the analyst, this is expected to fuel improvement in membership trends with the sustained pricing and in-center spend. Notably, the firm expects valuation upside as Life Time Group Holdings, Inc. (NYSE:LTH) beats the earnings estimates.
In a separate release, UBS analyst Arpine Kocharyan began coverage of Life Time Group Holdings, Inc. (NYSE:LTH)’s stock with a “Buy” rating and price objective of $48. As per the firm, the structural shifts in consumer behavior have been resulting in the prioritization of health and wellness, mainly among Gen Z.
9. Sprouts Farmers Market, Inc. (NASDAQ:SFM)
Average Upside Potential: ~56.8%
Number of Hedge Fund Holders: 54
Sprouts Farmers Market, Inc. (NASDAQ:SFM) is one of the Stocks to Buy with Exponential Growth Heading into 2026. On October 22, BMO Capital analyst Kelly Bania reduced the price target on the company’s stock to $120 from $170 while keeping a “Market Perform” rating, as reported by The Fly.
As per the firm, the downside valuation thesis continues to play out. This is being driven by data points demonstrating a weakening of same-store sales, added the analyst. That being said, the firm believes that the current valuation is attractive for the high-growth retailer possessing white space potential focused towards Natural & Organics markets.
In a separate release, on October 22, Goldman Sachs reduced the price objective on Sprouts Farmers Market, Inc. (NASDAQ:SFM)’s stock to $178 from $209, while keeping a “Buy” rating, as reported by The Fly.
This reduction exhibits the recent deceleration in trends. However, the analyst believes that the recent pullback in Sprouts Farmers Market, Inc. (NASDAQ:SFM)’s stock created an attractive entry point as valuations are now tracking below the historical averages and key peers. Over the past 6 months, the company’s stock has declined by ~38%.
Investment management company First Pacific Advisors recently released its Q2 2025 investor letter. Here is what the fund said:
“Sprouts Farmers Market, Inc. (NASDAQ:SFM) is a supermarket chain focusing on fresh, natural and organic products. The company has strong operating margins,13 attractive returns on capital and great new store economics. Sprouts accelerated its unit growth from 12 stores a year to 33 stores in 2024 on a base of roughly 400 stores. Over the past year, SFM’s stock has performed extremely well after reporting consistently strong operating results. We have been trimming our position since the third quarter of 2024 and Sprouts now sits outside of our top 10 by weight. Although SFM’s share price has increased faster than bottom line results, we believe SFM still trades in the “range of reasonableness” for a high-quality, non-cyclical franchise that can reinvest capital at attractive rates of return.”
8. Q2 Holdings, Inc. (NYSE:QTWO)
Average Upside Potential: ~58.8%
Number of Hedge Fund Holders: 29
Q2 Holdings, Inc. (NYSE:QTWO) is one of the Stocks to Buy with Exponential Growth Heading into 2026. On October 15, Stifel reduced the price target on the company’s stock to $90 from $110, while keeping a “Buy” rating, as reported by The Fly.
As per the analyst, the company’s stock has underperformed the broader software group ever since the US Fed announced a rate cut in September. Furthermore, the analyst went on to add that, during the previous rate cuts, management emphasized that a reduced rate environment could act as a catalyst for the technology investment. This is because net interest margins tend to fall and banks focus on becoming more efficient and effective while, at the same time, gathering deposits.
Elsewhere, Q2 Holdings, Inc. (NYSE:QTWO)’s management highlighted that, considering the strength of the execution and a strong pipeline, the company remains confident in its ability to deliver on the profitable growth strategy for the remainder of the year.
Conestoga Capital Advisors, an asset management company, released its Q3 2025 investor letter. Here is what the fund said:
“Q2 Holdings, Inc. (NYSE:QTWO) provides cloud-based digital banking and lending solutions to financial institutions in the U.S. and abroad. QTWO’s shares were pressured by investors’ concerns about information technology spending by regional banks and credit unions and company specific issues. With respect to the company specific issues, the company discussed a slightly elevated customer churn during 2Q25. The elevated churn was due to an unfavorable mix of M&A and some point solution customers not renewing its contracts. The company said that is still comfortable with sub 5% overall churn for 2025. The company is well positioned to achieve its 13% subscription revenue target for 2025 and continues to see improved profitability and cash flow.”
7. DraftKings Inc. (NASDAQ:DKNG)
Average Upside Potential: ~63.6%
Number of Hedge Fund Holders: 66
DraftKings Inc. (NASDAQ:DKNG) is one of the Stocks to Buy with Exponential Growth Heading into 2026. On October 22, analyst Mike Hickey from Benchmark Co. reiterated a “Buy” rating on the company’s stock, keeping the price objective at $43.00. The analyst’s rating is backed by a combination of factors demonstrating DraftKings Inc. (NASDAQ:DKNG)’s potential for long-term growth. Its strategic acquisition of Railbird Technologies has been regarded as the pivotal move, enabling the company to enter the prediction markets and improve its total addressable market, believes Hickey.
