In this article, we will look at the 10 Best Quality Stocks to Buy and Hold for the Next 5 Years.
Quality stocks are getting more attention as investors look for companies that can keep growing earnings without needing a perfect market backdrop. The focus is shifting toward businesses with staying power, clean balance sheets, and the ability to compound through different cycles. MFS frames the idea clearly, saying quality investing is built on companies with “resilient earnings, disciplined capital allocation and strong balance sheets” that tend to “create value more consistently over time.” The appeal is not just that these companies can grow. It is that its easier to trust their growth over a longer holding period.
The long-term earnings case is just as important. Janus Henderson says “stock prices follow earnings” and argues that investors should “prioritize earnings growth” by looking for companies with “earnings visibility” capable of delivering “quality earnings growth.” AllianceBernstein makes a similar point from a market-cycle perspective, saying “quality companies with consistent profitability and resilient business models tend to outperform over time,” and that earnings and cash flows are still the best predictors of equity returns over long time horizons.
Against this backdrop, quality stocks to buy and hold for the next five years are not just defensive placeholders. The better candidates are companies with consistent earnings growth, durable margins, strong cash generation, and management teams that can allocate capital well across cycles. With that in mind, let’s take a look at the 10 Best Quality Stocks to Buy and Hold for the Next 5 Years.
Photo by osamu nakazawa on Unsplash
Our Methodology
We used the Finviz screener to identify quality stocks that are forecasted to deliver over 20% earnings growth annually over the next 5 years and are viewed favorably by analysts. 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).
10. Micron Technology, Inc. (NASDAQ:MU)
On May 6, 2026, Mizuho analyst Vijay Rakesh raised the firm’s price target on Micron Technology, Inc. (NASDAQ:MU) to $740 from $545 previously and maintained an Outperform rating on the shares.
On May 5, 2026, Micron Technology, Inc. announced it is now shipping its 245TB Micron 6600 ION SSD. The company said the drive is designed to support AI, cloud, enterprise, and hyperscale workloads, including AI data lakes and large-scale file and object storage applications. Micron added that the 245TB 6600 ION E3.L can achieve equivalent raw storage capacity using 82% fewer racks than HDD-based deployments and is built using Micron G9 QLC NAND technology. The company said the product is intended to improve storage density while lowering power and cooling requirements for data-intensive workloads.
Last month, TD Cowen analyst Krish Sankar raised the firm’s price target on Micron Technology, Inc. to $660 from $550 and maintained a Buy rating. The firm said the “next leg” for the stock depends more on the durability of demand rather than additional earnings upside. TD Cowen added that Micron’s investment story is increasingly centered on sustained demand trends supporting long-term earnings durability.
Micron Technology, Inc. designs, develops, manufactures, and sells memory and storage products globally.
9. Shopify Inc. (NASDAQ:SHOP)
On May 6, 2026, Oppenheimer analyst Ken Wong lowered the firm’s price target on Shopify Inc. (NASDAQ:SHOP) to $175 from $200 while maintaining an Outperform rating. The firm said Shopify delivered Q1 revenue and gross merchandise value growth ahead of expectations, while management’s Q2 outlook for high-20% growth aligned with optimistic investor expectations. Oppenheimer added that underlying fundamentals remain durable, supported by balanced GMV growth between new and existing merchants and re-accelerating U.S. growth. The firm noted, however, that some investors focused on softer-than-expected GMV growth excluding foreign exchange effects and the lack of clearer sequential improvement in free cash flow margins.
Citi also lowered its price target on Shopify Inc. to $156 from $163 previously while maintaining a Buy rating, stating that the company’s sales momentum continued during Q1.
On May 5, 2026, Shopify Inc. reported Q1 revenue of $3.17B, versus the $3.09B consensus estimate. The company also reported Q1 gross merchandise volume of $100.74B and monthly recurring revenue of $212M. President Harley Finkelstein said Shopify is entering the AI era with “strong, durable growth and two decades of commerce intelligence,” which he believes positions the company to compound its advantages through 2026.
For Q2 2026, Shopify expects gross profit dollars to grow at a mid-20% year-over-year rate, operating expenses to represent 35%-36% of revenue, stock-based compensation of $145M, and free cash flow margins in the mid-teens.
Shopify Inc. provides commerce technology tools for businesses across multiple regions globally, including North America, Europe, Asia Pacific, Latin America, and the Middle East.
