In this article, we will look at the 12 High Quality Stocks to Buy for the Long Term.
High-quality stocks are getting more attention as investors look for companies that can keep growing earnings without depending only on market momentum. For this list, the focus is on stocks forecasted to grow earnings by at least 20% annually over the next five years, with a return on equity of at least 15%, and favorable analyst sentiment. That screen points to companies where growth, profitability, and investor confidence are moving in the same direction.
MFS says the long-term case for quality rests on “disciplined capital allocation,” “resilient earnings power,” and “balance sheet strength,” while adding that “Profitability is necessary but not sufficient.” Fidelity describes high-quality companies as “best-in-class companies with strong brands, deep competitive moats, and recurring revenues,” and says these businesses may be better placed to “adapt to a changing landscape and navigate future surprises.” Invesco adds that the quality factor typically focuses on companies that are “highly profitable, carry low levels of debt, and generate stable earnings,” traits that tend to be “more resilient during periods of economic stress or rising inflation.” In summary, high-quality stocks are those that combine earnings growth, high returns on equity, financial discipline, and business models that can hold up over time. Against this backdrop, high-quality stocks deserve a closer look.
With that in mind, let’s take a look at the 12 High Quality Stocks to Buy for the Long Term.
Our Methodology
We used the Finviz screener to identify stocks that are forecasted to grow earnings by at least 20% annually over the next five years, with return on equity of at least 15%, and favorable analyst sentiment. We then 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. 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. AbbVie Inc. (NYSE:ABBV)
On June 16, 2026, Allergan Aesthetics, an AbbVie Inc. (NYSE:ABBV) company, announced the U.S. FDA approval of Skinvive by Juvederm to reduce neck lines and improve neck appearance in adults over the age of 21. AbbVie said Skinvive by Juvederm is the first and only hyaluronic acid injectable indicated to reduce the appearance of neck wrinkles and help skin retain its natural moisture.
On June 12, 2026, AbbVie Inc. (NYSE:ABBV) announced new Phase 3 data on a fixed-duration venetoclax-based combination at the European Hematology Association 2026 Congress in Stockholm, Sweden. Final results from the Phase 3 CLL14 trial in previously untreated chronic lymphocytic leukemia showed that venetoclax plus obinutuzumab significantly improved progression-free survival compared with chlorambucil plus obinutuzumab. The nine-year analysis showed long-term off-treatment efficacy and safety for the fixed-duration combination, with a median time to next treatment of 7.6 years.
After a median follow-up of 9.2 years, treatment with venetoclax plus obinutuzumab resulted in a median progression-free survival of 6.4 years, compared with 3.2 years for obinutuzumab plus chlorambucil. Last month, AbbVie also announced that the European Commission authorized an expanded label for Venclyxto to include use in combination with acalabrutinib and with ibrutinib for adult patients with previously untreated chronic lymphocytic leukemia. The authorization extends to European Union Member States, as well as Iceland, Norway, and Liechtenstein.
AbbVie Inc. (NYSE:ABBV) researches, develops, manufactures, commercializes, and sells medicines and therapies worldwide.
11. Netflix, Inc. (NASDAQ:NFLX)
On June 15, 2026, iHeartMedia and Netflix, Inc. (NASDAQ:NFLX) announced the next phase of their exclusive video podcast partnership. The expanded lineup adds new iHeartPodcasts as video shows on Netflix, including programs hosted by Kate Hudson and Oliver Hudson, Lele Pons, and Martha Stewart. The agreement includes new episodes from the podcast lineup, as well as select library episodes from each show.
On June 18, 2026, Citizens analyst Matthew Condon said consensus 2027 revenue expectations for Netflix, Inc. (NASDAQ:NFLX) appear to already assume a future price increase, limiting potential upside even if pricing actions occur as expected. Condon also cited softer engagement assumptions and a lack of clear near-term catalysts, while acknowledging the company’s structural scale and distribution advantages. Citizens reiterated a Market Perform rating on the shares.
According to a regulatory filing, Netflix, Inc. (NASDAQ:NFLX) said its Board of Directors appointed Jay Hoag as Chairman of the Board, effective at the conclusion of the Annual Meeting on May 29, 2026. Hoag had served as Lead Independent Director since 2012 and currently chairs the Nominating and Governance Committee. The Board determined that a separate Lead Independent Director is no longer needed because Hoag is an independent director under applicable SEC rules and Nasdaq listing standards.
Netflix, Inc. (NASDAQ:NFLX) provides entertainment services worldwide, including TV series, documentaries, feature films, games, and live programming across various genres and languages.
