To select stocks with long-term growth potential, investors should focus on fundamental analysis, evaluating financial health through earnings history, revenue growth, and profit margins. Companies that consistently demonstrate earnings growth and possess a strong competitive advantage are more likely to thrive over time. Investing in dividend-paying stocks is also beneficial, as those that regularly increase dividends indicate financial stability. Identifying stocks in growing industries, such as technology, renewable energy, and healthcare, can further guide investment choices. Diversification across various sectors reduces risk, ensuring that underperformance in one area can be balanced by gains in another. By combining such strategies, investors can improve their chances of finding promising stocks that align with long-term financial goals.
On December 26, Drew Pettit, Director at Citi Research, discussed his long-term investment strategy on CNBC as he looks ahead to 2025, emphasizing a “barbell” approach that balances high-growth stocks with lower valuation names. This is relevant for investors considering a long-term stock portfolio over the next decade. Pettit advocates for pairing mega-cap growth stocks with cyclical and defensive sectors, where fundamentals are expected to improve. He believes that adopting this barbell strategy can enhance portfolio resilience and capitalize on diverse market opportunities.
In the realm of AI, Pettit noted a growing enthusiasm among investors. He highlighted a shift in perception, moving beyond backend applications to include companies that are more customer-facing within the AI value chain. When it comes to specific investments within AI, Pettit expressed a preference for semiconductors over software at this time. He pointed to Marvell Technology as a standout choice, projecting that its custom AI chip business could experience remarkable growth, projected at 200% next year, followed by an additional 60% growth in the subsequent year.
Pettit also discussed his strategy for 2025 and outlined plans to reduce exposure to consumer stocks while focusing on attractive areas within the sector that are less sensitive to interest rates. He highlighted the potential of fintech and payment companies and said that they are well-positioned for long-term growth amid deregulation. Pettit emphasized that his firm’s focus is not on cryptocurrencies like Bitcoin but on traditional payment networks. He expressed concerns about consumer data trends and interest rate changes, advocating for a balanced approach by seeking high-quality stocks less affected by rate fluctuations and recommending key positions such Big Tech for long-term investment.
Let’s now take a look at the 10 best stocks for 10 years.
Methodology
We first sifted through ETFs, online rankings, and internet lists to compile a list of the top blue-chip stocks with a 10-year revenue compound annual growth rate of over 10%. We then selected the 10 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q3 2024. The hedge fund data was sourced from Insider Monkey’s database which tracks the moves of over 900 elite money managers.
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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Long-Term Stock Portfolio: Best Stocks for 10 Years
10. AbbVie Inc. (NYSE:ABBV)
10-Year Revenue CAGR: 10.97%
Number of Hedge Fund Holders: 68
AbbVie Inc. (NYSE:ABBV) is a global biopharmaceutical company that specializes in developing and marketing innovative medicines and therapies for several health conditions. It prioritizes R&D to discover new treatments for complex diseases and maintains a competitive advantage through its diverse product portfolio.
Humira, a flagship drug for autoimmune diseases, was a top revenue generator for the company, reaching sales of $21 billion in 2022. However, in Q3 2024, Humira’s revenues declined to $2.23 billion, a 37.2% year-over-year decrease, attributed to the loss of patent exclusivity in 2023 and increased competition from biosimilar drugs.
Still, the total revenue for AbbVie Inc. (NYSE:ABBV) rose by 3.8% year-over-year. The immunology segment was a key driver of this growth, generating $7.05 billion in revenue, a ~4% increase year-over-year. The company continues to be a strong investment option for long-term investors. It maintains robust financial performance and consistently rewards shareholders with attractive returns.
In its Q3 2024 investor letter, Polaris Global Equity Strategy discussed the strong performance of the US biopharma sector, with AbbVie Inc. (NYSE:ABBV) demonstrating successful growth despite Humira’s exclusivity loss. Here’s what the firm had to say:
“U.S. biopharma/biotech companies topped the health care sector, with the majority of holdings posting returns in excess of 10%. AbbVie Inc. (NYSE:ABBV) showed positive top-line growth from its immunosuppressive drugs, Skyrizi and Rinvoq. Abbvie’s management continues to work through the loss of exclusivity from Humira, switching patients to Skyrizi or Rinvoq rather than Humira biosimilars.”
