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.
Image by Sergei Tokmakov, Esq. from Pixabay
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.
8. AAR Corp. (NYSE:AIR)
Number of Hedge Fund Holders: 36
AAR Corp. (NYSE:AIR) is among the 10 best non-tech stocks to buy and hold for 5 years.
On March 9, AAR Corp. (NYSE:AIR) unit AAR Manufacturing LLC said that it secured a $159.78 million contract from the U.S. Department of War to repair cargo pallets. According to the announcement from the Air Force Life Cycle Management Center, the contract covers the department’s 463L legacy cargo pallet system, a standard cargo handling system used by the U.S. Air Force for air transport operations.
The firm-fixed-price, indefinite-delivery requirements contract covers repair services for the 463L Legacy Cargo Pallet system. Work will be carried out at AAR Corp. (NYSE:AIR)’s facility in Cadillac, Michigan, with completion expected by March 5, 2031. The contract was awarded as a sole-source acquisition, with no funds obligated at the time of award.
Meanwhile, on March 6, Truist raised its price target on AAR Corp. (NYSE:AIR) to $128 from $107 and kept a Buy rating on the shares. The company’s recent margin expansion, coupled with strategic repositioning, is recognized in the stock performance but still not accurately reflected in valuation, according to the analyst.
AAR Corp. (NYSE:AIR) provides products and services to the commercial aviation, government, and defense industries.
7. Knight-Swift Transportation Holdings Inc. (NYSE:KNX)
Number of Hedge Fund Holders: 38
Knight-Swift Transportation Holdings Inc. (NYSE:KNX) is among the 10 best non-tech stocks to buy and hold for 5 years.
On March 4, Barclays analyst Brandon Oglenski raised the firm’s price target on Knight-Swift Transportation Holdings Inc. (NYSE:KNX) to $75 from $65 and maintained an Overweight rating on the shares. The firm says that with February spot rates up 25%, ongoing regulatory enforcement, and fresh signs of demand upside, the truckload market appears to have finally turned a corner. In his note, Oglenski also said that he sees potential for double-digit contract renewals for Knight-Swift Transportation Holdings Inc. (NYSE:KNX) later this year.
Meanwhile, on March 2, Stifel reiterated its Buy rating on Knight-Swift Transportation (NYSE:KNX) and five other logistics companies, citing price support in ocean container shipping rates from longer Asia-Europe transit times and higher fuel-surcharges revenues from temporarily elevated fuel prices as key benefits. The analyst said recent geopolitical developments in the Middle East present mostly favorable implications for the transportation and logistics sector. The firm also said that it maintains a selective approach to Buy recommendations, preferring high-quality names, companies with direct exposure to regulatory supply exits, those with idiosyncratic margin improvement opportunities, secular growth prospects, or unreasonably discounted valuations.
Knight-Swift Transportation Holdings Inc. (NYSE:KNX) provides multiple truckload transportation and logistics services, operating through segments such as truckload, logistics, and intermodal.
6. Upstart Holdings Inc. (NASDAQ:UPST)
Number of Hedge Fund Holders: 41
Upstart Holdings Inc. (NASDAQ:UPST) is among the 10 best non-tech stocks to buy and hold for 5 years.
On March 10, Upstart Holdings Inc. (NASDAQ:UPST) announced that it plans to submit an application to establish an insured national bank, to be named Upstart Bank NA. The AI lending marketplace will apply to the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation (FDIC) for the bank charter. The company will also seek approval from the Federal Reserve to become a bank holding company.
Upstart Holdings Inc. (NASDAQ:UPST) said the charter would allow it to reduce operational, regulatory, and financial costs for itself and third-party capital sources. Annie Delgado, Upstart’s Chief Risk Officer, is the proposed Chief Executive Officer of Upstart Bank NA. The strategic shift comes at a time when Upstart Holdings Inc.’s (NASDAQ:UPST) liquid assets exceed its short-term obligations, and it has an 82% gross profit margin. Paul Gu, Upstart Holdings Inc. (NASDAQ:UPST)’s Chief Technology Officer and incoming CEO, said the application represents the natural evolution of our business as we’ve grown in size, scale, and product offerings.
Upstart Holdings Inc (NASDAQ:UPST) operates a cloud-based artificial intelligence lending platform that processes unsecured personal loans, small-dollar loans, HELOCs, and auto refinance and auto retail loans.
5. Aptiv PLC (NYSE:APTV)
Number of Hedge Fund Holders: 44
Aptiv PLC (NYSE:APTV) is among the 10 best non-tech stocks to buy and hold for 5 years.
On March 11, Wells Fargo lowered its price target on Aptiv PLC (NYSE:APTV) to $95 from $102 while maintaining an Overweight rating on the shares. The firm noted that Aptiv PLC (NYSE:APTV) is up 5% year-to-date, higher than the 3% rise registered by its peers. The firm also said that the stock’s base-case upside is 30%, given the low valuation, and that the risk-reward is compelling, given the company’s 2.4x upside-to-downside ratio.
Meanwhile, on March 6, Aptiv PLC (NYSE:APTV) said that its subsidiary Aptiv Swiss Holdings Ltd. commenced a cash tender offer to purchase up to $1.35 billion of outstanding senior notes across seven series. The move comes as the automotive supplier manages its debt structure ahead of the separation of its Versigent business. The tender offer covers notes with maturities ranging from 2032 to 2054, including 3.250% notes due 2032 with $717.2 million outstanding, 5.150% notes due 2034 with $515.9 million outstanding, and 5.750% notes due 2054 with $550 million outstanding, among others.
