In this article, we will discuss the 10 Best Long-Term Stocks to Buy Now for High Returns.
On May 15, Morgan Stanley released its mid-year economic outlook, highlighting that the broader global economy has been expanding, thanks to the momentum in the US. Notably, the AI capital investment and resilient spending by wealthier consumers continue to fuel growth. However, the global growth is projected to slow marginally to 3.2% for the full year.
This is because of the energy shock. That being said, the recession will be avoided. Furthermore, the firm also expects recovery to 3.4% in 2027 as the oil and gas prices ease. The firm opines that the AI-associated spending remains a dominant factor in the present investment cycle. Notably, the business spending in the US is anticipated to increase 7% in Q4 from a year earlier and 8% in 2027. The companies that are spending on data center infrastructure have been exceeding the investors’ expectations.
Amidst such trends, let us now have a look at the 10 Best Long-Term Stocks to Buy Now for High Returns.
Our Methodology
To list the 10 Best Long-Term Stocks to Buy Now for High Returns, we used a screener to shortlist companies that have at least $2 billion in market capitalisation, ~10% revenue growth over the past 3 years, and in which analysts still see an upside of at least ~30%. We also mentioned hedge fund sentiments around each stock, as of Q4 2025. The stocks are finally arranged in an ascending order of their hedge fund sentiments.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
Note: All the data is as of May 19
10 Best Long-Term Stocks to Buy Now for High Returns
10. Block, Inc. (NYSE:XYZ)
3-year Revenue Growth: ~10%
Number of Hedge Fund Holders: 63
Market Capitalisation: ~$40.5 billion
Average Upside Potential: ~32.3%
Block, Inc. (NYSE:XYZ) is one of the Best Long-Term Stocks to Buy Now for High Returns. On May 19, the company announced that The Hat selected Square as the unified commerce platform. Notably, The Hat is a quick-service restaurant (QSR) known for pastrami sandwiches. Square for Restaurants offers The Hat centralized menu management and unified reporting tools. This helps empower leadership with comprehensive operational insights.
Furthermore, The Hat also utilises Square Register (along with receipt printers and cash drawers) configured for the high-volume counter service.
In a separate release, Canaccord analyst Joseph Vafi lifted its price objective on Block, Inc. (NYSE:XYZ)’s stock to $85 from $80 and kept a “Buy” rating. As per the firm, the company posted strong results in Q1. Against the backdrop of difficult macro-economic conditions and maturation in the e-Commerce payments, Block, Inc. (NYSE:XYZ)’s results exhibit how focus and smart strategy continue to pay off.
Block, Inc. (NYSE:XYZ) is engaged in building ecosystems focused on commerce and financial products and services.
9. Workday, Inc. (NASDAQ:WDAY)
3-year Revenue Growth: ~15.4%
Number of Hedge Fund Holders: 70
Market Capitalisation: ~$31.9 billion
Average Upside Potential: ~39.7%
Workday, Inc. (NASDAQ:WDAY) is one of the Best Long-Term Stocks to Buy Now for High Returns. On May 22, Needham reduced its price objective on the company’s stock to $180 from $300, while maintaining a “Buy” rating. According to the firm, the company reported results above consensus estimates for revenue and operating income. Notably, the CEO took a more aggressive tone regarding how Workday, Inc. (NASDAQ:WDAY) as well as its Agentic platform could compete in the new software paradigm.
Notably, in Q1 2027, the company’s total revenues came at $2.542 billion, reflecting a rise of 13.5% YoY, with subscription revenues coming at $2.354 billion, up by 14.3% versus the same period of last year. Workday, Inc. (NASDAQ:WDAY)’s operating income amounted to $338 million, or 13.3% of revenues, as compared to operating income of $39 million, or 1.8% of revenues, in Q1 2026. For Q2 2027, the company expects subscription revenues of $2.455 billion, reflecting 13% growth.
Workday, Inc. (NASDAQ:WDAY) offers enterprise cloud applications.