The analyst further believes that this acquisition enhances the company’s regulatory and technological capabilities and positions it to exploit new growth opportunities in the digital gaming. The move is being considered both as a defensive strategy, maintaining relevance in the changing regulatory landscape, and an offensive strategy to tap the rapidly growing market.
Also, the analyst believes that the broader industry trends and potential state-level legalization efforts can improve DraftKings Inc. (NASDAQ:DKNG)’s market, offering significant long-term growth prospects.
Brown Advisory, an investment management company, released its Q2 2025 investor letter. Here is what the fund said:
“We initiated positions in DraftKings Inc. (NASDAQ:DKNG) and Fair Isaac Corporation (FICO) during the quarter. DraftKings (DKNG) is a leader in the rapidly expanding U.S. online gaming and sports betting market, capitalizing on ongoing state-by-state legalization and a growing total addressable market. As a co-leader in the industry, DraftKings is uniquely positioned to benefit from favorable regulatory trends and increased consumer adoption. The company is demonstrating improving economics, supported by disciplined cost management and operational leverage. With continued expansion, product innovation, and a strong brand, DraftKings is well-equipped to capture additional market share and sustain long-term growth.”
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%.”
5. Klaviyo, Inc. (NYSE:KVYO)
Average Upside Potential: ~74.3%
Number of Hedge Fund Holders: 41
Klaviyo, Inc. (NYSE:KVYO) is one of the Stocks to Buy with Exponential Growth Heading into 2026. On October 22, Jefferies initiated coverage of the company’s stock with a “Buy” rating and a price objective of $32, as reported by The Fly. The firm highlighted that Klaviyo, Inc. (NYSE:KVYO)’s stock sold off significantly in 2025 because of AI concerns, just like its peers. However, the firm opines that the risk is more than priced in at the current valuation. Despite AI overhang taking time, the risk/reward is positively skewed, added Jefferies.
In a separate release, Klaviyo, Inc. (NYSE:KVYO) unveiled Marketing Agent and broadly released its Customer Agent. Together, they established the company as the AI-first B2C CRM, unifying data, marketing, service, and analytics in one platform to provide a competitive advantage to the consumer brands. Klaviyo, Inc. (NYSE:KVYO)’s marketing agent tends to autonomously plan and launch campaigns in a few minutes, develop on-brand content, personalize every send, and learns continuously without prompting. Its customer agent provides 24/7 personalized support to consumers. This is done by resolving common questions, suggesting products, and escalating to the human agent along with full context, when required.
Sands Capital, an investment management company, released its Q1 2025 investor letter. Here is what the fund said:
“Klaviyo, Inc. (NYSE:KVYO) is an innovative provider of business-to-consumer (B2C) marketing technology. The business reported a strong 2024 fourth quarter result, with key metrics exceeding both consensus and our expectations. While shares declined—due to high pre-earnings expectations, a slightly softer guide, and the broader tech selloff—we view the business as executing well. Management continues to improve communication and operational delivery, with strong momentum across upmarket adoption, international expansion, and product innovation. The standout announcement was the launch of a full CRM platform that integrates marketing, customer service, and analytics. This shift positions Klaviyo as a true platform business for B2C brands, in our view, and expands its AI opportunity.”
4. BioMarin Pharmaceutical Inc. (NASDAQ:BMRN)
Average Upside Potential: ~77.6%
Number of Hedge Fund Holders: 58
BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) is one of the Stocks to Buy with Exponential Growth Heading into 2026. On October 27, the company announced financial results for Q3 2025 and highlighted the contributions from its Enzyme Therapies and Skeletal Conditions business units to date this year, thanks to over 20% revenue growth from PALYNZIQ and VOXZOGO. BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) announced that its strategic investments in these focused business units continue to generate healthy results, and it expects sustained financial performance from each of these businesses.
Enzyme Therapies and Skeletal Conditions are central to BioMarin Pharmaceutical Inc. (NASDAQ:BMRN)’s growth strategy, apart from the new business development opportunities and its advancing internal pipeline. As the company focuses on the business units aligned with its strategic priorities, it is pursuing options to divest ROCTAVIAN and remove it from the portfolio.
In Q3 2025, BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) saw total revenues of $776 million, reflecting a rise of 4% compared to the same period in 2024. This was helped by healthy revenue growth in VOXZOGO® and PALYNZIQ®, attributable to new patients initiating therapy throughout all regions.
3. Summit Therapeutics Inc. (NASDAQ:SMMT)
Average Upside Potential: ~79.4%
Number of Hedge Fund Holders: 30
Summit Therapeutics Inc. (NASDAQ:SMMT) is one of the Stocks to Buy with Exponential Growth Heading into 2026. On October 20, the company released its financial results and gave an update on operational progress for Q3 2025. Summit Therapeutics Inc. (NASDAQ:SMMT) announced that, on the basis of the results of HARMONi clinical trial, it is planning to submit a Biologics License Application (BLA) to seek approval for ivonescimab plus chemotherapy for the proposed indication. Notably, the company plans to submit BLA in Q4 2025.
