2 Growth Stocks That Could Skyrocket in 2026 and Beyond

• DraftKings is a growth stock that has been thrown in the bargain bin.

• The company could skyrocket if sports betting predictions markets are ruled illegal.

• E.l.f. has a huge opportunity in front of it with Rhode.

• 10 stocks we like better than DraftKings ›

Not every growth stock has gone straight up this year, but that could set some stocks up well to be winners next year.

Let’s look at two growth stocks that could skyrocket next year and beyond.

DraftKings (NASDAQ: DKNG) has had a tough year so far, down nearly 40% from its highs earlier this year, but the story underneath looks very different from the stock chart. The stock hasn’t sold off because of anything the company has done. Instead, the decline has been driven over worries that sports-related prediction markets will start to eat into its growth. However, these competitors are operating in a legal gray zone that most states are unlikely to tolerate, given how much tax revenue they pull from online sports betting.

Meanwhile, DraftKings continues to put up impressive growth numbers. Last quarter, revenue jumped 37% to $1.5 billion, driven by strong engagement in its sportsbook and online casino businesses. Same-game parlays remain a huge driver of gross margin expansion, while the company is also seeing operating leverage with sales and marketing expense growth slowing. This helped lead to a 134% surge in adjusted EBITDA to $301 million. The company has clearly turned a corner from its prior heavy-spending, customer-acquisition phase, and is now delivering real profits and free cash flow.

Trading at a forward price-to-earnings (P/E) ratio of about 16.7 times 2026 consensus earnings estimates, the stock looks cheap for a business that’s growing revenue quickly and showing strong operating leverage. DraftKings is still a leader in the regulated markets, where casual betters tend to flock. It could eventually move into its own prediction markets, which would give it access to lucrative markets where online sports betting still isn’t legal, including two of the largest states in the U.S. in California and Texas. On top of that, a court ruling could wipe away predictions market competition with one stroke of a pen. If it does, the stock will skyrocket higher.

E.l.f. Beauty (NYSE: ELF) has been one of the best-performing consumer growth stories of the past few years, but its recent $1 billion acquisition of Rhode could push it to an entirely new level. Rhode, founded by Hailey Bieber, became one of the fastest-growing beauty brands ever, hitting over $200 million in sales in less than three years while selling only a handful of products online with minimal paid marketing. That kind of organic traction is rare, and e.l.f. now has a huge opportunity to plug Rhode into its massive retail and manufacturing network to take it global.