In this article, we will look at the 10 Best Stocks to Buy Now For the Long Term.
What’s Next for the Equity Markets?
The US equity markets have started to show signs of recovery after weeks of volatility due to the tariff situation. On March 21, J.P Morgan Management’s Global Investment Strategist, Alan Wyne released his market update noting that this was the first weekly gain after four weeks for the US equity markets. While highlighting the current market condition Wyne highlighted that this improvement follows the Federal Reserve’s decision to leave interest rates unchanged while revising growth forecasts downward and increasing near-term inflation expectations. The Fed has emphasized that tariff-related inflation is likely transitory. Futures markets anticipate two interest rate cuts this year, with a 50% chance of a third, sparking demand in Treasury markets. On the other hand, yields on the 2-year and 10-year Treasury notes dropped by 7 and 9 basis points, respectively. Moreover, European stocks have continued to outperform, supported by Germany’s new legislation exempting defense spending exceeding 1% of GDP from borrowing restrictions. Wyne suggests that this policy could unlock significant fiscal spending across the Eurozone. The Stoxx 50 index is up 0.2% for the week and has gained 11% year-to-date.
While the S&P 500 is hovering near correction territory, marking five years since its COVID-19 drawdown. Wyne noted that the risks appear evenly distributed between bullish and bearish outlooks. On one hand, the bears argue that softer economic data and rising consumer inflation expectations could worsen with tariff escalations, potentially leading to stagflation. On the other hand, bulls counter that weak sentiment data does not necessarily reflect hard economic indicators such as employment and retail sales, which remain robust. Wyne highlighted that bulls point out that long-term inflation expectations are still anchored near the Fed’s target, mitigating risks of a wage spiral. He pointed out that historically speaking, investing during sentiment troughs has yielded strong returns in subsequent months.
Lastly, closing his market outlook with some investment advice, Wyne suggests that balancing risks by maintaining strategic asset allocation might be a viable strategy. He added that investors should use equities for long-term capital appreciation and fixed income for hedging during slowdowns. In addition, tactical adjustments can help capitalize on emerging opportunities while adding resilience through assets like gold and infrastructure investments. Wyne stressed that despite market volatility since the COVID-19 drawdown, the S&P 500 has risen over 150%, which underscores the importance of staying invested through uncertainties.
With that, let’s take a look at the 10 best stocks to buy now for the long term.
A broker trading stocks on a financial trading floor, representing the investment approach of the company.
Our Methodology
To curate the list of the 10 best stocks to buy now for the long term we reviewed financial media reports and blue chip ETFs. From these sources, we picked stocks from multiple sectors including financials, energy, technology, consumer staples, and more. We finally selected stocks with a history of stable operations. Additionally, we checked their 10-year revenue growth rates and only considered companies with a growth rate of at least 7%. The list is ranked in ascending order of the number of hedge funds holding each stock, sourced from Insider Monkey’s Q4 2024 database.
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. Costco Wholesale Corporation (NASDAQ:COST)
10-Year Sales Growth: 8.61%
Number of Hedge Fund Holders: 96
Costco Wholesale Corporation (NASDAQ:COST) operates as a membership-based retail chain that offers bulk quantities of nationally branded and private-label products through physical warehouses and e-commerce platforms. The company functions as a membership-only warehouse club, requiring customers to pay annual fees to access its stores and services.
On March 10, Barclays analyst Seth Sigman raised the firm’s price target on the stock to $980 from $940, while keeping an Equal Weight rating on the shares. The company has been growing its presence by opening new warehouses. During the fiscal second quarter of 2025, Costco Wholesale Corporation (NASDAQ:COST) announced that it plans to open 28 new warehouses during fiscal year 2025, including three relocations, resulting in 25 net new buildings. Moreover, some recent openings include one warehouse in Q2, with six additional openings scheduled for March 2025 in Brentwood and Highland, California, Sharon, Massachusetts, and Prosper, Texas.
