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.
10. The Charles Schwab Corporation (NYSE:SCHW)
On June 12, 2026, The Charles Schwab Corporation (NYSE:SCHW) reported that core net new assets increased 43% versus May 2025 to $49.9B, a record for the month of May. Total client assets reached $13.14T at month-end May, up 27% from May 2025 and up 4% from April 2026. New brokerage accounts totaled 461,000 during the month, up 37% year-over-year, while client margin loan balances rose 38% from year-end to $154.6B, including $37.4B related to long/short strategies. Daily average trades reached a record 11.8M.
On June 10, 2026, Charles Schwab Foundation announced a $2.85M multi-year expansion of its partnership with SIFMA Foundation to broaden access to investing education for students nationwide. Chris Wyse, Chief Corporate Affairs Officer and Chair of the Board of Charles Schwab Foundation, said the partnership is aimed at helping students distinguish between speculation and investing and build financial decision-making skills.
Earlier in June, The Charles Schwab Corporation (NYSE:SCHW) announced enhancements across Schwab.com, Schwab Mobile, and the thinkorswim platform suite. Updates included 24/7 cryptocurrency futures trading on thinkorswim, expected price range information for marginable securities on Schwab.com, expanded fundamentals data on the Positions page, mobile dividend reinvestment settings, and additional order status quote views.
The Charles Schwab Corporation (NYSE:SCHW) provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services in the United States and internationally.
9. Newmont Corporation (NYSE:NEM)
On June 15, 2026, Newmont Corporation (NYSE:NEM) announced leadership appointments that further shape its Executive Leadership Team under President and CEO Natascha Viljoen. Effective July 1, Brian Tabolt has been appointed CFO, Mark Rodgers has been appointed COO, and David Thornton has been appointed CTO. Newmont also promoted David Fry to Executive Vice President, Project Development, reflecting the company’s focus on disciplined project development and execution as it advances its highest-return growth opportunities.
Earlier in June, CIBC analyst Anita Soni lowered the firm’s price target on Newmont Corporation (NYSE:NEM) to $175 from $176 and maintained an Outperformer rating on the shares. Soni updated CIBC’s model after incorporating stronger-than-expected Q1 results, higher expected costs, and the company’s second-half cadence and outlook.
Last month, Barclays initiated coverage of Newmont Corporation (NYSE:NEM) with an Overweight rating and $133 price target.
Newmont Corporation (NYSE:NEM) operates as a gold producer and explores for copper, silver, lead, zinc, and other metals.
8. Spotify Technology S.A. (NYSE:SPOT)
On June 12, 2026, Spotify Technology S.A. (NYSE:SPOT) removed tens of thousands of fake podcasts that promoted illegal online pharmacies following media scrutiny and an investigation by Senator Maggie Hassan, CNN’s Clare Duffy reported. The findings raised concerns about Spotify’s ability to proactively identify and remove harmful content before it reaches users. Hassan said online platforms need to “step up, protect their users, and enforce comprehensive strategies to remove illegal content” as criminals use AI to scale scams and other dangerous activity.
On June 8, 2026, Spotify Technology S.A. (NYSE:SPOT) was reported to be exploring live music content, including livestreamed concerts and festivals, Bloomberg’s Lucas Shaw reported, citing people familiar with the discussions. Spotify has approached concert promoters about licensing rights to broadcast events and has already begun testing concert-related video, including footage from a live Dua Lipa performance in Mexico City. The company has also started offering selected users early access to concert tickets.
Last month, Raymond James raised the firm’s price target on Spotify Technology S.A. (NYSE:SPOT) to $615 from $555 and maintained an Outperform rating on the shares. The firm said Spotify’s Investor Day highlighted a stronger-than-expected AI-driven product roadmap, including new personalization and monetization features supported by proprietary user data. Raymond James also pointed to Spotify’s rights-holder-aligned AI framework through its deal with Universal Music Group (UMGNF), along with mid-term financial targets that appear achievable.
Spotify Technology S.A. (NYSE:SPOT) provides audio streaming subscription services worldwide through its Premium and Ad-Supported segments.
7. Flex Ltd. (NASDAQ:FLEX)
On June 9, 2026, Flex Ltd. (NASDAQ:FLEX) announced that it had been selected to join the S&P 500 Index. The addition will become effective before the opening of trading on Monday, June 22.
On June 4, 2026, Barclays raised the firm’s price target on Flex Ltd. (NASDAQ:FLEX) to $203 from $174 and maintained an Overweight rating on the shares. The firm raised its target after analyzing the company’s AI and other business segments.
Last month, BofA raised the firm’s price target on Flex Ltd. (NASDAQ:FLEX) to $180 from $75 and maintained an Overweight rating on the shares. KeyBanc said the shares “rose, and rose, and rose” after the company’s Q4 report, where the announcement that Flex would spin off its Data Center business was the main focus.
Flex Ltd. (NASDAQ:FLEX) provides technology innovation, supply chain, and manufacturing solutions to the data center, communications, enterprise, consumer, automotive, industrial, healthcare, and power industries across the Americas, Asia, and Europe.
6. Caterpillar Inc. (NYSE:CAT)
On June 10, 2026, Caterpillar Inc. (NYSE:CAT) raised its quarterly dividend by 12c, or 8%, to $1.63 per share of common stock. The dividend is payable on August 19 to shareholders of record at the close of business on July 20.
On June 2, 2026, UBS analyst Steven Fisher raised the firm’s price target on Caterpillar Inc. (NYSE:CAT) to $900 from $677 and maintained a Neutral rating on the shares. Fisher said Caterpillar is expected to benefit from strong demand in prime power generation, construction, mining, and oil and gas markets, supporting earnings growth through 2027-2029. However, UBS said much of the upside appears already reflected in the stock’s valuation following a strong Q1 beat, a substantially larger backlog, and sharply higher consensus earnings expectations.
Last month, Evercore ISI analyst David Raso raised the firm’s price target on Caterpillar Inc. (NYSE:CAT) to $1,103 from $878 and maintained an Outperform rating on the shares.
Caterpillar Inc. (NYSE:CAT) provides construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives in the United States and internationally.
While we acknowledge the potential of CAT 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 CAT and that has 100x upside potential, check out our report about the cheapest AI stock.
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