10 Best Stocks to Buy for High Returns in 2026

Core Viewpoint - The article discusses the outlook for the stock market in 2026, highlighting the expected performance of the S&P 500 and identifying the best stocks to buy for high returns in that year [2][4]. Market Outlook - Brian Belski, CEO of Humilis Investment Strategies, predicts the S&P 500 will end 2026 between 7,300 and 7,500, indicating a transition towards an earnings-driven market [2]. - Belski anticipates that 2026 will be more volatile than 2025, as the third year of a bull market typically experiences increased volatility [3]. Sector Analysis - Belski has neutralized his exposure to the technology sector due to fundamental issues and is overweight on communication services, financials, and utilities, which are expected to show earnings growth driven by secular trends [3]. Stock Selection Methodology - The list of the 10 best stocks for high returns in 2026 was compiled using a stock screener, focusing on stocks with over 25% forward EPS growth and more than 30% analyst upside potential [6]. - Data was sourced from Finviz, Yahoo Finance, CNN, and Insider Monkey's hedge fund database, with all information recorded on January 8, 2026 [6]. Hedge Fund Interest - The article emphasizes the importance of stocks that hedge funds are investing in, as imitating top hedge fund picks has historically led to market outperformance [7]. Company Highlights - Arm Holdings plc (NASDAQ:ARM) - Expected EPS growth of 62.37% and upside potential of 55.80%, with 41 hedge fund holders [8]. - Recently reorganized to create a Physical AI unit to expand in the robotics industry, indicating significant growth potential [9][10]. - Management believes advancements in robotics could enhance labor efficiency and contribute to GDP growth [11]. - Analysts have upgraded the stock, with a price target of $170 from Oddo BHF and $145 from Bank of America Securities [12]. - Marvell Technology, Inc. (NASDAQ:MRVL) - Expected EPS growth of 26.67% and upside potential of 36.01%, with 77 hedge fund holders [13]. - Recently announced the acquisition of XConn Technologies for approximately $540 million, which is expected to enhance its data center connectivity portfolio [14][15]. - The acquisition will strengthen Marvell's position in accelerated infrastructure, particularly for AI systems requiring efficient connections [15][16].