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.
8. Rocket Companies Inc. (NYSE:RKT)
EPS Forward Long Term Growth (3-5 Year CAGR): 25.68%
Number of Hedge Fund Holders: 77
Rocket Companies Inc. (NYSE:RKT) is one of the best stocks to buy for the next 5 years. On December 18, Keefe Bruyette raised the firm’s price target on Rocket Companies to $20 from $18 and kept a Market Perform rating on the shares. This sentiment was posted as the firm maintains a positive outlook on the mortgage insurance sector, driven by the anticipation that these companies will achieve double-digit growth in book value. Keefe Bruyette noted that this expected increase in net asset value makes the group a constructive investment opportunity for the coming year.
In Q3 2025, Rocket Companies delivered adjusted revenue of $1.783 billion, surpassing guidance by $133.93 million and growing 34.77% year-over-year. At the same time, the company also earned $0.07 per share, which also beat Street estimates by $0.02.
A primary driver of this performance was the integration of Redfin and Mr. Cooper. The acquisition of Mr. Cooper combined America’s leading mortgage originator with the nation’s top servicer. This merger creates a massive flywheel effect, with a combined servicing portfolio now nearing 10 million clients and representing one in every six US mortgages.
Earlier on November 13, Oppenheimer analyst Chad Larkin initiated coverage of Rocket Companies with an Outperform rating and $25 price target. Oppenheimer identified Rocket Companies as the premier investment vehicle for the residential real estate sector, particularly as declining interest rates stimulate refinance demand. By acquiring Redfin and Mr. Cooper, Rocket has established a dominant top-of-funnel strategy, allowing the company to effectively capture and monetize the entire real estate lifecycle
Rocket Companies Inc. (NYSE:RKT) provides a range of mortgage, real estate, and personal finance services in the US and Canada. It operates through two segments: Direct to Consumer and Partner Network.
7. Coupang Inc. (NYSE:CPNG)
EPS Forward Long Term Growth (3-5 Year CAGR): 187.99%
Number of Hedge Fund Holders: 83
Coupang Inc. (NYSE:CPNG) is one of the best stocks to buy for the next 5 years. On December 14, Morgan Stanley analyst Seyon Park lowered the firm’s price target on Coupang to $31 from $35 and maintained an Overweight rating on the shares. Following Coupang’s recent security breach, Morgan Stanley reduced its valuation estimates to reflect a more cautious risk profile. The firm’s new projections bake in higher costs for security infrastructure; however, Park noted that the breach is unlikely to disrupt Coupang’s actual business activities or customer fulfillment.
On December 1, Coupang disclosed a massive data breach affecting 33.7 million customer accounts, representing nearly two-thirds of the nation’s population. The leak compromised sensitive information, including email addresses, phone numbers, and shipping addresses. This incident caps a record-breaking year for cyberattacks in South Korea, following significant breaches at SK Telecom, KT Corp, and the crypto exchange Upbit.
In Q3 2025, Coupang reported revenue of $9.3 billion, representing an 18% year-over-year increase. Despite heavy investments in new markets, Coupang achieved a net income of $95 million, resulting in diluted earnings per share of $0.05. The company’s core Product Commerce segment remained the primary engine of growth, generating $8 billion in revenue, a 16% increase over the previous year. Coupang’s Developing Offerings segment, which encompasses its international expansion and new services, saw revenue increase 32% to $1.3 billion.
Coupang Inc. (NYSE:CPNG), together with its subsidiaries, owns and operates retail business through its mobile applications and internet websites in South Korea and internationally. It operates through the Product Commerce and Developing Offerings segments.
6. DoorDash Inc. (NASDAQ:DASH)
EPS Forward Long Term Growth (3-5 Year CAGR): 64.44%
Number of Hedge Fund Holders: 91
DoorDash Inc. (NASDAQ:DASH) is one of the best stocks to buy for the next 5 years. On December 11, Jefferies raised the firm’s price target on DoorDash to $270 from $260 with a Buy rating on the shares. Jefferies recommends a selective stance on Internet stocks for 2026. Key headwinds include rising investment costs that threaten profitability and concerns that AI will cut out traditional middlemen, potentially limiting how high stock prices can climb relative to earnings.
In other news, on December 17, DoorDash and OpenAI launched a new integration that allows users to shop for groceries directly within ChatGPT. By linking their DoorDash accounts in the Apps section of their settings, customers can convert AI-generated recipe ideas and meal plans into shoppable grocery lists from national retailers, as well as regional favorites, with delivery available in as little as an hour. Currently live for select users with a full rollout across iOS, Android, and web platforms expected in the coming weeks, the partnership aims to provide a seamless inspiration-to-delivery experience that saves consumers time while helping local merchants capture real-time demand.
