In this article, we will look at the 10 Best Stocks to Buy Now for Long Term Growth.
On May 29, Andrew Slimmon, Senior Portfolio Manager at Morgan Stanley, appeared on CNBC’s ‘Closing Bell’ to talk about equity markets, whether investors should keep riding the tech winning streak, and more.
Talking about Dow, S&P 500, and Nasdaq setting intraday record highs, he was of the view that on the surface, earnings justify it, as the earnings revisions have been “unbelievably strong”. If you draw a line at the end of the year, that validates a market that is higher.
READ ALSO: 10 Best Commodity Stocks to Buy for the Supercycle AND 12 Best Small Cap Tech Stocks to Buy According to Hedge Funds.
However, he also believes that it is not just the AI beneficiaries that scare him, but also the unprofitable, very speculative tech stocks, as they are the ones that did the best in May and quarter-to-date. That, according to him, is a sign of a very “bubbly” market. Slimmon believes that we are due for a cooling off, or it is going to be 2021. He further posed the question of whether valuations justify many of the chip stocks, his answer to which is yes. The earnings estimates for many of these companies are up just as much as the stocks are, and so he believes it is easier to get involved in those stocks.
With these broader market trends in view, let’s look at the best stocks to buy for long term growth.
Our Methodology
We sifted through financial media reports and ETFs tracking blue-chip and high-quality stocks to find the best long-term stocks with stable fundamentals. We then selected the top 10 stocks most popular among hedge funds as of Q1 2026, using the hedge fund sentiment data from Insider Monkey’s database. The stocks are arranged in ascending order of hedge fund sentiment.
Note: All data was recorded on May 30.
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 Now for Long Term Growth
10. Royal Bank of Canada (NYSE:RY)
Number of Hedge Fund Holders: 32
Royal Bank of Canada (NYSE:RY) is one of the best stocks to buy now for long term growth. Royal Bank of Canada (NYSE:RY) received a rating update from CIBC on May 29, with the firm lifting the price target on the stock to C$279 from C$258 while reaffirming a Neutral rating on the shares. The company also received a rating update from Barclays the same day. The firm lifted the price target on Royal Bank of Canada (NYSE:RY) to C$260 from C$245 and maintained an Overweight rating on the shares. The rating updates came after the bank reported financial results for fiscal Q1 2026 on May 28.
In its financial results for the quarter ended April 30, 2026, the company reported net income of $5.5 billion, up $1,119 million or 25% from the previous year. Diluted EPS rose 27% over the same period to $3.85, highlighting growth across each of Royal Bank of Canada’s (NYSE:RY) business segments. Adjusted net income and adjusted diluted EPS for the quarter were $5.6 billion and $3.90, up 23% and 25%, respectively, from the prior year.
Royal Bank of Canada (NYSE:RY) provides banking and financial services. The company’s operations are divided into the following segments: Personal and Commercial Banking, Wealth Management, Insurance, Capital Markets, and Corporate Support.
9. The Toronto-Dominion Bank (NYSE:TD)
Number of Hedge Fund Holders: 33
The Toronto-Dominion Bank (NYSE:TD) is one of the best stocks to buy now for long term growth. On May 28, Jefferies lifted the price target on The Toronto-Dominion Bank (NYSE:TD) to C$151 from C$142, maintaining a Hold rating on the shares and stating that fiscal Q2 exhibited the company’s breadth, with solid contributions across the board. The firm also stated that further better-than-forecast capital markets results highlight that The Toronto-Dominion Bank (NYSE:TD) has enhanced that platform, noting that credit performance in the U.S. was compelling and management is confident that lending in the region should begin to pick up.
For reference, in its financial results for the quarter ended April 30, 2026, The Toronto-Dominion Bank (NYSE:TD) announced that reported diluted earnings per share were $2.43, compared with $6.27 in the prior year period, while adjusted diluted earnings per share were $2.38, compared to $1.97 in fiscal Q2 2025.
The Toronto-Dominion Bank (NYSE:TD) provides financial products and services. Its operations are divided into the following segments: Canadian Personal and Commercial Banking, U.S. Retail, Wealth Management and Insurance, Wholesale Banking, and Corporate segment.
8. Arm Holdings plc (NASDAQ:ARM)
Number of Hedge Fund Holders: 46
Arm Holdings plc (NASDAQ:ARM) is one of the best stocks to buy now for long term growth. On May 28, Mizuho lifted the price target on Arm Holdings plc (NASDAQ:ARM) to $360 from $290 while maintaining an Outperform rating on the shares. The firm stated that it increased targets in the semiconductor space after analyzing the memory market and the impact of agentic AI. It further told investors in a research note that it believes DRAM demand will be strong into 2027, as NAND demand is not slowing down, and high bandwidth memory’s total addressable market is growing.
