In this article, we will discuss: 10 Best Fundamentally Strong Stocks to Buy for Long Term.
On June 22, CNBC reported that the co-head of global investment strategy at JPMorgan Private Bank, Stephen Parker, on “Squawk Box,” commented that this year’s stock market surge has been “entirely earnings driven,” with corporate profits continuously exceeding even the most optimistic projections. Parker anticipates earnings momentum to continue through the rest of the year. He also stated that his base-case market objective anticipates lower valuation multiples than current levels. His bull-case target assumes current multiples remain unchanged while earnings growth continues. Parker also sees double-digit earnings growth in eight of the 11 S&P sectors, growing gains beyond the technology industry, according to CNBC.
Parker stated that a slowdown in capital spending might threaten the outlook, but he does not anticipate that scenario. Instead, he said he would grow concerned if optimism and increasing valuation multiples, rather than earnings, began driving markets. Parker also mentioned strong loan demand, despite concerns about private credit, energy prices, and AI disruption. According to CNBC, he believes the Federal Reserve will remain on hold and that markets can absorb a couple of rate hikes provided earnings growth continues.
With that said, here are the 10 Best Fundamentally Strong Stocks to Buy for Long Term.
Methodology:
We used Finviz’s stock screener to identify fundamentally strong stocks for long term investing, screening for a market cap above $2 billion, 5-year expected EPS growth over 15%, 5-year past sales growth over 15%, and return on equity above 15% as of June 26. We then identified those with the highest number of hedge fund holders, which we assessed using Insider Monkey’s database of hedge funds as of Q1 2026. The stocks are ranked in ascending order of the number of hedge fund holders.
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. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
10. Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY)
Number of Hedge Fund Holders: 54
Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) is among the Best Fundamental Stocks.
On June 25, Komodo Health expanded its strategic partnership with Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY). It is an extension of work built on Komodo’s Healthcare Map and Marmot analytics AI platform, following Alnylam’s adoption of the platform in August 2025 to develop custom AI agents for its commercial organization. Alnylam Chief Commercial Officer Tolga Tanguler said the expanded capabilities will help the firm turn insights into action, speed up decision-making, scale operations, and support sustainable growth. They will also assist in maintaining its patient focus.
Earlier, on June 3, Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) announced a strategic AI collaboration with Inceptive Nucleics valued at up to $2 billion. It includes $30 million in upfront consideration through cash and an equity investment. The companies said the partnership combines Alnylam’s RNAi platform and more than 20 years of proprietary data with Inceptive’s AI foundation models to accelerate RNAi therapeutic discovery. It will also allow Inceptive to earn milestone payments connected to regulatory and commercial achievements.
Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) is a biopharmaceutical company that works in developing and marketing novel therapeutics based on ribonucleic acid interference.
9. Core & Main, Inc. (NYSE:CNM)
Number of Hedge Fund Holders: 55
On June 12, Goldman Sachs raised its price target for Core & Main, Inc. (NYSE:CNM) from $23 to $24. Analyst Joe Ritchie maintained a “Neutral” rating on the stock.
The increase comes after the company beat first-quarter EBITDA because of a modest jump in both sales and profit margins. Goldman pointed out that pricing remained constant during the quarter, as lower PVC prices were successfully offset by price increases across other commodities.
Core & Main (NYSE:CNM) confirmed that it is sticking to its original financial goals for 2026. The firm forecasted total sales between $7.8 billion and $7.9 billion with a 2% to 3% growth from the previous year. It sees an adjusted EBITDA of $950 million to $980 million and an adjusted EBITDA margin of 12.2% to 12.4%, and operating cash flow equal to 60% to 70% of adjusted EBITDA.
CEO Mark Witkowski said the company’s focus is on executing growth plans, expanding margins, and helping customers on complex infrastructure projects while creating long-term shareholder value.
Core & Main, Inc. (NYSE:CNM) works in the distribution of water, wastewater, storm drainage, and fire protection products and related services in the United States.
