In this article, we will take a look at some of the best long-term stocks to buy now.
Investing for the long haul gives money the best chance to grow. The trade-off is learning to stay calm when markets get rough and not losing sight of the fact that pullbacks are normal. History makes that clear. Markets fall, but they also recover.
A study from Franklin Templeton puts this into perspective. Stock returns have never moved in a straight line, yet the S&P 500 posted gains in about 76% of the years between 1937 and 2022. For long-term investors, what matters is the overall pattern, not the day-to-day or even year-to-year swings. Looking back over the past 20 years shows that periods of volatility are part of the journey, not a reason to abandon it.
The real damage often happens when investors pull money out during downturns. Market rebounds tend to come fast, sometimes when sentiment is at its worst. Missing just a handful of strong trading days can take a meaningful bite out of long-term returns.
Research from Capital Group tells a similar story. Since 1952, the S&P 500 has typically dropped at least 10% roughly once every two and a half years. Declines of 20% or more have shown up about every five and a half years, assuming full recoveries. In addition, every time the index has fallen 15% or more, it has eventually bounced back. On average, the market gained 44% in the year following those declines. Sitting on the sidelines during that kind of recovery is a risk many long-term investors can’t afford to take.
Given this, we will take a look at some of the best long-term stocks to invest in.
Our Methodology
For this article, we screened for US companies with a market cap of at least $2 billion, with strong balance sheets and sound financials. From that list, we identified companies with positive revenue growth over the past five years and shortlisted those that have a 5-year average annual revenue growth of over 10%. From that group, we identified stocks that have upside potential of over 15% based on analysts’ targets, as of December 16. Next, we picked 12 companies that were most popular among hedge funds, as per Insider Monkey’s database of Q3 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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
12. Badger Meter, Inc. (NYSE:BMI)
Number of Hedge Fund Holders: 28
5-Year Average Revenue Growth: 15.27%
Upside Potential as of December 16: 22.3%
Badger Meter, Inc. (NYSE:BMI) is one of the best long-term stocks to invest in.
On December 12, Jefferies initiated coverage of Badger Meter, Inc. (NYSE:BMI) with a Buy rating and a $220 price target. The firm described Badger Meter as a leader in smart water metering and said the recent slowdown in growth stems from tough comparisons and a higher base. It is not a sign of weakening demand, the analyst said.
The recent pullback, in Jefferies’ view, creates “an attractive entry point for the name that compounds HSD organic growth,” the analyst added.
Badger Meter, Inc. (NYSE:BMI) also brings a strong track record as a serial acquirer. Since 2010, the company has completed 14 acquisitions, steadily reinforcing its leadership position in water technology. Earlier this year, it announced the purchase of SmartCover Systems from XPV Water Partners for $185 million. In its third-quarter earnings update, management said it remains on track to deliver the expected sales and cost synergies tied to the SmartCover deal.
As the company has added more software and technology solutions through these acquisitions, its free cash flow profile has improved meaningfully. FCF margins have climbed from about 6% in 2015 to roughly 18% today, helped by the rapid expansion of its software-as-a-service offerings.
That growing free cash flow base is a key reason Badger Meter, Inc. (NYSE:BMI) stands out as a dividend growth story. The current dividend yield sits at around 0.9%, which may not turn heads, but the company uses only about 25% of its FCF to fund dividend payments. That leaves ample room for future increases, especially if margins continue to move higher. Badger Meter has now raised its dividend for 33 straight years.
Backed by more than a century of innovation in water technology, Badger Meter, Inc. (NYSE:BMI) delivers end-to-end water management solutions through its BlueEdge suite.
11. Twilio Inc. (NYSE:TWLO)
Number of Hedge Fund Holders: 55
5-Year Average Revenue Growth: 31.7%
Upside Potential as of December 16: 15.4%
Twilio Inc. (NYSE:TWLO) is among the best long-term stocks to invest in.
On December 17, BTIG analyst Nick Altmann initiated coverage of Twilio Inc. (NYSE:TWLO) with a Buy rating and a $165 price target. In his research note, he said the company is executing well, while the total addressable market is improving and setting up for faster growth in 2026. That outlook supports the long-term case for the market share leader. BTIG also sees sustainable double-digit growth as achievable over the medium term.
Twilio shares are up more than 26% since the start of 2025. The move has been driven largely by strong quarterly results. In the third quarter of 2025, analysts were looking for earnings of $1.07 per share on $1.25 billion in revenue. Twilio delivered $1.25 per share in profit instead, along with $1.3 billion in sales. Revenue increased 15% year over year, as the company “saw broad-based strength across customer segments, ranging from start-ups to enterprises to ISVs,” according to CEO Khozema Shipchandler.
Non-GAAP earnings rose 22% from a year earlier. On a GAAP basis, results swung from a $4.9 million loss last year to a $40.9 million profit this quarter.
Cash generation stood out even more. Free cash flow climbed over 30% to $247.5 million during the quarter. Twilio Inc. (NYSE:TWLO) is also seeing rising demand from AI-focused customers. Several AI companies are using Twilio’s platform to build conversational AI tools. Revenue from its 10 largest voice AI start-up customers increased more than tenfold from a year ago. That momentum looks durable, with adoption of AI in cloud contact centers expected to grow more than five times over the next decade.
Twilio Inc. (NYSE:TWLO) is an American cloud communications company headquartered in San Francisco. It provides programmable tools that let developers handle calls, text messages, and other communication functions through web-based APIs.
10. Roper Technologies, Inc. (NASDAQ:ROP)
Number of Hedge Fund Holders: 63
5-Year Average Revenue Growth: 13.88%
Upside Potential as of December 16: 28.03%
Roper Technologies, Inc. (NASDAQ:ROP) is among the best long-term stocks to invest in.
On December 16, Goldman Sachs cut its price target on Roper Technologies, Inc. (NASDAQ:ROP) to $507 from $572 and kept a Neutral rating on the stock.
A few days earlier, on December 4, Barclays also lowered its target on ROP, bringing it down to $475 from $506, while maintaining an Underweight rating. The move came as part of the firm’s 2026 outlook for the multi-industry group. Barclays said a neutral view on the sector still makes sense heading into next year. Expectations remain muted for most end markets, with the exception of data centers, electric utilities, and aerospace, according to the analyst’s note.
Roper Technologies, Inc. (NASDAQ:ROP) used its third-quarter 2025 earnings call to outline a major shift in capital allocation. The company announced its first-ever share repurchase authorization, totaling $3 billion. At the same time, management reiterated its commitment to mergers and acquisitions. The focus remains on buying faster-growing platforms and adding bolt-on or tuck-in deals with discipline.
During the quarter, Roper deployed $1.3 billion. About $800 million went toward the Subsplash acquisition, with another $500 million spent on a series of smaller tuck-in deals.
In July, Roper signed a definitive agreement to acquire Subsplash, a provider of AI-enabled, cloud-based software and fintech tools. Subsplash serves more than 20,000 faith-based organizations and churches. The purchase price was set at $800 million.
Roper Technologies, Inc. (NASDAQ:ROP) operates a collection of market-leading businesses that build vertical software and technology-enabled products. These offerings are designed for niche markets with strong competitive positions and durable demand.
