On March 31, Banrion’s Shana Sissel recently appeared on CNBC’s ‘Power Lunch’ to discuss that buying at lower valuations is favorable for long-term investors. Shana Sissel highlighted that the markets now want transparency, given the persistent volatility that has lasted for a while now. When this clarity is lacking, it becomes difficult for investors and businesses to plan for the long term. This uncertainty has led to soft consumer and CEO confidence, which makes it challenging to develop long-term strategies when key aspects such as industrial policy, business policy, and taxes remain unresolved in the US. Sissel emphasized that until there is more certainty, volatility is likely to persist. She expressed skepticism that any immediate announcements would provide the level of information investors desire, especially because of the administration’s habit of making statements that are later contradicted or revised. However, Sissel pointed out that long-term investors can find attractive buying opportunities if they look beyond the current uncertainty. She noted that the recent drop in valuations for many tech stocks now presents favorable buying opportunities for long-term investors.
Regardless of the short-term fluctuations in policy uncertainty, many tech and security companies still benefit from long-term demand due to trends like the ongoing adoption of AI and the growing need for cybersecurity and infrastructure protection. Even when government decisions are unclear, these sectors are resilient because their products and services address fundamental needs that are unlikely to change with fluctuating market cycles.
That being said, we’re here with a list of the 11 most promising long-term stocks according to analysts.
An overhead view of a bustling stock exchange, with brokers and traders exchanging stocks.
Our Methodology
We first sifted through the Finviz stock screener and financial media reports to compile a list of the top stocks with high upside potential of over 40%. We then selected 11 stocks with a 10-year revenue compound annual growth rate of over 20%. The stocks are ranked in ascending order of their upside potential. We have also added the hedge fund sentiment for each stock, as of Q4 2024, which was sourced from Insider Monkey’s database.
Note: All data was sourced on April 21.
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).
11 Most Promising Long-Term Stocks According to Analysts
11. Tesla Inc. (NASDAQ:TSLA)
10-Year Revenue CAGR: 40.76%
Number of Hedge Fund Holders: 126
Average Upside Potential as of April 21: 42.93%
Tesla Inc. (NASDAQ:TSLA) designs, manufactures, and sells electric vehicles and energy generation & storage systems through its two segments. The Automotive segment offers EVs, automotive regulatory credits, and vehicle insurance services. The Energy Generation and Storage segment engages with solar energy generation and energy storage products.
The company achieved record deliveries in Q4 2024, with Model Y becoming the best-selling vehicle of any kind in 2024. Tesla also made investments in manufacturing, AI, and robotics during the year. Its autonomous driving and AI-related initiatives are expected to make up 90% of its valuation shortly. Optimus alone can generate more than $10 trillion in revenue for Tesla.
While Tesla Inc. (NASDAQ:TSLA) is somewhat insulated from the current tariff environment as compared to other major automakers in the US, the company still faces some macro challenges. On April 16, Piper Sandler reiterated the stock as Overweight and cut its estimates on the stock’s price from $450 to $400. Tesla’s first-quarter financials are expected to be disappointing, with deliveries falling short of expectations. This is because Tesla heavily relies on international sources, mainly China, for a significant amount of its parts and batteries.
JDP Capital Management initiated the stock in June 2024 and stated the following regarding Tesla Inc. (NASDAQ:TSLA) in its Q4 2024 investor letter:
“Tesla, Inc. (NASDAQ:TSLA) is new core position that I wrote about in 2024 Half Year Letter. The stock was up 115% in 2024. We benefited from the June 2024 timing of our purchase, buying after the stock had declined about 30% in the first part of the year.
We repurchased TSLA at a time when the market had [again] become overly bearish based on slowing vehicle orders despite the company having just achieved a breakthrough in Full Self Driving (FSD v12). If you haven’t had a chance to experience the most recent Full Self Driving software (FSD 13.3) I suggest you try it for yourself. If you’ve had a Tesla for a while, you know that the trajectory of FSD improvement has been nothing less than astounding.
