Best Growth Stocks to Buy for January 2026
Alcoa (AA)
$56.41 USD -4.23 (-6.98%)
3-Year Stock Price Performance
Premium Research for AA
- Zacks Rank
- Strong Buy 1
- Style Scores
A Value A Growth C Momentum A VGM
- Market Cap: $15.45 B (Large Cap)
- Projected EPS Growth: 33.95%
- Last Quarter EPS Growth: NA
- Last EPS Surprise: 32.63%
- Next EPS Report date:April 15, 2026
Our Take:
Reasons to Buy
Alcoa produces bauxite, alumina, and aluminum, giving it operating leverage to improve metals markets. Recent results showed a clear improvement versus the prior year in profitability and cash generation, aided by operational execution, and management continued to reduce debt. Alcoa is also reshaping its footprint. It closed the sale of its Ma’aden JV stake, set up a JV to support San Ciprián, and opted to permanently close the high-cost Kwinana refinery, aiming at improving longer-run cost and cash resilience.
Potential Risks
Alcoa remains a cyclical and energy-intensive company, exposed to fluctuations in aluminum/alumina prices, power costs, and operational disruptions. Trade-policy volatility is another overhang.
Forecast
Zacks Rank #1 (Strong Buy) signals rising estimates. Style Scores of A for Value and Growth, and B for Momentum, add support. The chart shows a strong move into 2026 as 2026–2027 consensus lines edged higher and EPS surprises skewed more positive lately.
See more from Zacks Research for This Ticker
Normally $25 each - click below to receive one report FREE:
AngloGold Ashanti PLC (AU)
$93.00 USD -14.02 (-13.10%)
3-Year Stock Price Performance
Premium Research for AU
- Zacks Rank
Strong Buy 1
- Style Scores
C Value A Growth C Momentum A VGM
- Market Cap: $45.94 B (Large Cap)
- Projected EPS Growth:152.94%
- Last Quarter EPS Growth:5.60%
- Last EPS Surprise: -1.49%
- Next EPS Report date: Feb. 18, 2026
Our Take:
Reasons to Buy
AngloGold Ashanti is a diversified gold miner with earnings torque to bullion and improving cash returns when costs stay disciplined. In its latest results, production rose from the prior year, and the company captured higher realized prices with tight cost control, driving sharply higher EBITDA and record free cash flow. That strength supported a sizable dividend and a net-cash position, and management reaffirmed full-year guidance, while the portfolio benefited from solid performance at core mines and the addition of Sukari.
Potential Risks
Gold is the big swing factor. A bullion pullback, higher real rates, or adverse tax, royalty, or security developments across jurisdictions can compress margins and sentiment.
Forecast
Zacks Rank #1 reflects favorable estimate revisions. Growth and Momentum scores of A underscore accelerating fundamentals and relative strength, while a C Value score implies the shares aren’t statistically cheap. The chart shows a steep price uptrend as 2026–2027 consensus lines step higher; EPS surprises are mixed, implying volatility even as expectations rise.
See more from Zacks Research for This Ticker
Normally $25 each - click below to receive one report FREE:
Ciena (CIEN)
$252.38 USD -1.15 (-0.45%)
3-Year Stock Price Performance
Premium Research for CIEN
- Zacks Rank
- Strong Buy 1
- Style Scores
D Value A Growth D Momentum B VGM
- Market Cap: $34.86 B (Large Cap)
- Projected EPS Growth: 101.89%
- Last Quarter EPS Growth:56.10%
- Last EPS Surprise: 18.18%
- Next EPS Report date:March 10, 2026
Our Take:
Reasons to Buy
Ciena sells high-speed optical networking gear, and its growth profile improves when hyperscalers and service providers refresh capacity for AI-driven traffic. Latest results showed strong year-over-year revenue growth and higher adjusted earnings, and management’s forward outlook implies another step-up in sales, citing durable demand from cloud customers and expanding opportunities inside and around the data center. That combination can support healthier operating leverage than the prior carrier-capex downcycle.
Potential Risks
Networking spending can be lumpy, and a pause in service-provider capex or a digestion cycle at hyperscalers can pressure orders and margins, and customer concentration is high. Competitive pricing pressure is a constant.
Forecast
Zacks Rank #1 reflects positive estimate revisions. Its D Value, A Growth, and C Momentum Scores suggest the case is fundamentals-led, not “cheap.” The chart shows a pronounced breakout into 2026 as 2026–2027 consensus lines turned meaningfully higher and recent surprises tilted more positive versus earlier choppiness.
