In this article, we talk about the 12 best stocks to buy and hold for the next 2 years.
Stock performance forecasts from analysts tend to focus on the next quarter or fiscal year, but a report from Citrini Research started a longer-term structural debate. The report, which contained a bearish prediction for the S&P 500 by 2028, became controversial due to its dire warning about the impact of AI on future economic activity. In its paper, Citrini Research predicted that by 2028, drawdown in equities could ultimately rival that of the Global Financial Crisis at around 57% peak-to-trough, bringing the S&P 500 down to 3,500 points. According to the report, AI will likely increase productivity but make large portions of human labor obsolete, leading to job losses, falling consumer spending, and declining stock indexes.
The report drew a wide range of reactions from economists and industry observers. For instance, on February 25, Acting Chairperson Pierre Yared of the White House Council of Economic Advisers called the paper “an interesting piece of science fiction,” pointing out that the assumptions made in the report violate some of the basic principles of economics. Meanwhile, Clare Pleydell-Bouverie, co-head of the Liontrust Global Innovation team, said that while AI might take away some jobs, it ultimately creates new ones, as seen in the formation of new job positions that did not exist before AI, such as prompt engineers, interference optimization experts, and more.
While developments in AI keep markets volatile and many sectors on high alert for disruption, near- to medium-term investment decisions continue to be based on earnings visibility, competitive positioning, and balance sheet strength. Against this backdrop, we present here a list of the 12 best stocks to buy and hold over the next 2 years.
Photo by osamu nakazawa on Unsplash
Our Methodology
We used screeners to identify stocks expected to grow earnings by at least 30% over the next 5 years, and 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.
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).
Note: All pricing data is as of market close on February 28, 2026.
12. Coupang Inc. (NYSE:CPNG)
Number of Hedge Fund Holders: 94
Coupang Inc. (NYSE:CPNG) is among the 12 best stocks to buy and hold for the next 2 years.
On February 26, Coupang Inc. (NYSE:CPNG) reported $8.8 billion in revenue during the fourth quarter of 2025, falling short of the $8.9 billion consensus estimate, and a $26 million loss in the fourth quarter, down from a year-earlier profit. The company also said its active customers fell to 24.6 million in the fourth quarter from 24.7 million in the prior quarter, likely as a result of the public backlash it faced following disclosure of a data breach in November involving about 34 million customers. Coupang also reported a diluted loss per share of $0.01, which did not meet the anticipated earnings per share of $0.04.
Meanwhile, on February 27, BofA Securities cut its price target on Coupang Inc. (NYSE:CPNG) to $28 from $32. In its research report, where Coupang Inc. (NYSE:CPNG) retained its Buy rating, BofA Securities cited the slowdown in the company’s growth as the reason for the price target change.
Coupang Inc. (NYSE:CPNG) provides retail, restaurant delivery, video streaming, and fintech services to customers around the world.
11. Kratos Defense & Security Solutions Inc. (NASDAQ:KTOS)
Number of Hedge Fund Holders: 41
Kratos Defense & Security Solutions Inc. (NASDAQ:KTOS) is among the 12 best stocks to buy and hold for the next 2 years.
On February 26, Kratos Defense & Security Solutions Inc. (NASDAQ:KTOS) priced an underwritten public offering of 14,285,714 shares of common stock at $84.00 per share. The defense contractor expects to receive approximately $1.17 billion in net proceeds after deducting underwriting discounts and commissions. The offering is expected to close on March 2, subject to customary closing conditions.
Kratos Defense & Security Solutions Inc. (NASDAQ:KTOS) said that it plans to use the proceeds to make capital expenditures for scaling operations to meet demands from the Department of War and national security customers. Additional funds will support new product and software development, strengthen the balance sheet for anticipated contract awards, and fund the recent acquisition of Nomad and the pending acquisition of Orbit, along with future strategic acquisitions.
Kratos Defense & Security Solutions Inc. (NASDAQ:KTOS) provides mission-critical products, services, and solutions to support United States national security priorities.
10. Baidu Inc. (NASDAQ:BIDU)
Number of Hedge Fund Holders: 57
Baidu Inc. (NASDAQ:BIDU) is among the 12 best stocks to buy and hold for the next 2 years.
On February 26, Macquarie lowered its price target on Baidu Inc. (NASDAQ:BIDU) shares to $177 from $205 while maintaining an Outperform rating, saying that the price target reduction reflects sluggish performance in the company’s core advertising business. The analyst firm also cited the Kunlunxin spinoff and robotaxi expansion as key catalysts for the company.