Earlier on November 19, Jefferies analyst John Colantuoni upgraded DoorDash to Buy from Hold with a price target of $260, up from $220. This upgrade followed a 20% selloff over the then-past 30 days, arguing that the company’s strong execution and growth algorithm are currently underappreciated by the market. Colantuoni believes that the conservative 2026 outlook provides DoorDash with strategic flexibility for long-term investments while creating significant potential for upside against future consensus estimates.
DoorDash Inc. (NASDAQ:DASH), together with its subsidiaries, operates a commerce platform that connects merchants, consumers, and independent contractors in the US and internationally.
5. Snowflake Inc. (NYSE:SNOW)
EPS Forward Long Term Growth (3-5 Year CAGR): 45.75%
Number of Hedge Fund Holders: 102
Snowflake Inc. (NYSE:SNOW) is one of the best stocks to buy for the next 5 years. On December 4, Scotiabank raised the firm’s price target on Snowflake to $290 from $280 with an Outperform rating on the shares. The firm pointed out that although the company’s FQ3 2026 product revenue was strong, it failed to meet the lofty whisper numbers of institutional investors. However, Scotiabank maintains its positive outlook on the company due to the evidence of robust customer spending trends.
In its FQ3 earnings report, Snowflake announced that it achieved product revenue of $1.16 billion, which marked a 29% year-over-year increase, while total consolidated revenue reached $1.21 billion. Snowflake’s Remaining Performance Obligations/RPO surged 37% to $7.88 billion, reflecting significant long-term contract momentum. The company added 615 new customers during the quarter, including 31 who contribute more than $1 million in trailing 12-month revenue. This brought the total number of Global 2000 customers to 766, with this elite group spending an average of $2.3 million annually.
A primary highlight of the quarter was Snowflake reaching a $100 million AI revenue run rate one quarter earlier than internal projections. This milestone was supported by the rapid adoption of Snowflake Intelligence. To further its AI leadership, Snowflake announced a $200 million partnership with Anthropic to integrate advanced Claude models directly into the Snowflake AI Data Cloud. Additionally, a new strategic alliance with SAP was launched, introducing SAP BDC Connect to provide customers with zero-copy access to mission-critical ERP data.
Looking ahead, Snowflake raised its full-year FY2026 product revenue guidance to $4.446 billion, an increase representing 28% annual growth. For the upcoming fourth quarter, the company expects product revenue to fall between $1.195 and $1.2 billion.
Snowflake Inc. (NYSE:SNOW) provides a cloud-based data platform for various organizations in the United States and internationally.
4. Sea Limited (NYSE:SE)
EPS Forward Long Term Growth (3-5 Year CAGR): 59.70%
Number of Hedge Fund Holders: 102
Sea Limited (NYSE:SE) is one of the best stocks to buy for the next 5 years. On November 18, Bank of America Securities analyst Sachin Salgaonkar maintained a Buy rating on Sea Limited and set a price target of $200.
Earlier on November 17, Phillip Securities upgraded Sea Limited to Buy from Neutral with an unchanged price target of $170. This sentiment followed the company’s Q3 2025 earnings report. Citing a favorable entry point following the stock’s recent pullback, Phillip Securities has upgraded Sea Limited and increased revenue estimates for FY25 and FY26. The upgrade is supported by broad-based growth, specifically noting Shopee’s continued market strength and a resurgence in the Garena gaming segment, which just saw its best results since 2021.
In its Q3 2025 earnings report, Sea Limited announced delivering record total revenue of $6 billion, which was a 38% year-over-year increase. The company’s adjusted EBITDA grew 68% to $874 million, while net income more than doubled from $153 million in the previous year to $375 million. These results were fueled by robust monetization in e-commerce and high engagement in digital entertainment, leading to a diluted EPS of $0.59.
Shopee, the company’s e-commerce segment, achieved a record GMV of $32.2 billion and a gross order volume of $3.6 billion, both representing 28% year-over-year growth. Monetization was a key driver, as ad revenue surged over 70% and the ad take rate rose by more than 80 basis points. To improve operational efficiency, the company’s logistics arm, SPX Express, now fulfills more than half of all Shopee orders, contributing to a 2-day improvement in average delivery speeds in Brazil. Additionally, the Shopee VIP membership program grew to over 3.5 million members, a 75% increase quarter-on-quarter, with members spending approximately 40% more after joining.
Sea Limited (NYSE:SE), through its subsidiaries, operates as a consumer internet company in Southeast Asia, Latin America, the rest of Asia, and internationally. The company operates through E-commerce, Digital financial services, and Digital entertainment segments.
3. MercadoLibre Inc. (NASDAQ:MELI)
EPS Forward Long Term Growth (3-5 Year CAGR): 32.14%
Number of Hedge Fund Holders: 109
MercadoLibre Inc. (NASDAQ:MELI) is one of the best stocks to buy for the next 5 years. On November 24, UBS analyst Kaio Prato lowered the firm’s price target on MercadoLibre to $2,900 from $3,000.