In Q2 2025, the company grew its membership fee income by 7.4% year-over-year to $1.193 billion, with a 9.4% growth excluding foreign exchange effects. It ended the quarter with 78.4 million paid household members, up 6.8% year-over-year, and 140.6 million total cardholders, reflecting a 6.6% increase. The company has a history of growing its revenue and has grown its sales by more than 8% over the past 10 years. It is one of the best stocks to buy now for long term.
Aoris Investment Management stated the following regarding Costco Wholesale Corporation (NASDAQ:COST) in its Q4 2024 investor letter:
“Firstly, I think we exercised good valuation discipline in our sales of Costco Wholesale Corporation (NASDAQ:COST) and Cintas. The share prices of these two companies had increased by more than 60% and 40% respectively in the year prior to our sale. It can be difficult as investors to remain objective and not ‘fall in love’ with an investment when it is performing well. A higher share price doesn’t make a business more valuable!
We sold both Costco and Cintas simply for reasons of valuation. These are exceptional businesses that we’d love to own again if valuation permits. Their sales allowed us to recycle portfolio capital into more attractively valued businesses.”
9. S&P Global Inc. (NYSE:SPGI)
10-Year Sales Growth: 10.90%
Number of Hedge Fund Holders: 99
S&P Global Inc. (NYSE:SPGI) is a leading provider of essential intelligence, offering data, analytics, benchmarks, and research across various industries. The company operates through five divisions including S&P Global Market Intelligence, S&P Global Ratings, S&P Global Commodity Insights, S&P Global Mobility, and S&P Global Mobility.
On March 12, Mizuho analyst Sean Kennedy initiated coverage on the stock with an Outperform rating and a $599 price target. Kennedy noted S&P Global Inc. (NYSE:SPGI) as one of the highest-quality businesses, based on its stable long-term growth, strong competitive advantages, and enduring pricing power. Moreover, he also highlighted that S&P Global Market Intelligence is recovering after slower growth in 2024 due to financial sector stabilization and is on track to achieve its medium-term growth target of 7% to 9% by 2026. This reflects confidence in the company’s ability to sustain growth and capitalize on market opportunities.
For the quarter ending December 31, S&P Global Inc. (NYSE:SPGI) reported growing its revenue by 14% year-over-year, driven by growth across all divisions. The Retail Segment was notable with 31% year-over-year in 2024, fueled by a record $3.9 trillion in billed issuance, a 54% increase from the prior year. Additionally, the company diversified its revenue streams beyond traditional investment-grade and high-yield debt into other loan categories and structured products. The company ranks as one of the best stocks to buy now for long term.
Montaka Global Investments stated the following regarding S&P Global Inc. (NYSE:SPGI) in its Q4 2024 investor letter:
“The broader global investing environment will also likely improve cyclically in 2025. The global monetary tightening cycle has now peaked, and we are in the early days of an easing cycle – including in the US, the Eurozone, and China (collectively representing nearly 60% of global GDP) – which will likely continue in 2025.
While there is no shortage of political upheaval around the world, in 2025 we will exit a trough of ‘political dysfunction’ in the world’s largest economy, the US (to which a majority of Montaka’s portfolio is exposed).
Political dysfunction stems from the different legislative bodies being controlled by different political parties that tend to disagree on most topics.
These collective conditions will benefit the shareholders of many businesses.
One of our major holdings, S&P Global Inc. (NYSE:SPGI), for example, which has already commenced a cyclical recovery in its Credit Ratings business, will likely see a new recovery in its Market Intelligence business as buy-side and sell-side market activity recovers…” (Click here to read the full text)
8. The Progressive Corporation (NYSE:PGR)
10-Year Sales Growth: 14.54%
Number of Hedge Fund Holders: 100
The Progressive Corporation (NYSE:PGR) is an insurance holding company that operates through various subsidiaries and affiliates, offering a range of insurance products. It operates through three main segments including Personal Lines, Commercial Lines, and Property.
On March 19, William Blair analyst Adam Klauber maintained a Buy rating on the stock. Klauber highlighted that The Progressive Corporation’s (NYSE:PGR) February results suggest it is on track to achieve an EPS of more than $16 in 2025, exceeding the market consensus of $15.6. The company reported a robust monthly EPS of $1.73, supported by significant growth in personal auto policies in force, which rose by 22% in February. In addition to the growth in auto PIF, the company also improved its auto loss ratio to 63%, marking its best monthly result since 2020. Moreover, the combined ratio for February was 83%, reflecting a notable improvement from the prior year.