It has become clearer to me that Tesla’s leadership position in the infrastructure layer underpinning mega-trends in robotics, smart vehicles and battery storage will unlock earnings growth that we can ride for years. Similar to AWS or the iPhone, Full-Self-Driving and Optimus will enable new business models to be built across a wide range of industries over time…” (Click here to read the full text)
10. Broadcom Inc. (NASDAQ:AVGO)
10-Year Revenue CAGR: 26.50%
Number of Hedge Fund Holders: 161
Average Upside Potential as of April 21: 46.2%
Broadcom Inc. (NASDAQ:AVGO) is a technology company that specializes in semiconductor and infrastructure software products. It has a focus on digital and mixed signal complementary metal oxide semiconductor-based devices and analog III-V-based products. It operates in two segments: Semiconductor Solutions and Infrastructure Software. It has estimated considerable growth in its AI-related revenue.
The company underwent a 77% year-over-year growth in its AI revenue in FQ1 2025 and generated $4.1 billion. In FQ2, Broadcom expects AI revenue to increase by 44%. This growth is fueled by hyperscale customers who heavily invest in next-gen AI models. Three of these clients are expected to create a SAM of $60 to $90 billion by FY2027. Broadcom generated a total FQ1 revenue of $14.9 billion, which marked a 24.7% improvement. Infrastructure software sales alone grew by 47% to $6.7 billion.
On April 11, Citi analyst Christopher Danely maintained a Buy rating for the stock while decreasing its price target from $220 to $210. This revision came from the anticipation of a potential recession and the likelihood that certain tariffs will persist long-term. However, Broadcom Inc. (NASDAQ:AVGO) is working with major hyperscalers to develop systems that will support massive AI clusters, ranging from 500,000 to 1,000,000 AI accelerators, which would potentially drive the company’s future growth.
Renaissance Large Cap Growth Strategy stated the following regarding Broadcom Inc. (NASDAQ:AVGO) in its Q4 2024 investor letter:
“Broadcom Inc. (NASDAQ:AVGO) was another large contributor in the quarter after reporting solid operating results. The company presented an optimistic outlook, driven by its dominant position in artificial intelligence application-specific chipsets. In addition, the company should continue to benefit from its leading position in several end markets including data centers and cloud infrastructure, which have favorable secular growth trends. Broadcom is also seeing margin expansion and improved visibility, as the mix of software revenues increases, following the acquisition of VMWare.”
9. HubSpot Inc. (NYSE:HUBS)
10-Year Revenue CAGR: 36.63%
Number of Hedge Fund Holders: 73
Average Upside Potential as of April 21: 50.36%
HubSpot Inc. (NYSE:HUBS) provides a cloud-based CRM platform for businesses in the Americas, Europe, and the Asia Pacific. This CRM platform includes Marketing Hub, Sales Hub, Service Hub, Content Hub, Operations Hub, and Commerce Hub. It also provides professional services to educate and train customers on how to utilize its CRM platform.
The company has an AI-first approach. This is exemplified by the Content Hub, which is its AI-driven hub that became the fastest-growing one in 2024. For 2025, the company is positioning itself as the leading AI-first customer platform. The roll-out of Breeze Intelligence highlights HubSpot Inc. (NYSE:HUBS)’s focus on AI. This is a competitively-priced product that integrates GenAI and data offerings, and reached 75,000+ weekly active users in Q4 2024.
On March 19, Bernstein initiated coverage on the stock with a $693 price target and a Market Perform rating because of the company’s innovations in AI-driven automation. HubSpot Inc.’s (NYSE:HUBS) AI agent ecosystem includes platforms like Agent.AI. This platform helps consolidate structured and unstructured data for AI agents. In just 6 months, the user base for Agent.AI increased 10x from 50,000 to ~500,000.
TimesSquare Capital Management U.S. Focus Growth Strategy stated the following regarding HubSpot, Inc. (NYSE:HUBS) in its Q4 2024 investor letter:
“Among the wide variety of Information Technology companies, we prefer critical system providers, specialized component designers, systems that improve productivity or efficiency for their clients, and others that are growing their shares of corporate IT budgets. Another addition to the sector was HubSpot, Inc. (NYSE:HUBS), a cloud-based customer relationship management platform provider. Its execution has been stellar, with a best-in-class software product driven by a robust innovation engine, a unified underlying data architecture platform, and a focus on the small-to-mid business market where we see high potential for productivity improvements from Generative AI innovation, They subsequently reported a strong third quarter earnings report was highlighted by billings growth and the new business backlog has accelerated. HubSpot added 10,000 net new customers in the quarter.”