According to Macquarie, Baidu Inc. (NASDAQ:BIDU) has strategically rebranded its revenue reporting to highlight AI monetization, which now accounts for 43% of total revenue, as AI cloud infrastructure continues to show solid growth momentum. The analyst note followed a February 4 announcement from Baidu Inc. (NASDAQ:BIDU) about its new $5 billion share repurchase program and a plan to implement its first-ever dividend policy.
Baidu Inc. (NASDAQ:BIDU) provides internet search, online entertainment, and online marketing services, including search-based, feed-based, and other services.
Baidu’s recent earnings call can be read here.
9. Credo Technology Group Holding Ltd (NASDAQ:CRDO)
Number of Hedge Fund Holders: 69
Credo Technology Group Holding Ltd (NASDAQ:CRDO) is among the 12 best stocks to buy and hold for the next 2 years.
On February 27, Stifel lowered its price target on Credo Technology Group Holding Ltd (NASDAQ:CRDO) to $200 from $225 while maintaining a Buy rating. Stifel’s reduction of its 12-month price target on the stock is based on a 23.4x fiscal 2027 EV-to-Sales multiple on lower comps.
The firm expects Credo Technology Group Holding Ltd (NASDAQ:CRDO) to post results in line with its recently increased third-quarter fiscal 2026 revenue midpoint guidance of $406.0 million, representing a 51.5% quarter-over-quarter increase driven by AEC ramps at multiple hyperscalers. The company’s gross profit margin of 67% supports its premium valuation as revenue growth accelerates, according to the analyst.
Meanwhile, on February 25, Credo Technology Group Holding Ltd (NASDAQ:CRDO) reached a collaboration agreement with TensorWave, an Advanced Micro Devices (AMD)-exclusive AI cloud provider. This agreement will see TensorWave working with Credo Technology Group Holding Ltd (NASDAQ:CRDO) to deploy the latter’s ZeroFlap family of electrical cables and optics across the former’s AI cluster infrastructure.
Credo Technology Group Holding Ltd (NASDAQ:CRDO) develops connectivity solutions and products for the data infrastructure market. Its products include integrated circuits, active electrical cables, and SerDes chiplets.
8. TPG Inc. (NASDAQ:TPG)
Number of Hedge Fund Holders: 29
TPG Inc. (NASDAQ:TPG) is among the 12 best stocks to buy and hold for the next 2 years.
On February 25, Acadia Realty Trust completed a $440 million portfolio transaction with TPG Inc. (NASDAQ:TPG) involving seven retail properties through the formation of new joint ventures. The transaction includes six Fund V assets – Hickory Ridge, Palm Coast Landing, Hiram Pavilion, Canton Marketplace, Elk Grove Commons, and Midstate Mall – along with The Avenue West Cobb, which Acadia acquired in the third quarter of 2025.
TPG Inc. (NASDAQ:TPG) acquired an 80% interest across the portfolio, while Acadia retained its existing 20% ownership in the Fund V assets and maintains a 20% interest in West Cobb. Acadia provided about $27 million of financing within the capital structure of the newly formed joint ventures. Within the past 14 months, Acadia has completed over $1.2 billion in assets through its investment management platform in partnership with TPG.
TPG Inc. (NASDAQ:TPG) operates as a global, diversified alternative asset management firm, investing across five multi-product platforms.
7. HubSpot Inc. (NYSE:HUBS)
Number of Hedge Fund Holders: 56
HubSpot Inc. (NYSE:HUBS) is among the 12 best stocks to buy and hold for the next 2 years.
On February 14, HubSpot Inc. (NYSE:HUBS) held its fourth-quarter 2025 earnings call, where it reported a revenue increase of about 18% year over year in constant currency and 20% as reported. For the full year 2025, revenue climbed 18.2% to $3.1 billion.
On February 12, Stifel lowered its price target on HubSpot Inc. (NYSE:HUBS) to $375 from $500 while maintaining a Buy rating on the company’s stock. The price target reduction follows HubSpot’s fiscal year 2026 constant currency revenue growth guidance of 16%, which was met with mixed after-hours trading, Stifel analyst J. Parker Lane noted. The firm had previously indicated that 17% growth would have signaled clear acceleration. This guidance comes as HubSpot has demonstrated 19.21% revenue growth over the last 12 months.