Klauber believes that The Progressive Corporation’s (NYSE:PGR) $16.07 EPS estimate for 2025, based on a combined ratio of 89% is achievable and potentially conservative. It is one of the best stocks to buy now for long term.
Artisan Mid Cap Value Fund stated the following regarding The Progressive Corporation (NYSE:PGR) in its Q4 2024 investor letter:
” On the positive side, our financials holdings delivered strong absolute and relative returns in 2024, and each of our biggest contributors—First Citizens, M&T Bank and Progressive—was in the financials sector. We exited The Progressive Corporation (NYSE:PGR), one of the largest personal auto insurers in the US, this quarter after a long holding period that began in 2007. As a long-time holding, Progressive is an example of how we put our process into motion. We were able to purchase it at an attractive price, but most of our holding period return came from the value created by the business itself. We recognized the strength of its business model demonstrated by consistent free cash flow generation and above average returns on equity and had a high regard for management, which had a proven track record of pricing discipline through the cycle and prudent capital allocation. Due to its success, Progressive’s market capitalization now exceeds the upper limit of our mid-cap investment universe.”
7. Alibaba Group Holding Limited (NYSE:BABA)
10-Year Sales Growth: 30.07%
Number of Hedge Fund Holders: 107
Alibaba Group Holding Limited (NYSE:BABA) is a Chinese conglomerate primarily focused on e-commerce, cloud computing, logistics, digital media, and financial technology. On March 4, John Choi from Daiwa maintained a Buy rating on the stock with a price target of $170.
The analyst noted that he likes the company’s strategic focus on AI and cloud computing. Alibaba Group Holding Limited’s (NYSE:BABA) Qwen series of large language models and its open-source strategy are driving growth in the public cloud sector. These models are widely adopted, with over 90,000 derivative models developed globally, making Qwen a significant player in AI innovation. Moreover, the company’s collaboration with DeepSeek enhances its ability to deploy high-efficiency AI models. As a major client, Alibaba is well-positioned to benefit from China’s growing demand for AI computing infrastructure. Choi highlighted that the company is investing $53 billion over three years into AI infrastructure, including data centers and GPU-based technologies, signaling its commitment to becoming a global AI leader. Alibaba Group Holding Limited (NYSE:BABA) has grown its revenue by more than 30% over the past 10 years, thereby making it one of the best stocks to buy now for long term.
Conventum – Alluvium Global Fund stated the following regarding Alibaba Group Holding Limited (NYSE:BABA) in its Q4 2024 investor letter:
“In early November the Chinese government announced further stimulus by way of a USD 1.4 trillion package to bail out local government’s debt. This appeared to underwhelm the equity market. So, Alibaba Group Holding Limited’s (NYSE:BABA) resurgence last quarter (when it was up 56.0%), could not be maintained, and the share price fell 25.1% in the December quarter. It is undoubtedly cheap on most metrics, and trades at a discount to our valuation. It currently accounts for 3.0% of the Fund.”
6. Eli Lilly and Company (NYSE:LLY)
10-Year Sales Growth: 8.67%
Number of Hedge Fund Holders: 115
Eli Lilly and Company (NYSE:LLY) is a leading multinational pharmaceutical company that develops and markets healthcare products across various therapeutic areas. Its products range from cardiometabolic health, oncology, immunology, neuroscience, and bone and muscle health.
On March 1, analyst Geoff Meacham from Citi reiterated a Buy rating on the stock with a price target of $1,190. Meacham highlighted that the FDA recently expressed concerns about the safety, efficacy, and quality of compounded GLP-1 products, which strengthens the company’s competitive position in this market, particularly for its product Tirzepatide. Moreover, Meacham believes that Eli Lilly and Company’s (NYSE:LLY) 2025 revenue projection of $58 billion to $61 billion is conservative and achievable, supported by the regulatory developments and the company’s strong product pipeline. The company has grown its revenue by more than 8% over the past decade, making it one of the best stocks to buy now for long term.
