On December 16, Chris Toomey, Morgan Stanley Private Wealth Management managing director, joined ‘Closing Bell’ on CNBC to discuss his expectations for 2026 and whether there will be winners and losers. Toomey stated that he expects the next year to be a good year and cited several factors that would carry the market. He mentioned there are many secular tailwinds and noted that earnings look very promising and breadth is improving. He also highlighted that fiscal policy is beginning to impact the market with a big, beautiful bill, and monetary policy has also been very accretive. Adding in deregulation, additional M&A activity, and the start of animal spirits makes the outlook pretty promising. Toomey also stated that he anticipates a fair amount of volatility increase. While he does not believe the situation is without risks, he thinks there could be leadership changes and the rally could broaden out. He specifically stated that while tech will still do well, he doesn’t expect it to lead the way as it has over the last 3 years.
Toomey also explained that markets have been concentrated because the lion’s share of earnings growth has come from a few types of companies. However, he sees tailwinds beginning to affect other overlooked companies, which should start performing well on pretty low expectations. Given that the Russell index is up 6% in a month and is up almost 14% for the year, plus broadening has already occurred with industrials up 18% and financials up almost 14%, Toomey conceded that broadening is happening, but maintained that expectations for these sectors next year are relatively lower versus the MAG7. He expects this trend to continue, as earnings will be a lot easier to overcome in these sectors, which will be supported by the secular tailwinds. Toomey stated that the biggest risks, in his firm’s view, are twofold. The first is around inflation. The second concern is the amount of debt being issued.
That being said, we’re here with a list of the 10 best stocks to buy for the next 5 years.
Our Methodology
After a consensus of financial media reports covering best stocks to buy for the next 5 years, we used SeekingAlpha to compile a list of stocks with a 3-5-year expected average EPS growth rate of at least 30%. We then selected the 10 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q3 2025.
Note: All data was sourced on December 18.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10 Best Stocks to Buy for the Next 5 Years
10. Bristol-Myers Squibb Company (NYSE:BMY)
EPS Forward Long Term Growth (3-5 Year CAGR): 86.31%
Number of Hedge Fund Holders: 76
Bristol-Myers Squibb Company (NYSE:BMY) is one of the best stocks to buy for the next 5 years. On December 15, Goldman Sachs raised the firm’s price target on Bristol-Myers Squibb to $57 from $51, while maintaining a Neutral rating on the shares.
Earlier on December 4, Bristol-Myers Squibb announced that the US FDA approved Breyanzi (lisocabtagene maraleucel) for adult patients with relapsed or refractory (R/R) marginal zone lymphoma/MZL. This approval specifically applies to patients who have already received at least two prior lines of systemic therapy. With this milestone, Breyanzi becomes the first and only CAR T cell therapy approved for this patient population, and it now holds the record as the only CD19-directed CAR T therapy approved for five distinct types of B-cell malignancies.
The FDA’s decision was based on results from the MZL cohort of the TRANSCEND FL study, which demonstrated deep and durable responses. In the primary efficacy analysis of 66 patients, Breyanzi achieved an overall response rate of 95.5%, with 62.1% of patients reaching a complete response. The treatment showed remarkable longevity; while the median duration of response has not yet been reached, 90.1% of responders maintained their response at the 24-month mark. The therapy is administered as a one-time infusion and is designed for both inpatient and outpatient settings due to its established safety profile.
Safety data from the trial remained consistent with previous Breyanzi studies. The product carries Boxed Warnings regarding CRS, neurologic toxicities, and the potential for secondary hematological malignancies. Beyond MZL, Breyanzi is already approved for large B-cell lymphoma, chronic lymphocytic leukemia, small lymphocytic lymphoma, follicular lymphoma, and mantle cell lymphoma.
Bristol-Myers Squibb Company (NYSE:BMY) discovers, develops, licenses, manufactures, markets, distributes, and sells biopharmaceutical products worldwide. It offers products for oncology, hematology, immunology, cardiovascular, neuroscience, and other areas.
9. Marvell Technology Inc. (NASDAQ:MRVL)
EPS Forward Long Term Growth (3-5 Year CAGR): 40.59%
Number of Hedge Fund Holders: 77
Marvell Technology Inc. (NASDAQ:MRVL) is one of the best stocks to buy for the next 5 years. On December 16, Cantor Fitzgerald analyst C.J. Muse lowered the firm’s price target on Marvell to $100 from $110 with a Neutral rating on the shares. This sentiment came out as Muse projects that the Philadelphia Semiconductor Index/SOX is set to lead the broader market higher through 2026, following a standout performance in 2025 where it beat the S&P 500 by ~30 points. The firm’s bullish outlook is anchored by the early-stage expansion of the AI era, which continues to fuel intense demand for high-performance compute, networking, memory, and semiconductor manufacturing equipment.
In its FQ3 2026 earnings report, Marvell Technology disclosed record revenue of $2.075 billion, which was a 37% year-over-year increase. The company’s performance was supported by its Data Center segment, which generated $1.52 billion (up 38%), and its Communications business, which brought in $557 million (up 34%). Non-GAAP EPS surged 77% annually to $0.76, exceeding sequential expectations by 13%. Marvell now targets a revenue midpoint of $2.2 billion for FQ4, which would represent 21% year-over-year growth. Non-GAAP EPS for FQ4 is expected to fall between $0.74 and $0.84.
A major highlight of the quarter was the acquisition of Celestial AI, a move designed to strengthen Marvell’s optical interconnect and photonic fabric capabilities. Marvell already secured a design win with a leading Tier 1 hyperscaler for Celestial AI’s photonic fabric chiplets. While this acquisition is not expected to contribute meaningful revenue until H2 FY2028, management projects it could eventually reach revenue milestones of $500 million to $1 billion as optical interconnect technology becomes critical for future AI scaling.
Marvell Technology Inc. (NASDAQ:MRVL), together with its subsidiaries, provides data infrastructure semiconductor solutions, spanning the data center core to the network edge.
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