Summit Therapeutics Inc. (NASDAQ:SMMT) also announced that it intends to start HARMONi-GI3, which is a Phase III, multi-regional, clinical trial evaluating ivonescimab plus chemotherapy as compared to bevacizumab plus chemotherapy as the first line therapy in patients having unresectable metastatic colorectal cancer (CRC). Notably, the primary endpoint for this study is PFS, and Summit Therapeutics Inc. (NASDAQ:SMMT) expects to enroll 600 patients. In a separate release, on October 24, analyst David Dai of UBS maintained a “Buy” rating on the company’s stock, retaining the price objective of $30.00. The rating is backed by factors surrounding the promising results of the company’s HARMONi-6 trial.
2. VinFast Auto Ltd. (NASDAQ:VFS)
Average Upside Potential: ~82.9%
Number of Hedge Fund Holders: 6
VinFast Auto Ltd. (NASDAQ:VFS) is one of the Stocks to Buy with Exponential Growth Heading into 2026. On October 22, the company announced preliminary vehicle deliveries for Q3 2025, delivering 38,195 electric vehicles globally. This represented a 7% rise QoQ and a 74% rise YoY. The VF 3 and VF 5 were VinFast Auto Ltd. (NASDAQ:VFS)’s 2 best-selling models in Q3 2025, accounting for 47% of total deliveries in the quarter. Notably, the VF 6 contributed 16%.
Furthermore, the Green Series, including Herio Green, Nerio Green, and Limo Green models, made up 25% of deliveries in Q3 2025. Cumulatively, in the first 9 months of 2025, VinFast Auto Ltd. (NASDAQ:VFS) delivered 110,362 EVs to customers globally, reflecting 149% growth YoY.
In a separate release, it was mentioned that the company sees significant opportunity in its core Asian markets. VinFast Auto Ltd. (NASDAQ:VFS)’s path to profitability is supported by scaling volumes while, at the same time, being disciplined about costs. The company’s business remains at an inflection point, and economies of scale are expected to drive greater operating leverage.
1. Caesars Entertainment, Inc. (NASDAQ:CZR)
Average Upside Potential: ~98.2%
Number of Hedge Fund Holders: 61
Caesars Entertainment, Inc. (NASDAQ:CZR) is one of the Stocks to Buy with Exponential Growth Heading into 2026. On October 29, analyst Lance Vitanza of TD Cowen maintained a “Buy” rating on the company’s stock, retaining the price objective of $40.00. The analyst’s rating is supported by a combination of factors influencing Caesars Entertainment, Inc. (NASDAQ:CZR)’s performance. Despite Q3 2025 results falling short of expectations, there are some positive indicators, believes the analyst. Notably, in Q3 2025, the company’s GAAP net revenues came in at $2.9 billion, and GAAP net loss amounted to $55 million.
As per the analyst, the temporary softness in Las Vegas is projected to see improvement as group bookings continue to increase for Q4. Furthermore, the regional markets have been exhibiting healthy momentum, and Caesars Entertainment, Inc. (NASDAQ:CZR)’s refined marketing strategies can help FCF growth.
Caesars Entertainment, Inc. (NASDAQ:CZR), at the time of releasing Q3 2025 results, stated that its regional portfolio posted net revenues and adjusted EBITDA growth, thanks to the consistent operating trends and positive returns from its capital projects.
JDP Capital Management, an investment management company, released its Q1 2025 investor letter. Here is what the fund said:
“Caesars Entertainment, Inc. (NASDAQ:CZR) – In terms of upside it is not hard to see $80 or $90 per share for CZR in present value using a simple breakup value analysis (200% to 300%+ upside) from today’s $25 price. Although Vegas and regional brick and mortar casino revenue declined by 1% in 2024, we are invested in CZR for the unrecognized earnings power of the high margin, high return on capital online gaming business. As the largest and arguably most investor-friendly gaming and hotel business in the US, CZR is benefiting from state-by-state legalization of online gaming. In 2024 CZR’s online gaming business (Caesars Palace and Horseshoe Apps) grew 20% to 1.2 billion with EBITDA up 207% to $117 million over 2023. In 4Q 2024, iGaming revenue grew 65% on top of 54% growth in 2023. Helping to fuel 2025 online gaming growth, Caesars is launching a live, iCasino in-app product in Michigan and New Jersey following legalization in those states. CEO Tom Reeg is confident that the online gaming business is on track to achieve $500 million in EBITDA as planned. Once achieved, the online business would be worth well in excess of the entire company current market cap of $5 billion. Setting aside this potential, CZR should earn over $1 billion in after-tax free cash flow in 2025 implying a 20%+ equity yield on the stock today. Caesars recently expanded its board to include two Carl Ichan-appointed members. The stock was down over 25% in the first quarter.”
While we acknowledge the potential of CZR 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 CZR and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now.
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