Parnassus Core Equity Fund stated the following regarding Eli Lilly and Company (NYSE:LLY) in its Q4 2024 investor letter:
“Eli Lilly and Company (NYSE:LLY)stock declined following worse-than-expected third quarter results for its weight-loss drug segment. We initiated our position partway through the quarter, after the drawdown and in time for a partial rebound, and our average underweight for the quarter led to a relative contribution.
In the Health Care sector, we added drugmaker Eli Lilly, which has an exceptional GLP-1 franchise and a strong track record of innovation, which position the company for long-term growth. A rare revenue miss and President-elect Trump’s health secretary nomination sparked a sell-off, providing a window of opportunity to gain exposure to the drugmaker’s attractive product suite and pipeline at an attractive valuation.”
5. UnitedHealth Group Incorporated (NYSE:UNH)
10-Year Sales Growth: 11.86%
Number of Hedge Fund Holders: 150
UnitedHealth Group Incorporated (NYSE:UNH) is a leading American multinational healthcare company that operates through UnitedHealthcare and Optum segments. The company provides a variety of healthcare services, including data analytics, pharmacy service, and population health management, along with health insurance and benefits to different groups.
In fiscal 2024, UnitedHealth Group Incorporated (NYSE:UNH) reported an 8% year-over-year increase in revenue, reaching a total of $400.3 billion. This growth was driven by comprehensive services across both its business segments, Optum and UnitedHealthcare. Management noted that the number of domestic consumers served by UnitedHealthcare increased by 2.1 million, reflecting the company’s efforts to expand its health benefits offerings and enhance consumer choice. Moreover, the Optum segment also saw a significant increase in value-based care patients, with 600,000 individuals served.
The improved quarterly performance led to a bullish sentiment around the stock. On March 5, J.P. Morgan analyst Lisa Gill maintained a Buy rating on the stock. The company has grown its sales by more than 12% during the last 10 years and is one of the best stocks to buy now for long term.
Parnassus Growth Equity Fund stated the following regarding UnitedHealth Group Incorporated (NYSE:UNH) in its Q4 2024 investor letter:
“We sold two Health Care positions during the quarter, pharmaceutical company AstraZeneca and insurerUnitedHealth Group Incorporated (NYSE:UNH). UnitedHealth’s business model is becoming higher-risk, which coupled with slowing Medicare Advantage growth and regulatory uncertainty led to us exiting the position.
After the UnitedHealth stock price recovered to its historical multiple in early November, we felt it was an opportune time to sell based on our concerns about slowing Medicare Advantage growth and the company’s growing business complexity and risk.”
4. Mastercard Incorporated (NYSE:MA)
10-Year Sales Growth: 11.55%
Number of Hedge Fund Holders: 151
Mastercard Incorporated (NYSE:MA) is an international payment technology company. It operates a proprietary network that facilitates electronic payment transactions, including authorization, clearing, and settlement processes. On March 6, Morgan Stanley analyst James Faucette maintained a Buy rating on the stock with a price target of $644.
Faucette noted the company’s strategic expansion in its Value-Added Services (VAS) segment to be one of the key reasons behind his rating. VAS now accounts for approximately 37% of Mastercard Incorporated’s (NYSE:MA) total revenues, reflecting significant growth and a strategic shift beyond traditional payment processing. The analyst highlighted that despite this growth, the company’s penetration in the total addressable market remains low, indicating substantial room for further expansion.
Moreover, the company has made several strategic acquisitions including Brighterion, Recorded Future, Ekata, and RiskRecon, which has bolstered its capabilities in AI, threat intelligence, digital identity verification, and cybersecurity. Management is focused on integrating these services across the transaction lifecycle and has positioned it well for future growth by enhancing the security and efficiency of transactions. It is one of the best stocks to buy now for long term.
3. Visa Inc. (NYSE:V)
10-Year Sales Growth: 11.03%
Number of Hedge Fund Holders: 181
Visa Inc. (NYSE:V) is a global payments technology company that facilitates digital payments and money movement across over 200 countries and territories. It operates primarily through its advanced transaction processing network, called VisaNet, which handles authorization, clearing, and settlement of payment transactions. On February 24, Analyst Andrew Jeffrey from William Blair reiterated a Buy rating on the stock noting that he likes the strategic transformation and market leadership of the company.
