In this article, we will take a look at the 10 Best Performing Long Term Stocks So Far in 2025.
Consumer morale fell more drastically than expected in April, owing to a surge in inflation expectations to unprecedented levels. According to the central bank’s monthly Survey of Consumer Expectations, respondents expect inflation to reach 3.6% within a year, up 0.5 percentage points from February and the highest since October 2023. This increase in inflation fears was coupled by increased labor market unease, the assessed possibility that unemployment will rise in a year, surging to 44%. This represents a 4.6-point increase and the highest reading since the COVID-19 outbreak began in April 2020.
The survey results come amid growing concern over the possible economic impact of US President Donald Trump’s planned tariffs. Many on Wall Street say they would fuel inflation and stifle economic development, while some analysts even fear that the United States may enter a recession within the next year. Meanwhile, Federal Reserve officials have expressed differing views, with some worrying that adjustments in consumer expectations might have immediate economic effects if they impact behavior.
Conversely, Federal Reserve Governor Christopher Waller remarked on April 14 that he anticipates the effects of President Donald Trump’s tariffs on prices to be “transitory,” using a word that landed the central bank in hot water during the previous bout of inflation. Waller believes the market could swing two different ways, stating that greater and longer-lasting tariffs would cause a larger inflation jump initially to 4% to 5%, which would later recede as the economy slowed and unemployment soared. In the other, smaller-tariff scenario, inflation would approach approximately 3% and then fall off. Waller added the following:
“Yes, I am saying that I expect that elevated inflation would be temporary, and ‘temporary’ is another word for transitory. Despite the fact that the last surge of inflation beginning in 2021 lasted longer than I and other policymakers initially expected, my best judgment is that higher inflation from tariffs will be temporary.”
However, Minneapolis Fed President Neel Kashkari has other concerns. The 10-year Treasury yield rose in the second week of this month after Trump stated his plans to impose a 10% tax on all U.S. trade partners and threatened to apply tougher, selective levies before backing down on April 9. At the same time, the dollar has fallen more than 3% compared to a basket of global currencies, perhaps signaling a shift away from safe-haven US assets. This is what Kashkari had to say:
“Investors around the world have viewed America as the best place to invest, and if that’s true, we will have a trade deficit. So now one of the ways that expresses itself is in lower yields across asset classes in America. If the trade deficit is going to go down, it could be that investors are saying, OK, America no longer is the most attractive place in the world to invest, and then you would expect to see bond yields go up.”
Our Methodology
For this list, we sifted through financial media reports and compiled a list of equities that are frequently referred to as long-term investments. We then chose the 10 stocks that were most popular among elite hedge funds and those that analysts were optimistic about. The names on this list appear in increasing order by the number of hedge funds that hold them as of Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. Walmart Inc. (NYSE:WMT)
Year-to-date performance as of April 12: 3.11%
Number of Hedge Fund Holders: 116
Perhaps the most well-known name when it comes to retail, Walmart Inc. (NYSE:WMT) ranks as the world’s largest brick-and-mortar retailer, with over 100,000 stores. The company’s sectors include Walmart US, Walmart International, and Sam’s Club, which provide a wide range of products, including clothes, electronics, and home furnishings.
On April 11, Raymond James analysts revised their forecast for Walmart Inc. (NYSE:WMT), lowering the retail giant’s price target from $115 to $105, but keeping an Outperform rating on the company. The change follows Walmart’s recent Investment Community Meeting and facilities tours in Dallas, Texas. The company displayed a number of developments, including a fully automated e-commerce fulfillment facility, a perishable distribution center, a redesigned Supercenter, and a next-generation Sam’s Club.
Walmart Inc. (NYSE:WMT) posted strong fourth-quarter profits, with sales increasing 5.2% and adjusted operating income rising 9.4% on a constant currency basis. E-commerce performance has also improved considerably, with online sales accounting for 18% of total revenue, up 1,100 basis points from fiscal 2020.
