In this article, we will take a look at the 10 best stocks to buy and hold for 2025.
Stocks have been performing well lately as they seem to have been influenced by the excitement around artificial intelligence (AI) as well as the new administration. CNBC reported that stocks rose on January 22, with the S&P 500 hitting a new all-time high, as technology stocks rallied on AI optimism and President Trump’s new term in office.
On Wednesday, January 22, stocks finished higher as all 3 of the major indexes ended the session in the green. The S&P 500 increased by 0.61% after reaching an intraday record of 6,100.81 before closing at 6,086.37. The Nasdaq Composite excelled and rose 1.28% to reach 20,009.34, underscoring the outperformance of tech stocks. The Dow Jones Industrial Average advanced by 130.92 points, or 0.3%, to close at 44,156.73.
READ ALSO: 10 Best Low Priced Technology Stocks To Buy Now and 10 Best Sin Stocks to Invest in 2025.
President Trump also recently announced a joint venture named “Stargate,” involving OpenAI, Oracle, and Softbank, to invest at least $500 billion in AI infrastructure within the US. Stocks rose because of solid earnings reports and investors continued to pile into the AI space following this recent announcement by the new administration.
Keith Lerner, Truist’s co-chief investment officer, pointed out that a combination of a resilient economy, easing inflation, stabilizing of interest rates, and a strong start to the earnings season has created a favorable environment for the market. He noted that AI and technology continue to be key drivers of this bull market.
Another key factor playing a role in this market rally is the optimism around Trump’s agenda. Investors are hoping that Trump will ease regulations and reduce corporate taxes, which could lead to an increase in profits.
With this background in mind, let’s take a look at the 10 best stocks to buy and hold for 2025.
A trader in a financial institution using fundamentals analysis to select stocks for a portfolio.
Methodology
To compile our list of the 10 best stocks to buy and hold for 2025, we used the Finviz stock screener to look for stocks that analysts believe will gain more than 30% in the next 12 months. We sorted our results based on market capitalization and picked the top 25 stocks. Finally, we ranked the 10 best stocks to buy and hold for 2025 based on their average price target upside potential according to analysts as of January 22, 2025. Additionally, we mentioned the hedge fund sentiment surrounding each stock, which was taken from Insider Monkey’s Q3 2024 database of 900 elite hedge funds.
Why do we care about what hedge funds do? 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10 Best Stocks to Buy and Hold For 2025
10. Freeport-McMoRan Inc. (NYSE:FCX)
Average Price Target Upside Potential According to Analysts: 43.26%
Number of Hedge Fund Holders: 74
Freeport-McMoRan Inc. (NYSE:FCX) is an American multinational mining and metals company that ranks among the best stocks to buy and hold for 2025. The company operates geographically diverse assets with significant proven reserves of copper, gold, and molybdenum. Freeport-McMoRan (NYSE:FCX) has operations in North America and South America and its portfolio of assets also includes the Grasberg minerals district in Indonesia, one of the world’s largest copper and gold deposits.
The company is strategically focused on the strong execution of its operational plans, improving productivity, managing costs, and advancing opportunities for long-term growth. In Q4 2024, Freeport-McMoRan Inc. (NYSE:FCX) reported higher copper and gold sales volumes than its October 2024 guidance while also reporting unit net cash costs for the quarter below October 2024 guidance. Strong operational execution allowed the company to achieve $10 billion in EBITDA for the year 2024, up 14% compared to 2023.
Freeport-McMoRan Inc. (NYSE:FCX) is also focused on organic growth to improve production and improve overall efficiency. The company began operations at the Indonesia Precious Metals Refinery with plans to launch a smelter by mid-year 2025. Freeport-McMoRan Inc. (NYSE:FCX) has also been investing in technology and innovation and continues to advance initiatives across its operations in North America and South America by incorporating new applications, technologies, and data analytics into its leaching processes.
9. PDD Holdings Inc. (NASDAQ:PDD)
Average Price Target Upside Potential According to Analysts: 45.16%
Number of Hedge Fund Holders: 78
PDD Holdings Inc. (NASDAQ:PDD) is a Chinese multinational online retailer and commerce group that owns and operates a portfolio of diverse businesses. It has also established a strong network of sourcing, logistics, and fulfillment capabilities to support its businesses. PDD Holdings Inc. (NASDAQ:PDD) owns the fast-growing e-commerce marketplace Temu.