9. Bristol-Myers Squibb Co. (NYSE:BMY)
10-Year Revenue CAGR: 11.44%
Number of Hedge Fund Holders: 70
Bristol-Myers Squibb Co. (NYSE:BMY) is a global biopharmaceutical company focused on developing innovative medicines for serious diseases, particularly in oncology, cardiovascular conditions, and immunology. It has demonstrated consistent growth, driven by a strong pipeline of new drugs and a robust financial position.
The company’s growth portfolio revenues increased 20% in Q3 2024 and now account for nearly half of total revenues. The recent FDA approval of Opdivo-based treatment for non-small cell lung cancer and promising clinical data for its nivolumab plus relatlimab combination in lung cancer improved financial results for the third quarter. It’s also advancing its bispecific ADC (Antibody-Drug Conjugates) and radiopharmaceutical pipeline specifically focused on oncology.
During Q3 2024, the company generated ~$12 billion in revenue, marking an 8.5% increase compared to the same period in the previous year, driven by sales within the oncology portfolio. Bristol-Myers Squibb Co. (NYSE:BMY) is a leading pharmaceutical company with a strong track record of innovation and a promising pipeline of new medicines.
8. Applied Materials Inc. (NASDAQ:AMAT)
10-Year Revenue CAGR: 11.60%
Number of Hedge Fund Holders: 74
Applied Materials Inc. (NASDAQ:AMAT) supplies equipment, services, and software to the semiconductor industry. It provides critical technologies for the production of semiconductors used in a range of electronic devices, including computers, smartphones, and other consumer electronics. Its products and services are essential for the advancement of semiconductor technology.
The company achieved a record revenue of $27.2 billion in FY2024, representing a 2.5% year-over-year increase, driven by solid performance in the wafer fabrication equipment (WFE) segment. In FQ4 2024, it reported a revenue of $7.05 billion, a 5% increase year-over-year. Semiconductor Systems revenue grew 6%, driven by demand in leading-edge foundry logic, while DRAM sales declined due to elevated purchases in the prior year. Applied Global Services (AGS) made a record revenue of $1.64 billion, driven by growth in services and a 10% increase in tools under service agreements.
It expects continued momentum in the WFE market, with FQ1 2025 revenue projected to reach $7.15 billion, a ~7% year-over-year increase. This growth is anticipated to be driven by strong demand in leading-edge logic and the ICAPS nodes. The company’s focus on innovation, strong customer relationships, and operational excellence positions it for continued success.
7. Thermo Fisher Scientific Inc. (NYSE:TMO)
10-Year Revenue CAGR: 10.32%
Number of Hedge Fund Holders: 98
Thermo Fisher Scientific Inc. (NYSE:TMO) provides scientific instruments, laboratory equipment, reagents, and consumables among other products. It serves many customers, including pharmaceutical and biotechnology companies, hospitals and clinics, universities, and government research institutions. Its products and services are used in applications like drug discovery and development, clinical diagnostics, and life science research.
The company’s Q3 2024 success can be attributed to its “Trusted Partner” status, fostering strong commercial relationships that drive significant wins and solidify market leadership. This translated into a revenue of $10.6 billion for the third quarter, a 0.3% increase year-over-year. It prioritizes understanding customer needs through direct interactions and unparalleled access.
This understanding fueled strategic partnerships, such as the NCI myeloMATCH trial and collaborations in China. These partnerships demonstrate a commitment to advancing customer success and driving commercial wins. Thermo Fisher Scientific Inc.’s (NYSE:TMO) scale, expertise, and innovative solutions position it as the partner of choice for accelerating research and enhancing productivity.
6. UnitedHealth Group Inc. (NYSE:UNH)
10-Year Revenue CAGR: 11.88%
Number of Hedge Fund Holders: 112
UnitedHealth Group Inc. (NYSE:UNH) is a global healthcare company that offers health insurance plans through its UnitedHealthcare segment, and healthcare services through its OptumHealth segment. UnitedHealthcare provides health plans for individuals, employers, and government programs. OptumHealth offers health services like pharmacy care services, health information and technology, care delivery, care management, and population health management.
Its key growth driver is its strategic transition to value-based care, a healthcare delivery model that prioritizes improving patient outcomes and reducing costs by incentivizing quality over quantity. This is demonstrated by the company’s significant investments in OptumHealth. In 2023, OptumHealth revenues grew by over $2 billion, reaching ~$26 billion, driven by an increase in the number and type of care services offered and the patients served.
