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

6. Shopify Inc. (NASDAQ:SHOP)

5-Year Sales Growth: 40.26%

Number of Hedge Fund Holders: 64

Shopify Inc. (NASDAQ:SHOP) is an international e-commerce company based in Canada. It provides businesses with an all-in-one platform that allows them to create and operate online stores. The platform also offers an integrated back-office system where merchants can manage products and inventory, process orders and payments, and ship orders.

On May 9, J.P. Morgan analyst Reginald Smith maintained an Overweight rating on the stock and revised the price target to $115 from $124. The analyst noted that Shopify Inc. (NASDAQ:SHOP) recently announced its Q1 2025 results, highlighting 27% year-over-year growth, driven largely by a 29% rise in Merchant Solutions. Smith noted that the growth not only indicates strength in payments but also leads the company’s revenue to surpass Street targets. Moreover, the free cash flow margins of 15% also met the market consensus.

Smith also emphasized Shopify Inc.’s (NASDAQ:SHOP) competitive moat, broad product offerings, ease of use, and scale as key advantages fueling industry-leading growth. He projects compounded annual growth rates of 20% for revenue and 29% for operating profit through 2026. The company ranks as one of the growth stocks to buy and hold for the long term.