The company is focused on a high-quality development strategy and has been actively optimizing its platform ecosystem to deliver impactful results over the long run. PDD Holdings Inc. (NASDAQ:PDD) initiated a series of fee reductions and initiatives to support its merchants while also ensuring benefits for both the customers and the businesses. This strategy has helped the company report impressive financial results. In Q3 2024, PDD Holdings Inc. (NASDAQ:PDD) reported a 44% increase in revenue while net income attributable to ordinary shareholders increased 61% compared to Q3 2024. Operating profit in the quarter also surged 46% year-over-year.
GreenWood Investors, an investment management company, in its Q4 2024 investor letter recognized PDD Holdings Inc. (NASDAQ:PDD) as a rapidly growing e-commerce company that has managed to achieve a gross merchandise value (GMV) similar to Amazon’s but in just one-third of the time. However, the stock reacted negatively when the company decided to reinvest its record profits into faster growth and a stronger supplier ecosystem. GreenWood is optimistic about the company’s international site, Temu, which is growing sales four times faster than Amazon’s. The investment management firm praised PDD Holdings Inc. (NASDAQ:PDD) as a formidable player in the e-commerce sector and pointed out that the company’s operating model is focused on efficiency throughout the supply chain. GreenWood Investors also noted that PDD shares valuation is four times more attractive than that of Amazon’s.
8. MicroStrategy Incorporated (NASDAQ:MSTR)
Average Price Target Upside Potential According to Analysts: 45.77%
Number of Hedge Fund Holders: 25
MicroStrategy Incorporated (NASDAQ:MSTR) is an American company that adopted Bitcoin as its primary treasury reserve asset. It is a major corporate holder of Bitcoin. The company also provides business intelligence, AI-powered enterprise analytics software, and cloud-based services. MicroStrategy Incorporated (NASDAQ:MSTR) ranks among the best stocks to buy and hold for 2025 according to analysts.
The company is focused on increasing shareholder value by strategically and intelligently leveraging Bitcoin. In October 2024, MicroStrategy Incorporated (NASDAQ:MSTR) announced a strategic plan to raise a total of $42 billion over the next 3 years. The company’s “21/21 Plan” aims to raise $21 billion in equity and $21 billion in fixed-income securities. This capital will be used to purchase more Bitcoin to achieve a higher BTC yield.
In Q3 2024, the company increased its Bitcoin holdings by 11%. As of the end of the third quarter of 2024, MicroStrategy Incorporated (NASDAQ:MSTR) had successfully increased its year-to-date BTC yield to 17.8%. The Company also increased its long-term target to achieve an annual BTC yield of 6% to 10% between 2025 and 2027, up from the previous guidance of 4% to 8%.
7. Advanced Micro Devices Inc. (NASDAQ:AMD)
Average Price Target Upside Potential According to Analysts: 47.88%
Number of Hedge Fund Holders: 107
Advanced Micro Devices Inc. (NASDAQ:AMD) is an American multinational technology corporation that designs and manufactures graphics processing units (GPUs), microprocessors, and high-performance computing solutions. Serving a number of growing markets, including gaming, data centers, and artificial intelligence (AI), Advanced Micro Devices Inc. (NASDAQ:AMD) is one of the best stocks to buy and hold for 2025.
Ithaka Group, an investment advisory firm, shares its perspective on Advanced Micro Devices Inc. (NASDAQ:AMD) in its “Ithaka US Growth Strategy” fourth-quarter 2024 investor letter. The investment firm noted that AMD’s competitive edge comes from its advanced CPU and GPU architectures, such as its “Zen” and “RDNA” designs, which provide exceptional performance and energy efficiency.
In Q3 2024, Advanced Micro Devices Inc. (NASDAQ:AMD) reported a record data center segment revenue, which was up 122% year-over-year. As companies ramp up the development of data centers for AI, strong demand for AMD’s products is expected to continue and grow. In October 2024, the company announced its new AMD EPYC 9005 Series processors, which offer unparalleled performance and energy efficiency for diverse data center applications. Additionally, Advanced Micro Devices Inc. (NASDAQ:AMD) announced the AMD Instinct MI325X accelerators, which deliver exceptional performance and memory capabilities for high-performance AI workloads. Advanced Micro Devices Inc. (NASDAQ:AMD) also announced plans for next-generation AMD Instinct accelerators set to launch in 2025 and 2026.