Aptiv PLC (NYSE:APTV) is an industrial technology company that designs, develops, and manufactures software and hardware solutions for automotive and other industries.
4. Genuine Parts Co. (NYSE:GPC)
Number of Hedge Fund Holders: 46
Genuine Parts Co. (NYSE:GPC) is among the 10 best non-tech stocks to buy and hold for 5 years.
On March 11, Genuine Parts Co. (NYSE:GPC) CEO Will Stengel said that the company expects the ongoing split of its automotive and motion businesses into two independent entities to be completed within 9 to 12 months. Speaking at the UBS Global Consumer and Retail Conference, Stengel also said that the costs associated with the separation will be manageable, possibly below observers’ initial expectations of between $400 million and $500 million.
During the interview, the executive shared that the decision to split Genuine Parts Co. (NYSE:GPC) into two was the culmination of a three-year plan that saw the company conduct a fairly robust strategic analysis in early 2025, followed by a broad-based assessment inclusive of financial analytics and investor and capital needs throughout the rest of last year.
Stengel also discussed in more detail the outlook for Genuine Parts Co. (NYSE:GPC) this year. According to Stengel, the company will focus on executing strategic initiatives rather than relying on market conditions, and expects sequential improvement in EBITDA, with the middle quarters showing the highest conversion rates.
Genuine Parts Co. (NYSE:GPC) distributes automotive and industrial replacement parts. Its Automotive Parts Group operates across North America, Europe, and Australasia, while the Industrial Parts Group serves customers across North America and Australasia.
3. Blue Owl Capital Inc. (NYSE:OWL)
Number of Hedge Fund Holders: 47
Blue Owl Capital Inc. (NYSE:OWL) is among the 10 best non-tech stocks to buy and hold for 5 years.
On March 6, Blue Owl Capital Inc. (NYSE:OWL) said that its unit, Blue Owl Capital Corporation II, received an unsolicited tender offer from Cox Capital Partners and Saba Capital Management for up to 8 million shares, representing less than 7% of the outstanding shares. Cox and Saba offered to purchase the shares at $3.80 each, or a total of $30.4 million.
Blue Owl Capital Inc. (NYSE:OWL) rejected the offer, noting that the price set by Cox and Saba represents a discount of over 30% to net asset value. The company also announced shareholders are expected to receive payments equal to 50% or more of net assets in 2026. This includes a 30% return of capital distribution at net asset value, payable on or before March 31. All shareholders of record as of March 24 will receive a cash distribution of $2.50 per share.
In their statement regarding the tender offer, Cox and Saba justified the discount, citing a significant increase in redemption requests and shareholders’ increased liquidity risk.
Blue Owl Capital Inc. (NYSE:OWL) operates as an alternative asset management firm, providing investors access to asset management services through its direct lending and capital solutions.
2. CoStar Group Inc. (NASDAQ:CSGP)
Number of Hedge Fund Holders: 58
CoStar Group Inc. (NASDAQ:CSGP) is among the 10 best non-tech stocks to buy and hold for 5 years.
On March 10, the D.E. Shaw group sent an open letter to the CoStar Group Inc. (NASDAQ:CSGP) board. In the letter, they criticized the decision of CoStar Group Inc. (NASDAQ:CSGP) to reconfigure its reporting segments, expressing concern over the company’s recent change in reporting structure that reduces visibility into its Homes.com business.
According to the letter, the segment reorganization combined Homes.com with the Apartments.com business and three other operations into a new Residential segment. D.E. Shaw also claimed that CoStar Group Inc. (NASDAQ:CSGP) stopped disclosing net new bookings for Homes.com, a metric previously used by investors to track the business’s progress, adding that the company’s management declined to provide segment-level bookings data when requested by analysts during the most recent earnings call.
D.E. Shaw previously sent a letter and presentation to CoStar’s board on February 4, expressing concerns about Homes.com’s performance. The investment firm stated that the reduced disclosure makes it difficult to hold management accountable for the business unit’s results.
CoStar Group Inc. (NASDAQ:CSGP) provides online real estate marketplaces, information, and analytics for the commercial and residential property markets.
1. Zillow Group Inc. (NASDAQ:Z)
Number of Hedge Fund Holders: 70
Zillow Group Inc. (NASDAQ:Z) is among the 10 best non-tech stocks to buy and hold for 5 years.
On March 5, William Blair reiterated a Market Perform rating on Zillow Group Inc. (NASDAQ:Z), saying that the company’s decision to authorize an additional $1.25 billion in share repurchases is a positive signal pointing to management’s confidence in the business. The firm said the move suggests management views the current share price as an attractive opportunity to deploy capital to shareholders. The $1.25 billion expansion in share repurchase authorization brings the company’s remaining buyback capacity to $1.3 billion, after repurchasing $626 million of shares year-to-date.
In its report, William Blair noted that, despite its optimism about the share buyback plan, the core residential segment of Zillow Group Inc. (NASDAQ:Z) continues to face obstacles due to persistently weak home sales volumes. The firm said the segment would materially benefit from improved transaction velocity, but also cited roadblocks, including limited visibility into a housing recovery, choppy profit trajectory, and ongoing legal uncertainty.
Zillow Group Inc. (NASDAQ:Z) provides real estate and home-related information marketplaces.
While we acknowledge the potential of Z as an investment, 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 Z and that has 100x upside potential, check out our report about the cheapest AI stock.
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