Despite the lower-than-hoped-for guidance, Stifel maintains that the HubSpot Inc. (NYSE:HUBS) acceleration thesis remains structurally intact, pointing to fiscal year 2025 net new annualized recurring revenue growing 24% – a 600 basis point premium over constant currency revenue – and fourth-quarter net revenue retention reaching 105%.
HubSpot Inc. (NYSE:HUBS) provides cloud-based customer relationship management software. Its platform includes marketing, sales, service, operations, and a content management system, as well as other tools, integrations, and native payment solutions.
6. Blue Owl Capital Inc. (NYSE:OWL)
Number of Hedge Fund Holders: 47
Blue Owl Capital Inc. (NYSE:OWL) is among the 12 best stocks to buy and hold for the next 2 years.
On February 27, Reuters reported that the difficulties faced by Blue Owl Capital Inc. (NYSE:OWL) have added to the pressure building up on the $2 trillion private credit industry. Observers are worried that Blue Owl Capital Inc. (NYSE:OWL) began selling shares of other alternative asset managers soon after the company decided in late 2025 to limit withdrawals from a fund.
Blue Owl Capital Inc. (NYSE:OWL) previously announced that it would sell $1.4 billion of assets across three funds, return part of the proceeds to some investors, and pay down debt, while permanently removing a quarterly fund withdrawal option for its investors in the smallest vehicle, mainly wealthy individuals. Credit rating firm Moody’s said Blue Owl’s latest decision to pivot away from traditional quarterly redemptions has sharpened investor focus on how semi‑liquid private credit vehicles manage redemptions, especially with growing retail participation.
Blue Owl Capital Inc. (NYSE:OWL) operates as an alternative asset management firm, providing investors access to asset management services through its direct lending and capital solutions.
5. Affirm Holdings Inc. (NASDAQ:AFRM)
Number of Hedge Fund Holders: 63
Affirm Holdings Inc. (NASDAQ:AFRM) is among the 12 best stocks to buy and hold for the next 2 years.
On February 26, BTIG reiterated a Neutral rating on Affirm Holdings Inc. (NASDAQ:AFRM) based on the company’s January 2026 trust data. According to its report, BTIG said that Affirm’s credit trends appear mostly strong, with early-stage delinquencies at 30-59 days mostly flat to down month-over-month, while newer vintage curves are in line with older curves.
BTIG said early-stage delinquencies indicate whether Affirm Holdings Inc. (NASDAQ:AFRM) needs to adjust its underwriting posture. The analyst firm expects gross merchandise value (GMV) trends to continue their current trajectory, but does not anticipate Affirm Holdings Inc. (NASDAQ:AFRM) being able to loosen underwriting to drive more GMV growth. In addition, the firm expects slightly higher quarter-over-quarter reported net losses.
BTIG’s Neutral rating on Affirm Holdings Inc. (NASDAQ:AFRM) indicates a more cautious approach on the stock, in comparison to the February 20 report of Truist Financial, where analyst Matthew Coad maintained a Buy rating on the stock, with a price target of $71.
We recently covered what analysts are saying about Affirm; you can read that update here.
Affirm Holdings Inc. (NASDAQ:AFRM) operates a platform for digital and mobile-first commerce, consisting of a point-of-sale payment solution for consumers, merchant commerce solutions, and a consumer-focused app.
4. Twilio Inc. (NYSE:TWLO)
Number of Hedge Fund Holders: 70
Twilio Inc. (NYSE:TWLO) is among the 12 best stocks to buy and hold for the next 2 years.
On February 13, Needham reiterated its Buy rating on Twilio Inc. (NYSE:TWLO) with a price target of $145, after the company reported its fourth-quarter 2025 performance. Needham noted that the company’s reported 12% organic revenue growth in Q4 exceeded its midpoint guidance of 10% and highlighted the company’s voice business as a key growth driver. The research firm also noted Twilio Inc.’s (NYSE:TWLO) optimized go-to-market strategy and strong partner performance, along with the company’s newly initiated fiscal year 2027 operating income target of $1.23 billion, representing 17% growth over its fiscal year 2025 guidance.
The analyst note was released following Twilio Inc. (NYSE:TWLO)’s announcement of an earnings per share (EPS) of $1.33, surpassing the projected $1.23 by analysts, as well as revenue of $1.37 billion, outperforming the anticipated $1.32 billion. For 2026, Twilio Inc. (NYSE:TWLO) provided initial guidance of 8.5% organic revenue growth
Twilio Inc. (NYSE:TWLO) develops communications software, cloud-based platforms, and services.
