DraftKings, a growth stock, has declined about 40% this year due to concerns over sports betting prediction markets. Despite this, the company continues to show strong revenue growth, with a 37% increase last quarter. Trading at a low P/E ratio, DraftKings could skyrocket if prediction markets are ruled illegal.

E.l.f. Beauty recently acquired Rhode, a fast-growing beauty brand founded by Hailey Bieber, for $1 billion. Rhode’s successful launch at Sephora and potential for global expansion through E.l.f.’s network make it a promising investment. With a low forward P/E ratio and high growth potential, E.l.f.’s stock is positioned to rise significantly.

Investors should consider DraftKings and E.l.f. Beauty for potential growth in 2026. DraftKings faces the opportunity for significant gains if prediction markets are outlawed, while E.l.f. Beauty’s acquisition of Rhode sets it up for further expansion and higher valuations. Both stocks have strong growth potential and attractive valuations for investors.

Read more at Yahoo Finance: 2 Growth Stocks That Could Skyrocket in 2026 and Beyond