8. Permian Resources Corp. (NYSE:PR)
10-Year Revenue CAGR: 43.85%
Number of Hedge Fund Holders: 54
Average Upside Potential as of April 21: 53.78%
Permian Resources Corp. (NYSE:PR) is an independent oil and natural gas company that develops crude oil and associated liquids-rich natural gas reserves in the US. Its assets focus on the Delaware Basin, which is a sub-basin of the Permian Basin. Its properties consist of acreage blocks in Reeves County in West Texas and Lea County in New Mexico.
The company completed $1.2 billion in acquisitions in 2024, and added 50,000 net acres and 20,000 BOE per day. For 2025, the company has locked in prices for ~25% of its oil production at $73 per barrel. It can still generate free cash flow after paying dividends even if oil prices drop to around $40 per barrel. Between 2023 and 2025, the company expects that its production, adjusted for debt, will increase by ~50%, and its free cash flow per share will ~2x.
Permian Resources Corp. (NYSE:PR) drilled 275 wells in 2024, with 85 wells planned for 2025. In Q4 2024, the company’s oil production was 171,000 barrels of oil per day, where a total production was 368,000 BOE per day. For 2025, the total production is anticipated to average 300,000 to 380,000 BOE per day, with oil production between 170,000 and 175,000 barrels per day.
Aristotle Small/Mid Cap Equity Strategy stated the following regarding Permian Resources Corporation (NYSE:PR) in its Q3 2024 investor letter:
“Permian Resources Corporation (NYSE:PR) is a Texas-based oil & gas exploration & production company with a large acreage position and deep inventory of high return potential drilling locations in the core of the Permian Basin. We expect management to continue to execute on its strategy of optimizing returns, diligently allocating capital to new opportunities, and returning excess capital to shareholders.”
7. Civitas Resources Inc. (NYSE:CIVI)
10-Year Revenue CAGR: 25.01%
Number of Hedge Fund Holders: 47
Average Upside Potential as of April 21: 60.57%
Civitas Resources Inc. (NYSE:CIVI) acquires, develops, and produces crude oil and associated liquids-rich natural gas. Its assets include DJ Basin assets that comprise ~356,800 net acres located in Colorado. The Permian Basin assets comprise 120,400 net acres located in Texas and New Mexico. Its Permian Basin operations are the primary driver of its growth.
In 2024, the Permian Basin operations saw advancements like a 15% reduction in Midland Basin well costs, a ~20% increase in daily drilling footage, and a 50% surge in daily completion throughput. A recent bolt-on acquisition added 19,000 acres and 130 new locations in the Midland Basin. These efforts have added ~two years of future development to the company’s Permian business unit.
Civitas Resources Inc. (NYSE:CIVI) now has an inventory of 1,200 development locations in the Permian. For 2025, the company is increasing its capital allocation to the Delaware Basin within its Permian program, with plans to operate 3 of 4 Permian rigs in the region soon. To further enhance its Permian business, the company plans to sell $300 million worth of its DJ Basin assets in 2025.
6. NVIDIA Corp. (NASDAQ:NVDA)
10-Year Revenue CAGR: 39.48%
Number of Hedge Fund Holders: 223
Average Upside Potential as of April 21: 65.53%
NVIDIA Corp. (NASDAQ:NVDA) is a computing infrastructure company that offers graphics and compute & networking solutions internationally. It sells its products to original equipment manufacturers, original device manufacturers, system integrators and distributors, independent software vendors, cloud service providers, consumer internet companies, and others.
The growing adoption of NVIDIA’s Blackwell architecture is driving its revenue. In FQ4 2025, Blackwell’s revenue totaled $11 billion, which marked the fastest product ramp in the company’s history. Blackwell delivers ~25 times higher token throughput and 20 times lower cost than the Hopper 100 for reasoning AI. Large cloud service providers like Azure, GCP, AWS, and OCI are deploying Blackwell systems to meet their growing demand for AI infrastructure.