8. Instacart (NASDAQ:CART)
Number of Hedge Fund Holders: 58
Instacart (NASDAQ:CART) is among the Best Fundamental Stocks.
On June 25, Forbes reported that Instacart (NASDAQ:CART) is working on its connected-store strategy by using AI to connect online grocery data with in-store shopping. Instacart’s chief connected store officer, David McIntosh, said the company’s AI-powered Caper smart carts combine cameras, sensors, and certified scales. It has also used Nvidia Jetson hardware to spot products in real time while displaying shoppers’ running totals.
McIntosh said Instacart (NASDAQ:CART)’s StoreView platform captures shelf images through Caper carts and order pickers, using on-device AI to identify out-of-stock items and help retailers replenish inventory. He revealed that Caper synchronizes shopping lists created online with in-store carts and delivers personalized recommendations using customers’ shopping history and location within the store.
Instacart’s chief connected store officer also said the online app firm supports hundreds of retailer storefronts. It has processed 1.6 billion lifetime online grocery orders and collects millions of in-store sensor inputs daily to improve AI tools for retail partners.
Instacart (NASDAQ:CART) designs and develops an online application that offers grocery delivery and pick-up services. The firm provides Instacart, which connects users with personal shoppers in the area who pick up and deliver groceries from local stores.
7. Delta Air Lines, Inc. (NYSE:DAL)
Number of Hedge Fund Holders: 68
On June 7, CNBC reported that Delta Air Lines, Inc. (NYSE:DAL) is targeting leadership in the trans-Pacific market. Its President, Peter Carter, said the carrier plans to become the leading US airline across the Pacific and ultimately the leading global airline. He disclosed that the airline firm expects part of that growth to come through its joint venture with Korean Air, which is merging with Asiana Airlines.
CNBC reported that Delta Air Lines, Inc. (NYSE:DAL) earned more than $5 billion in net profit last year compared to around $3.35 billion for United Airlines. However, the former earned $2.79 billion in trans-Pacific revenue compared to United’s roughly $6.89 billion. Both carriers are expanding international networks. CNBC reported that Delta recently launched Los Angeles-Hong Kong service, while United plans nonstop flights between San Francisco and Sapporo.
United CEO Scott Kirby told CNBC he welcomed the competition, while Carter said Delta would keep on chasing growth despite United’s challenge. He said, “Bring ’em on.”
Delta Air Lines, Inc. (NYSE:DAL) schedules air transportation for passengers and cargo. It works through the Airline and Refinery segments.
6. Carvana Co. (NYSE:CVNA)
Number of Hedge Fund Holders: 79
Carvana Co. (NYSE:CVNA) is among the Best Fundamental Stocks.
On June 17, CNBC reported that Carvana Co. (NYSE:CVNA) is testing a new-vehicle retail model in Dallas that keeps every purchase online. It is using franchised dealerships as test-drive centers, service locations, and customer “playgrounds” rather than traditional sales floors. Carvana’s president of special projects, Tom Taira, told CNBC every vehicle the firm sells, new or used, is purchased through its online platform, distinguishing the model from traditional dealerships.
CNBC reported Carvana Co. (NYSE:CVNA) has expanded to seven Stellantis franchised dealerships. It is also planning to grow its new-vehicle business while supporting used-vehicle trade-ins. Tom Taira said the corporation will start operating service departments like traditional dealerships and maintain transparent, non-negotiable pricing.
CNBC also reported the American online used car retailer offers roughly 3,000 new vehicles nationwide compared with more than 60,000 used vehicles. Taira said the firm is refining inventory selection and customer experience before deciding whether to expand the Dallas concept.
Carvana Co. (NYSE:CVNA) is a holding company and an e-commerce platform. It specializes in the purchase and sale of used vehicles.
While we acknowledge the potential of CVNA to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CVNA and that has 100x upside potential, check out our report about the cheapest AI stock.
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