2 Growth Stocks That Could Skyrocket in 2026 and Beyond

Group 1: DraftKings - DraftKings has experienced a significant decline of nearly 40% from its highs earlier this year, primarily due to concerns over competition in sports-related prediction markets, rather than any negative actions by the company [2] - Despite the stock's performance, DraftKings reported a 37% increase in revenue to $1.5 billion last quarter, driven by strong engagement in its sportsbook and online casino businesses, with adjusted EBITDA surging 134% to $301 million [3] - The stock is trading at a forward price-to-earnings (P/E) ratio of approximately 16.7 times 2026 consensus earnings estimates, indicating it may be undervalued given its rapid revenue growth and strong operating leverage [4] Group 2: E.l.f. Beauty - E.l.f. Beauty has been a standout in consumer growth, and its recent $1 billion acquisition of Rhode, a rapidly growing beauty brand, could significantly enhance its market position [6] - Rhode achieved over $200 million in sales in less than three years with minimal paid marketing, showcasing its organic growth potential [7] - E.l.f. has the opportunity to leverage its extensive retail and manufacturing network to expand Rhode's reach globally [7]