In this article, we will look at the 10 Best Stocks to Buy and Hold For the Next 5 Years.
On April 22, Alec Young from MoneyFlows.com appeared on a Schwab Network interview to discuss buying opportunities after a recent comeback in the stock market. It is often said that if you wait too long for “all-clear”, you might miss the buying opportunity. Young noted that while there is clearly more upside, the market bottomed on March 30 and investors who bought before the bottom are poised to benefit the most. He added that historically, stock markets tend to reach all-time lows before the conflicts reach a resolution. Therefore, it’s best to enter the market during the time of uncertainty, which Young notes is not easy to do.
Young highlighted that the worst period of the war has passed and that key drivers include AI, earnings, and strong fundamentals. Young added that the war-induced volatility has helped bring valuations to a reasonable range, while earnings revisions have increased. This suggests that the fundamental picture of major industries, including technology and materials, is improving, and the drop in valuations has created attractive entry points.
With that, let’s take a look at the 10 Best Stocks to Buy and Hold For the Next 5 Years.
Our Methodology
To curate the list of 10 Best Stocks to Buy and Hold For the Next 5 Years, we used Quality Factor ETFs, reputable financial media, and Reddit as our primary sources. Using these sources, we shortlisted stocks that are recognized as high quality. We 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 Best Stocks to Buy and Hold For the Next 5 Years
10. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 137
Tesla, Inc. (NASDAQ:TSLA) is one of the world’s leading electric vehicle, robot-taxi, and energy system providers. Recently, on April 23, Baird maintained an Outperform rating on the stock and lowered its price target from $538 to $522. Despite the price target reduction, Tesla, Inc. (NASDAQ:TSLA) is among the Best Stocks to Buy and Hold For the Next 5 Years.
The firm noted that it remains bullish on the stock long-term and the price target reduction is a slight re-rating reflecting near-term caution. In the long term, the firm expects the company’s current pipeline, including autonomy, robotaxi, optimus, and energy, to restore growth over time. Baird highlighted that Elon Musk appears increasingly focused on Tesla’s project pipeline and the upcoming SpaceX IPO, and the firm sees the stock as tied to that event and related merger speculation in the short run.
That said, Tesla, Inc. on April 22, released its fiscal Q1 2026 earnings. During the quarter, the company posted $22.39 billion in revenue, reflecting 16% year-over-year growth. However, the GAAP EPS of $0.13 missed the consensus by $0.07. Tesla produced 408,386 vehicles during the quarter, reflecting 13% year-over-year increase and delivered 358,023 vehicles, indicating 6% year-over-year increase. Management noted that they remain focused on optimizing the portfolio for fully autonomous future. The company expects volume production of Cybercab and the Tesla Semi this year. In terms of profitability, Tesla is focused on reducing manufacturing cost through innovation and expects AI to accelerate hardware and software related profits.
9. Netflix, Inc. (NASDAQ:NFLX)
Number of Hedge Fund Holders: 146
On April 20, Bernstein SocGen Group reiterated an Outperform rating on Netflix, Inc. (NASDAQ:NFLX) but lowered the price target on the stock from $115 to $110. The reduced price target is based on near-term margin concerns. Despite the concerns, Netflix ranks among the Best Stocks to Buy and Hold For the Next 5 Years.
Analysts at Bernstein highlighted that after the latest guidance from the company, their confidence in Netflix’s profit margins has started to fade. The firm pointed out that the company expects low margin expansions, which makes the previous estimates of 2027 EPS topping $4 feel uncertain rather than guaranteed.
The key reason behind the concerns is a big jump in spending as the competition has increased, which is leading to higher content amortization. Moreover, the tech and marketing-related investments have also increased in an effort to retain users.
Despite these concerns, Bernstein highlighted that core metrics such as subscriber growth and pricing power remain solid. If we look at the consensus opinion, 71% of the 56 analysts have a Buy rating on Netflix, Inc.. Moreover, the 12-month average price target on the stock represents more than 23% upside from the current level.
Netflix, Inc. offers streaming entertainment content and services globally.
8. Uber Technologies, Inc. (NYSE:UBER)
Number of Hedge Fund Holders: 147
The Street is Bullish on Uber Technologies, Inc. (NYSE:UBER) ahead of its fiscal Q1 2026 earnings expected to be released on May 6. As of April 23, 86% of the 58 analysts covering the stock have a Buy rating, and the 12-month average price target suggests more than 40% upside from the current level. Uber is also one of our Best Stocks to Buy and Hold For the Next 5 Years.
Recently, on April 21, John Blackledge from TD Cowen reiterated a Buy rating on Uber Technologies, Inc. with a price target of $114. The analyst noted that the optimism is based on expectations of strong demand and profitability execution in core businesses. Blackledge forecasts Q1 2026 gross bookings growth to be in the low 20% range, driven by Mobility and Delivery segments.
