2 Growth Stocks to Buy For 2026 and Beyond

Broader equities posted yet another strong performance in 2025. Will they keep the momentum going in 2026? That's hard to say. Several factors could affect the economy and the stock market next year.

This year turned out to be great despite some macroeconomic headwinds, significant volatility, and a near bear market. This shows that predicting how things will unfold over the next 12 months is impossible.

It's best to focus on purchasing shares of a company that can perform well over the next five years and beyond. Those would be attractive investments regardless of what the equities market has in store for next year.

Let's consider two great candidates: Vertex Pharmaceuticals (NASDAQ: VRTX) and DexCom (NASDAQ: DXCM).

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1. Vertex Pharmaceuticals

Vertex Pharmaceuticals' shares are up by 13% year to date, which is pretty impressive (although slightly below the S&P 500), considering it experienced several setbacks. The biotech's financial results haven't been quite as good as expected, and it had to abandon the development of pipeline candidates, such as its investigational medicine for Type 1 diabetes (T1D), VX-264.

Looking ahead, several factors could work in Vertex's favor next year, potentially boosting its financial results. Furthermore, it should also make meaningful pipeline progress and bring at least one more product closer to launch.

Let's start with the company's results. Vertex launched Journavx, the first approved oral, non-opioid pain inhibitor, earlier this year. It has yet to make a dent in its top-line growth, but we should see meaningful progress for the medicine next year, considering Vertex has been ramping up third-party coverage for it.

Elsewhere, the company's Casgevy, approved some two years ago to treat two rare blood disorders, could also make commercial strides in 2026.

Of course, Vertex's core cystic fibrosis (CF) franchise remains strong. The biotech's products remain the only ones in the world capable of addressing the underlying causes of this disease. And there is still a meaningful number of patients who remain untreated.

Now turning to Vertex's pipeline, the company has another medicine for T1D, zimislecel, that has performed well in clinical studies. It is successfully reducing insulin dependence for these patients while reducing or eliminating severe hypoglycemic events, or significant drops in blood sugar that can be life-threatening.

Vertex has other promising late-stage candidates. One is called inaxaplin, for APOL-1 mediated kidney disease, a condition with no treatments that address its underlying causes.

Vertex's core business, new launches, and late-stage candidates ensure that over the next five years, it will generate consistent revenue and earnings while launching new products and strengthening its lineup. That's why the stock is a buy right now.

2. DexCom

DexCom has had its share of issues this year. Although it is one of the leaders in the market for continuous glucose monitoring (CGM) devices, some of its CGM receivers have been recalled by regulators due to problems that have, in some cases, led to missed alerts for low or high blood glucose levels. There are other potential issues with the company.

Some investors are concerned that medicines in development, like zimislecel, as well as GLP-1 therapies, could reduce the need for CGM devices, which would materially affect the medical device specialist's financial results and prospects.

That said, there are good reasons to remain bullish on the stock. Consider DexCom's third-quarter results. Its revenue increased 22% year over year to $1.2 billion, a strong performance for the company.

Some of its newer launches are making steady progress and could help it address the market's concerns. Last year, DexCom introduced Stelo in the U.S., an over-the-counter CGM option for people who aren't on insulin, including those with pre-diabetes. There is a vast market here, considering more than 33% of the U.S. population is pre-diabetic.

DexCom noted that after 12 months on the market, Stelo has generated over $100 million in revenue. Although patients with T1D have historically been its primary market, and medicines like zimislecel could reduce that opportunity, DexCom's ventures in other fields through innovations are helping it address that problem -- it still sees a vast potential patient population.

And regarding GLP-1 medicines, DexCom has pointed out that physicians prescribe them in conjunction with CGM devices. So the two complement one another. Lastly, DexCom's recent recalls affected a fairly small number of devices -- these aren't that rare in the medical device industry.

Given Dexcom's continued dominance in its niche and ability to expand its market, the stock remains a buy heading into 2026.

Prosper Junior Bakiny has positions in Vertex Pharmaceuticals. The Motley Fool has positions in and recommends Vertex Pharmaceuticals. The Motley Fool recommends DexCom and recommends the following options: long January 2027 $65 calls on DexCom and short January 2027 $75 calls on DexCom. The Motley Fool has a disclosure policy.