Patients served by OptumHealth’s value-based care models have shown improvements in key health metrics. For example, they are more likely to receive cancer screenings, have better control of chronic conditions like diabetes and hypertension, and are 10% less likely to experience emergency room visits or be readmitted to the hospital compared to patients in traditional fee-for-service models. UnitedHealth Group Inc.’s (NYSE:UNH) is well-positioned to capitalize on the evolving healthcare landscape and continue to deliver strong financial performance.
Parnassus Value Equity Fund finds an attractive investment opportunity in UnitedHealth Group Incorporated (NYSE:UNH), a high-quality company with strong long-term growth prospects trading at a discounted valuation. Here’s what the firm stated in its Q3 2024 investor letter:
“We purchased two new stocks, UnitedHealth Group Incorporated (NYSE:UNH) and Amazon. These are high-quality businesses facing temporary issues, which allowed us to purchase them at discounted valuations. The addition of UnitedHealth increases our small overweight to the Health Care sector. UnitedHealth benefits from secular tailwinds of an aging population, health care cost inflation and increasingly relevant use of heath care data/analytics. It also commands industry leadership when it comes to its extensive assets, vertical integration and deep management bench. Even though the stock has underperformed in the past year, we believe many of those factors have been priced in, positioning it well for growth in the near term.”
5. Alibaba Group Holding Ltd. (NYSE:BABA)
10-Year Revenue CAGR: 31.26%
Number of Hedge Fund Holders: 115
Alibaba Group Holding Ltd. (NYSE:BABA) is a leading technology company that operates a diverse portfolio of businesses, including e-commerce platforms, cloud computing services, digital media, and entertainment. It plays a significant role in the Chinese economy and impacts businesses and consumers worldwide.
In FQ2 2025, the company demonstrated continued growth, with revenue increasing by 7% year-over-year, driven by a double-digit expansion in public cloud revenue, a key segment within its Cloud Intelligence Group. The Cloud Intelligence Group, which focuses on cloud computing and AI services, generated RMB 29.6 billion ($4.2 billion) in revenue during FQ2 2025. Notably, AI-related products within this segment achieved triple-digit year-over-year growth for the 5th consecutive quarter.
Recognizing the immense potential of AI, Alibaba Group Holding Ltd. (NYSE:BABA) plans to significantly invest in AI infrastructure to further solidify its position as a leading provider of AI-powered cloud solutions.
In its Q3 2024 investor letter, Conventum – Alluvium Global Fund highlighted the significant outperformance of Alibaba Group Holding Ltd. (NYSE:BABA) driven by China’s recent stimulus package, while acknowledging the potential risks associated with its current valuation. Here’s what it stated:
“On 24 September the People’s Bank of China unveiled a massive three part stimulus package involving: (1) slashing the amount of cash banks need to hold in reserve and lowering the main policy interest rate; (2) cutting mortgage rates on existing home loans by 0.5% and reducing down payment requirements for second homes from 25% to 15%; and (3) supporting equity markets by a USD 114b lending pool to encourage companies to buy back shares and non-bank financial institutions to buy local equities (which may be expanded by the same amount two more times)5 . We are flabbergasted. But we shouldn’t be. After all, these types of arrangements have been all too common over the last 15 years. The local equity markets responded with gusto, and for the last week of the quarter the CSI 300 Index (Shanghai and Shenzen listed companies) was up 25.1%. Alibaba Group Holding Limited (NYSE:BABA) was not lost in all this, and returned 26.8% over that one week period. But Alibaba had already performed well so during the whole September quarter it was up a staggering 56.0%. As a result, Alibaba is no longer the cheap stock it once was. It now trades at a premium to our valuation – a valuation which admittedly had been progressively reduced over our holding period as a result of deteriorating business fundamentals. As a result of Alibaba’s significant outperformance, by the end of the quarter it had reached 3.7% of the Fund. We are weighing up our options here, considering the relative risk.”
4. Salesforce Inc. (NYSE:CRM)
10-Year Revenue CAGR: 22.04%
Number of Hedge Fund Holders: 116
Salesforce Inc. (NYSE:CRM) provides customer relationship management (CRM) technology that empowers businesses to manage customer interactions. In October, the company introduced Agentforce, an AI-powered platform for digital labor, which utilizes autonomous AI agents to augment human capabilities.
Its primary growth engine is now Agentforce. In FQ3 2025, the company secured over 200 Agentforce deals. Leading organizations such as FedEx, Adecco, Accenture, ACE Hardware, IBM, and RBC Wealth Management are constructing their digital labor forces on the Salesforce Inc. (NYSE:CRM) platform utilizing Agentforce.
