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.
9. Workday, Inc. (NASDAQ:WDAY)
Number of Hedge Fund Holders: 64
5-Year Average Revenue Growth: 18.08%
Upside Potential as of December 16: 28.07%
Workday, Inc. (NASDAQ:WDAY) is among the best long-term stocks to invest in.
On December 17, BTIG started coverage of Workday, Inc. (NASDAQ:WDAY) with a Buy rating and a $285 price target. According to the analyst, the stock has gone nowhere for about two years, despite annual subscription revenue growing 16% and free cash flow rising about 18%. BTIG views next year’s numbers as “de-risked.”
Workday, Inc. (NASDAQ:WDAY) shares are down nearly 14% so far in 2025. Software stocks have struggled this year as investors worry that generative AI tools, especially those that can write code quickly, could disrupt established players. Workday has been leaning into that shift. It rolled out several AI agents this year and added new capabilities through small acquisitions.
In early November, the company closed its $1.1 billion purchase of Sana, an AI-driven learning software firm. Even so, the stock stayed under pressure, which further picked up after the third-quarter earnings. For the fiscal year ending January 2026, Workday, Inc. (NASDAQ:WDAY) forecast $8.83 billion in subscription revenue. That points to about 14.4% growth. The catch is that the outlook only increased by $13 million from the guidance issued in August.
Finance chief Zane Rowe told analysts on the earnings call that the updated figure includes contributions from Sana and a contract with the US Defense Intelligence Agency.
Workday, Inc. (NASDAQ:WDAY) is best known for its cloud-based software used in finance, human resources, and student information systems.
8. Elevance Health, Inc. (NYSE:ELV)
Number of Hedge Fund Holders: 82
5-Year Average Revenue Growth: 11.07%
Upside Potential as of December 16: 18.4%
Elevance Health, Inc. (NYSE:ELV) is among the best long-term stocks to invest in.
On December 16, BofA lifted its price target on Elevance Health, Inc. (NYSE:ELV) to $385 from $370 and kept a Neutral rating. The firm noted that its higher target reflects richer multiples across the peer group.
Elevance Health, Inc. (NYSE:ELV)’s third-quarter results showed steady execution. The benefit expense ratio landed where management expected it to. Results included about $1 of favorable items below the line, but the core business tracked closely with the outlook shared last quarter.
Management reaffirmed 2025 adjusted EPS of about $30. It continues to view $27 as the right earnings baseline once roughly $3 of nonrecurring items are stripped out. The focus remains on integrating recent acquisitions. Capital returns are also front and center, with share repurchases a priority.
Total operating revenue reached $50.1 billion for the quarter, up 12% year over year. Growth came from higher premium yields, recently closed deals, and rising Medicare Advantage membership. That strength was partly offset by ongoing Medicaid reverifications.
Elevance Health, Inc. (NYSE:ELV), formerly Anthem, is one of the largest health companies in the U.S. It offers health insurance alongside broader, whole-health solutions.
7. Analog Devices, Inc. (NASDAQ:ADI)
Number of Hedge Fund Holders: 84
5-Year Average Revenue Growth: 15.3%
Upside Potential as of December 16: 15.1%
Analog Devices, Inc. (NASDAQ:ADI) is among the best long-term stocks to invest in.
On December 16, BofA raised its price target on Analog Devices, Inc. (NASDAQ:ADI) to $320 from $290 and kept a Buy rating. The move came as the firm refreshed price targets across its US semiconductor coverage.
BofA sees 2026 as a midpoint in a long upgrade cycle. Think eight to ten years of rebuilding traditional IT systems so they can handle faster, AI-heavy workloads. Stocks may stay choppy as investors question AI returns and hyperscaler cash flows. At the same time, demand from large language model builders and AI factories should help balance that out.
In Analog Devices, Inc. (NASDAQ:ADI)’s fiscal Q4 2025 earnings call, CEO Vincent Roche said ADI is leaning into record R&D spending. The goal is to extend its lead in analog, mixed signal, and power technologies. Software, digital tools, and AI are getting more attention than ever.
Roche pointed to solid momentum in industrial markets. Automation, robotics, and energy stood out. He expects more growth in FY26 as the design pipeline builds, the industry shifts toward HBM4, and hyperscaler capital spending returns to double-digit growth.
Aerospace and defense posted record results. Automotive also delivered a record year, with ADI growing faster than overall vehicle production.
Analog Devices, Inc. (NASDAQ:ADI) is an American semiconductor company focused on high-performance chips used across industrial, automotive, communications, and defense markets.
6. Palo Alto Networks, Inc. (NASDAQ:PANW)
Number of Hedge Fund Holders: 85
5-Year Average Revenue Growth: 22.28%
Upside Potential as of December 16: 24.7%
Palo Alto Networks, Inc. (NASDAQ:PANW) is among the best long-term stocks to invest in.
