If you would like to shake up your portfolio in 2026, I have some ideas to consider. I like Nvidia (NVDA 1.45%), Zeta Global (ZETA 1.59%), and Costco Wholesale (COST +1.09%) as growth stocks right now. You probably know the first and the third names on this list, but these three very different companies could be market beaters in the year ahead.
It doesn't take a lot to get going. As little as $1,000 in any of these names can pay off for long-term investors if I'm right. Let's dive into my bullish argument for all three of these potentially promising stocks.
Image source: Getty Images.
1. Nvidia
Starting with the country's most valuable company by market cap might seem obvious, but I think right now is a good time to consider the undeniable leader of the artificial intelligence (AI) revolution. Nvidia's fundamentals are rolling after back-to-back fiscal years of revenue more than doubling, and the recent slowdown could prove to be temporary.
Nvidia stock has risen a market-thumping 25% over the past year, but check your stopwatch. Revenue -- even with the possibly temporary headwinds it's facing -- has soared 63% in that time. Net income is growing even faster. With Nvidia shares trading more than 12% below their October all-time highs, it may be a good time to warm up to the AI bellwether.
NASDAQ: NVDA
Key Data Points
The bullish thesis for Nvidia is fairly obvious. It's the leader in high-tech AI chips that data centers need to crank out resource-intensive generative AI results. Revenue won't double again for fiscal 2026, which ends later this month, but one can imagine that it might have been close if not for the trade war that ended in restricting sales to China last year.
That obstacle is starting to clear, even if getting its chips back into the world's second-largest economy won't initially happen on financially ideal terms. Meanwhile, analysts expect revenue to accelerate to 67% in the current quarter. The current outlook calls for revenue to slow to 50% for the fiscal year that starts next month, but Nvidia is cheaper than you think right now. You can buy the stock for less than 25 times forward earnings, half of its forward growth rate.
NYSE: ZETA
Key Data Points
2. Zeta Global
The past year has been challenging for some of the more popular adtech companies, but that's not the case for Zeta Global. The provider of an AI-fueled cloud platform that helps amplify a marketing campaign's efforts is beating the market with its 29% ascent over the past year.
Zeta's use cases are impressive. Retailers point to an increase in online conversion rates and a 50% reduction in campaign creation time. Hoteliers are seeing a boost in bookings, fueled by a boost in email click-through rates and campaign revenue.
The ultimate scorecard is growth, and Zeta's doing a lot better than many of the larger adtech players. Trailing revenue is up 36%. Earnings before interest, taxes, depreciation, and amortization (EBITDA) and return on invested capital (ROIC) just turned positive. Every adtech company may be turning to AI to improve its platform, but Zeta is actually making it work.
NASDAQ: COST
Key Data Points
3. Costco Wholesale
If Nvidia's stock 25% increase over the past year seems to be understating reality, Costco shareholders are saying, "Hold my Kirkland beer." Shares of the leading warehouse club operator are down 3% over the past year. Make it make sense.
In a year in which investors were rattled with fears of an economic slowdown, how can they also discard what is one of the most recession-resistant retailers in the country? It has only posted one year of negative revenue growth in the last 34 fiscal years, and even that 1.5% slide during the Great Recession should be considered a relative victory lap.
Costco continues to post monthly comps in the mid-to-high single digits. It's more of a growth stock than an income play, but it has hiked its dividend yield for 20 consecutive years. Customer retention didn't flinch after its last annual membership fee increase in 2024. The only real knock on Costco has been its valuation, but that argument got a lot softer with the stock's retreat over the past year.
