In this article, we will discuss the 10 Best Stocks to Invest in for the Next 5 Years.
While the value category and small-cap stocks managed to outperform in August, Morningstar continues to see healthy investment opportunities in such areas compared to the rest of the market. The firm further expects the US Fed to start easing monetary policy at its next meeting (scheduled for September 16 – September 17) and go for additional easing steps throughout 2026. Notably, the long-term interest rates remained on a downward trend over the previous few months.
Investment Strategies Moving Forward
In a fully valued market, Morgan Stanley Investment Management advises optimizing asset and investment selection in portfolios. The firm believes that investors are now entering the optimism phase of the bull market, where it anticipates investors to be even more optimistic than they have been in the previous 2 years. Furthermore, the potential impact of Gen AI on private market performance is anticipated to be a key theme in 2025, opines Morgan Stanley Investment Management.
Amidst these trends, we will now have a look at the 10 Best Stocks to Invest in for the Next 5 Years.
Our Methodology
To list the 10 Best Stocks to Invest in for the Next 5 Years, we conducted an extensive search and sifted through several online rankings. After getting an extended list of stocks, we chose the ones popular among hedge funds, as of Q2 2025. Finally, the stocks are arranged in ascending order of their hedge fund sentiments.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Best Stocks to Invest in for the Next 5 Years
10. American Express Company (NYSE:AXP)
Number of Hedge Fund Holders: 70
American Express Company (NYSE:AXP) is one of the Best Stocks to Invest in for the Next 5 Years. On September 10, UPS and American Express Company (NYSE:AXP) announced an expanded agreement to support small businesses grow and drive commerce in the communities. They are rolling out new and exclusive offers to help SMBs. Notably, during the critical holiday season, when each and every transaction counts, small businesses tend to be dependent on credit cards to manage cash flow, stock inventory as well as to cater to increased demand.
American Express Company (NYSE:AXP)’s Q2 2025 results continued the healthy momentum, with revenues rising 9% YoY to reach a record $17.9 billion, and adjusted EPS increasing 17%. American Express Company (NYSE:AXP) saw record card member spending in Q2 2025, while the demand for its premium products remained strong. Also, its credit performance was best in class. The YoY revenue growth was mainly aided by higher Card Member spending, increased net interest income supported by growth in revolving loan balances, and robust card fee growth.
GreensKeeper Asset Management, an investment management company, released its Q2 2025 investor letter. Here is what the fund said:
“The top contributor to the portfolio in the second quarter was American Express Company (NYSE:AXP) +18.6%. AXP’s affluent customer base continued to spend in Q1, with revenues up 8% at constant currency, causing the stock to end the quarter just shy of its all-time high. During Q2, AXP announced upgrades to its US Consumer and Business Platinum cards, which will be released later this year. AXP continues to tailor its products to capture the spending of younger consumers, with Millennials and Gen Z now accounting for 35% of total US consumer spending. We believe these investments will strengthen the company’s network effect and further lock young consumers into AXP’s ecosystem as their incomes and card spending continue to rise. Additionally, AXP is widening its use cases on the commercial side of the business with recent product launches tailored towards working capital and expense management. This should expand the number of transactions that AXP can participate in and increase switching costs with commercial card users.”
