Balanced analysis of growth stocks with strong upside potential

Stock markets may not move in straight lines, but long-term investors know that opportunity often appears when strong companies fall out of favor.

Even after market volatility linked to U.S. trade policies and tariffs, major indexes such as the S&P 500 and Nasdaq still posted solid gains in 2025. That tells us one thing clearly: quality businesses can grow even in uncertain conditions.

Looking ahead to 2026, some stocks now trade at lower valuations despite improving fundamentals. These companies carry higher risk, but they also offer meaningful upside if growth trends continue.

Below are seven stocks with credible paths to significant gains, based on financial performance, valuation, and long-term business trends.

1. The Trade Desk (TTD): A Reset Creates Opportunity

The Trade Desk operates one of the world’s largest independent digital advertising platforms. While the company struggled in 2025 due to weaker ad spending and increased competition, much of that pressure may ease going forward.

Key drivers for recovery include:

• More stable ad spending comparisons in 2026
• Growth in political advertising
• Adoption of Unified ID 2.0, a privacy-focused alternative to third-party cookies

After a steep decline of about 68% in 2025, the stock now trades near 18 times forward earnings, a sharp contrast to its past premium valuation. If revenue growth returns to the high-teens range, investor sentiment could improve quickly.

2. Webull (BULL): Growth Behind the Volatility

Webull’s public debut in 2025 was dramatic. After an early surge, the stock dropped sharply as investors worried about intense competition in online trading.

However, business fundamentals tell a different story:

• 25.9 million registered users, up 17% year over year
• Customer assets of $21.2 billion, an 84% increase
• Rising trading and options activity

Webull also operates in more than a dozen international markets, giving it broader exposure than some U.S.-only competitors. Now that the company has reached recurring profitability, consistent earnings could support a meaningful revaluation.

3. Sezzle (SEZL): Buy Now, Pay Later With Momentum

Sezzle focuses on buy-now-pay-later (BNPL) services, a competitive but growing fintech space. Although its stock pulled back sharply from mid-2025 highs, business performance remains strong.

Notable metrics include:

• Gross merchandise volume above $1 billion, up nearly 59%
• Net sales growth of 67% year over year
• Increased customer purchase frequency (6.5 times per quarter)

Higher engagement from paid subscribers is improving margins. At roughly 15 times forward earnings, Sezzle combines fast growth with a relatively modest valuation.

4. Fiverr International (FVRR): Value in a Remote-Work World

Fiverr’s share price struggled in 2025 due to concerns about AI competition and fewer active buyers. Still, the company benefits from long-term shifts toward remote and freelance work.

Three strengths stand out:

• A 27.6% marketplace take rate, higher than many peers
• Rising spending per active buyer (up nearly 12%)
• A deeply discounted valuation

Shares trade below 7 times projected 2026 earnings, and cash represents about 40% of its market value, offering downside protection if growth stabilizes.

5. B2Gold (BTG): Gold Exposure With Leverage

Gold miners often move sharply when gold prices rise. B2Gold had a strong 2025, but production guidance cuts at its Goose Mine caused a pullback.

Looking forward:

• Goose Mine output is expected to rise significantly by 2027
• Additional capacity comes online in 2026
• Broader macro trends support higher gold prices

At roughly 6 times forward earnings and 4.5 times projected cash flow, the stock appears inexpensive if gold prices remain elevated.

6. Talkspace (TALK): Profitable Digital Healthcare

Talkspace provides online mental health services and has quietly built a sustainable business model. Unlike many digital health peers, it is consistently profitable.

What’s working:

• Revenue growth above 20% annually
• Focus on insurance and employer partnerships
• No debt and nearly $96 million in cash

The company is also repurchasing shares, which can improve earnings per share over time.

7. Zeta Global (ZETA): AI Applied to Real Revenue

Zeta Global uses artificial intelligence to help businesses analyze over 1 trillion consumer signals each month. While fears of an AI bubble weighed on sentiment, Zeta focuses on applications, not hardware.

The company has:

• Grown revenue by 20%+ for five straight years
• Exceeded internal guidance for 17 consecutive quarters
• Approved a $200 million share buyback program

Trading at about 21 times forward earnings, Zeta offers growth without extreme valuation risk.

Final Thoughts

These stocks are not guarantees. They carry volatility and depend on execution, economic conditions, and market sentiment. However, each combines measurable growth, improving fundamentals, and reasonable valuations, which is often where long-term opportunities emerge.

Disclaimer

This article is for educational and informational purposes only and does not constitute financial advice, investment recommendations, or an offer to buy or sell securities. Stock investing involves risk, including loss of capital. Always conduct your own research or consult a licensed financial professional before making investment decisions.