12 Best Growth Stocks to Buy and Hold for the Long Term

7. Palantir Technologies Inc. (NASDAQ:PLTR)

5-Year Sales Growth: 30.90%

Number of Hedge Fund Holders: 64

Palantir Technologies Inc. (NASDAQ:PLTR) is a technology company that focuses on big data analytics and data platforms. It operates through four main platforms, including Gotham, Foundry, Apollo, and the Artificial Intelligence Platform.

On May 7, analyst Tyler Radke from Citi maintained a Hold rating on the stock with a price target of $110. The analyst acknowledged the company’s promising developments, such as its expanding consumer demand and multiple new customers. This was evident from Palantir Technologies Inc.’s (NASDAQ:PLTR) Q1 2025 results. The company grew its total revenue by 39% year-over-year to reach $884 million. It closed 139 deals valued over $1 million and also marked the highest quarter of US commercial total contract value of $810 million, reflecting a 183% increase year-over-year.  Lastly, the total customer count, as acknowledged by the analyst, also grew 39% year-over-year.

However, despite the impressive performance, the analyst remains cautious about Palantir Technologies Inc. (NASDAQ:PLTR) due to the ongoing macroeconomic uncertainties, which could impact its growth trajectory. The management remains confident in its ability to tackle the challenges and has raised the full year revenue guidance to $3.890 billion and $3.902 billion. It is one of the best growth stocks to buy and hold for the long term.

Ithaka US Growth Strategy stated the following regarding Palantir Technologies Inc. (NASDAQ:PLTR) in its Q1 2025 investor letter:

“From the front-lines of warzones to Fortune 500 enterprises, Palantir Technologies Inc. (NASDAQ:PLTR) builds software to address high-level action items, respond to defense and security concerns, and improve organizational efficiency. The company offers a number of software products from data analysis and curation (Palantir Gotham and Foundry) to a cloud-based operations software (Apollo). The company rose to popularity, in part, due to several government contracts (~55% of revenues) arising from recent and continuous global conflicts. In addition to creating generative AI defense solutions for governments across the globe, commercial customers (~45% of revenues) have flocked to the company’s security and data analysis solutions to monitor and analyze business data and protect sensitive information. The stock’s rise in the quarter was due to a strong earnings report that beat Street expectations as well as investor excitement with regard to the company’s ability to further monetize its AI product across its growing customer base.”