The overall Data Center segment at NVIDIA Corp. (NASDAQ:NVDA) made a record $35.6 billion in revenue in FQ4, which was a 93% year-over-year improvement. For the entire fiscal year 2025, the revenue doubled. However, Argus lowered the stock’s price target to $150 from $175 while keeping a Buy rating on April 17. The firm believes that the fresh US licensing requirements for AI chip exports, which include NVIDIA’s H20 models, will potentially impact quarterly earnings by as much as $55 billion.
Guinness Global Innovators is highly bullish on NVIDIA Corp. (NASDAQ:NVDA) due to its dominant AI chip market position. It stated the following in its Q4 2024 investor letter:
“For a second year running, NVIDIA Corporation (NASDAQ:NVDA) was the Fund’s top performing stock, delivering a stellar return of +177.7% over the year. Since the beginning of last year, Nvidia’s ‘Hopper’ GPUs have been at the centre of exploding demand for chips powerful and efficient enough to facilitate the energy intensive requirements of AI processes within datacentres. Initially possessing over 95% of market share in these types of chips, Nvidia have been quick to entrench their position as the technological leader in the space, launching the successor to the current ‘Hopper’ GPU in March, Blackwell, inhibiting the likes of AMD and Intel making meaningful inroads in taking share of the fast-growing market. Compared to the previous iteration (Hopper) which is continuing to fuel Nvidia’s extreme revenue growth, the Blackwell chip is twice as powerful for training AI models and has 5 times the capability when it comes to “inference” (the speed at which AI models respond to queries). Throughout the year, Nvidia’s financial performance has remained resilient. Quarterly revenues hit $35.1 billion in their most recent quarter, beating consensus expectations by 6% and representing a +94% year-over-year increase. Additionally, Nvidia’s data centre segment, driven by the Hopper (H100) chip, grew fivefold over the past year, underscoring the sustained demand for advanced AI infrastructure. The H100 chip, priced at around $40,000, continues to see significant adoption due to its ability to enhance AI model training efficiency while lowering overall costs. This growth is expected to continue as companies invest in upgrading existing data centres and building new ones, with Nvidia well-positioned to capture a significant share of the estimated $2 trillion market opportunity over the next five years. There have been some concerns over Blackwell production delays causing share price volatility however, Nvidia has recovered swiftly, driven by positive earnings results through the year and assurances from management regarding future supply. Additionally, the release of the H200 chip promises to extend Nvidia’s technological leadership, ensuring continued momentum into 2025. While Nvidia’s valuation remains a topic of debate, the stock is not at a significant premium to history, and it still appears reasonable given its dominant market position, innovative prowess, and exposure to long-term secular growth trends in AI, cloud computing, and data infrastructure. As a result, Nvidia remains well-positioned to deliver sustained outperformance over the long term, making it a cornerstone of growth-oriented portfolios.”
5. Twilio Inc. (NYSE:TWLO)
10-Year Revenue CAGR: 47.93%
Number of Hedge Fund Holders: 74
Average Upside Potential as of April 21: 65.90%
Twilio Inc. (NYSE:TWLO) offers customer engagement platform solutions internationally. It operates through two segments: Twilio Communications and Twilio Segment. It provides various application programming interfaces and software solutions for communications between customers and end users, such as messaging, voice, email, flex, marketing campaigns, and user authentication and identity.
On February 25, Tigress Financial analyst Ivan Feinseth increased the stock’s price target to $170 from $135 while keeping a Buy rating. This was driven by the company’s AI-driven customer growth and its focus on AI for improved automation. In presales, data-driven lead identification shortened sales cycles, and 80% of the new inbound leads are processed by AI. In post-sales, AI-driven help center assistance recorded a 75% ticket deflation rate. In 2024, more than 9,000 AI companies used Twilio’s services.
