Kodiak Gas Services (KGS): Best Up and Coming Stocks to Buy for the Next 3 Years

Kodiak Gas Services Inc. (NYSE:KGS) is one of the best up and coming stocks to buy for the next 3 years. On May 11, Kodiak Gas Services reported a strong start to 2026, achieving record contract services revenue of $307.0 million and adjusted EBITDA of $190.1 million. The company increased its full-year 2026 adjusted EBITDA guidance to a range of $820 million to $860 million, driven by the continued strength of its core natural gas compression business and the integration of its newly acquired Distributed Power Solutions/DPS segment.

To capitalize on surging demand from data center developers, Kodiak has procured over 260 MWs of additional power generation capacity and plans to expand its total capacity to over 650 MWs. The company expects consistent annual growth of 300 to 500 MWs through 2030, targeting a total capacity of over two gigawatts by the end of the decade, all supported by long-term customer contracts.

Kodiak Gas Services (KGS): Best Up and Coming Stocks to Buy for the Next 3 Years

Financial stability was supported by a $1 billion senior note issuance, which reduced the company’s weighted average borrowing rate despite a $36.5 million loss on debt extinguishment. Excluding nonrecurring transaction costs and debt-related expenses, Kodiak Gas Services Inc. (NYSE:KGS) reported an adjusted net income of $52.0 million, or $0.59 per adjusted diluted share.

Kodiak Gas Services Inc. (NYSE:KGS) operates and provides contract compression infrastructure for customers in the oil and gas industry in the US. The company operates through two segments: Contract Services and Other Services.

While we acknowledge the risk and potential of KGS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than KGS and that has 10,000% upside potential, check out our report about the cheapest AI stock.

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