In this article, we will discuss the 12 Best Quality Stocks to Buy and Hold for the Next Decade.
The next stock to double may not be the fastest-growing company on Wall Street; it may be the highest-quality business quietly compounding earnings year after year.
While investors often chase flashy growth stories and speculative themes, many of the world’s most successful billionaires and hedge fund managers have built their fortunes by investing in companies with one defining characteristic: consistently high-quality earnings. Legendary investor Warren Buffett has long argued that it is “far better to buy a wonderful company at a fair price than a fair company at a wonderful price,” emphasizing businesses with durable competitive advantages, strong returns on capital, and steadily growing earnings per share (EPS). Similarly, hedge fund manager Terry Smith has built his investment philosophy around buying high-quality companies that generate high returns on capital, strong free cash flow, and consistent EPS growth, while billionaire Cliff Asness of AQR Capital Management helped popularize the “Quality Minus Junk” factor, demonstrating that financially stronger companies have historically delivered superior risk-adjusted returns.
The research is equally compelling. A landmark study published in the Journal of Banking & Finance found that the quality premium exists primarily because high-quality companies consistently deliver stronger future earnings growth than lower-quality peers. Meanwhile, researchers at the Indian Institute of Management Ahmedabad found that a quality-factor portfolio generated an average alpha of 0.92% per month, outperforming traditional factors such as value, size, and momentum while exhibiting lower risk and shorter drawdowns. Recent analysis from JPMorgan Asset Management also found that quality stocks have historically outperformed in 78% of market drawdowns of 10% or more, underscoring their resilience during volatile markets.
For investors seeking sustainable long-term wealth rather than short-lived market excitement, quality stocks with high EPS growth offer a powerful combination of resilience, profitability, and compounding potential; all qualities that many of Wall Street’s greatest investors believe never go out of style.
With this context in mind, here are some quality stocks to buy and hold for the next decade.
Our Methodology
We used stock screeners to identify quality stocks that are forecasted to deliver over 30% earnings growth annually over the next 5 years and are viewed favorably by analysts. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds. To make the list easier to navigate, we ranked the stocks in ascending order of their forecasted earnings growth for the next five years.
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. Insider Monkey’s quarterly newsletter strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
12 Best Quality Stocks to Buy and Hold for the Next Decade
12. Biohaven Ltd. (NYSE:BHVN)
EPS Growth for the Next 5 Years: 31.63%
On June 29, BofA downgraded Biohaven Ltd. (NYSE:BHVN) to Underperform from Neutral and lowered its price target to $11 from $12, citing a more cautious view of the company’s near-term risk-reward profile ahead of an important clinical catalyst. The firm pointed to the upcoming Phase 3 data for Biohaven’s Kv7 epilepsy program, expected in the second half of the year, as a pivotal event for the stock. BofA noted that Biohaven trails a competing program from Xenon Pharmaceuticals by at least two years and believes consensus expectations for approximately $1 billion in peak sales could face downside risk unless the company demonstrates meaningful clinical differentiation.
Earlier, on June 26, Deutsche Bank raised its price target on Biohaven Ltd. (NYSE:BHVN) to $20 from $15 while maintaining a Buy rating. The firm highlighted Biohaven’s troriluzole program for spinocerebellar ataxia as a potentially significant value driver, suggesting that the therapy could benefit from the U.S. Food and Drug Administration’s recent willingness to reconsider and reverse previous regulatory decisions in certain neurological diseases. Deutsche Bank believes the evolving regulatory environment may improve the prospects for Biohaven’s pipeline and create additional upside if clinical data remain favorable.
Biohaven Ltd. (NYSE:BHVN) is a clinical-stage biopharmaceutical company headquartered in New Haven, Connecticut, and was founded in 2022 following the spin-off of the non-CGRP assets from the legacy Biohaven organization established in 2013. The company focuses on discovering and developing innovative therapies targeting neurological and neuropsychiatric disorders, immunological diseases, and oncology, with a broad pipeline of late- and early-stage development programs.
11. Rogers Corporation (NYSE:ROG)
EPS Growth for the Next 5 Years: 33.61%
On June 15, B. Riley raised its price target on Rogers Corporation (NYSE:ROG) to $200 from $165 while maintaining a Buy rating. The firm cited the company’s strong operational execution and growing confidence in management’s strategy to reaccelerate revenue growth following its annual investor conference. According to B. Riley, Rogers has demonstrated meaningful progress in strengthening its business, increasing the firm’s conviction that the company can deliver substantial earnings expansion over the coming years through improved execution, innovation, and exposure to attractive end markets.
Earlier, on May 19, Rogers Corporation (NYSE:ROG) announced the appointment of Ali El-Haj as President and Chief Executive Officer, effective immediately. The company stated that El-Haj successfully improved operational execution while serving as interim CEO and sharpened the organization’s focus on innovation initiatives. Board Chair Armand Lauzon noted that these efforts have positioned Rogers for sustained operational and financial performance, reflecting confidence in the company’s long-term strategic direction under its new leadership.
Founded in 1832 and headquartered in Chandler, Arizona, Rogers Corporation (NYSE:ROG) is one of the best quality stocks to buy and hold for the next decade. The company produces specialty materials used across advanced electronics, electric and hybrid vehicles, wireless communications, automotive safety systems, and consumer electronics.