6. Anheuser-Busch InBev SA/NV (NYSE:BUD)
Average Price Target Upside Potential According to Analysts: 49.16%
Number of Hedge Fund Holders: 26
Anheuser-Busch InBev SA/NV (NYSE:BUD) is a global company that produces, markets and distributes beer. The company has over 200 breweries around the globe and operations in about 50 countries. As the world’s largest brewing company, Anheuser-Busch InBev SA/NV (NYSE:BUD) has a portfolio of over 500 global and local brands. Some of the company’s most well-known brands include Budweiser, Corona Extra, Michelob ULTRA, and Stella Artois.
A key focus area for the company is digital transformation through its B2B e-commerce platform, BEES, which captured $12.1 billion in gross merchandise value (GMV) in Q3 2024, a 14% increase year-over-year. BEES is now live in 28 markets and accounts for 72% of Anheuser-Busch InBev’s (NYSE:BUD) revenue from B2B digital platforms. Additionally, the company’s digital direct-to-consumer (DTC) platforms generated approximately 19 million e-commerce orders and delivered around $140 million in revenue in Q3 2024, up 11% compared to Q3 2023.
The company is strategically focused on strengthening its market position while also improving its digital capabilities. In Q3 2024, Anheuser-Busch InBev SA/NV (NYSE:BUD) gained or maintained market share in 60% of its markets, with continued investment in its brands driving an increase in brand power. While volumes also increased in 50% of the markets, overall volume declined by 2.4% due to a soft consumer environment in China and Argentina. However, Anheuser-Busch InBev’s (NYSE:BUD) diversified geographic footprint allows it to deliver consistent results. In Q3 2023, the company reported a 2.1% increase in revenue year-over-year and a 5.6% increase in gross profit.
5. PG&E Corporation (NYSE:PCG)
Average Price Target Upside Potential According to Analysts: 52.07%
Number of Hedge Fund Holders: 49
PG&E Corporation (NYSE:PCG) is the parent company of Pacific Gas and Electric Company, one of the largest utility companies in the United States. It provides natural gas and electric service to more than 15 million people across a 70,000-square-mile service area in Northern and Central California. PG&E Corporation (NYSE:PCG) ranks among the top stocks to buy and hold for 2025.
There is an increasing demand for electricity in California, driven by housing developments, electric vehicle charging stations, data centers, commercial projects, and local infrastructure. PG&E Corporation (NYSE:PCG) announced that it increased its 5-year capital investment plan by $1 billion for a total of $63 billion for 2024 through 2028. This plan, which has been approved by the California Public Utilities Commission, is aimed at addressing rising customer demand and improving infrastructure across the company’s service area.
The company is focused on physical safety, operational progress, and providing affordable, resilient energy. In Q3 2024, PG&E Corporation (NYSE:PCG) constructed 58 miles of underground power lines and 66 miles of covered power lines with stronger poles in high fire-risk areas. The company also installed 14 new AI-enabled cameras for wildfire detection, bringing the total to over 630 across the system. Additionally, PG&E Corporation (NYSE:PCG) connected almost 2,900 new customers to its electric system during the quarter.
4. Vale S.A. (NYSE:VALE)
Average Price Target Upside Potential According to Analysts: 57.84%
Number of Hedge Fund Holders: 41
Vale S.A. (NYSE:VALE) is a global mining and metals company that is based in Rio de Janeiro, Brazil and has a presence in over 20 countries. It is the world’s largest producer of iron ore and nickel and it also has operations in manganese, ferroalloys, copper, gold, silver, and cobalt. Vale S.A. (NYSE:VALE) is one of the best stocks to buy and hold for 2025 according to analysts.
The company is strategically focused on increasing its production and enhancing operational excellence. In Q3 2024, Vale S.A.’s (NYSE:VALE) iron ore production reached its highest levels in over 5 years and this also marked the fourth consecutive quarter of year-on-year growth in iron ore production. Vale S.A. (NYSE:VALE) reported that its Vargem Grande 1 project commenced wet processing operations in September 2024, one month ahead of schedule. The project will help the company reach its iron ore production target of 340-360 million tons by 2026 by adding approximately 15 million tons per year of iron ore capacity while also improving the site’s iron content.