9. McDonald’s Corporation (NYSE:MCD)
Year-to-date performance as of April 12: 5.95%
Number of Hedge Fund Holders: 67
McDonald’s Corporation (NYSE:MCD) is the world’s largest chain of fast food restaurants. Founded in 1955 as a single drive-in restaurant in San Bernardino, California, it has expanded into a global behemoth with about 40,000 locations in more than 100 countries, serving approximately 60 million customers annually.
On April 4, Raymond James analyst Brian Vaccaro maintained a Market Perform rating for McDonald’s Corporation (NYSE:MCD), citing solid March sales from the company’s Japan operations. McDonald’s Japan reported a 5.1% gain in comparable sales, boosted by a 4.8% increase in traffic and a 0.3% increase in average check size. These performances helped drive a 3.5% gain in comparable sales in the first quarter, as well as a 2.6% increase in traffic.
In addition, McDonald’s Corporation (NYSE:MCD) has announced the issuance of $1.5 billion in medium-term notes, with $600 million due in 2030 and $900 million due in 2035.
8. Altria Group, Inc. (NYSE:MO)
Year-to-date performance as of April 12: 7.88%
Number of Hedge Fund Holders: 47
Altria Group, Inc. (NYSE:MO) is a prominent American company that produces and markets tobacco, cigarettes, and associated products on a global scale. The firm has also ventured into next-generation nicotine products, such as oral nicotine pouches and electronic vaping devices.
Altria Group, Inc. (NYSE:MO) released fourth-quarter profits for 2024, with earnings per share of $1.29, in line with market estimates, while revenues of $5.11 billion exceeded expectations of $5.04 billion. Looking ahead to 2025, Altria Group, Inc. (NYSE:MO) forecasts adjusted diluted EPS in the $5.22 to $5.37 range, indicating a 2% to 5% increase over its $5.12 EPS in 2024.
Following Altria’s presentation at the CAGNY conference, Citi analyst Adam Spielman maintained a Neutral rating on the MO stock with a $52 price target. During the conference, Altria’s leadership stressed the growth of overall US nicotine volumes, which have climbed at a compound annual growth rate of 2% over the last five years. This increase is linked to a shift in customer preferences toward vapor and current oral nicotine products. According to Altria Group, Inc. (NYSE:MO), heated tobacco products are predicted to account for 5% of the US nicotine market in the long term.
Andvari Associates stated the following regarding Altria Group, Inc. (NYSE:MO) in its Q1 2025 investor letter:
“Last year, Andvari made its first investments in tobacco companies with the purchase of Philip Morris International and Altria Group, Inc. (NYSE:MO). At the time of our purchase, Philip Morris and Altria had underperformed the S&P 500 over the prior 5- and 10-year periods. Both traded at low valuations and with high dividend yields. But thanks to following the industry o and on for 10+ years, and thanks to many discussions with long-time shareholders of the companies, Andvari felt the time was right to make the plunge. The timing could not have been much better for us as both companies have so far contributed positively to Andvari’s recent overall performance.
The problem—or the feature, depending on your perspective—with the tobacco industry has been a declining population of cigarette smokers in developed countries. Over the last four or five years, the decline in these smoking populations has accelerated, which in part explains the poor share performance of the tobacco companies between 2017 and 2023. Despite this, the tobacco companies have maintained, or slowly increased, their revenues and profits with regular price increases on cigarettes…” (Click here to read the full text)
7. Verizon Communications Inc. (NYSE:VZ)
Year-to-date performance as of April 12: 8.75%
Number of Hedge Fund Holders: 74
Verizon Communications Inc. (NYSE:VZ) is a global leader in communication, technology, and entertainment services. The company’s Consumer and Business sectors provide a diverse range of products and services, including wireless and wireline solutions, fixed wireless access (FWA) broadband, IoT capabilities, and more.
