12 Best Quality Stocks to Buy and Hold for the Next Decade

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.

10. Payoneer Global Inc. (NASDAQ:PAYO)

EPS Growth for the Next 5 Years: 38.08%

On June 18, Benchmark downgraded Payoneer Global Inc. (NASDAQ:PAYO) to Hold from Buy following Nuvei’s agreement to acquire the company for $7.40 per share in cash. The downgrade reflects the limited remaining upside available after the acquisition announcement, as the offer price effectively establishes a valuation ceiling pending completion of the transaction. While Benchmark no longer sees a compelling opportunity for additional gains, the proposed acquisition highlights the strategic value of Payoneer’s global payments platform and its position within the expanding cross-border financial technology industry.

Earlier, on June 16, Deutsche Bank raised its price target on Payoneer Global Inc. (NASDAQ:PAYO) to $7.40 from $6 while maintaining a Buy rating. The firm updated its valuation to align with Nuvei’s proposed acquisition price, recognizing the transaction as validation of Payoneer’s business model, customer relationships, and long-term growth strategy. The revised target also reflects increased confidence that shareholders could realize value through the pending all-cash transaction if the deal receives the necessary approvals.

Founded in 2005 and headquartered in New York City, Payoneer Global Inc. (NASDAQ:PAYO) is a financial technology company that provides cross-border payment processing, business-to-business payment solutions, and global workforce management services for businesses, freelancers, online marketplaces, and enterprises operating internationally. Its platform enables customers to send, receive, and manage payments efficiently across multiple currencies and jurisdictions.

9. Progyny, Inc. (NASDAQ:PGNY)

EPS Growth for the Next 5 Years: 40.83%

On June 22, Truist raised its price target on Progyny, Inc. (NASDAQ:PGNY) to $33 from $30 while maintaining a Buy rating following meetings with the company’s management team. According to the firm, discussions reinforced Progyny’s position as a highly differentiated provider of fertility benefits, supported by superior clinical outcomes, comprehensive member services, and a carefully managed provider network. Truist believes the company’s integrated approach continues to distinguish it from competitors and should enable it to maintain its leadership position as demand for fertility and family-building benefits continues to expand.

Earlier, on June 2, BofA increased its price target on Progyny, Inc. (NASDAQ:PGNY) to $31 from $29 while reiterating a Buy rating. The firm pointed to favorable fertility prescription trends and rising Google search activity related to reproductive treatments, suggesting utilization and assisted reproductive technology cycle growth are tracking ahead of expectations during the second quarter. BofA believes these indicators could translate into results that exceed current Wall Street estimates, reflecting sustained demand for Progyny’s comprehensive fertility benefits platform.

Founded in 2008 and headquartered in New York City, Progyny, Inc. (NASDAQ:PGNY) specializes in fertility, family-building, and women’s health benefits management. Progyny’s differentiated care model, favorable utilization trends, and projected five-year EPS growth rate of 40.83% position the company among the best quality stocks to buy and hold for the next decade.

8. Alkami Technology, Inc. (NASDAQ:ALKT)

EPS Growth for the Next 5 Years: 40.83%

On June 29, Bloomberg reported that activist investor Jana Partners had accumulated an economic stake of more than 10% in Alkami Technology, Inc. (NASDAQ:ALKT) and is encouraging the digital banking software provider to engage with multiple interested parties regarding a potential sale. According to the report, Jana believes shareholder value could be enhanced through a strategic transaction, adding to speculation that Alkami may attract interest from larger technology or financial services companies seeking to strengthen their digital banking capabilities.

Earlier, on June 22, JPMorgan lowered its price target on Alkami Technology, Inc. (NASDAQ:ALKT) to $19 from $20 while maintaining an Overweight rating. Although the firm modestly adjusted its valuation, it remains constructive on the banking technology sector, arguing that concerns surrounding artificial intelligence competition are overstated given the industry’s entrenched customer workflows, regulatory requirements, proprietary data, and high switching costs. JPMorgan identified Alkami as one of its highest-conviction investment ideas and described the company as a particularly attractive acquisition candidate due to its leadership position in the highly consolidated digital banking software market and the growing influence of activist investors.

Founded in 2009 and headquartered in Plano, Texas, Alkami Technology, Inc. (NASDAQ:ALKT) develops cloud-based digital banking software for banks and credit unions throughout the United States. Its platform provides digital account opening, consumer and commercial banking, fraud prevention, payment capabilities, and data analytics, helping financial institutions modernize customer engagement and streamline operations.

7. Clover Health Investments, Corp. (NASDAQ:CLOV)

EPS Growth for the Next 5 Years: 51.31%

On June 11, UBS analyst Jonathan Yong raised his price target on Clover Health Investments, Corp. (NASDAQ:CLOV) to $4.75 from $2.75 while maintaining a Neutral rating. The significant increase in the valuation reflects improving confidence in the company’s operating outlook as Clover Health continues to execute on initiatives designed to enhance profitability and expand the capabilities of its technology-enabled healthcare platform. Although UBS remains cautious on the shares, the revised target acknowledges the company’s improving business fundamentals.

Earlier, on June 4, Canaccord raised its price target on Clover Health Investments, Corp. (NASDAQ:CLOV) to $4.20 from $3.20 while reiterating a Buy rating. The firm stated that its investment thesis for 2026 continues to gain traction as improving conditions across the managed care industry are benefiting both insurers and digital healthcare providers. Canaccord highlighted strong operating performance during April and May, noting that these trends have contributed to meaningful appreciation in the shares and reinforced confidence in Clover Health’s ability to continue improving financial performance.

Founded in 2014 and headquartered in Franklin, Tennessee, Clover Health Investments, Corp. (NASDAQ:CLOV) is a healthcare technology company and Medicare Advantage insurer. Improving analyst sentiment, growing confidence in the managed care environment, and a projected five-year EPS growth rate of 51.31% position Clover Health as one of the best quality stocks to buy and hold for the next decade.

6. Viridian Therapeutics, Inc. (NASDAQ:VRDN)

EPS Growth for the Next 5 Years: 67.57%

On June 30, Wedbush analyst Laura Chico raised the firm’s price target on Viridian Therapeutics, Inc. (NASDAQ:VRDN) to $43 from $32 while maintaining an Outperform rating following the company’s investor call after the approval of Lumvoa. Management confirmed that Lumvoa will be priced at $450,000 per treatment course, broadly in line with the cost of Tepezza. Wedbush believes the pricing strategy should face limited resistance from payers and noted that Lumvoa’s label includes both active and chronic thyroid eye disease (TED) patients, providing the company with a strong commercial foundation and a competitive advantage as it enters the market.

Also on June 30, Truist increased its price target on Viridian Therapeutics, Inc. (NASDAQ:VRDN) to $38 from $35 while reiterating a Buy rating. The firm highlighted Lumvoa’s differentiated profile, including a more convenient dosing schedule than the current market leader while maintaining pricing parity. Truist also pointed to management’s commercialization strategy, which targets rapid adoption in a significantly underpenetrated TED market, with meaningful revenue expected by 2027. In addition, the company plans to expand the franchise through a subcutaneous formulation, with a biologics license application anticipated during the first quarter of 2027.

Viridian Therapeutics, Inc. (NASDAQ:VRDN) is a biopharmaceutical company headquartered in Waltham, Massachusetts, and was originally founded in 2007. The company focuses on discovering, developing, and commercializing innovative therapies for rare and serious autoimmune diseases, with an emphasis on thyroid eye disease and other underserved conditions requiring targeted biologic treatments.

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