As the markets brace for Fed Chair Jerome Powell’s speech at Jackson Hole, uncertainty continues to hang over the direction of interest rates and the broader markets. In an interview with CNBC on August 19, Mohamed El-Erian, Chief Economic Adviser at Allianz, said that Powell is likely to “maintain maximum policy optionality,” a stance that “the White House doesn’t want to hear”, and neither do many in the markets.
But for long-term investors, this ambiguity is not a bug; it’s a feature. Periods of macroeconomic uncertainty often expose the difference between hype and real growth. While short-term traders may focus on Fed speak, patient investors should concentrate on durable companies with pricing power, scalable business models, and room for growth.
Here is a list of 11 best stocks to invest in for long-term growth that do just that. It highlights companies that are likely to see robust bottom-line growth regardless of rate path noise. As El-Erian reminds us, the Fed may be “pushed on the labor market” and the new “monetary framework,” but great businesses outperform policy pivots.
A close-up of a financial analyst in a modern office while reviewing long-term investment opportunities.
Our Methodology
To identify the 11 best stocks to invest in for long-term growth, we included only those stocks that have an average expected EPS growth of at least 25% over the next 3-5 years, according to Wall Street estimates. We sorted the final list in ascending order of hedge fund sentiment as of Q2 2025.
Note: All data was recorded on August 22, 2025.
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).
11 Best Stocks to Invest in for Long Term Growth
11. Microchip Technology Incorporated (NASDAQ:MCHP)
EPS Forward Long Term Growth (3-5 Year CAGR): 29.09%
Number of Hedge Fund Holders: 54
Microchip Technology Incorporated (NASDAQ:MCHP) is one of the best stocks to invest in for long-term growth. On August 8, Raymond James analyst Melissa Fairbanks maintained her Strong Buy rating on Microchip Technology Incorporated (NASDAQ:MCHP). Fairbanks also increased her price target for the company from $65 to $75, a 13.39% implied upside from the current price of $66.14.
The company reported its Q1 FY 2026 earnings on August 7. Its EPS came in at $0.27 per share, representing a solid 12.97% earnings surprise. Fairbanks cited solid Q1 results, with both earnings and outlook ahead of expectations.
The mid-single digit guidance, quarter-over-quarter for the current quarter, reflects a demand-driven recovery, rather than an inventory restocking dynamic, Fairbanks noted. The chip company ceased operations in its fabrication facility in Arizona in May to tackle the high inventories.
The company is developing solutions tailored for AI at the edge, which don’t consume a lot of power. Microchip is also developing advanced solutions for AI in data centers.
Microchip Technology Incorporated (NASDAQ:MCHP) is trading at a reasonable forward PEG of 1.55x, compared to the sector median of 1.83x.
10. Toast, Inc. (NYSE:TOST)
EPS Forward Long Term Growth (3-5 Year CAGR): 29.00%
Number of Hedge Fund Holders: 67
Toast, Inc. (NYSE:TOST) is one of the best stocks to invest in for long-term growth. On August 6, JP Morgan maintained its Neutral rating on Toast, Inc. (NYSE:TOST), but increased its price target for the stock from $42 to $52. The new price target represents a solid 19.2% upside from the current market price of $43.62. JP Morgan cited strong Q2 earnings, but remains cautious with its Neutral rating due to the stock’s valuation.
The company reported a revenue of $1.55 billion for the quarter, a 25% year-over-year growth, and beat Wall Street estimates of $1.52 billion. Toast has also been steadily improving its margins over the last few quarters. The net margin for Q2 stood at 5.16%, compared to 1.13% for the same quarter last year. The company reported an EPS of $0.249, handily beating analyst estimates of $0.225.
The company’s growth can be attributed to a number of factors. It reported a record 8,500 net new locations added, expanding its base to 148,000 locations. The company is spreading its wings globally, as it started operations in Australia, its fourth market. The company also saw deeper client engagement through its new AI features like ToastIQ, which helps enhance restaurant operations through automated workflows.