On December 17, JPMorgan reinstated coverage of Palo Alto Networks, Inc. (NASDAQ:PANW) with an Overweight rating and a $235 price target. The move followed a period of restriction. The firm said Palo Alto offers one of the most complete, end-to-end security platforms in the market and sees the company as a long-term share gainer.
The company reported fiscal Q1 2026 results on November 19. For the quarter, revenue rose 16% year over year to $2.47 billion. That landed at the top end of management’s prior guidance. Service revenue climbed 14% to just over $2 billion. Subscription and support revenue both grew at the same pace, and Product revenue jumped 23% to $343 million.
Momentum around the platform strategy stayed solid. Instead of selling tools one by one, Palo Alto Networks, Inc. (NASDAQ:PANW) is bundling them into three core platforms. The company closed 16 new platform deals during the quarter. Earlier in November, it also teamed up with IBM on a Quantum-Safe Readiness offering. The goal is to help enterprises map cryptographic exposure, assess quantum risks, and move toward quantum-safe security.
Next-generation security continues to drive growth. Annual recurring revenue (ARR) from these offerings increased 29% to $5.85 billion. SASE remains the largest piece as its ARR rose 34% to more than $1.3 billion, and the customer base grew 18% to over 6,800.
Palo Alto Networks, Inc. (NASDAQ:PANW) is a global cybersecurity company providing AI-driven security across networks, cloud environments, and security operations.
5. Adobe Inc. (NASDAQ:ADBE)
Number of Hedge Fund Holders: 88
5-Year Average Revenue Growth: 13.62%
Upside Potential as of December 16: 28.8%
Adobe Inc. (NASDAQ:ADBE) is one of the best long-term stocks to invest in.
On December 15, Phillip Securities lowered its price target on Adobe to $487 from $560.The firm kept a Buy rating. The change is more about valuation than doubt. Phillip says Adobe’s Semrush acquisition adds real weight to its marketing tools and improves how the pieces fit together. Looking ahead, the firm expects about 10% revenue growth and 6% earnings growth in fiscal 2026, supported by AI adoption and growing subscription revenue.
Adobe Inc. (NASDAQ:ADBE)’s fiscal Q4 2025 results showed steady execution. Revenue rose 10% to $6.19 billion, topping the company’s prior forecast range of $6.075 billion to $6.125 billion. Earnings moved faster as adjusted EPS climbed 14% to $5.50, above guidance of $5.35 to $5.40. Digital Media, which includes Creative Cloud and Document Cloud, grew revenue 11% to $4.62 billion. Digital Media ARR reached $19.2 billion, up nearly 12%.
Adobe Inc. (NASDAQ:ADBE) posted 10% to 11% revenue growth every quarter in fiscal 2025. If AI disruption was supposed to slow things down, it has not shown up here. The company expects ARR to rise by another 10.2% next year.
Adobe Inc. (NASDAQ:ADBE) develops software used widely by creative professionals, enterprises, and individuals. Its portfolio spans photo and video editing, graphic design, web development, and document management, placing the company at the center of digital content creation and workflow management.
4. ServiceNow, Inc. (NYSE:NOW)
Number of Hedge Fund Holders: 104
5-Year Average Revenue Growth: 25.4%
Upside Potential as of December 16: 48.3%
ServiceNow, Inc. (NYSE:NOW) is among the best long-term stocks to invest in.
On December 17, BTIG initiated coverage of ServiceNow, Inc. (NYSE:NOW) with a Buy rating and a $1,000 price target.
The firm points to how far the platform has come since the launch of Now Assist two years ago. What started as an AI feature has grown into a broader system where humans and AI agents work side by side. ServiceNow now offers an AI Control Tower to handle oversight and governance, and it is working closely with Microsoft to run agent-based AI workflows across the entire enterprise. BTIG’s upside case assumes ServiceNow keeps operating above the Rule of 50. That includes revenue growth in the high teens and free cash flow growth in the mid-20% range.
In other news, Bloomberg reported that ServiceNow, Inc. (NYSE:NOW) is in advanced discussions to acquire cybersecurity startup Armis. The company was last valued at $6.1 billion, and the deal could reach around $7 billion, which would make it ServiceNow’s largest acquisition to date. The report cited people familiar with the talks, who said the discussions are private. The transaction could be announced as soon as this week, though it is not guaranteed to close. Neither Armis nor ServiceNow responded to a request for comment from CNBC.
Armis focuses on securing and managing internet-connected devices, helping organizations protect against cyber risks. Just over a month ago, the company raised $435 million in new funding and said it plans to pursue an IPO over time.
ServiceNow, Inc. (NYSE:NOW) provides a cloud-based platform that helps organizations automate and manage digital workflows across IT, HR, customer service, and other business functions.
3. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders: 114
5-Year Average Revenue Growth: 17.33%
Upside Potential as of December 16: 16.21%
Eli Lilly and Company (NYSE:LLY) is among the best long-term stocks to invest in.
On December 16, Daiwa analyst Narumi Nakagiri upgraded Eli Lilly and Company (NYSE:LLY) to Buy from Neutral and set a $1,230 price target on the stock.
That move followed a similar call from Goldman Sachs earlier. On December 15, Goldman raised its price target on Eli Lilly to $1,145 from $951 and kept a Buy rating.
Momentum around Eli Lilly and Company (NYSE:LLY) weight-loss pipeline continues to build. A recent Financial Times report said the company’s latest obesity drug helped patients shed as much as 29% of their body weight in clinical trials, adding to the strength of Lilly’s fast-growing obesity business.
Lilly shared more details on December 11. The drug, retatrutide, showed benefits beyond weight loss. One in eight patients reported being free from knee pain by the end of the trial. The late-stage study included patients with both obesity and osteoarthritis. After 68 weeks, participants lost an average of 28.7% of their body weight. Those on a placebo lost about 2.1%.
The company said some participants exited the trial because the weight loss was too rapid. Lilly expects to release additional trial data for retatrutide in 2026.
Retatrutide is a next-generation GLP-1 therapy. Drugs in this class, including Zepbound, have transformed Eli Lilly and Company (NYSE:LLY)’s growth profile and helped push the company past the $1tn market value mark, even if briefly.
2. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 115
5-Year Average Revenue Growth: 33.7%
Upside Potential as of December 16: 35.7%
Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the best long-term stocks to invest in.
On December 16, Cantor Fitzgerald cut its price target on Advanced Micro Devices, Inc. (NASDAQ:AMD) to $300 from $350 while keeping an Overweight rating on the stock. The firm says the semiconductor index is set up to lead the broader market after beating the S&P 500 by about 30 points in 2025. Early momentum from the AI buildout is driving demand across computing, networking, memory, and chip equipment, according to the analyst.
Short-term cycles may send mixed signals, but the bigger picture still looks supportive. Cantor points to a steady macro backdrop and what it sees as exponential growth in AI infrastructure spending. That combination, in its view, supports staying long the SOX and keeping above-average exposure to AI-focused names into 2026.
At the company level, Advanced Micro Devices, Inc. (NASDAQ:AMD) has made real progress on software. The Nod.ai acquisition has helped strengthen its ROCm platform, with AMD reporting that downloads have jumped tenfold year over year. Software was a weak spot before, and this shows traction. External support is also lining up.
In October, AMD announced a partnership with OpenAI to supply six gigawatts of computing capacity. The deal also includes collaboration on control software, which could further improve AMD’s appeal to large customers.
Competition remains intense, especially from Nvidia. At its financial analyst day, Advanced Micro Devices, Inc. (NASDAQ:AMD) said it expects data center revenue to grow at a 60% compound annual rate through 2030. That would be a sharp step up from the 22% growth posted in the third quarter. Hitting that target would require major AI hyperscalers to adopt AMD’s full technology stack. It is possible, but it sets a high bar.
Advanced Micro Devices, Inc. (NASDAQ:AMD) designs and builds high-performance computing, graphics, and AI technologies used across data centers, PCs, and emerging AI workloads.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 332
5-Year Average Revenue Growth: 17.23%
Upside Potential as of December 16: 33.39%
Amazon.com, Inc. (NASDAQ:AMZN) is among the best long-term stocks to invest in.
On December 16, BMO Capital raised its price target on Amazon.com, Inc. (NASDAQ:AMZN) to $304 from $300 and kept an Outperform rating on the stock. The update followed recent calls with two former AWS employees. Those conversations pointed to faster-growing cloud commitments, Claude emerging as a preferred model among developers, and expectations that enterprise AI applications could start scaling in 2027. Based on that feedback, BMO lifted its AWS growth assumption to 24%, up from 23%.
Separately, Reuters reported that Amazon.com, Inc. (NASDAQ:AMZN) is in discussions about investing in OpenAI. The talks could value the ChatGPT maker at more than $500 billion, according to a source familiar with the matter. Amazon may invest around $10 billion, though the source said the discussions remain fluid and could still change. The talks are private, and neither side has confirmed details.
The potential investment underscores how intense demand for computing power has become as companies push to build increasingly advanced AI systems. Several large tech firms have already made major commitments. NVIDIA and Oracle have each signed multi-billion-dollar AI deals with OpenAI this year. In November, OpenAI also agreed to a $38 billion cloud services deal with Amazon.
These discussions come as OpenAI prepares the groundwork for a possible IPO, which could value the company at as much as $1 trillion, according to an earlier Reuters report.
While we acknowledge the potential of AMZN 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 AMZN and that has 100x upside potential, check out our report about this cheapest AI stock.
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