Recently, in March, Twilio Inc. (NYSE:TWLO) started collaborating with Cedar, which is a patient financial experience platform for healthcare providers. Twilio will power Cedar’s patient communications across SMS and Voice, including via Twilio’s AI-powered ConversationRelay service. Twilio’s AI-powered financial experience will allow Cedar to streamline communications with clients, enhance payment experience, and inculcate smart patient support through AI-powered voice agents.
4. Caesars Entertainment Inc. (NASDAQ:CZR)
10-Year Revenue CAGR: 41.01%
Number of Hedge Fund Holders: 79
Average Upside Potential as of April 21: 82.28%
Caesars Entertainment Inc. (NASDAQ:CZR) is a gaming and hospitality company. It also operates and conducts retail and online sports wagering, iGaming, sports betting from retail & online sportsbooks, and other games. In addition, it operates dining venues, bars, nightclubs, lounges, hotels, and entertainment venues. It also provides staffing and management services.
In 2024, the company’s Digital segment made a record revenue of $1.2 billion, which was up 20% year-over-year. In Q4 alone, Caesars Digital made $303 million in net revenue. This was fueled by the company’s iGaming sector, which grew by 65% in Q4. Unfavorable sports betting outcomes in October and December impacted these figures, without which the Digital revenue would have been around $370 million.
On February 19, Jefferies analyst David Katz assigned a Buy rating to the stock. Katz is optimistic that the company will rebound by 2025, despite short-term problems in the online business segment and regional gaming portfolio. While the regional portfolio may profit from a more competitive environment and fresh initiatives in specific areas, Caesars Digital is anticipated to grow due to improved iGaming performance and reduced promotional expenses.
JDP Capital Management stated the following regarding Caesars Entertainment, Inc. (NASDAQ:CZR) in its Q4 2024 investor letter:
“Caesars Entertainment, Inc. (NASDAQ:CZR) was down 30% in 2024. The position has been a loser so far, dropped about 17% below cost, equivalent to the valuation just 3 months in to COVID when Vegas was all but shut down. I have spoken about CZR at length in past letters so I will spare you from re-reading the pitch.
In 2024 CZR’s post-COVID growth rate started to slow and by 3Q 2024 revenue and EBITDA were essentially flat with YoY. Fears about a consumer spending hangover, combined with rising floating rate interest rates, led to the stock being put the penalty box most of the year.
Looking ahead at 2025 Caesars expects to generate materially more free cash flow as massive multi year capex projects wrapped up in 2024, and more states legalize online gaming. Caesars is also a beneficiary of the transition to online gaming which will drive higher returns on capital and free cash flow in industry with otherwise average returns. …” (Click here to read the full text)
3. Coherent Corp. (NYSE:COHR)
10-Year Revenue CAGR: 22.04%
Number of Hedge Fund Holders: 90
Average Upside Potential as of April 21: 90.08%
Coherent Corp. (NYSE:COHR) develops, manufactures, and markets engineered materials, optoelectronic components & devices, and optical & laser systems and subsystems. It operates through three segments: Networking, Materials, and Lasers.
Due to the strong adoption of its 800G transceivers, Coherent Corp. (NYSE:COHR) made record FQ2 2025 datacom revenue. This was a 79% year-over-year increase. To support this growth, indium phosphide production tripled year-over-year. This is a semiconductor material used in lasers and other optoelectronic devices, which is required for high-speed data transmission in applications like AI-driven data centers.
On March 24, Raymond James analyst Simon Leopold upgraded the stock from Outperform to Strong Buy but lowered the price target to $91 from $110 after insights from NVIDIA’s GTC and Corning’s analyst meetings. The firm revised its datacom optical model and forecasted $22.2 billion in AI backend transceiver sales by 2030, with a ~30% annual growth rate. Its 2027 estimate for AI backend revenue increased to $7.5 billion from $7.1 billion.
Diamond Hill Select Strategy stated the following regarding Coherent Corp. (NYSE:COHR) in its Q4 2024 investor letter:
“Among our other top Q4 contributors were Amazon, WESCO and Coherent Corp. (NYSE:COHR). Coherent is a global leader in materials, networking and lasers for the industrial, communications, electronics and instrumentation markets. Demand for optical transceivers used in AI datacenter buildouts has been robust, benefiting Coherent and resulting in higher earnings and new orders which suggest momentum is likely to continue.”