Arm Holdings plc’s (NASDAQ:ARM) fiscal Q4 2026 quarterly earnings marked the company’s highest quarterly revenue ever, with the third straight year of 20%+ revenue growth. Its revenue for the quarter reached $1.49 billion, while full-year revenue was $4.92 billion. The company also delivered record full-year royalty revenue of $2.61 billion alongside Q4 revenue at $671 million, driven by growth across Edge AI, smartphones, Physical AI, and Cloud AI, where data center royalties more than doubled year-over-year.
Arm Holdings plc (NASDAQ:ARM) is involved in the licensing, research, marketing, and development of systems IP, microprocessors, graphics processing units, physical IP and associated systems IP, software, and tools. Its operations are divided into the following geographical segments: the United Kingdom, the United States, and Other Countries.
7. AstraZeneca PLC (NYSE:AZN)
Number of Hedge Fund Holders: 56
AstraZeneca PLC (NYSE:AZN) is one of the best stocks to buy now for long term growth. AstraZeneca PLC (NYSE:AZN) reported on May 29 that the global CARES Phase III clinical programme showed that treatment with anselamimab led to “nominally statistically significant and highly clinically meaningful benefit in adults with advanced kappa light chain (AL) amyloidosis as first-line therapy added to standard of care plasma cell dyscrasia (PCD) treatments, compared to placebo”. Anselamimab is a potential first-in-class anti-fibril therapy. The company added that in the overall population of patients with AL amyloidosis, treatment with anselamimab did not meet the primary endpoint, defined as “a hierarchical combination of time to all-cause mortality (ACM) and frequency of cardiovascular hospitalisations (CVH), as previously disclosed”.
In a separate development, AstraZeneca PLC (NYSE:AZN) reported on May 28 that its Imfinzi (durvalumab), in combination with Bacillus Calmette-Guérin (BCG) induction and maintenance therapy, received approval by the FDA in the U.S. to treat adult patients with BCG-naïve, high-risk non-muscle-invasive bladder cancer (NMIBC). Management stated that the FDA’s approval is based on positive results from the POTOMAC Phase III trial.
AstraZeneca PLC (NYSE:AZN) is a biopharmaceutical company that explores, develops, manufactures, and commercializes prescription medicines. It supplies its products and services to specialty and primary care physicians, and is involved in exploring novel immuno-oncology treatment approaches. AstraZeneca PLC (NYSE:AZN) distributes its products and services through local representative offices and distributors.
6. Palo Alto Networks, Inc. (NASDAQ:PANW)
Number of Hedge Fund Holders: 87
Palo Alto Networks, Inc. (NASDAQ:PANW) is one of the best stocks to buy now for long term growth. Jefferies lifted the price target on Palo Alto Networks, Inc. (NASDAQ:PANW) to $300 from $265 on May 29, maintaining a Buy rating on the shares and telling investors in a research note that it expects the company to report a good fiscal Q3 report. The firm stated that Palo Alto Networks, Inc. (NASDAQ:PANW) can hit sales estimates in fiscal Q3, but added that the shares have rallied 66% since April 10, which raises expectations. However, Jefferies still sees positive AI-driven catalysts in fiscal 2027 for the company.
Palo Alto Networks, Inc. (NASDAQ:PANW) also received a rating update from Benchmark on May 27. The firm lifted the price target on the stock to $270 from $200 and reiterated a Buy rating on the shares. The rating came ahead of the company’s fiscal Q3 earnings report due after the market closes on Tuesday, June 2, with the firm telling investors in a preview that Palo Alto Networks, Inc. (NASDAQ:PANW) is “highly likely to modestly top” fiscal Q3 consensus expectations on next generation security annual recurring revenue, total revenue, operating income, margin, and free cash flow margin.
Palo Alto Networks, Inc. (NASDAQ:PANW) provides network security solutions to service providers, enterprises, and government entities. Its operations are divided into the following geographical segments: the United States, Israel, and Other Countries.
While we acknowledge the potential of PANW 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 PANW and that has 100x upside potential, check out our report about the cheapest AI stock.
Click to continue reading and see the 5 Best Stocks to Buy Now for Long Term Growth.
Disclosure: None. Follow Insider Monkey on Google News.