8. ServiceNow, Inc. (NYSE:NOW)
On May 6, 2026, Bernstein analyst Peter Weed raised the firm’s price target on ServiceNow, Inc. (NYSE:NOW) to $236 from $226 and maintained an Outperform rating following the company’s Analyst Day. Bernstein said the event added a bullish tailwind as ServiceNow introduced long-term 2030 targets that include increasing its Rule of 40 metric to above 60, expanding free cash flow margins by an implied 900 basis points versus 2025 levels, and reducing stock-based compensation to less than 10% of revenue by 2029. The firm also noted, however, that some investors may focus on the company’s 2030 subscription revenue target of $30B, which implies growth slowing toward the mid-teens over time.
On May 5, 2026, ServiceNow, Inc. said at its Financial Analyst Day that it expects subscription revenue to reach $30B by 2030, driven by accelerating adoption of its AI products. The company added that around 30% of annual contract value is expected to come from Now Assist, its flagship AI offering, by that point.
Also on May 5, FedEx Corporation and ServiceNow, Inc. announced an expanded collaboration that embeds logistics intelligence from FedEx Dataworks into ServiceNow’s Source-to-Pay workflows and new supply chain management applications. The companies said the partnership aims to improve supply chain visibility, exception management, and customer experience, initially through procurement-focused solutions. CEO Bill McDermott said the collaboration combines ServiceNow’s agentic workflows with FedEx logistics intelligence to support more resilient supply chains.
ServiceNow, Inc. provides cloud-based digital workflow solutions across North America, Europe, the Middle East, Africa, and the Asia Pacific.
7. Monolithic Power Systems, Inc. (NASDAQ:MPWR)
On May 1, 2026, Raymond James raised its price target on Monolithic Power Systems, Inc. (NASDAQ:MPWR) to $1,800 from $1,350 and maintained an Outperform rating on the shares. The firm said Enterprise Data drove outsized growth and sharply higher forward guidance, pointing to strong visibility into accelerating shipments across key end markets. Raymond James added that while near-term margin expectations were unchanged, stronger top-line momentum and expanding content opportunities support operating leverage and longer-term growth beyond the hyperscale cycle.
Truist also raised its price target on Monolithic Power Systems, Inc. to $1,805 from $1,396 while maintaining a Buy rating. The firm said the company’s Q1 results exceeded expectations and Q2 guidance came in meaningfully above consensus. Truist added that while growth remains diversified, data centers and AI continue to be the primary growth drivers, particularly within the Enterprise Data and Communications segments.
On April 30, 2026, Monolithic Power Systems, Inc. reported Q1 EPS of $5.10, ahead of the $4.90 consensus estimate, while revenue came in at $804.2M compared to expectations of $782.12M. CEO Michael Hsing said the results reflect the strength of the company’s diversified model and its transition from a chip-only semiconductor supplier into a broader silicon-based solutions provider.
Monolithic Power Systems, Inc. provides semiconductor-based power electronics solutions across Asia, Europe, and the Americas.
6. Tesla, Inc. (NASDAQ:TSLA)
On May 6, 2026, Tesla, Inc. (NASDAQ:TSLA) recalled 218,868 vehicles in the United States due to delayed rearview camera images that could increase crash risk, according to the National Highway Traffic Safety Administration. The agency said the rearview camera display in affected vehicles may be delayed when the vehicle is shifted into reverse, reducing driver visibility. The recall affects certain Model 3, Model Y, Model S, and Model X vehicles.
Last month, Roth Capital maintained a Buy rating and $505 price target on Tesla, Inc. following the company’s Q1 results. The firm noted that Tesla increased its capital expenditure guidance for growth investments by $5B to $25B, which it believes refocuses investor attention on initiatives such as TeraFab. Roth added that while Robotaxi deployment may be progressing somewhat slower than expected, that likely reflects the company’s safety protocols.
RBC Capital lowered its price target on Tesla, Inc. to $475 from $480 while maintaining an Outperform rating. The firm said Tesla’s Q1 gross margins remained healthy even excluding one-time warranty benefits and tariffs. RBC also pointed to 51% year-over-year growth in FSD subscriptions, expected approvals in Europe and China over Q2 and Q3, and planned robotaxi expansion into Dallas and Houston, with about a dozen states targeted by year-end.
