1 Glorious Growth Stock to Buy Hand Over Fist Before 2026, According to Wall Street
This stock has room to run as the AI boom continues…
Growth investors have been cheering over the past couple of years as growth stocks have led indexes higher. The S&P 500 has reached multiple records in recent times as investors pile into companies such as the Magnificent Seven — these are technology players that have seen revenue take off amid the artificial intelligence (AI) boom.
Though growth stocks typically perform better in a bull market than they do in a bear market, quality growth players always make a great addition to your portfolio if you get in on them at the right price. This is because, even if they stumble at a certain point, they have what it takes to power your portfolio significantly higher over the long term. By this, I mean at least five years. So, it’s always a good idea to be on the lookout for interesting growth stock to scoop up and hold onto.
And right now, Wall Street forecasts suggest investors should buy one glorious growth stock hand over fist before 2026. Let’s check it out.
Image source: Getty Images.
Wall Street forecasts a 30% gain
This particular player could see its stock price climb by more than 30% over the coming 12 months, according to analysts’ average price forecasts. What may drive such gains? Tremendous demand for this player’s services — a trend that’s been going on quarter after quarter. This company is Oracle (ORCL 3.91%), and it’s seen revenue take off as customers rush to acquire capacity for AI workloads.
You may associate Oracle mainly with its database software as that was the company’s original strength and still remains a key part of the business. But in recent years, Oracle has put a focus on its cloud infrastructure business, and this has proven to be a smart strategy. Here’s why: Demand has exploded higher for cloud capacity, and this has brought customers rushing to cloud service providers, including Oracle.
In recent quarters, Oracle’s cloud infrastructure unit has delivered double-digit growth, and the company has noted examples of customers’ urgent need for such services. One customer told Oracle they would take all capacity available, in any location. In the latest quarter, this trend resulted in a 55% increase in cloud infrastructure revenue to more than $3 billion and a more than 300% gain in remaining performance obligations (RPO) to a mind-boggling $455 billion. RPO is a measure of revenue to be expected from current contracts.
Today’s Change
(-3.91%) $-10.08
Current Price
$247.77
Key Data Points
Market Cap
$707B
Day’s Range
$245.16 – $255.30
52wk Range
$118.86 – $345.72
Volume
864K
Avg Vol
23M
Gross Margin
66.10%
Dividend Yield
0.01%
Renting out chips
Oracle stock soared after the earnings report — but then it slipped early last month after a press report questioned the profitability of the business of renting out chips. That particular segment, renting out Nvidia chips, had a 14% gross margin, The Information reported, citing internal documents from the company. This doesn’t prompt me to worry about Oracle though. It’s important to remember that the renting out of chips is only one part of the cloud infrastructure business, so this is just one piece of the unit’s overall gross margin. And we’re still in the early days of this AI growth story — so margins, in general, should improve as Oracle scales up.
The dip in Oracle stock actually could be seen as positive as it offers investors a fresh buying opportunity. Oracle, a company that is seeing major growth and is well positioned to excel as the AI boom evolves, today trades for 37x forward earnings estimates. This isn’t cheap, but it’s a fair price to pay for a player with a solid earnings track record, a well-established business, and the ability to succeed in the high-growth AI market.
As mentioned, Wall Street expects the stock to climb in the double-digits over the coming year, and the majority of analysts covering the stock recommend buying it. But the best news of all is this: Even if Wall Street is wrong and the stock doesn’t rise as much as expected in the short term, it still has what it takes to significantly advance over the long term. All of this makes it a great stock to buy hand over fist, at today’s reasonable price, before 2026.