3. BeOne Medicines AG (NASDAQ:ONC)
Number of Hedge Fund Holders: 27
BeOne Medicines AG (NASDAQ:ONC) is among the 12 best stocks to buy and hold for the next 2 years.
On February 26, BeOne Medicines AG (NASDAQ:ONC) reported total global revenues of $1.5 billion for the fourth quarter of 2025 and $5.3 billion for 2026, increases of 33% and 40% from the prior-quarter and prior-year periods, respectively. Brukinsa, the company’s lymphoma and leukemia treatment, had revenues of $1.1 billion and $3.9 billion for the fourth quarter and full year, respectively, up 38% and 49% from the prior periods.
After the earnings report, on February 27, Truist Securities raised its price target on BeOne Medicines AG (NASDAQ:ONC) to $412 from $400 while maintaining a Buy rating on the stock. Truist adjusted its price target after incorporating the quarterly results, fiscal 2026 guidance, and insights from post-earnings discussions with the company.
Truist Securities noted BeOne Medicines AG (NASDAQ:ONC)’s fiscal 2026 revenue guidance of $6.2 billion to $6.4 billion roughly brackets consensus estimates of $6.4 billion and has led to added pressure on the shares. The analyst said that its current outlook on BeOne Medicines AG (NASDAQ:ONC) suggests healthy growth for Brukinsa even without any major label expansion.
BeOne Medicines AG (NASDAQ:ONC) is a global oncology company that discovers and develops innovative treatments that are more affordable and accessible to cancer patients worldwide.
2. Zillow Group Inc. (NASDAQ:Z)
Number of Hedge Fund Holders: 70
Zillow Group Inc. (NASDAQ:Z) is among the 12 best stocks to buy and hold for the next 2 years.
On February 19, Zillow Group Inc. (NASDAQ:Z) announced a partnership with Google NotebookLM to provide home-buying guidance through a featured notebook on the AI research platform. The collaboration makes Zillow Group Inc. (NASDAQ:Z)’s home-buying content available through NotebookLM, Google’s AI research tool that helps users understand complex information. Users can ask questions about home buying and receive responses sourced from Zillow’s guidance materials, with direct citations to original articles on Zillow’s website.
The notebook addresses common home-buying topics, including preapproval versus prequalification, post-offer procedures, and costs beyond down payments. NotebookLM also offers audio overviews that convert Zillow’s written guides into conversational audio formats featuring AI hosts discussing home-buying topics.
Meanwhile, on February 12, Susquehanna lowered its price target on Zillow Group Inc. (NASDAQ:Z) to $50 from $80 while maintaining a Neutral rating on the shares. The firm said the company continues to execute well in a tough housing environment, and they believe the company’s initiatives should continue to help drive incremental growth and margins higher over time. Near-term legal expenses are weighing on EBITDA, but management is comfortable with annual EBITDA expectations, Susquehanna added.
Zillow Group Inc. (NASDAQ:Z) provides real estate and home-related information marketplaces on mobile and the web.
1. CoStar Group Inc. (NASDAQ:CSGP)
Number of Hedge Fund Holders: 58
CoStar Group Inc. (NASDAQ:CSGP) is among the 12 best stocks to buy and hold for the next 2 years.
On February 26, BMO Capital analyst Jeffrey Silber cut the price target on CoStar Group Inc. (NASDAQ:CSGP) to $53 from $72 while keeping a Market Perform rating on the shares. According to the analyst, the company’s net new bookings missed expectations despite year-on-year strength.
Meanwhile, on February 25, Needham lowered its price target on CoStar Group Inc. (NASDAQ:CSGP) to $60 from $80 while retaining its Buy rating. In its report, Needham noted CoStar Group Inc. (NASDAQ:CSGP)’s fourth-quarter results exceeded expectations on both revenue and earnings due to broad-based growth and expense discipline. The company generated $75 million of net new bookings in the fourth quarter, up 42% year-over-year, and recorded $308 million in total bookings for fiscal year 2025, representing a 23.2% year-over-year increase.
Needham also said it remains positive on the shares as CoStar Group Inc. (NASDAQ:CSGP) continues to execute on its digitization strategy and generate double-digit growth while improving margins. The company maintains an impressive 79% gross profit margin.
CoStar Group Inc. (NASDAQ:CSGP) provides online real estate marketplaces, information, and analytics for the commercial and residential property markets.
While we acknowledge the potential of CSGP as an investment, 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 CSGP and that has 100x upside potential, check out our report about the cheapest AI stock.
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