On April 22, 2026, Tesla, Inc. reported Q1 adjusted EPS of 41c, versus the 36c consensus estimate, while revenue came in at $22.39B compared to expectations of $22.35B. In its quarterly report, Tesla said it remains optimistic about 2026, citing continued progress in FSD, Robotaxi deployment, Optimus development ahead of mass production, and expanding energy production capacity. The company also said it remains focused on innovation across electrification, software, artificial intelligence, manufacturing, and supply chain resilience.
Tesla, Inc. designs, develops, manufactures, leases, and sells electric vehicles and energy generation and storage systems globally.
5. Sterling Infrastructure, Inc. (NASDAQ:STRL)
On May 6, 2026, KeyBanc raised its price target on Sterling Infrastructure, Inc. (NASDAQ:STRL) to $889 from $572 and maintained an Overweight rating on the shares. The firm said the company delivered very strong Q1 results alongside robust bookings that provide improved visibility into activity levels for the remainder of the year. KeyBanc added that margins continued to improve sequentially, helped by better weather conditions and execution on large projects. While E-Infra remains a major focus, the firm also pointed to improving Transportation operations and a stronger balance sheet. Free cash flow remained strong, and Sterling ended the quarter in a net cash position, which KeyBanc said could support additional M&A opportunities in E-Infra or MEP expansion into new geographies.
On May 4, 2026, Sterling Infrastructure, Inc. reported Q1 EPS of $3.59, well above the $2.19 consensus estimate, while revenue rose to $825.7M compared to expectations of $591.97M. Backlog at March 31 totaled $3.80B, up 78% year over year. The company said CEC contributed $592.0M to backlog growth, while backlog excluding CEC increased 51%.
CEO Joe Cutillo said Sterling delivered an “exceptional start” to 2026, with adjusted net income increasing 122% and adjusted EBITDA margins remaining above 20%. He added that revenue grew 92%, including more than 55% organic growth, while operating cash flow reached $166M. Cutillo also said bid and award activity remained strong early in 2026, including the award of the initial phase of site development work for a large multi-year semiconductor fabrication campus. CEC also secured several large projects that contributed to a $1.2B increase in combined backlog during the quarter.
Sterling Infrastructure, Inc. raised its FY26 adjusted EPS outlook to $18.40-$19.05 from consensus estimates of $13.59. The company also expects FY26 revenue of $3.70B-$3.80B versus consensus estimates of $3.1B and adjusted EBITDA of $843M-$873M.
Sterling Infrastructure, Inc. provides e-infrastructure, transportation, and building solutions across the United States.
4. Fair Isaac Corporation (NYSE:FICO)
On May 4, 2026, Jefferies analyst Surinder Thind lowered the firm’s price target on Fair Isaac Corporation (NYSE:FICO) to $1,700 from $1,800 while maintaining a Buy rating. The firm said FICO’s fiscal Q2 results came in well above expectations, though investors remain concerned about potential market share pressure from VantageScore 4.0 as the regulatory environment evolves. Jefferies added that it still believes FICO “will ultimately win out” over time.
On April 30, 2026, Wells Fargo lowered its price target on Fair Isaac Corporation to $1,400 from $1,650 to reflect lower peer valuation multiples while maintaining an Overweight rating. The firm noted that FICO delivered a strong Q2 beat, driven largely by better-than-expected performance in B2B scores. Wells Fargo added that while the company raised guidance, the outlook still came in below Street estimates, which the firm attributed to conservatism. The analyst also pointed to continued strong demand for FICO’s direct license program.
On April 28, 2026, Fair Isaac Corporation reported Q1 EPS of $11.14, versus the $10.97 consensus estimate, while revenue rose to $691.7M compared to expectations of $627.1M. CEO Will Lansing said the company continues to deliver strong revenue and earnings growth and announced that FICO was raising its full-year guidance.
Fair Isaac Corporation provides analytics software across the Americas, Europe, the Middle East, Africa, and Asia Pacific.
3. Pan American Silver Corp. (NYSE:PAAS)
On May 5, 2026, Pan American Silver Corp. (NYSE:PAAS) reported Q1 adjusted EPS of $1.09, versus the $1.06 consensus estimate. Revenue totaled $1.15B, while attributable revenue reached $1.33B compared to consensus expectations of $1.22B. CEO Michael Steinmann said the quarter delivered solid results driven by strong production, disciplined cost management, and improved silver and gold prices compared to the prior quarter. He added that the company remains on track to meet its 2026 guidance and generated $488M in free cash flow during Q1. Cash and short-term investments rose to a record $1.8B, including $199M attributable to the company’s interest in Juanicipio.