Toast provides a one-stop shop, cloud-based software and hardware platform for restaurants. These platforms help clients to manage online ordering, point-of-sale payments, payroll, and marketing, among other operations under one system.
9. Take-Two Interactive Software, Inc. (NASDAQ:TTWO)
EPS Forward Long Term Growth (3-5 Year CAGR): 42.99%
Number of Hedge Fund Holders: 71
Take-Two Interactive Software, Inc. (NASDAQ:TTWO) is one of the best stocks to invest in for long-term growth. On August 8, JP Morgan maintained its Overweight rating on Take-Two Interactive Software, Inc. (NASDAQ:TTWO), while raising the price target from $250 to $275. That is an implied upside of 20.9% from the current levels of $227.5.
The firm was impressed with the company’s Q1 beat and the raised fiscal year 2026 outlook. JP Morgan said that the company continues to execute well and remains its top pick, as the company prepares to release Grand Theft Auto VI in May of next year.
Take-Two reported Q1 of its Fiscal Year 2026 earnings on August 7. It generated $1.50 billion in Q1 (quarter ended June 2025), growing 12.4% year-over-year. The company saw new bookings of $1.42 billion, which were helped by solid sales from Grand Theft Auto V, Red Dead Redemption 2, and NBA 2K25, among other games.
The company’s mobile segment has been one of the linchpins of the company’s recent growth. Match Factory! for example, saw a 33% year-over-year growth in bookings, while Toon Blast saw a 22% year-over-year growth. New features in mobile games, such as seasonal events, caused a spike in engagement and monetization.
Meanwhile, the company earned an EPS of $0.608 per share, which was more than twice the analysts’ estimate of $0.283 per share. The company has focused on improving its profitability after being deep in the red over the last couple of years. It switched to a strategy to focus on high-margin business from in-game purchases across its mobile and core titles.
8. Amphenol Corporation (NYSE:APH)
EPS Forward Long Term Growth (3-5 Year CAGR): 26.21%
Number of Hedge Fund Holders: 81
Amphenol Corporation (NYSE:APH) is one of the best stocks to invest in for long-term growth. On August 18, electronic equipment giant Amphenol Corporation (NYSE:APH) said it will buy cable assembly firm Trexon for about $1 billion in cash. The acquisition will help the company get exposure to the rising defense spending and to expand its military portfolio.
The company’s CEO Adam Norwitt said, “Trexon’s unique portfolio of high-reliability cable assembly products will be highly complementary to our existing offerings in the defense market.
Amphenol has been on an acquisition spree. The company acquired CommScope’s Connectivity and Cable Solutions segment in a $10.5 billion deal earlier this month. The company will be able to tap into the burgeoning demand for the segment’s AI-driven applications and high-speed data center infrastructure.
Amphenol expects the acquisition to be accretive to its earnings per share in the first year after closing the deal, which is likely to happen in the fourth quarter of this year.
Amphenol Corporation (NYSE:APH) has seen steady revenue growth over the years, and has been able to expand its margin steadily, too. and is trading at a forward P/E of 35.19x.
7. Flutter Entertainment plc (NYSE:FLUT)
EPS Forward Long Term Growth (3-5 Year CAGR): 28.31%
Number of Hedge Fund Holders: 87
Flutter Entertainment plc (NYSE:FLUT) is one of the best stocks to invest in for long-term growth. On August 8, Canaccord Genuity maintained its Buy rating on Flutter Entertainment plc (NYSE:FLUT), while increasing the price target from $330 to $340. That is an implied upside of 13.6% from the current price of $299.24.
The firm cited strong Q2 results for the increase in the price target. The online betting and gaming company generated revenue of $4.19 billion in Q2 of 2025, a solid 16.06% year-over-year growth, while beating analysts’ estimates of $4.13 billion. The company also beat bottom-line estimates, with EPS coming in at $2.95 per share, a 31.5% earnings surprise.
The company saw strong momentum in its US operations with iGaming, its online gambling platform seeing a 42% year-over-year surge. The company is gaining significant market share in the US in both its betting and gaming segments. The company’s Fan Club Rewards Club, a loyalty program that rewards players for their engagement, was launched in April 2025 and has played a big role in the growth.