See more from Zacks Research for This Ticker
Normally $25 each - click below to receive one report FREE:
Coeur Mining (CDE)
$20.32 USD -4.25 (-17.30%)
3-Year Stock Price Performance
Premium Research for CDE
- Zacks Rank
- Strong Buy 1
- Style Scores
D Value A Growth A Momentum B VGM
- Market Cap: $16.51 B (Large Cap)
- Projected EPS Growth: 355.56%
- Last Quarter EPS Growth:15.00%
- Last EPS Surprise: -8.00%
- Next EPS Report date:Feb. 18, 2026
Our Take:
Reasons to Buy
Coeur Mining offers high operating leverage as a growing precious metals producer, now enhanced by its approved acquisition of New Gold, set to close in H1 2026. Adding Rainy River and New Afton would expand scale, tilt the portfolio toward Canada and the U.S., and add meaningful copper exposure. Pre-merger results already showed record production, margin gains, cash flow jumps, profitability, debt paydown, and tighter guidance, signaling operational maturity amid strong metals prices.
Potential Risks
Merger execution tops the list. Operational hiccups, grade variability, permitting or geopolitical disruptions, and cost inflation can quickly reverse momentum, and precious-metals pullbacks tend to hit miners harder than the metal itself.
Forecast
Zacks Rank #1 signals positive estimate revisions. CDE’s D Value, A Growth, and C Momentum Scores suggest the thesis depends on earnings traction rather than multiple expansion. The chart shows a sharp price uptrend, and 2026–2027 consensus lines trending higher.
See more from Zacks Research for This Ticker
Normally $25 each - click below to receive one report FREE:
Credo Technology Group (CRDO)
$129.47 USD 0.00 (0.00%)
3-Year Stock Price Performance
Premium Research for CRDO
- Zacks Rank
- Strong Buy 1
- Style Scores
F Value A Growth C Momentum C VGM
- Market Cap:$23.40 B (Large Cap)
- Projected EPS Growth:297.14%
- Last Quarter EPS Growth:29.41%
- Last EPS Surprise: 36.73%
- Next EPS Report date: March 3, 2026
Our Take:
Reasons to Buy
Credo Technology designs energy-efficient high-speed connectivity for AI-driven cloud and hyperscale networks, giving it direct exposure to data-center buildouts and rapidly evolving interconnect standards. Latest results were record-setting, with revenue and earnings surging from the prior year and management guiding to another strong sequential step-up, reflecting broad demand for its SerDes, active electrical cables, and system connectivity portfolio. A material net-cash balance sheet adds flexibility to invest through the cycle.
Potential Risks
The biggest risk is concentration and competition. A delay in hyperscaler deployments, qualification slippage, or pricing pressure from larger rivals could hit growth expectations, and the stock’s valuation leaves little room for execution stumbles.
Forecast
Zacks Rank #1 signals rising estimates. With F Value, A Growth, and B Momentum Scores, returns likely hinge on continued growth and trend strength. The chart shows a steep uptrend, 2026–2027 consensus lines stair-stepping higher, and a positive recent EPS-surprise pattern that aligns with improving forward visibility.
See more from Zacks Research for This Ticker
Normally $25 each - click below to receive one report FREE:
Methodology
The Zacks Rank is a proprietary stock-rating model that uses trends in earnings estimate revisions and earnings-per-share (EPS) surprises to classify stocks into five groups: #1 (Strong Buy), #2 (Buy), #3 (Hold), #4 (Sell) and #5 (Strong Sell). The Zacks Rank is calculated through four primary factors related to earnings estimates: analysts' consensus on earnings estimate revisions, the magnitude of revision change, the upside potential and estimate surprise (or the degree in which earnings per share deviated from the previous quarter).
Zacks builds the data from 3,000 analysts at over 150 different brokerage firms. The average yearly gain for Zacks Rank #1 (Strong Buy) stocks is +23.62% per year from January, 1988, through June 2, 2025.
Selections for Best Growth Stocks are based on the current top ranking stocks based on Zacks Indicator Score, Style Scores and fundamentals. For this list, only companies that have average daily trading volumes of 100,000 shares or more were considered, as well as companies from the top 50% of all industries. All information is current as of market open Jan. 28, 2025.
General Questions About Growth Stocks
What is a growth stock?
A growth stock represents a company expected to grow sales, earnings, or cash flow faster than the broader market. These firms often operate in expanding industries and reinvest heavily in research, marketing, and infrastructure to sustain momentum.
What are the benefits of buying growth stocks?
Growth stocks offer the potential for significant price appreciation, exposure to innovative business models, and long-term compounding. When successful, they can outperform more mature companies by a wide margin.
What are the risks of buying growth stocks?