Earlier on November 17, Citi lowered the firm’s price target on MercadoLibre to $2,500 from $2,700 with a Buy rating on the shares. Citi initiated a 90-day negative short-term view on MercadoLibre due to concerns that competitive headwinds may lead to downward revisions in earnings estimates. Despite this tactical caution, the firm maintains that the stock’s valuation is compelling and offers a favorable entry point for those looking past the immediate volatility.
In other news, on December 10, Mercado Libre and Agility Robotics announced a major commercial agreement to deploy the Digit humanoid robot within Mercado Libre’s fulfillment operations. The partnership marks a significant milestone in industrial automation, moving humanoid technology from the demo phase to real-world commercial application. The initial rollout will take place at Mercado Libre’s facility in San Antonio, Texas, where Digit will focus on tote handling.
The goal of this partnership is to address chronic labor shortages in high-turnover roles while improving ergonomic safety for human employees. By delegating boring and physically taxing workflows to Digit, Mercado Libre aims to free its team members for more complex, value-added work. While the Texas deployment serves as the launchpad, both companies have expressed clear intentions to explore future expansions into Mercado Libre’s vast logistics network across Latin America.
MercadoLibre Inc. (NASDAQ:MELI) operates online commerce platforms in Brazil, Mexico, Argentina, and internationally.
2. Carvana Co. (NYSE:CVNA)
EPS Forward Long Term Growth (3-5 Year CAGR): 56.98%
Number of Hedge Fund Holders: 109
Carvana Co. (NYSE:CVNA) is one of the best stocks to buy for the next 5 years. On December 12, Citi raised the firm’s price target on Carvana to $550 from $445, while keeping a Buy rating on the shares. The firm posted this sentiment as Carvana’s sales tracker revealed that November growth reached 37%, which was a notable increase from October’s 32%. Believing that the company is benefiting from a clear upward trend in demand, the firm also revised its EBITDA estimates higher.
A day before, on December 11, Jefferies analyst John Colantuoni raised the price target on Carvana to $550 from $475 with a Buy rating on the shares. This decision was made as Piper Sandler recommended a highly selective approach to internet stocks for the coming year. The firm cautioned that heavy incremental investments in new technologies may compress profit margins, while growing concerns over AI disintermediation could prevent stock multiples from expanding. This cautious stance suggests that while the sector remains a focus, the transition from infrastructure to application in 2026 will create significant valuation hurdles for companies unable to prove their long-term defensibility.
Furthermore, Morgan Stanley analyst Andrew Percoco assumed coverage of Carvana on December 8 with an Overweight rating and $450 price target. Following a recent change in analysts, Morgan Stanley updated its 2026 outlook for the automotive and shared mobility sector with a more defensive tone. The firm warned that the EV winter is set to endure through 2026, leading to a more cautious stance on pure-play EV manufacturers. To balance this, the firm expressed a moderately positive view on companies focusing on internal combustion engines and hybrids.
Carvana Co. (NYSE:CVNA), together with its subsidiaries, operates an e-commerce platform for buying and selling used cars in the US.
1. Spotify Technology (NYSE:SPOT)
EPS Forward Long Term Growth (3-5 Year CAGR): 31.42%
Number of Hedge Fund Holders: 116
Spotify Technology (NYSE:SPOT) is one of the best stocks to buy for the next 5 years. On December 17, Citizens analyst Matthew Condon initiated coverage of Spotify with an Outperform rating and $800 price target. The firm remains bullish on Spotify due to the company’s evolution into a dominant, multi-format audio platform. The firm specifically points to the company’s underappreciated ability to raise subscription prices without losing its competitive edge as a key factor for future profitability.
On December 11, David Chiaverini from Jefferies maintained a Buy rating on Spotify, with a price target of $800.
Additionally, on December 9, Spotify announced the expansion of its music video beta to Premium subscribers in the US and Canada. This rollout allows millions of users to access a curated catalog of official music videos directly within the app on iOS, Android, desktop, and TV devices. By selecting a supported track and tapping the Switch to video toggle, fans can seamlessly transition from audio to video without losing their place in the song.
The move is backed by strong engagement data: Spotify found that users who discover a track via its music video are 34% more likely to stream it again and 24% more likely to save or share it the following week. The impact is even more pronounced among super listeners who increase their streaming of that artist by an average of 85% in the month following a video engagement.
Spotify Technology (NYSE:SPOT), together with its subsidiaries, provides audio streaming subscription services worldwide. It operates through two segments: Premium and Ad-Supported.
While we acknowledge the potential of SPOT to grow, 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 SPOT and that has 100x upside potential, check out our report about this cheapest AI stock.
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