In this article, we will take a look at the 10 best stocks to buy and hold for 2025.
Stocks have been performing well lately as they seem to have been influenced by the excitement around artificial intelligence (AI) as well as the new administration. CNBC reported that stocks rose on January 22, with the S&P 500 hitting a new all-time high, as technology stocks rallied on AI optimism and President Trump’s new term in office.
On Wednesday, January 22, stocks finished higher as all 3 of the major indexes ended the session in the green. The S&P 500 increased by 0.61% after reaching an intraday record of 6,100.81 before closing at 6,086.37. The Nasdaq Composite excelled and rose 1.28% to reach 20,009.34, underscoring the outperformance of tech stocks. The Dow Jones Industrial Average advanced by 130.92 points, or 0.3%, to close at 44,156.73.
READ ALSO: 10 Best Low Priced Technology Stocks To Buy Now and 10 Best Sin Stocks to Invest in 2025.
President Trump also recently announced a joint venture named “Stargate,” involving OpenAI, Oracle, and Softbank, to invest at least $500 billion in AI infrastructure within the US. Stocks rose because of solid earnings reports and investors continued to pile into the AI space following this recent announcement by the new administration.
Keith Lerner, Truist’s co-chief investment officer, pointed out that a combination of a resilient economy, easing inflation, stabilizing of interest rates, and a strong start to the earnings season has created a favorable environment for the market. He noted that AI and technology continue to be key drivers of this bull market.
Another key factor playing a role in this market rally is the optimism around Trump’s agenda. Investors are hoping that Trump will ease regulations and reduce corporate taxes, which could lead to an increase in profits.
With this background in mind, let’s take a look at the 10 best stocks to buy and hold for 2025.
A trader in a financial institution using fundamentals analysis to select stocks for a portfolio.
Methodology
To compile our list of the 10 best stocks to buy and hold for 2025, we used the Finviz stock screener to look for stocks that analysts believe will gain more than 30% in the next 12 months. We sorted our results based on market capitalization and picked the top 25 stocks. Finally, we ranked the 10 best stocks to buy and hold for 2025 based on their average price target upside potential according to analysts as of January 22, 2025. Additionally, we mentioned the hedge fund sentiment surrounding each stock, which was taken from Insider Monkey’s Q3 2024 database of 900 elite hedge funds.
Why do we care about what hedge funds do? 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10 Best Stocks to Buy and Hold For 2025
10. Freeport-McMoRan Inc. (NYSE:FCX)
Average Price Target Upside Potential According to Analysts: 43.26%
Number of Hedge Fund Holders: 74
Freeport-McMoRan Inc. (NYSE:FCX) is an American multinational mining and metals company that ranks among the best stocks to buy and hold for 2025. The company operates geographically diverse assets with significant proven reserves of copper, gold, and molybdenum. Freeport-McMoRan (NYSE:FCX) has operations in North America and South America and its portfolio of assets also includes the Grasberg minerals district in Indonesia, one of the world’s largest copper and gold deposits.
The company is strategically focused on the strong execution of its operational plans, improving productivity, managing costs, and advancing opportunities for long-term growth. In Q4 2024, Freeport-McMoRan Inc. (NYSE:FCX) reported higher copper and gold sales volumes than its October 2024 guidance while also reporting unit net cash costs for the quarter below October 2024 guidance. Strong operational execution allowed the company to achieve $10 billion in EBITDA for the year 2024, up 14% compared to 2023.
Freeport-McMoRan Inc. (NYSE:FCX) is also focused on organic growth to improve production and improve overall efficiency. The company began operations at the Indonesia Precious Metals Refinery with plans to launch a smelter by mid-year 2025. Freeport-McMoRan Inc. (NYSE:FCX) has also been investing in technology and innovation and continues to advance initiatives across its operations in North America and South America by incorporating new applications, technologies, and data analytics into its leaching processes.
9. PDD Holdings Inc. (NASDAQ:PDD)
Average Price Target Upside Potential According to Analysts: 45.16%
Number of Hedge Fund Holders: 78
PDD Holdings Inc. (NASDAQ:PDD) is a Chinese multinational online retailer and commerce group that owns and operates a portfolio of diverse businesses. It has also established a strong network of sourcing, logistics, and fulfillment capabilities to support its businesses. PDD Holdings Inc. (NASDAQ:PDD) owns the fast-growing e-commerce marketplace Temu.
The company is focused on a high-quality development strategy and has been actively optimizing its platform ecosystem to deliver impactful results over the long run. PDD Holdings Inc. (NASDAQ:PDD) initiated a series of fee reductions and initiatives to support its merchants while also ensuring benefits for both the customers and the businesses. This strategy has helped the company report impressive financial results. In Q3 2024, PDD Holdings Inc. (NASDAQ:PDD) reported a 44% increase in revenue while net income attributable to ordinary shareholders increased 61% compared to Q3 2024. Operating profit in the quarter also surged 46% year-over-year.
GreenWood Investors, an investment management company, in its Q4 2024 investor letter recognized PDD Holdings Inc. (NASDAQ:PDD) as a rapidly growing e-commerce company that has managed to achieve a gross merchandise value (GMV) similar to Amazon’s but in just one-third of the time. However, the stock reacted negatively when the company decided to reinvest its record profits into faster growth and a stronger supplier ecosystem. GreenWood is optimistic about the company’s international site, Temu, which is growing sales four times faster than Amazon’s. The investment management firm praised PDD Holdings Inc. (NASDAQ:PDD) as a formidable player in the e-commerce sector and pointed out that the company’s operating model is focused on efficiency throughout the supply chain. GreenWood Investors also noted that PDD shares valuation is four times more attractive than that of Amazon’s.
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