The company anticipates Agentforce to divert between 25% and 50% of its annual case volume, with the potential for higher deflection rates in favorable scenarios. It’s expanding its global sales team by recruiting 1,400 Account Executives in FQ4. The Agentforce ecosystem has 80,000+ system integrators trained on the platform and 100s of Independent Software Vendors (ISVs) and technology partners developing and distributing AI agents. Consequently, Salesforce Inc. (NYSE:CRM) prioritizes responsible AI development and positions itself as the frontrunner in the enterprise AI platform market.
Parnassus Growth Equity Fund stated the following regarding Salesforce, Inc. (NYSE:CRM) in its Q2 2024 investor letter, expressing confidence in the company’s ability to capitalize on AI opportunities:
“Salesforce, Inc.’s (NYSE:CRM) growth continues to moderate, and investors question its prospect as it relates to AI. We remain confident that the company, which developed the original salesforce automation product and pioneered the SaaS (software as a service) delivery model, is well positioned to capitalize on emerging AI opportunities.”
3. Alphabet Inc. (NASDAQ:GOOG)
10-Year Revenue CAGR: 18.24%
Number of Hedge Fund Holders: 160
Alphabet Inc. (NASDAQ:GOOG) is a multinational technology conglomerate that serves as the parent company of Google, YouTube, and a diverse portfolio of subsidiaries, including Waymo, a leader in self-driving technology. It has also developed Gemini, a family of advanced LLMs that power its chatbot and enhance AI features in Google Search.
During Q3 2024, the company generated $88.3 billion in revenue, a 15% year-over-year increase. Google Advertising remained the primary revenue driver, contributing over 74% of the total revenue. In response to investor expectations for a strong return on significant AI investments, management is exploring strategies to enhance monetization through AI Overviews and other innovative features.
To elevate the internet search experience, Alphabet Inc. (NASDAQ:GOOG) has introduced AI Overviews. This feature delivers AI-generated summaries at the forefront of search results, integrating text, images, and links to facilitate user access to information. AI Overviews is projected to serve over a billion users monthly and is currently undergoing a global rollout across 100 countries.
The company’s CEO emphasized its progress in optimizing AI Overviews, achieving over 90% reduction in cost per query within 18 months while doubling the scale of its custom Gemini model. It’s fair to say that Alphabet Inc. (NASDAQ:GOOG) is positioned to capitalize on the emerging AI trends.
Despite investor concerns regarding significant capital expenditures related to AI development, RiverPark Large Growth Fund highlighted Alphabet Inc.’s (NASDAQ:GOOG) strong Q3 results, including robust Search and Cloud growth. Here’s what the firm stated in its Q3 2024 investor letter:
“Alphabet Inc. (NASDAQ:GOOG): Google was our top detractor in the third quarter despite reporting second quarter results that were generally in line with expectations. The company reported slightly better revenue growth in Search, which grew 14% and continues to be resilient in the face of AI challengers, and Google Cloud, which grew 29% in the quarter. Service operating income margins of 40% and Cloud operating income margins of 11% were also both ahead of investors’ expectations as management’s cost-efficiency efforts drove operating leverage. YouTube revenue growth was slightly below expectations (+13% v. +16%) driven by tougher year-over-year comparisons and some general weakness in the Brand Advertising vertical. Finally, Cap Ex in the quarter of $13.2 billion was more than expected and likely the driver of the weakness in the stock as investors grapple with how much infrastructure investment will be required to achieve Google’s AI goals.
With its high margin business model (44% EBITDA margins last quarter), continued strength across its core Search and YouTube franchises, and continued growth and expanding profitability in its still relatively small Cloud business, we continue to view Alphabet as among the best-positioned secular growth franchises in the market. Additionally, GOOG shares trade at a compelling 19.5x the Street’s 2025 EPS estimate, a discount to the Russell 1000 Growth Index.”
2. NVIDIA Corp. (NASDAQ:NVDA)
10-Year Revenue CAGR: 37.84%
Number of Hedge Fund Holders: 193
NVIDIA Corp. (NASDAQ:NVDA) is a global leader in GPU manufacturing and serves as a key driver of the ongoing AI revolution. While initially known for revolutionizing the gaming industry, its GPUs have now emerged as the force powering data centers, robotics, autonomous vehicles, and a range of other cutting-edge technologies.
Its Blackwell architecture represents a leap forward in GPU technology, with the flagship GB200 GPU leading the charge. The strong demand for both the Blackwell and Hopper platforms has been the primary driver of NVIDIA Corp.’s (NASDAQ:NVDA) growth in the data center segment. Sales of the H200 GPU have skyrocketed into the double-digit billions.
