In this article, we will discuss the 10 Best Long Term Stocks to Buy According to Hedge Funds.

On June 25, Allan Small, Senior Investment Advisor at Allan Small Financial Group, appeared on BNN Bloomberg to discuss investment opportunities and talk about the state of the market, which is trading near all-time highs but is largely driven by a handful of companies. Small noted that while the market has risen like a rocket ship rather than climbing the traditional escalator, he observed that leadership is not lifting all boats. Regarding the broader tech sector, Small observed that not all tech companies are performing equally. While the chip and semiconductor industries have seen success, some Mag 7 names have faced recent sell-offs. He viewed this as a positive development, as it allows investors to trim profits from past high-flyers and rotate capital into high-quality companies that have not yet kept up.

Addressing the question of how long the current market trend can last, Small advised investors to maintain a realistic perspective. Statistics show that the S&P 500 historically falls 5% to 10% a couple of times a year, and he suggested that investors should expect a pullback (possibly in late summer or early fall) without panic. He reminded investors that while the S&P 500 is up about 70%, many have seen higher returns due to heavy tech exposure, making it crucial to understand the drivers behind current market movements. Small emphasized the importance of diversification and noted that even with the market at highs, many quality companies are trading at lower valuations. He described his strategy as looking for companies with growing earnings and top-line numbers that are trading cheaply. He suggested that investors stay diversified across sectors like banking, pharma, and retail to mitigate the impact of potential tech pullbacks.

Against this backdrop, lets look at some of the best long term stocks to buy according to hedge funds.

Our Methodology

We sifted through financial media reports to compile a list of stocks widely discussed for their long-term potential, and limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.

Note: All data was sourced on June 26. 

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 Best Long Term Stocks to Buy According to Hedge Funds

10. Medtronic (NYSE:MDT)

Number of Hedge Fund Holders: 60

Medtronic (NYSE:MDT) is one of the best long term stocks to buy according to hedge funds. On June 8, Medtronic received FDA 510(k) clearance for its Nellcor pulse oximetry system featuring the new Nell-EQ intelligent processor. This technology is engineered to provide more consistent and reliable pulse rate and oxygen saturation monitoring across various patient populations, skin tones, and clinical environments. The clearance follows positive verification study results and the device’s previous designation under the FDA’s Safer Technologies Program.

The development addresses historical challenges regarding performance variability in pulse oximetry based on patient physiology and skin tone. Clinical studies for the Nell-EQ system used participants across a full spectrum of skin tones, using advanced signal processing to interpret optical signals into accurate readings. Beyond SpO₂ and pulse rate, the platform supports metrics including Heart Rate Variability and the Perfusion Index, aligning with evolving regulatory standards for inclusive patient monitoring.

Medtronic (NYSE:MDT) intends to launch the Nell-EQ-enabled system globally in the coming months, supported by comprehensive clinician education and training resources. This release reinforces the company’s focus on equitable care and its commitment to advancing monitoring technology. Clinicians can also access existing educational materials through the Medtronic Academy to support the effective use of pulse oximetry across the continuum of care.

Medtronic (NYSE:MDT) is a medical technology company that manufactures, distributes, and sells device-based medical services and therapies. It operates under four primary segments: Cardiovascular Portfolio, Neuroscience Portfolio, Medical Surgical Portfolio, and Diabetes Operating Unit.

9. Lowe’s Companies Inc. (NYSE:LOW)

Number of Hedge Fund Holders: 66

Lowe’s Companies Inc. (NYSE:LOW) is one of the best long term stocks to buy according to hedge funds. On May 21, Lowe’s introduced Material Lists, an AI-powered tool designed to streamline the estimation process for Pro customers. This technology converts various formats (including handwritten notes, photos, and spreadsheets) into quote-ready orders in minutes. Supporting both English and Spanish, the feature is engineered to reduce manual data entry and minimize errors, allowing Pros to respond faster to their own clients.

By digitizing raw material information, this tool addresses a significant pain point for Pros who often struggle to balance administrative tasks with project management. The solution uses SKU matching and automated list digitization developed by Lowe’s Technology to organize product information efficiently. This allows business owners to spend less time on back-office work and more time managing onsite projects and serving customers.

Material Lists joins a suite of digital resources available on Lowes.com and the company’s app, including Blueprint Takeoffs and Pro Extended Aisle. These connected, AI-driven tools are part of a broader initiative to help MyLowe’s Pro Rewards members manage quotes, track orders, and handle purchasing workflows more effectively. Lowe’s Companies Inc.’s (NYSE:LOW) continues to focus on these technological investments to help Pro customers improve operational efficiency and stay competitive.

Lowe’s Companies Inc. (NYSE:LOW) operates as a home improvement retailer in the US and Canada.