White Falcon Capital Management, an investment fund manager, noted in its fourth-quarter 2024 investor letter that Brazil’s economic challenges and macroeconomic uncertainty have caused many investors to sell Brazilian stocks. The investment management firm invested in Vale S.A. (NYSE:VALE) and noted that the stock was trading at a price-to-earnings ratio of 5.3 with an 8% dividend yield. White Falcon Capital Management also highlighted that Vale S.A. (NYSE:VALE) is one of the largest and lowest-cost iron ore producers globally and boasts a growing portfolio of high-demand copper and nickel assets.
3. Regeneron Pharmaceuticals Inc. (NASDAQ:REGN)
Average Price Target Upside Potential According to Analysts: 66.17%
Number of Hedge Fund Holders: 62
Regeneron Pharmaceuticals Inc. (NASDAQ:REGN) is an American biotechnology company that is primarily focused on discovering, developing, and commercializing medicines for serious diseases. The company currently has 13 approved or authorized medicines and about 40 product candidates in clinical development across various therapeutic areas. Regeneron Pharmaceuticals Inc.’s (NASDAQ:REGN) medicines and pipeline are focused on eye diseases, allergic and inflammatory diseases, cancer, cardiovascular diseases, neurological diseases, hematologic conditions, and rare diseases.
The company is making significant progress with its products and pipeline. In September 2024, the US Food and Drug Administration (FDA) approved Dupixent as an add-on maintenance treatment for adults with inadequately controlled chronic obstructive pulmonary disease (COPD) and an eosinophilic phenotype, making it the first biologic medicine approved in the US, European Union, and China for this condition. According to Regeneron Pharmaceuticals Inc. (NASDAQ:REGN), more than one million patients around the world are being treated with Dupixent, with more to follow after the recent approvals for COPD.
Baron Funds, an investment management company, in its “Baron Health Care Fund” third quarter 2024 investor letter noted the success of Regeneron Pharmaceuticals Inc. (NASDAQ:REGN) in developing several blockbuster drugs, including Eylea and Eylea HD for retinal diseases and Dupixent for various immunological and inflammatory diseases. Additionally, the company has an exciting new product pipeline with candidates in different stages of development. The pipeline includes an innovative treatment for severe food allergy, a combination therapy for melanoma and lung cancer, bispecific antibodies for blood cancers, and Factor XI antibodies for preventing blood clots. Based on Regeneron Pharmaceuticals Inc.’s (NASDAQ:REGN) proven track record of success in new drug discovery and development, Baron Health Care Fund is optimistic that the pipeline will yield success that could drive the stock up.
2. Constellation Brands Inc. (NYSE:STZ)
Average Price Target Upside Potential According to Analysts: 66.52%
Number of Hedge Fund Holders: 36
Constellation Brands Inc. (NYSE:STZ) is a leading international producer and marketer of beer, wine, and spirits. The company has operations in the US, New Zealand, and Italy. As a major wine producer globally and one of the biggest beer companies in the United States, Constellation Brands Inc. (NYSE:STZ) markets its products under various brands. Some of the company’s most well-known wine and beer brands include Kim Crawford, Meiomi, Robert Mondavi, Corona, Modelo Especial, Victoria, and Pacífico. STZ ranks among the best stocks to buy and hold for 2025.
The company is increasing its investments in marketing and brand development for its core brands to enhance visibility and consumer loyalty. Constellation Brands Inc. (NYSE:STZ) reported that in Q3 of fiscal 2025, which ended on November 30, 2024, its beer business achieved its 59th consecutive quarter of growth in depletion volumes. This strong consumer demand for the company’s beer products was supported through strategic marketing efforts.
Moreover, the company is investing in growing its production capacity. Constellation Brands Inc. (NYSE:STZ) reported that it expects to invest approximately $3 billion in capital expenditures from fiscal 2025 to fiscal 2028 to continue the development of modular additions at existing facilities in Mexico and the establishment of a brewery site at Veracruz in Mexico. The initial production phase of the new facility in Veracruz is on track for completion by late fiscal 2026 or early fiscal 2027.
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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