Quick Take
- Top sectors for 2026: Information Technology, Materials, Industrials, Energy
- Best growth stocks to buy now: Concentrated in these outperforming sectors
- AlphaProfit’s strategy delivers lower risk, low expenses, and high returns
- New ETF recommendations coming September 30, 2025
- Explore Premium Service, Register Free, or Learn Our Selection Methodology
Best Growth Stocks to Buy Now for 2026: Top Sectors + AlphaProfit’s Proven Picks
Looking for the best growth stocks to buy now as we head into 2026? AlphaProfit’s proven strategy identifies the top sectors for 2026 and the stocks most likely to outperform—driven by rigorous analysis, disciplined execution, and a performance record that consistently beats the market.
In this guide, we reveal the best growth opportunities for 2026—including sector leaders and individual stock picks—designed to help you invest with confidence and outperform the S&P 500. Preview our Premium Service or explore our selection methodology to see how we do it.
2025 Market Recap: A Broadening Rally Amid Shifting Fed Policy
The year 2025 has been favorable for U.S. stocks, despite persistent concerns over tariffs, inflation, and slowing growth. The S&P 500 (SPY) dropped over 4% in Q1 but rebounded in Q2 and Q3, climbing to a 13.7% year-to-date gain as of September 18—setting a strong foundation for identifying the best growth stocks to buy now.
Market breadth remained narrow in early 2025, with investors favoring large-cap technology stocks while the Fed held rates steady. This concentration highlights the importance of sector selection—especially when identifying top sectors for 2026 with broadening participation.
By Q3, signs of labor market softness and political pressure raised expectations for rate cuts. As those prospects grew, the rally broadened—bringing small-cap stocks into play and reinforcing the case for growth stock rotation across sectors.
On September 17, the Fed cut rates by 0.25%, setting a new target range of 4.00% to 4.25%, and signaled two more cuts before year-end. This shift sets the stage for a more inclusive and sustained market advance—a key backdrop for identifying the best growth stocks to buy now.
Economic Outlook and Earnings Setup for 2026
The Fed’s latest projections show a modest pickup in growth heading into 2026. U.S. GDP is expected to rise 1.6% in 2025 and accelerate to 1.8% in 2026, with unemployment easing and inflation moderating. This macro setup supports earnings expansion in key sectors—a critical input in AlphaProfit’s growth stock selection.
While inflation remains above target, the Fed is prioritizing labor market stability and preemptively easing rates. Analysts view this non-recessionary easing cycle as a constructive backdrop for corporate earnings growth—especially in sectors with strong EPS momentum.
FactSet data as of September 19 shows analysts expect S&P 500 earnings to grow 13.7% in 2026, with gains projected across all eleven sectors. Several industries—led by Information Technology, Materials, Industrials, and Energy—are poised to deliver above-average EPS growth, making them top sectors for 2026 and fertile ground for identifying the best growth stocks to buy now.
Sector Commentary: 2026 EPS Growth Forecasts
- Information Technology: 20.0% EPS growth. Driven by AI infrastructure and semiconductors.
- Materials: 17.8% EPS growth. Supported by industrial metals and chemicals.
- Industrials: 16.9% EPS growth. Benefiting from electrification and defense spending.
- Energy: 15.9% EPS growth. Supported by stable oil prices and disciplined capital spending.
- Consumer Discretionary, Financials, Health Care: Near S&P 500 benchmark of 13.7%.
- Utilities, Communication Services, Consumer Staples, Real Estate: Lagging sectors with EPS growth between 5.6% and 9.6%.
AlphaProfit Stock Picks: Best Growth Stocks to Buy Now from Top Sectors
AlphaProfit’s recent stock recommendations reflect our disciplined approach to sector selection and earnings momentum. These picks—made over the past 12 months—span multiple outperforming sectors and showcase our ability to identify the best growth stocks to buy now with strong fundamentals and timely catalysts.
Health Care
- AbbVie (ABBV) – Robust immunology and neuroscience pipeline, strong dividend profile, and post-Humira growth drivers
- ResMed (RMD) – Market leadership in sleep apnea devices, expanding digital health platform, and resilient margins
Consumer Discretionary
- PVH Corp. (PVH) – Brand strength in Calvin Klein and Tommy Hilfiger, margin recovery, and international growth
- General Motors (GM) – EV transition, cost discipline, and improving profitability in North America
Information Technology
- Microsoft (MSFT) – Cloud leadership, AI integration across enterprise software, and consistent free cash flow generation
- Adobe (ADBE) – Creative and marketing software dominance, subscription growth, and expanding AI capabilities
Industrials
- Flex Ltd. (FLEX) – Diversified manufacturing exposure, margin expansion, and strong execution in supply chain solutions
- Sanmina (SANM) – High-reliability electronics manufacturing, improving operating leverage, and end-market diversification
Communication Services
- Alphabet (GOOGL) – Resilient ad platform, cloud growth, and monetization of AI and YouTube assets
Energy
- Coterra Energy (CTRA) – Low-cost natural gas and oil production, disciplined capital allocation, and shareholder returns
- Archrock (AROC) – Natural gas compression services with stable cash flows and infrastructure tailwinds
These selections reflect AlphaProfit’s ability to translate sector-level EPS forecasts into actionable stock ideas. Premium Service subscribers receive full analysis, entry points, and portfolio guidance for each recommendation.
Performance Snapshot: How AlphaProfit’s Picks Stack Up
AlphaProfit’s disciplined approach continues to deliver results.
AlphaProfit’s ETF Focus model portfolio has compounded at a 17.3% annualized rate since 1993, outperforming the S&P 500’s 10.7%. This long-term track record reflects AlphaProfit’s disciplined, multi-factor approach to sector-focused ETF selection.
Recent stock recommendations also delivered strong results. Over the past 12 months:
- 95% win rate—19 of 20 exiting stock recommendations generated profits
- +13.5% median return across 20 exited positions
- Top performers: Coterra Energy (CTRA), Federated Hermes (FHI), HNI Corp., Moelis & Co. (MC), and State Street (STT)—each gained 18–30%
These results reflect AlphaProfit’s commitment to risk-aware, cost-efficient, and effort-minimizing investing—powered by a proven multi-factor framework.
Why AlphaProfit: Lower Risk, Low Expenses, High Returns
AlphaProfit’s investment philosophy centers on minimizing risk, controlling costs, and maximizing returns. We focus on sectors with strong earnings momentum and stocks with favorable risk-reward profiles—delivering consistent outperformance for our subscribers.
Our Premium Service provides actionable recommendations, detailed analysis, and portfolio guidance tailored to your goals. Whether you’re seeking growth, income, or diversification, AlphaProfit helps you invest with confidence.
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FAQs
- Q: Are AlphaProfit’s sector calls based solely on EPS forecasts?
- A: No. EPS consensus is just one input. Final sector selection is based on a multi-factor matrix that includes valuation, momentum, and news quality.
- Q: When will AlphaProfit release the new sector and thematic ETF recommendations?
- A: We’ll publish an updated slate of recommended sector and thematic ETFs—and Fidelity funds—on September 30, 2025.
- Q: When will AlphaProfit release the next stock recommendations?
- A: New stock picks are published on the 12th of each month. The next set will be released on October 12, 2025.
- Q: Can I see past performance of AlphaProfit’s model portfolios and stock recommendations?
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A: Absolutely. Registered users can access
summary-level performance metrics and
detailed results from our summary page.
Year-over-year returns and a full compilation of stock recommendation performance are also available.
AlphaProfit Investment Newsletter is independently published and subscriber-supported. Past performance is not indicative of future results. All investments involve risk.
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