Visa Inc. (NYSE:V) is evolving from a consumer payments company to a diversified platform, focusing on value-added services and new payment flows. This transition is projected to drive revenue growth of 9%-12%. Moreover, approximately 70% of the company’s revenue comes from its core payments business, which benefits from the ongoing shift to electronic payments and advancements like tokenization and contactless payments. This segment has shown strong growth, with its global consumer payments volume outpacing consumer spending growth. Lastly, the company is also making significant investments in technology that are expected to improve financial performance, particularly adjusted EPS growth. It is one of the best stocks to buy for long term.
Meridian Hedged Equity Fund stated the following regarding Visa Inc. (NYSE:V) in its Q4 2024 investor letter:
“Visa Inc. (NYSE:V) is the world’s largest retail electronic payments network. We hold Visa in the portfolio because of its formidable competitive moat, built on network effects spanning billions of cards and millions of merchants globally. The company continues to benefit from the secular shift toward electronic payments while expanding its portfolio to include high-growth adjacent offerings. While U.S. market penetration is mature, international markets—particularly in emerging economies, where cash usage remains prevalent— offer significant growth opportunities. Visa’s operating model demonstrates strong leverage, with incremental revenue efficiently flowing to the bottom line. This quarter, Visa outperformed expectations across key metrics, with payment volumes and transaction growth proving resilient despite macro uncertainties. Looking ahead, we anticipate continued momentum into fiscal 2025, driven by the ongoing transition to digital payments, international expansion, and the scaling of newer business lines.”
2. Alphabet Inc. (NASDAQ:GOOGL)
10-Year Sales Growth: 18.16%
Number of Hedge Fund Holders: 234
Alphabet Inc. (NASDAQ:GOOGL) is an international technology holding company that offers a range of products and services through its Google Services, Google Cloud, and Other Bets segments. It is also one of the leading players in artificial intelligence and enterprise solutions.
The company has demonstrated significant growth in its search business leading to a Buy rating from BofA with a $225 price target. The bullish sentiment stems from the company’s disclosure that it now processes over 5 trillion annual searches, up from 2 trillion in 2016, reflecting a compound annual growth rate of 12% in search volume and 19% in search revenue over the same period. The rise in search volume and improved monetization strategies have significantly boosted Alphabet Inc.’s (NASDAQ:GOOGL) search revenue. This includes higher commercial query volumes and better ad targeting.
In addition, the company is also launching new AI features such as Circle to Search, AI Overviews, and Visual Search via Google Lens to improve the overall search experience. It is one of the best stocks to buy for long term.
1. Microsoft Corporation (NASDAQ:MSFT)
10-Year Sales Growth: 10.85%
Number of Hedge Fund Holders: 317
Microsoft Corporation (NASDAQ:MSFT) is a leading multinational technology company that develops and supports a wide range of software, services, devices, and solutions. The company operates through three key segments including Productivity and Business Processes, Intelligent Cloud, and More Personal Computing.
On March 20, Tigress Financial analyst Ivan Feinseth reiterated a Buy rating on the stock. Feinseth emphasized that the company exercises its leadership in artificial intelligence, which has been boosted through its integration of OpenAI’s ChatGPT into products like Microsoft 365. This positions the company at the forefront of digital transformation, enhancing its competitive edge and driving revenue and cash flow growth.
The analyst also highlighted Microsoft Corporation’s (NASDAQ:MSFT) robust financial health, including a strong balance sheet and significant cash flow. This financial stability supports strategic acquisitions, innovation initiatives, and shareholder returns through dividends and share buybacks. The company’s AI-driven strategy is expected to create new business opportunities across its segments, further solidifying its market position and boosting long-term growth prospects. It is the best stock to buy now for long term.
While we acknowledge the potential of Microsoft Corporation (NASDAQ:MSFT) to grow, our conviction lies in the belief that 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 MSFT 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 30 Best Stocks to Buy Now According to Billionaires.
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