6. Nu Holdings Ltd (NYSE:NU)
EPS Forward Long Term Growth (3-5 Year CAGR): 60.65%
Number of Hedge Fund Holders: 97
Nu Holdings Ltd (NYSE:NU) is one of the best stocks to invest in for long-term growth. On August 19, Citi upgraded Nu Holdings Ltd (NYSE:NU) from Sell to Buy, while also doubling its price target for the company from $9 to $18. Despite the stock surging over 15% since the Brazilian digital banking company reported its quarterly results on August 14, Citi’s implied upside still stands at 29.6%, with the stock trading at $13.89.
Citi noted that the company strung a few strong quarters together, despite macroeconomic concerns. The firm said that the strong quarters were a testament to the bank’s ability to navigate well through tough periods, but also to accelerate in key portfolios while maintaining good asset quality.
Citi believes that the company’s earnings growth could accelerate in Mexico and Colombia. The firm noted that Nu’s efficiency with also help improve its return on equity. Nu’s return on equity stands at 28%, standing out from its rivals.
The company generated $3.7 billion in revenue in Q2 2025, growing 32.1% year-over-year. The company said that its revenue has been growing at an 85% annualized growth rate since 2021. Yet, Nu trades at a reasonable forward P/E ratio of 25x.
5. DoorDash, Inc. (NASDAQ:DASH)
EPS Forward Long Term Growth (3-5 Year CAGR): 69.28%
Number of Hedge Fund Holders: 100
DoorDash, Inc. (NASDAQ:DASH) is one of the best stocks to invest in for long-term growth. DoorDash, Inc. (NASDAQ:DASH) and McDonald’s Corporation (NYSE:MCD) have launched a new online direct ordering channel in the US, which allows customers to order McDelivery directly from McDonalds.com via mobile or desktop, without a login, an app, or an account. This is a DoorDash-powered platform that will simplify the process of ordering. It will also expand accessibility and will be fulfilled by DoorDash’s delivery partners, known as Dashers.
This integration aims to remove the friction in the ordering process. This will help McDonald’s digital sales, which have been the fast-food giant’s priority. Meanwhile, the integration could provide DoorDash access to scores of potential customers who may not have used the DoorDash app yet. By integrating with McDonald’s website, the company could increase its overall delivery volume.
The two companies formed a long-term global strategic partnership in 2021. This integration in the US is a part of the ongoing expansion, which supports McDelivery in 29 countries.
DoorDash has seen improved profitability and robust growth. The company reported Q2 2025 results on August 6. It reported $3.28 billion in revenue, growing a solid 24.7% year-over-year, while also beating Wall Street estimates of $3.16 billion. The company has also been able to expand margins. The company reported a net margin of 8.68% for the quarter, higher than the 6.37% it reported in the previous quarter and -5.97% in the same quarter last year.
4. Spotify Technology S.A. (NYSE:SPOT)
EPS Forward Long Term Growth (3-5 Year CAGR): 33.2%
Number of Hedge Fund Holders: 111
Spotify Technology S.A. (NYSE:SPOT) is one of the best stocks to invest in for long-term growth. On August 18, Oppenheimer maintained its Outperform rating on Spotify Technology S.A. (NYSE:SPOT), while increasing the price target from $750 to $825. That implies a solid 19.2% upside from the current price of $692.28.
The firm cited the increase in the Swedish company’s Premium subscription outside the US, which was consistent with its upgrade thesis and noted the company’s improving pricing power.
Spotify’s pricing power stems from its market leadership in music streaming, while its huge client base attracts podcasts. The company’s loyal base, low churn rate, a its proprietary algorithms for personalized content discovery make the service hard to replicate.
As a result of Spotify’s superior pricing power, the company was able to generate a solid profit of $1.23 billion in 2024, representing a net margin of 7.26%. However, the company reported a loss of $97.55 million in Q2 2025, due to payroll taxes levied in some European countries on the value of employee stock options.