Pan American Silver Corp. raised its FY26 project capital expenditure outlook to $240M-$255M from the prior $195M-$210M range. The increase reflects additional planned spending on the La Colorada Skarn Project following the release of a revised Preliminary Economic Assessment during Q1 2026. The company now expects to spend $92M-$95M on the project this year versus prior guidance of $47M-$50M. The company maintained its 2026 operating outlook for silver and gold production, zinc, lead and copper production, all-in sustaining costs for its silver and gold segments, and sustaining capital expenditures. Pan American Silver also said gold production is now expected to be more heavily weighted toward the fourth quarter of 2026 as some second-quarter production is expected to shift later in the year.
Before the earnings release, Scotiabank raised its price target on Pan American Silver Corp. to $65 from $64 and maintained an Outperform rating as part of a broader update on gold and precious metals companies under coverage.
Pan American Silver Corp. explores, develops, extracts, processes, and reclaims mining operations across Latin America and Canada.
2. First Solar, Inc. (NASDAQ:FSLR)
On May 5, 2026, Freedom Broker upgraded First Solar, Inc. (NASDAQ:FSLR) to Buy from Hold and raised its price target to $260 from $250 following the company’s Q1 results. The firm said Section 232 tariffs could provide upside for First Solar’s U.S. business by increasing domestic demand for the company’s products.
Meanwhile, UBS has lowered its price target on First Solar, Inc. to $290 from $300 previously while maintaining a Buy rating on the shares.
On April 30, 2026, First Solar, Inc. reported Q1 EPS of $3.22, versus the $2.98 consensus estimate, while revenue came in at $1.04B compared to expectations of $1.05B. CEO Mark Widmar said the company delivered a strong start to 2026 with record first-quarter revenue, record sales in India, margin expansion, and adjusted EBITDA above the high end of its preview range. Widmar added that First Solar’s competitive position continues to benefit from its technology, domestic manufacturing footprint, and independence from Chinese crystalline silicon supply chains.
First Solar, Inc. provides photovoltaic solar energy solutions across the United States and international markets.
1. NVIDIA Corporation (NASDAQ:NVDA)
On May 6, 2026, Simulations Plus announced a technical collaboration with NVIDIA Corporation (NASDAQ:NVDA) focused on enabling GPU-accelerated simulation and AI-assisted workflows for computationally intensive modeling applications used throughout the drug development lifecycle. The collaboration combines Simulations Plus’ scientific engines across physiologically-based pharmacokinetics, pharmacokinetics/pharmacodynamics, and quantitative systems pharmacology with NVIDIA AI infrastructure to accelerate simulation cycles, parameter exploration, and virtual population studies. The companies said the effort is designed to reduce manual, expertise-driven work while enabling larger-scale exploration of model structures and parameters in parallel.
Also on May 6, NVIDIA Corporation and Corning Incorporated announced a multiyear commercial and technology partnership aimed at expanding U.S.-based manufacturing of advanced optical connectivity solutions used in AI infrastructure. Corning plans to increase U.S.-based optical connectivity manufacturing capacity by 10-times and expand U.S. fiber production capacity by more than 50%, supported by three new manufacturing facilities in North Carolina and Texas and more than 3,000 new jobs. NVIDIA CEO Jensen Huang said AI is driving a major infrastructure buildout and creating an opportunity to expand American manufacturing and supply chains through advanced optical technologies.
On May 5, 2026, ServiceNow announced an expansion of its partnership with NVIDIA Corporation focused on extending agentic AI governance from desktops to data centers. The announcement included the introduction of Project Arc, an enterprise autonomous desktop agent secured by NVIDIA OpenShell runtime and governed by ServiceNow AI Control Tower. ServiceNow said the AI Control Tower integration with the NVIDIA Enterprise AI Factory validated design is now generally available, while NOWAI-Bench, including EnterpriseOps-Gym and EVA-Bench, has been released as open source.
NVIDIA Corporation operates as a data center-scale AI infrastructure company through its Compute & Networking and Graphics segments.
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