On April 8, Scotiabank analysts raised their price target for Verizon Communications Inc. (NYSE:VZ) to $48.50 from $48, while keeping a Sector Perform rating. According to Scotiabank’s study, Verizon may see its lowest quarterly consumer postpaid phone net losses in four years, with an estimated 280,000 for the first quarter. Despite this quarter’s challenges, Scotiabank is confident about Verizon’s success in the second half of 2025. The firm thinks that Verizon will profit from recent market promotions and will reach its financial guidance for the year.
Verizon Communications Inc. (NYSE:VZ) reported outstanding operational and financial results in 2024, with wireless service revenue increasing 3.1% and adjusted EBITDA increasing 2.1%. The company also raked in approximately 2.5 million postpaid mobile and broadband users while boosting margins.
6. The Kroger Co. (NYSE:KR)
Year-to-date performance as of April 12: 10.14%
Number of Hedge Fund Holders: 60
The Kroger Co. (NYSE:KR) is an American retailer with over 2,700 supermarkets and multi-department stores in 35 states across the US. A key component of its approach is its diverse retail model, which includes pharmacies in various areas.
On April 3, Guggenheim maintained its Buy rating on The Kroger Co. (NYSE:KR) and raised the price target to $73 from $71. In its 10-K filing, Kroger disclosed a merchandise gross margin of 28%, which was much higher than the previously stated 22%. The report also disclosed a new division with a strong 60% adjusted EBITDA margin.
The Kroger Co. (NYSE:KR) also declared a quarterly dividend of $0.32 per share, payable on June 1 to shareholders on record as of May 15. This illustrates the company’s commitment to returning capital to shareholders, since the company’s dividends have grown at a compounded annual rate of 13.5% since 2006.
5. Mondelez International, Inc. (NASDAQ:MDLZ)
Year-to-date performance as of April 12: 12.69%
Number of Hedge Fund Holders: 55
Mondelez International, Inc. (NASDAQ:MDLZ), often known as Mondelēz International, is a Chicago-based international firm that specializes in confectionery, cuisine, drinks, and snacks.
On April 9, Piper Sandler raised its price target for the company’s shares to $64 from $59, while keeping a Neutral rating. Analyst Michael Lavery observed that, while no additional Mexican tariffs affect Mondelez under the present USMCA compliance, there is a major risk if this situation changes. However, he admitted that the company’s US retail momentum ended the quarter slower than expected, which might have been affected in part by the later timing of Easter this year. Despite these adjustments, Piper Sandler’s 2025 earnings per share forecast for Mondelez remains $2.92.
In the fourth quarter of 2024, Mondelez International, Inc. (NASDAQ:MDLZ) recorded $9.6 billion in revenue, up 3.11% over the previous year. However, this fell short of market estimates by more than $51 million. That said, revenue rose by 4.3% year-over-year, with improvements in both developed and emerging market economies.
4. The Coca-Cola Company (NYSE:KO)
Year-to-date performance as of April 12: 15.59%
Number of Hedge Fund Holders: 81
The Coca-Cola Company (NYSE:KO) is a multinational beverage company that manufactures, develops, and distributes a wide range of nonalcoholic beverages. Its dominance stretches well beyond the beverage brand that shares its name. The company’s product line includes bottled milk, coffee, tea, and juice.
Piper Sandler recently boosted its price target for The Coca-Cola Company (NYSE:KO) shares to $80, citing 5-6% organic revenue growth in 2025 and retaining an Overweight rating on the company. Similarly, Erste Group raised Coca-Cola’s stock rating from Hold to Buy, noting solid profitability and ambitious growth prospects, including organic sales growth of 5-6% year-over-year. Despite these positive appraisals, Coca-Cola, like other big beverage companies, faces potential obstacles from a planned soda purchase ban with food stamps, which might reduce sales.
On a more positive note, The Coca-Cola Company (NYSE:KO) has announced a 5.2% increase in its quarterly dividend, marking the 63rd consecutive year of dividend increases. The annual dividend is currently set at $2.04 per share.
3. AT&T Inc. (NYSE:T)
Year-to-date performance as of April 12: 17.35%
Number of Hedge Fund Holders: 80
AT&T Inc. (NYSE:T), the world’s largest telecommunications company and the top provider of mobile phone services in the United States, is a global conglomerate holding company based in Texas that provides telecommunications, media, and technology services.