3. MercadoLibre, Inc. (NASDAQ:MELI)
EPS Forward Long Term Growth (3-5 Year CAGR): 31.43%
Number of Hedge Fund Holders: 116
MercadoLibre, Inc. (NASDAQ:MELI) is one of the best stocks to invest in for long-term growth. On August 7, JP Morgan analyst Marcelo Santos maintained his Neutral rating on MercadoLibre, Inc. (NASDAQ:MELI), while increasing the price target from $2600 to $2700. That is a 14.9% implied upside from the current price of $2350.
The analyst updated the company’s estimates post the Q2 earnings report on August 4. MercadoLibre reported revenue of $6.79 billion, beating analysts’ estimates of $6.67 billion, and growing 33.9% year-over-year. The company’s growth can be attributed to improving momentum in the e-commerce and fintech segments.
The company’s strategy to lower the free shipping threshold in Brazil seems to be paying off. It also expanded its logistics in Mexico, the second biggest Latin American market. MELI is gaining solid momentum in Mercado Pago, its digital payment platform, which saw 91% year-over-year growth in its credit portfolio.
Santos remains Neutral on the stock, though, citing that the Argentine e-commerce giant is entering a phase of higher competition after two years of “relatively calm markets” in Brazil. The company’s forward P/E ratio stands at a rich 49.99x. However, the implied average Wall Street upside on the stock is 22.3%.
2. Eli Lilly and Company (NYSE:LLY)
EPS Forward Long Term Growth (3-5 Year CAGR): 32.34%
Number of Hedge Fund Holders: 119
Eli Lilly and Company (NYSE:LLY) is one of the best stocks to invest in for long-term growth. Eli Lilly and Company (NYSE:LLY) launched the easy-to-use injector pen of its weight-loss and diabetes drug, Mounjaro in India on August 13. The launch comes two months after its rival Novo Nordisk released its weight loss drug Wegovy in the country.
Eli Lilly launched Mounjaro in India in March, but only available through vials. The easy-to-use injector pen makes the drug much easier to administer.
The most populous country is seeing an increasing number of obesity and type 2 diabetes cases, which has created a huge market for weight-loss and diabetes treatments. The drug company is charging 14,000 Indian rupees ($160.6) for the starting dose of 2.5 mg, according to Reuters.
That said, Eli Lilly does have to compete with not only Wegovy, but also cheaper generic versions of the drugs, which are made in India, making Mounjaro more expensive, relatively speaking, to the generally price-sensitive Indian people.
Wall Street is bullish on the stock with an average “Buy” rating, an average implied upside of 28.17%.
1. NVIDIA Corporation (NASDAQ:NVDA)
EPS Forward Long Term Growth (3-5 Year CAGR): 29.8%
Number of Hedge Fund Holders: 235
NVIDIA Corporation (NASDAQ:NVDA) is one of the best stocks to invest in for long-term growth. On August 21, Wedbush maintained its Outperform rating on NVIDIA Corporation (NASDAQ:NVDA), while increasing the price target from $175 to $210, ahead of the Q2 earnings report. The new target implies an 18% upside from the current price of $177.99.
Wedbush cited “ubiquitously positive” hyperscale spending results during Q2 and “robust” demand for Nvidia, with supply falling short of demand. Wedbush analyst Dan Ives expects results to highlight overwhelming demand and noted that “demand-to-supply ratio is 10:1 for Nvidia’s golden chips”, and believes that the semiconductor giant will continue to be the central player in the AI revolution.
NVIDIA’s GB300 Blackwell Ultra AI servers, the company’s next-gen, high-performance AI supercomputing platforms, are set to be shipped in small quantities from as early as next month.
Ahead of its Q2 fiscal year 2026 earnings report (quarter ending July 2025), analysts anticipate Nvidia to report revenue of $46.03 billion, which would be a 53.2% year-over-year increase. However, the company has had a solid history of beating analyst estimates.
While we acknowledge the potential of NVDA 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 NVDA and that has 100x upside potential, check out our report about this cheapest AI stock.
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