8. KKR & Co. Inc. (NYSE:KKR)
3-year Revenue Growth: ~60.4%
Number of Hedge Fund Holders: 76
Market Capitalisation: ~$84.4 billion
Average Upside Potential: ~30.3%
KKR & Co. Inc. (NYSE:KKR) is one of the Best Long-Term Stocks to Buy Now for High Returns. On May 18, TD Cowen reduced its price target on the company’s stock to $104 from $106 and kept a “Hold” rating on the shares. Notably, the firm updated its models in the alternative asset manager group after the release of Q1 reports. As per the analyst, the broader sector’s long-term earnings power is climbing. That being said, the current earnings quality is low.
In a separate release, KKR & Co. Inc. (NYSE:KKR) released its Q1 2026 results, with total GAAP revenue of $4.32 billion, of which $2.02 billion came from asset management and strategic holdings. Out of this, total fees and other made up $1.18 billion, and total capital allocation-based income was $841.8 million. Total fees and other for Q1 2026 increased on a YoY basis, primarily because of an increase in management fees and, to a lesser extent, incentive fees. However, the impact was partially offset by a decrease in transaction fees.
KKR & Co. Inc. (NYSE:KKR) is a private equity and real estate investment firm that specializes in direct and fund-of-fund investments.
7. Roblox Corporation (NYSE:RBLX)
3-year Revenue Growth: ~31.2%
Number of Hedge Fund Holders: 84
Market Capitalisation: ~$34.4 billion
Average Upside Potential: ~46%
Roblox Corporation (NYSE:RBLX) is one of the Best Long-Term Stocks to Buy Now for High Returns. On May 22, DA Davidson reduced its price objective on the company’s stock to $45 from $47.50 and kept a “Neutral” rating. As per the firm, there has been continued acceleration in average user growth on Fortnite’s user-generated content maps for 5 straight months. The firm believes that growth could impact Roblox Corporation (NYSE:RBLX)’s user growth if the acceleration continues across 2026.
Also, the bigger pressure looming for H2 2026 is the release of GTA VI. The firm believes that the main overlap of users at risk of churning remains in the U.S., Canada, and Europe.
In a different update, Roblox Corporation (NYSE:RBLX) reported that Q1 2026 revenue growth came in at 39% YoY to $1.4 billion, with bookings rising 43% YoY to $1.7 billion. It saw $629 million in operating cash flow, reflecting 42% YoY growth, and $596 million in FCF, up by 40% YoY. Overall, the company’s performance was aided by the combination of robust user and engagement growth, coupled with improvements in monetization throughout all the regions.
Roblox Corporation (NYSE:RBLX) is an immersive gaming and creation platform.
6. AppLovin Corporation (NASDAQ:APP)
3-year Revenue Growth: ~28.4%
Number of Hedge Fund Holders: 108
Market Capitalisation: ~$161.8 billion
Average Upside Potential: ~36.3%
AppLovin Corporation (NASDAQ:APP) is one of the Best Long-Term Stocks to Buy Now for High Returns. On May 12, Needham analyst Bernie McTernan maintained a “Buy” rating on the company’s stock, setting the price objective of $700.00. The analyst’s rating comes off the back of factors associated with AppLovin Corporation (NASDAQ:APP)’s product roadmap and growth opportunities.
The analyst noted the upcoming general availability launch for the Consumer offering. This includes new generative AI video-creation capabilities that can aid advertisers in improving return on ad spend and deepen the engagement on the platform.
Furthermore, the analyst hinted towards the expansion of AppLovin Corporation (NASDAQ:APP)’s addressable market as a key driver. McTernan noted the ability for advertisers to purchase on a cost-per-lead basis as well as the effort to integrate Axon tightly with advertisers’ own AI systems.
Overall, AppLovin Corporation (NASDAQ:APP)’s robust supply positioning, along with incremental upside due to the hybrid monetization in in-app purchase games and long-term opportunity in connected TV, supports the rating.
AppLovin Corporation (NASDAQ:APP) is engaged in providing end-to-end AI-powered advertising solutions.
While we acknowledge the potential of APP 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 APP and that has 100x upside potential, check out our report about the cheapest AI stock.
Click to continue reading and see the 5 Best Long-Term Stocks to Buy Now for High Returns
Disclosure: None. Follow Insider Monkey on Google News.