Higher valuations, sensitivity to interest rates, and reliance on future earnings projections increase downside risk. If growth slows or expectations fall, share prices can decline sharply.
Growth vs. value stocks: What’s better right now?
Growth stocks tend to excel during periods of economic expansion and technological change, while value stocks often perform better when investors prioritize stability and income. Market leadership can rotate, making diversification across styles important.
Are growth stocks a good investment during economic uncertainty?
During uncertain periods, growth stocks may experience heightened volatility. Companies with strong balance sheets, recurring revenue, and durable demand tend to hold up better than speculative names.
How do growth stocks differ from dividend stocks?
Dividend stocks focus on returning cash to shareholders, while growth stocks reinvest profits to fuel expansion. Investors often choose growth for appreciation and dividends for income.
Are growth stocks suitable for beginners?
They can be, especially through diversified funds or established large-cap names. Beginners should avoid concentrating too heavily in speculative or unprofitable companies.
How do growth stocks perform during recessions?
Performance varies. Some growth companies with essential products continue to expand, while others tied to discretionary spending may struggle.
See recent Zacks stories about top Growth Stocks.
What to Consider When Looking for Growth Stocks
How do I identify a good growth stock?
Look for consistent revenue growth, expanding addressable markets, competitive advantages, and strong management execution.
What metrics should I look at in growth stocks?
Common metrics include revenue growth rates, earnings growth, free cash flow trends, return on invested capital, and valuation ratios relative to growth expectations.
What ETFs contain the best growth stocks?
Growth-focused ETFs often track large-cap or sector-specific indexes, offering exposure to leading growth companies while reducing single-stock risk.
Should I diversify my growth stock portfolio?
Yes. Diversifying across sectors, company sizes, and geographies can help manage volatility and reduce reliance on any single trend.
Are growth stocks a good investment during economic uncertainty?
Quality growth stocks with pricing power and resilient demand can still perform well, but position sizing and diversification are critical.
What sectors typically produce strong growth stocks?
Certain sectors consistently produce growth leaders due to innovation, scale advantages, or long-term demand trends. Examples include:
- Technology and AI: Companies benefiting from cloud computing, artificial intelligence, and software platforms, such as NVIDIA, Microsoft, Alphabet, and Amazon.
- Consumer Discretionary: Brands and platforms capturing shifts in consumer behavior and digital commerce, including Tesla, Amazon, and Booking Holdings.
- Healthcare and Biotechnology: Firms developing breakthrough drugs, medical devices, or diagnostics, such as Eli Lilly, Novo Nordisk, Vertex Pharmaceuticals, and Intuitive Surgical.
- Communication Services: Digital advertising, streaming, and social platforms with scalable user bases, including Meta Platforms and Netflix.
- Financial Technology: Companies modernizing payments, trading, and financial infrastructure, such as Visa, Mastercard, and Block.
- Clean Energy and Electrification: Businesses tied to renewable power, battery technology, and grid modernization, including NextEra Energy, Enphase Energy, and Tesla.
These sectors frequently generate high-growth opportunities, though leadership within them can change over time.
Do growth stocks work for long-term or short-term strategies?
They are generally better suited for long-term investing, allowing time for innovation and expansion to translate into earnings growth.
What are common mistakes to avoid when investing in growth stocks?
Chasing hype, ignoring valuation, overconcentration, and selling too quickly during volatility are frequent pitfalls.
How to Purchase Growth Stocks
Do I need a broker to buy growth stocks?
Yes. Most investors use online brokerage platforms that offer access to individual stocks, ETFs, and research tools.
How much should I invest in my first growth stock purchase?
Start with an amount that fits your overall financial plan and risk tolerance. Many investors begin with smaller positions and add over time.
Strategies for Buying Growth Stocks
How often should I rebalance a growth-focused portfolio?
Rebalancing annually or semiannually helps maintain target allocations and manage risk.
When should I sell a growth stock?
Consider selling if the company’s fundamentals deteriorate, growth prospects fade, or the position becomes too large relative to your portfolio.
How do I track performance and assess whether a growth stock is still strong?
Monitor earnings reports, revenue trends, competitive positioning, and management guidance.
What tax implications come with selling growth stocks?
Selling at a profit may trigger capital gains taxes, with rates depending on holding period and income level.
Growth Stock Alternatives
Are index funds a safer alternative to picking growth stocks?
Index funds provide broad exposure and lower risk than individual stock selection, making them appealing for many investors.
What are conservative investment options if growth stocks are too risky?
Options include value stocks, dividend-paying equities, bonds, and balanced funds that emphasize capital preservation.