He believes that Uber has demonstrated significant geographic expansion, product innovation, and steady user growth, which will help the company maintain gross bookings growth. In addition, the analyst expects robust EBITDA expansion driven by cost efficiencies and margin improvements.
Earlier, on April 17, Citizens also reiterated a Buy rating on Uber, with a price target of $100. The firm said in a research note that advancements in end-to-end AI models can deliver a significant boost to autonomous vehicle performance, which can pave the way for Uber Level 4 autonomy.
Uber Technologies, Inc. operates a technology platform that supports movement and logistics. Its business is organized into three segments: Mobility, Delivery, and Freight.
7. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 202
Wall Street has a bullish sentiment on Broadcom Inc. (NASDAQ:AVGO) as 94% of the 54 analysts covering the stock have a Buy rating. The 12-month average price target of analysts suggests more than 13% upside from the current level. Moreover, the Street expects the company to grow its EPS by more than 48% over the next 5 years. As a result, Broadcom ranks among the Best Stocks to Buy and Hold for the Next 5 years.
Recently, on April 17, Mizuho reiterated an Outperform rating on the stock with a price target of $480. The rating comes after the firm had a call with Broadcom’s CEO, CFO, and Head of Investor Relations. The discussions with the higher management of the company revealed strong growth drivers across custom chips, AI networking, and software, positioning AVGO for sustained AI revenue expansion.
The firm noted that the company is expanding the ASIC pipeline, including TPUs for Google, Anthropic’s 3.5-gigawatt deal starting in 2027, MTIA, and OpenAI across multi-gigawatt deployments and generations. Mizuho noted that this diversification de-risks long-term demand and supports the goal of AI revenue exceeding $120 billion by 2027.
In addition to Mizuho, Wells Fargo, and J.P. Morgan also have a Buy rating on the stock with $430 and $500 price targets, respectively.
Broadcom Inc. is a technology leader that designs, develops, and supplies semiconductors and infrastructure software for global organizations’ complex, mission-critical needs. Broadcom combines long-term R&D investment with superb execution to deliver the best technology at scale.
6. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 224
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) topped consensus estimates during fiscal Q1 2026 earnings, released on April 16. Wall Street has been bullish on the stock ever since, as 98% of the 51 analysts covering the stock have a Buy rating. Moreover, the 12-month average price target suggests more than 22% upside from the current level. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is also one of our Best Stocks to Buy and Hold For the Next 5 Years.
During the quarter, the company posted $35.9 billion in revenue, reflecting more than 39.2% year-over-year growth and topping estimates by $404.52 million. Moreover, the EPS of $3.49 also topped $0.16. Management noted that the growth was driven by strong demand for 3-nanometer technology and high capacity utilization across all factories.
The 3-nanometer technology accounted for 25% of wafer revenue during the quarter. The company also provided a positive outlook for Q2 2026. The company projects revenue between $39.0 billion and $40.2 billion, representing a 10% sequential increase.
Recently, on April 17, DA Davidson reiterated a Buy rating on Taiwan Semiconductor Manufacturing Company Limited with a price target of $450. The firm noted strong fiscal Q1 results and an encouraging Q2 outlook as key factors behind the optimistic rating.
Taiwan Semiconductor Manufacturing Company Limited manufactures and sells advanced chips used in artificial intelligence applications.
5. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 256
On April 20, Bank of America Securities reiterated a Buy rating on Meta Platforms, Inc. (NASDAQ:META) but lowered the price target from $885 to $820. The Street in general has a bullish opinion on the stock. At the time of this writing, 90% of the 73 analysts covering the stock had a Buy rating on the stock, with the 12-month average price target suggesting more than 28.9% upside from the current level. Analysts expect the company to grow its EPS by 19% over the next 5 years, making Meta one of the Best Stocks to Buy and Hold For the Next 5 Years.
Bank of America Securities noted that checks indicate that first-quarter advertisement spending aligns with advertiser expectations and does not show any major pullbacks due to the Middle East conflict. The firm projects stronger Q1 results as compared to the consensus. BofA estimates revenue at $56.0 billion, versus Street’s expectation of $55.4 billion and EPS at $7.44, versus $6.64.
The firm also highlighted that the adjustment reflects a valuation recalibration ahead of Q1 earnings, not fundamental concerns. Meta Platforms, Inc. is expected to release results on April 29, 2026.
Meta Platforms, Inc. develops products that help people connect with their friends and family. The company operates through Reality Labs (RL) and Family of Apps (FoA). It operates major apps such as Instagram, Messenger, Facebook, Meta AI, Threads, and WhatsApp.
4. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 264
Analysts expect NVIDIA Corporation (NASDAQ:NVDA) to grow its EPS by more than 39% over the next 5 years. The stock is among our Best Stocks to Buy and Hold for the Next 5 years. Wall Street has been bullish on the stock as 93% of the 70 analysts covering the stock have a Buy rating. The 12-month average price target suggests more than 33.9% upside from the current level.
On April 20, Reuters reported that Morgan Stanley released a research note suggesting that the increase in autonomous artificial intelligence can boost the demand for CPUs and transform the data center buildout, which is currently more focused on GPUs.
The estimates that agentic AI can add somewhere around $32.5 billion to $60 billion to the data center CPU market, which is already expected to exceed $100 billion by 2030. Morgan Stanley believes that the next wave of agentic AI will be driven by coordination more than raw computing power, and CPUs in this regard provide more control to manage multistep tasks.
Morgan Stanley has named NVIDIA Corporation as one of the major beneficiaries of the next phase of agentic AI.
NVIDIA Corporation is a technology company that pioneered the Graphics Processing Unit (GPU) and is now a global leader in accelerated computing and artificial intelligence (AI). It has evolved into a full-stack computing infrastructure company that powers AI factories, data centers, autonomous vehicles, and robotic applications.
3. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 288
On April 20, KeyBanc analyst Justin Patterson reiterated a Buy rating on Alphabet Inc. (NASDAQ:GOOGL) and raised the price target from $370 to $380. Analysts expect Alphabet Inc. (NASDAQ:GOOGL) to grow its EPS by 13.25% over the next 5 years, and the stock also ranks among our Best Stocks to Buy and Hold For the Next 5 Years.
Justin Patterson said in a research note that the Street underestimates the rapid ramp-up in Google’s cloud growth. He noted that the continued cloud growth has helped build strong momentum. This is particularly important as search remains in the low double digits.
KeyBanc forecasts Alphabet’s 2027 EPS nearing $14, supported by Cloud’s acceleration and broader AI opportunities. This projection aligns with broader analyst EPS estimates averaging $13.75 for 2027, though the firm sees upside from Cloud outpacing expectations.
Alphabet Inc. is a technology holding company and the parent of Google. It generates revenue primarily through advertising, cloud computing, and hardware, while overseeing “Other Bets”—subsidiaries in fields like artificial intelligence, autonomous driving (Waymo), and healthcare.
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 312
Microsoft Corporation (NASDAQ:MSFT) is set to release its fiscal Q3 2026 earnings on April 29. Wall Street is bullish on MSFT ahead of the earnings, and the stock also ranks as one of the Best Stocks to Buy and Hold For the Next 5 Years.
Recently, on April 20, Evercore ISI reiterated an Outperform rating on the stock with a price target of $580. The firm said in a research note that they view the quarter as a survival and advance quarter, which will build momentum for Q4 and the second half of 2026. The firm expects Azure capacity to ramp up during the quarter.
Azure growth is expected at the high end of approximately 38% despite a 4% tougher year-over-year comparison. Moreover, the company has also added major Stargate-scale capacity in Texas and Norway recently, along with expansion in Denmark, signaling robust demand.
Wall Street expects quarterly revenue to reach $81.4 billion in Q3, along with a GAAP EPS of $4.05. Moreover, analysts’ 12-month average price target suggests more than 40% upside from the current level.
Microsoft Corporation is a global technology company that develops and sells a wide range of software, cloud services, devices, and business solutions, serving both individual users and enterprise customers worldwide. Its flagship products include Windows, Microsoft 365, Azure, LinkedIn, and Xbox.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 381
Amazon.com, Inc. (NASDAQ:AMZN) ranks among the Best Stocks to Buy and Hold for the Next 5 Years. Analysts expect the company to grow its EPS by more than 19% over the next 5 years. The next 12-month outlook looks promising as well, with analysts’ average price target suggesting more than 40.95% upside from the current level.
Recently, on April 20, KeyBanc maintained a Buy rating on Amazon.com, Inc. but raised the price target from $285 to $325. The increased price target comes despite the firm’s caution on operating income for the first half of 2026. The caution is based on elevated gas prices and investments in Amazon’s Leo satellite project.
However, Keybanc finds AWS as a standout story of the quarter, with growth expected to accelerate to around 30%, driven by capacity expansions and new client wins. As per the firm, this positions AWS as a reliable medium-term revenue engine for Amazon. The firm also pointed to optionality from AI-powered advertising in Rufus, potential grocery market share gains, and further Amazon Leo developments. They project EPS nearing $10 per share by 2027.
Amazon.com Inc. (AMZN) is an American technology company offering e-commerce, cloud computing, and other services, including digital streaming and artificial intelligence solutions.
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