Best Growth Stocks to Buy for January 23rd: 3 Powerful “Hot” Picks to Watch in 2026

Looking for Best Growth Stocks to Buy for January 23rd? Today’s spotlight list comes from a classic growth-investing approach: focus on companies showing strong earnings estimate upgrades and favorable growth characteristics. On January 23, 2026, three names stood out with a Zacks Rank #1 (Strong Buy): Ciena (CIEN), Skillsoft (SKIL), and Dollar General (DG).

In this rewritten, expanded news-style breakdown, you’ll get the “what” and the “why” behind these picks, plus practical context on the metrics used (like PEG ratio and Growth Score), what investors often watch next, and the key risks to keep in mind before buying any stock.

Why These 3 Stocks Made the List on January 23, 2026

The list is built around a simple idea: stocks tend to react to changing expectations. When analysts raise their earnings forecasts, it can signal improving business momentum, stronger demand, better pricing power, cost control, or other positive fundamentals. Zacks’ approach emphasizes earnings estimate revisions as a powerful driver behind stock ranking.

On January 23, 2026, the three highlighted companies shared a few traits:

Zacks Rank #1 (Strong Buy) — the top rating in that system.
Rising earnings estimates over the past 60 days — a key momentum signal.
Reasonable growth valuation signals using PEG ratio versus industry benchmarks.
Positive Growth Scores (A or B), suggesting favorable growth characteristics.

Quick snapshot (as reported in the source):

Company	Ticker	Earnings Estimate Increase (Last 60 Days)	PEG Ratio	Industry PEG	Growth Score
Ciena Corporation	CIEN	+22.3%	1.03	5.71	A
Skillsoft Corp.	SKIL	+19.8%	0.23	0.84	B
Dollar General	DG	+5.5%	2.63	3.08	B

What the Key Metrics Mean (In Plain English)

1) Zacks Rank #1 (Strong Buy): Why estimate revisions matter

The Zacks Rank is designed around changes in analyst earnings expectations. The logic is straightforward: when the “street” starts expecting better profits, prices often react. The Rank is calculated using multiple factors tied to earnings estimate revisions (often summarized as elements like agreement, magnitude, upside, and surprise).

Important note: a ranking system is not a guarantee. It’s a signal—useful for screening ideas, but still something you should combine with business fundamentals, valuation, and risk checks.

2) PEG ratio: a growth-adjusted valuation check

The PEG ratio is commonly explained as the P/E ratio divided by expected earnings growth. In simple terms: it tries to show whether a stock’s price is “high” or “low” compared to the growth investors expect.

Many investors treat a lower PEG as potentially more attractive (all else equal), but it’s not a magic number. Growth forecasts can be wrong, and different industries naturally carry different PEG ranges.

3) Growth Score: a quick “growth characteristics” grade

Growth scoring systems usually look at multiple signals (like expected earnings growth, sales growth, cash flow trends, and estimate momentum). In this list, the companies showed Growth Scores of A or B, which suggests they fit a growth-style profile better than average.

Ciena (CIEN): Optical Networking Tailwinds and Strong Estimate Momentum

Ciena (CIEN) is highlighted as a leading provider of optical networking equipment, software, and services. The key signal in the January 23, 2026 screen: the Zacks Consensus Estimate for current-year earnings increased 22.3% over the last 60 days.

Why investors care about Ciena right now

Optical networking sits in the “picks and shovels” category of modern connectivity: data centers, cloud traffic, AI workloads, video streaming, 5G backhaul, and enterprise networking all push demand for bandwidth and efficient transmission. When demand accelerates, suppliers with strong product positioning can see improving margins and a stronger outlook—exactly the kind of story that can drive earnings upgrades.

How CIEN looks on valuation vs. its industry (PEG comparison)

On this screen, Ciena’s PEG ratio is 1.03 versus an industry PEG of 5.71, and it carries a Growth Score of A. That combination suggests the market price (relative to growth expectations) looked comparatively appealing versus peers at the time of the screen.

Practical “next checks” before buying CIEN

Order trends and customer mix: Are telecom and cloud customers increasing spend, or delaying projects?
Gross margin direction: Optical hardware can be competitive—margin stability matters.
Guidance credibility: Are upgrades driven by a real demand shift, or just short-term optimism?
Valuation beyond PEG: Look at free cash flow, debt, and the sustainability of growth.

Bottom line on CIEN: Big estimate upgrades (+22.3% in 60 days) plus an “A” Growth Score can be a strong growth signal, but networking cycles can swing—so risk management matters.

Skillsoft (SKIL): Digital Learning Demand and a Very Low PEG

Skillsoft (SKIL) is described as a provider of digital learning, training, and talent solutions. The standout signal here is an earnings estimate increase of 19.8% over the last 60 days, paired with a notably low PEG ratio of 0.23.

Why SKIL can show up on growth screens

Workforce training is tied to long-term corporate needs: reskilling, compliance training, leadership development, and keeping up with fast-moving tech changes. When companies invest more in people and learning platforms, providers can benefit through subscriptions, renewals, and enterprise contracts.

But this category can also be sensitive to corporate budgeting. In tougher economic periods, training spend may pause or get renegotiated. That’s why the earnings estimate upgrades are such a key clue—analysts may be seeing improving execution, better retention, or stabilizing demand.

What the PEG ratio is suggesting here

Skillsoft’s PEG ratio is 0.23 versus an industry PEG of 0.84, with a Growth Score of B. A PEG that low can imply the stock is priced cheaply relative to expected growth—or it can reflect higher risk and uncertainty. The reason behind the low PEG is the important part.