On April 8, Scotiabank analyst Jeff Fan raised the price target for AT&T Inc. (NYSE:T) shares to $29 from $28.50, while keeping a Sector Outperform rating. Fan predicts a 1% increase in revenue for the first quarter, with EBITDA projected to expand by 2%, consistent with the previous quarter’s results. Despite expecting high single-digit revenue declines in the business sector, the analyst believes that the consumer wireline segment will show positive growth patterns, which might contribute to a minor acceleration in total top-line growth compared to the fourth quarter.
AT&T Inc. (NYSE:T) reported revenues of $32.3 billion and earnings of $0.56 per share in the fourth quarter. The telecoms giant generated $11.9 billion in cash from operations, which included $6.8 billion in capital expenditures and $7.1 billion in total investment. Free cash flow also reached $4.8 billion.
2. UnitedHealth Group Incorporated (NYSE:UNH)
Year-to-date performance as of April 12: 18.82%
Number of Hedge Fund Holders: 150
UnitedHealth Group Incorporated (NYSE:UNH) is a well-known US multinational company that provides managed healthcare and insurance services. The company is separated into four major segments: UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx.
On April 8, KeyBanc Capital Markets reiterated its Overweight rating and $650 price target for UnitedHealth Group Incorporated (NYSE:UNH). The firm’s analyst noted the finalized Medicare Advantage (MA) prices for 2026, which outperformed expectations and may result in margin increases for MA plans next year. The timing is especially interesting as UnitedHealth prepares for its next earnings release on April 17, with analysts maintaining a highly optimistic consensus on the company.
UnitedHealth Group Incorporated (NYSE:UNH) reported strong performance for fiscal year 2024, above market expectations. Revenue increased by 8% to $400 billion, thanks to a broad expansion of its service offerings. In 2024, the corporation returned more than $16 billion to shareholders via dividends and stock buybacks.
Vulcan Value Partners stated the following regarding UnitedHealth Group Incorporated (NYSE:UNH) in its Q4 2024 investor letter:
“UnitedHealth Group Incorporated (NYSE:UNH), a company that we have owned several times in the past, is the largest health insurer in the United States. UnitedHealth Group also owns Optum, which is a rapidly growing healthcare services company. The environment for the health insurance business remains positive as growth in healthcare spending, driven by chronic diseases and an aging population, will continue to outpace overall economic growth. The insurance business benefits from powerful network effects as more members attract more providers and vice versa, which reinforces United’s value proposition and bargaining power with each side of the network. We respect UnitedHealth Group’s management team and have been very pleased with their long-term vision and execution.”
1. Philip Morris International Inc. (NYSE:PM)
Year-to-date performance as of April 12: 27.08%
Number of Hedge Fund Holders: 102
Philip Morris International Inc. (NYSE:PM) is a prominent international tobacco firm that operates in over 180 countries. It is well-known for its main product, Marlboro, which solidified its position among “Big Tobacco” leaders.
On April 3, S&P Global Ratings raised Philip Morris International Inc.’s (NYSE:PM) outlook from stable to positive, noting robust economic momentum and a supportive financial policy. Philip Morris surpassed S&P’s fiscal year 2024 base scenario, with $3.5 billion in discretionary cash flow (DCF) and an adjusted net debt to EBITDA of 2.8x. This feat was largely driven by expansion in its smoke-free product offering, which was aided by the successful integration of the Swedish Match AB acquisition in 2022.
Philip Morris International Inc. (NYSE:PM) had a strong fourth quarter in 2024, with revenues up 7.3% year-over-year to $9.7 billion and operating income rising 14.8% to $3.3 billion. Overall revenue growth reached over 8% in 2024, with organic revenue growth approaching 10%. This was driven by a 16.7% increase in the smoke-free product portfolio, which accounted for about 39% of the total revenue in 2024.
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