2. FTAI Aviation Ltd. (NASDAQ:FTAI)
10-Year Revenue CAGR: 40.49%
Number of Hedge Fund Holders: 54
Average Upside Potential as of April 21: 96.24%
FTAI Aviation Ltd. (NASDAQ:FTAI) owns, acquires, and sells aviation equipment for transporting goods and people. It operates in two segments: Aviation Leasing and Aerospace Products. It also engages in the offshore energy business, which consists of vessels and equipment that support offshore oil and gas activities and production.
In Q4 2024, the company’s Aerospace Products made $117.3 million in adjusted EBITDA at an overall EBITDA margin of 34%. This was a sequential increase of 15% and a year-over-year jump of 115%. The company is focused on ramping up production at its facilities in Montréal and Miami, as well as commencing operations at its new maintenance facility in Rome.
FTAI Aviation Ltd. (NASDAQ:FTAI) anticipates EBITDA to be between $600 and $650 million in 2025. The company’s maintenance approach is centered on green time optimization and using a large owned engine fleet, and allows it to offer lower fixed prices and minimal downtime to small and medium-sized airlines operating CFM56 and V2500 engines, within a large addressable market.
Tourlite Capital Management noted the company’s over 200% stock increase in 2024 and stated the following regarding FTAI Aviation Ltd. (NASDAQ:FTAI) in its Q4 2024 investor letter:
“FTAI Aviation Ltd. (NASDAQ:FTAI) emerged as one of the top-performing stocks in 2024, with its share price increasing over 200%. This performance was driven by robust aerospace after-market tailwinds and the growing market share of its PMA parts business, as the company consistently exceeded market expectations quarter after quarter.
The fourth quarter brought significant developments for FTAI, despite a share price retracement in the last five weeks of the year. In November, the company announced FAA approval for its second PMA engine part. In late December, FTAI announced a Strategic Capital Initiative (SCI) with private credit investors to acquire mid-life aircraft, tapping into a potential $30 billion market as aircraft lessors offload older planes as they make new purchases. Under this arrangement, FTAI secures the rights for the engine maintenance contracts, which are projected to generate ~$200 million in incremental annual aerospace EBITDA by 2026 when fully ramped.
When we analyze the SCI and factor in the multiple revenue streams (management fee, incentive fee and maintenance revenue), we believe the return on invested capital will be 80%+. We calculate a combined ~$2.50 per share of earnings from SCI. If the first SCI deal is successful, FTAI could raise one of these 7-year funds a year…” (Click here to read the full text)
1. Sarepta Therapeutics Inc. (NASDAQ:SRPT)
10-Year Revenue CAGR: 69.43%
Number of Hedge Fund Holders: 50
Average Upside Potential as of April 21: 230.92%
Sarepta Therapeutics Inc. (NASDAQ:SRPT) is a commercial-stage biopharmaceutical company that discovers and develops RNA-targeted therapeutics, gene therapies, and other genetic therapeutic modalities for the treatment of rare diseases. It has collaboration and license agreements with several companies and institutions.
ELEVIDYS is Sarepta’s gene therapy for Duchenne Muscular Dystrophy. In Q4 2024 alone, ELEVIDYS sales reached $384.2 million, which was a sequential improvement of 112%. The company projects ELEVIDYS to improve by over 160% year-over-year in 2025 and make up ~two-thirds of Sarepta’s total net product revenue guidance. Since its approval in 2023, ELEVIDYS has made over $1 billion in sales. This figure is still less than 5% of the on-label addressable patient opportunity.
The recent positive two-year and one-year crossover results from the EMBARK trial further solidify the therapy’s transformative potential. With 600+ patients now on therapy across a range of ages and weights, Sarepta Therapeutics Inc. (NASDAQ:SRPT) is expanding its global reach and improving manufacturing efficiency.
While we acknowledge the growth potential of Sarepta Therapeutics Inc. (NASDAQ:SRPT), our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than SRPT 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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