3 Top Growth Stocks to Buy and Hold for 2026
The long-term outlooks for these wide-moat companies are solid—and their stocks are cheap.
Susan Dziubinski: I’m Susan Dziubinski, co-host of The Morning Filter podcast.
Today, we’re looking at some top growth stocks to buy and hold for 2026. These stocks share a few qualities. For starters, they land in the growth portion of the Morningstar Style Box. The stocks are also from companies featured on Morningstar’s Best Companies to Own list. These companies have wide economic moat ratings and predictable cash flows. And they’re run by managers who make smart capital-allocation decisions. And the kicker? These stocks all look undervalued today.
3 Top Growth Stocks to Buy and Hold for 2026
The first top growth stock to buy and hold for 2026 is Tyler Technologies. Tyler is the clear leader in the public service software niche market. We think the company has carved out a wide economic moat, thanks to high switching costs. We expect revenue to compound at an annual growth rate of 9% over the next five years. As demand for software as a service accelerates, and local governments need to modernize their legacy enterprise resource planning systems, we think Tyler’s stock looks significantly undervalued heading into 2026.
Read Morningstar’s full report on Tyler Technologies.
The next growth stock to buy for 2026 is CoStar Group. CoStar’s business is built around its proprietary database of commercial real estate information that the company has developed and enhanced for more than 35 years. And this database is the bedrock upon which the firm has built its products. CoStar’s wide moat rating stems from intangible assets and network effects. We expect revenue to compound at a 12.5% annual rate over the next decade. We think CoStar’s stock is worth $81 per share.
Read Morningstar’s full report on CoStar Group.
The final top growth stock to buy and hold in the new year is SAP. SAP is the world’s largest provider of enterprise application software and a global market leader in enterprise resource planning software. We think the company has a wide economic moat based on high customer switching costs. We expect low to midteen revenue growth in the near and medium term, fading to high-single-digit growth in the long term. The stock looks significantly undervalued today.
Read Morningstar’s full report on SAP.
For more stock ideas, be sure to tune into The Morning Filter each week, wherever you get your podcasts. And visit Morningstar.com, too.
Morningstar director Sean Dunlop and senior analysts Rob Hale and Dan Romanoff provided the research behind this segment.
Watch 3 Warren Buffett Stocks to Buy and Hold Forever for more from Susan Dziubinski.
The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar’s editorial policies.
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