Smart checks for SKIL investors

Revenue quality: Are customers renewing? What’s the churn trend?
Profitability path: Are margins improving, and is cash flow getting healthier?
Debt and liquidity: Smaller growth companies can be more sensitive to refinancing risks.
Competitive landscape: Digital learning is crowded—differentiation matters.

Bottom line on SKIL: The combination of strong estimate momentum (+19.8%) and a very low PEG (0.23) is attention-grabbing—but the “why” behind those numbers is where serious investors should focus.

Dollar General (DG): A Defensive-Style Retailer Still Showing Growth Signals

Dollar General (DG) is one of the largest discount retailers in the United States. While it may not “feel” like a traditional high-growth tech stock, discount retail can show growth characteristics when execution improves, store economics strengthen, or earnings expectations rise. On this screen, DG’s current-year earnings estimate increased 5.5% over the last 60 days.

Why DG can be a growth pick (even in a mature industry)

Retail growth doesn’t always mean flashy revenue spikes. For a large retailer, growth can come from:

Same-store sales improvements (better traffic or basket size)
Margin recovery (supply chain efficiency, shrink control, smarter promotions)
Store footprint expansion and better locations
Private-label strength and pricing strategy

Discount retailers can also benefit when consumers become more price-sensitive, which can shift demand toward value channels.

DG’s PEG ratio and Growth Score

Dollar General shows a PEG ratio of 2.63 compared with an industry PEG of 3.08, and holds a Growth Score of B. That suggests growth expectations were priced in, but not necessarily out of line versus its industry group at the time of the screen.

What to watch before buying DG

Inventory and shrink: Retail profits can be heavily affected by inventory management and loss prevention.
Cost pressures: Labor, transportation, and product costs can compress margins.
Customer health: Value retail depends on steady demand from budget-conscious shoppers.
Execution on convenience: Delivery, faster checkout, and store operations can improve loyalty.

Bottom line on DG: DG’s estimate upgrades (+5.5%) are smaller than the others on this list, but in a huge retail business, even moderate upgrades can be meaningful when combined with stable operations and improving execution.

How to Use This List the Right Way (So It Actually Helps You)

Think of a “best growth stocks” screen as a starting point, not a finish line. A smart process could look like this:

Step 1: Confirm the signal

Ask: Why did estimates rise? Was it earnings beats, stronger guidance, improving demand, cost cuts, or something one-time?

Step 2: Match the stock to your risk level

These three stocks have very different risk profiles:

CIEN — growth tied to networking cycles and enterprise/cloud demand.
SKIL — potentially higher risk, smaller company dynamics, bigger swings possible.
DG — large retailer, potentially more “defensive,” but still sensitive to costs and execution.

Step 3: Avoid the “all-in” trap

Even strong screens can be wrong. Consider position sizing, diversification, and a plan for what you’ll do if the stock moves against you.

Step 4: Watch upcoming catalysts

Common catalysts include earnings dates, guidance updates, major contract wins, macro shifts (rates, consumer spending), and industry news.

FAQs About Best Growth Stocks to Buy for January 23rd

1) What does “Best Growth Stocks to Buy for January 23rd” actually mean?

It’s a screened list of stocks that, on that date, showed strong growth characteristics and favorable earnings estimate trends. In this case, the list highlights CIEN, SKIL, and DG with a Zacks Rank #1 (Strong Buy).

2) Are these picks guaranteed to go up?

No. Stock screens identify probabilities and patterns, not guarantees. Prices can fall due to market risk, bad news, weak earnings, or changing investor sentiment—even if the company looks strong on paper.

3) Why do earnings estimate revisions matter so much?

Because a stock price often reflects expectations about future profits. When analysts raise earnings forecasts, it can signal that the business outlook is improving, which can influence investor demand.

4) What is a PEG ratio, and why is it used here?

The PEG ratio adjusts valuation by expected growth. It’s commonly described as the P/E ratio divided by earnings growth. Investors use it to compare how “expensive” a stock is relative to growth expectations.

5) Which stock on this list looks the cheapest by PEG ratio?

Based on the reported numbers, Skillsoft (SKIL) has the lowest PEG ratio at 0.23. However, a low PEG can also reflect higher risk, so it’s important to understand what’s driving the forecast.

6) How should a beginner invest using lists like this?

A careful approach is to treat the list as ideas for further research: read recent earnings summaries, check financial health (cash flow, debt), compare competitors, and diversify instead of betting everything on one name.

7) Do these picks fit short-term trading or long-term investing?

They can fit either style, depending on your plan. Estimate-revision strategies often appeal to shorter- to medium-term investors, while long-term investors should also focus on durable competitive advantages and consistent cash generation.

Conclusion: What to Take Away From January 23, 2026’s Growth Screen

For January 23, 2026, the Best Growth Stocks to Buy for January 23rd screen highlighted three different kinds of opportunities:

Ciena (CIEN) — strong estimate momentum (+22.3%) and an “A” Growth Score, with PEG far below its industry benchmark.
Skillsoft (SKIL) — big estimate improvement (+19.8%) and an extremely low PEG (0.23), which could signal value-relative-to-growth but also demands careful risk checks.
Dollar General (DG) — a major discount retailer showing positive estimate revisions (+5.5%) and a reasonable PEG versus industry, offering a more defensive-flavored growth idea.

If you want to use this list wisely, don’t just copy the tickers—use the signals to guide deeper research. The real edge comes from understanding why estimates are rising, whether that change is sustainable, and how much risk you’re taking to pursue the upside.

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