In Q3 2024, the company achieved a record-breaking $35.1 billion in revenue, marking a 94% year-over-year growth. While the gaming segment contributed $3.8 billion to the overall revenue, the data center segment contributed $30.8 billion following a 112% year-over-year growth. Given its strong market position, innovative technology, and impressive financial performance, NVIDIA Corp. (NASDAQ:NVDA) is considered one of the most promising stocks right now.
Polen Focus Growth Strategy highlighted NVIDIA Corp.’s (NASDAQ:NVDA) strong performance this quarter, despite significant stock price volatility driven by both positive and negative market sentiment. Here’s what the firm said in its Q3 2024 investor letter:
“In a reversal from the past two quarters, NVIDIA Corporation (NASDAQ:NVDA) represented our top relative contributor this quarter, despite the modest underperformance, declining -1.7%. In many ways, NVIDIA was a microcosm of the broader market’s heightened volatility. Beneath the placid surface, the company experienced a 27% drawdown followed by a +31% rally, only to repeat the cycle with a -21% drawdown followed by a subsequent 20% rally to finish the quarter. In our view, the stock’s volatility goes beyond fundamental business drivers, but the company in turn benefitted from increasing capital spending budgets from cloud service providers and large enterprises for generative AI (“GenAI”) infrastructure spending. Simultaneously, the stock endured weakness related to the delayed next-generation Blackwell chip, and an earnings forecast that exceeded expectations, albeit not as much as some investors hoped. While we continue to believe NVIDIA is a highly advantaged business, with significant demand for their chips and servers ahead of the need for that hardware from real-world businesses, we are cautious about its growth sustainability since it lacks recurring revenue.”
1. Amazon.com Inc. (NASDAQ:AMZN)
10-Year Revenue CAGR: 21.95%
Number of Hedge Fund Holders: 286
Amazon.com Inc. (NASDAQ:AMZN) is a technology company that has evolved from an online bookstore to a diversified conglomerate. Its core businesses include e-commerce, where it operates an online marketplace, along with cloud computing through Amazon Web Services (AWS), which provides a suite of services to businesses and individuals. It also offers digital streaming services and has expanded into areas like AI, advertising, and physical retail.
During Q3 2024, AWS led the charge in profitability, contributing $10.4 billion to the company’s total operating income of $17.4 billion. Its management team is focused on strengthening its cloud offerings through strategic customer-centric initiatives. A recent example is the launch of the Oracle Database@AWS service, which enables customers to migrate their Oracle workloads to AWS infrastructure with minimal modifications.
Amazon.com Inc. (NASDAQ:AMZN) also partnered with Databricks, a leader in data analytics and AI, to accelerate the development of custom AI models using Databricks Mosaic AI on AWS. These efforts are further complemented by signed agreements with major corporations like Booking.com, Capital One, and Sony. Due to the growth of its cloud computing division (AWS), the company is positioned for continued long-term success.
Despite near-term stock price weakness in the company, Montaka Global Investments strategically increased its holdings, recognizing its substantial long-term upside potential compared to other holdings in its portfolio. Montaka Global Investments stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its Q3 2024 investor letter:
“Secondly, in August, we sold some of our holdings in two tactical positions in the tail of Montaka’s portfolio – Advanced Micro Devices (AMD) and Kyndryl Holdings (KD) – to take advantage of a near-20% drawdown in the stock price of Amazon.com, Inc. (NASDAQ:AMZN).
We still see plenty of upside in AMD and KD, but Amazon has more substantial and higher-probability upside that demanded we allocate even more of Montaka’s capital to the online retailer.
Investment opportunities always compete for capital. Through this lens, Montaka’s largest investments act as a kind of ‘benchmark’: Any new investment must be more attractive than these holdings to get included in our portfolio.
Because we believe Montaka’s largest investments remain so attractive, our annualized portfolio turnover has been low for many years now – typically around 25%.
We continually identify quality global businesses with upside potential – but few new investment opportunities have greater upside than Montaka’s existing portfolio investments.
While Montaka is focused on investing over the long term, and most days don’t require any action on our part, paradoxically we need to be agile on a daily basis. That is, we must be ready to act if stock price changes throw up attractive investment opportunities.”
While we acknowledge the growth potential of Amazon.com Inc. (NASDAQ:AMZN), our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than AMZN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
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