In this article, we talk about the 10 best non-tech stocks to buy and hold for 5 years.

Tech stocks understandably grab a lot of public attention, and for the past few years, the Mag 7 (Alphabet, Amazon, Apple, Meta, Microsoft, NVIDIA, and Tesla) have dominated business news headlines as the core proponents in driving the AI boom. However, there’s an emerging investment trend on Wall Street that favors companies characterized by heavy assets and low obsolescence, or HALO for short. Dan Deming, Managing Partner at KKM Financial, told Bloomberg Television on March 10 that firms with substantial physical infrastructure or tangible assets unlikely to be disrupted or replaced by AI advancements, including sectors such as consumer staples, energy, industrials, materials, and utilities, have become more appealing to investors.

According to Deming, the HALO trend is emerging as a countervailing force, with investors shifting away from AI-focused investments towards assets perceived as less susceptible to market volatility. This rotation has likely led to underperformance and stock price slumps for the tech sector, as money flows elsewhere, including towards the aforementioned “heavy assets, low obsolescence” market plays. Despite concerns, some proponents of the HALO trend believe that tech giants could ultimately gain market advantage if artificial intelligence increases demand for energy grids and other major assets they depend on. Overall, the HALO trend underscores a potential shift toward decoding Mag 7’s dominance, encouraging diversification away from their concentrated influence on indices like the S&P 500.

With that said, here is the list of the 10 best non-tech stocks to buy and hold for 5 years.

Our Methodology

For our methodology, we used stock screeners to filter non-tech stocks with an expected EPS growth rate of at least 20% over the next five years. We define non-tech stocks as companies that do not fall under the technology sector of the Global Industry Classification Standard. Based on the results, we ranked the stocks by the number of hedge funds holding them as of the fourth quarter of 2025. We then 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.

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 pricing data is as of market close on March 11, 2026.

10. Amentum Holdings Inc. (NYSE:AMTM)

Number of Hedge Fund Holders: 35

Amentum Holdings Inc. (NYSE:AMTM) is among the 10 best non-tech stocks to buy and hold for 5 years.

On March 10, Amentum Holdings Inc. (NYSE:AMTM) announced that a joint venture it leads has been awarded a $112 million contract to provide decommissioning and waste management services at nuclear research sites across four European countries. The European Commission Joint Research Centre awarded the contract, valued at €95.7 million, for work at sites in Ispra, Italy; Karlsruhe, Germany; Geel, Belgium; and Petten, the Netherlands.

The joint venture led by Amentum Holdings Inc. (NYSE:AMTM) includes WSP Italia, with support from sub-contractors TUV Rheinland and Protection Solution SRL. The scope covers the decommissioning of research reactors, hot cells, accelerators, laboratories, and other facilities where radioactive materials have been handled. Under the scope of the contract, which has an initial duration of two years with three potential two-year extensions, the Amentum Holdings Inc. (NYSE:AMTM)-led venture’s responsibilities include licensing, radioactive waste management, radiation protection, decommissioning and nuclear engineering, worksite management and safety, non-nuclear engineering, facility supervision, and quality assurance.

Amentum Holdings Inc. (NYSE:AMTM) provides mission-critical, technology-driven services to government and commercial markets.

9. Karman Holdings Inc. (NYSE:KRMN)

Number of Hedge Fund Holders: 36

Karman Holdings Inc. (NYSE:KRMN) is among the 10 best non-tech stocks to buy and hold for 5 years.

On March 10, Karman Holdings Inc. (NYSE:KRMN) announced that it will open a manufacturing facility in the Salt Lake City area in Utah to expand production of unmanned aerial system launch systems and solid rocket motor nozzle assemblies. The new factory will quadruple the company’s launch-system production capacity for loitering missiles and anti-UAS (unmanned aircraft system) programs. The facility will also double production capacity for solid rocket motor composite nozzles used in missile systems on the Pentagon’s critical munitions list.

Meanwhile, on March 6, Piper Sandler upgraded Karman Holdings Inc. (NYSE:KRMN) to Overweight from Neutral and raised its price target to $127 from $110. The firm cited the company’s potential to benefit from a munitions super cycle as the U.S. and allies seek to rebuild stockpiles and expand production of critical munitions. The upgrade follows this week’s conflict in Iran and a potential $50 billion supplemental funding request.

Karman Holdings Inc. (NYSE:KRMN) engages in the design, testing, manufacturing, and sale of dependable missile systems. It offers payload protection and deployment systems, aerodynamic interstage systems, and propulsion systems.