10 Best Stocks to Buy and Hold For 2025

1. Novo Nordisk A/S (NYSE:NVO)

Average Price Target Upside Potential According to Analysts: 82.19%

Number of Hedge Fund Holders: 61

Novo Nordisk A/S (NYSE:NVO) is a Danish multinational pharmaceutical company that ranks among the best stocks to buy and hold for 2025 according to analysts. With a focus on diabetes, obesity, rare diseases, and cardiovascular conditions, the company markets its products and services in around 170 countries.

In its Q3 2024 investor letter, PGIM Jennison Health Sciences Fund noted that Novo Nordisk A/S (NYSE:NVO) is one of the fastest-growing biopharma companies in the world with transformative new drugs in large and growing markets like diabetes and obesity. The fund also pointed out that the company’s potential for growth from new products is not fully appreciated. Novo Nordisk A/S (NYSE:NVO) has a strong research and development engine that has proved to be very productive and successful in the past. The company has several programs in diabetes, obesity, non-alcoholic steatohepatitis (NASH), and Alzheimer’s disease that are expected to yield results in the next 3-4 years. PGIM Jennison Health Sciences Fund believes that the stock will continue to outperform and its performance is expected to be driven by the company’s next-gen obesity and diabetes drug, CagriSema, and by improvements in supply through organic growth as well as inorganically through the Catalent acquisition.

The company is strategically focused on expanding its manufacturing capabilities through investments and acquisitions. In December 2024, Novo Nordisk A/S (NYSE:NVO) announced that it plans to invest DKK 8.5 billion to develop a new production facility in Odense, Denmark. Construction has begun and the new site is planned to be completed in 2027. Additionally, on December 18, 2024, Novo Nordisk A/S (NYSE:NVO) completed its acquisition of three manufacturing sites in connection with the agreement to acquire Catalent.

Overall, NVO ranks first among the 10 best stocks to buy and hold for 2025. While we acknowledge the potential of these stocks, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NVO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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