In this article, we will look at the 13 Best Long Term Growth Stocks to Buy According to Hedge Funds.
On January 9, Rich Saperstein, founding principal and chief investment officer of Treasury Partners, appeared on CNBC’s “Closing Bell” to talk about the market trends. He stated that we are in a capex supercycle, with $350 billion of tax cuts and an accommodative Fed. These factors are adding to the balance sheet, which is why the overall landscape for owning common stocks is “absolutely tremendous” right now, according to him.
In addition, Mike Wilson, Morgan Stanley CIO and chief U.S. equity strategist, also appeared on CNBC’s ‘Squawk Box’ to talk about the latest market trends on January 8.
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He was of the view that what was happening last year is still playing out, namely, considerable consternation around the policy changes. The market has fully adopted that narrative now, and the Fed appears to be in a good place. The big surprise, or the change from the end of last year to the present, according to Wilson, is that the Fed is now addressing the liquidity concerns proactively, purchasing assets again to ensure that the funding markets are stable. He thinks that this wildcard has been taken off the table now.
Wilson further stated that the earnings picture is crystal clear to him, which likely informs his view of where earnings can be this year. He believes it broadens out, and that is starting to play through some of the stocks already. That, according to him, is the year we are looking at.
With these trends in view, let’s look at the 13 best long term growth stocks to buy according to hedge funds.
Our Methodology
We sifted through financial media reports and ETFs tracking blue chip and high quality stocks to find companies that satisfied the following criteria:
- EPS Diluted Growth (YoY) above 20%.
- EPS Diluted Growth (FWD) above 20%.
- 5-year revenue growth rate over 15%.
We then selected the top 13 stocks with the highest number of hedge fund holders, as of Q3 2025. We sourced the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of hedge fund holders.
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).
13 Best Long Term Growth Stocks to Buy According to Hedge Funds
13. Fortinet, Inc. (NASDAQ:FTNT)
Number of Hedge Fund Holders: 44
Fortinet, Inc. (NASDAQ:FTNT) is one of the best long term growth stocks to buy according to hedge funds. Fortinet, Inc. (NASDAQ:FTNT) received rating updates from RBC Capital and Piper Sandler on January 5. RBC Capital reiterated a Hold rating on the stock and set a price target of $85, while Piper Sandler lifted the price target on Fortinet, Inc. (NASDAQ:FTNT) to $90 from $85 but maintained a Neutral rating on the shares.
Piper told investors that 2025 was a tough year for its Security & Infrastructure Software coverage, since the average name reflected negative performance and only four names managed to outperform the NASDAQ. The firm exhibited cautious optimism for a better year in 2026, as several names entered the year with interesting valuation levels, well-structured to be longer-term GenAI winners. The firm believes in these trends despite monetization not yet occurring at scale at the software layer.
The two ratings came on the same day Fortinet, Inc. (NASDAQ:FTNT) announced that it would release its fiscal Q4 and full-year 2025 financial results on February 5.
Fortinet, Inc. (NASDAQ:FTNT) is a provider of cybersecurity solutions to a range of businesses, including government organizations, communication service providers, enterprises, and small to medium-sized businesses. The company’s portfolio includes secure access service edge, network security, application security, enterprise networking, and operational technology.
12. KLA Corporation (NASDAQ:KLAC)
Number of Hedge Fund Holders: 61
KLA Corporation (NASDAQ:KLAC) is one of the best long term growth stocks to buy according to hedge funds. KLA Corporation (NASDAQ:KLAC) received a rating update from Cantor Fitzgerald on January 8. The firm lifted the price target on the stock to $1,750 from $1,500 and maintained an Overweight rating on the shares.
The firm told investors that conviction remains high despite the recent outperformance, with increasing wafer fabrication equipment through CY2026 to CY2028 anticipated to propel solid secular growth, supporting an “All-In” stance. Cantor added that the overweight outlook on large-cap semiconductor capital equipment names remains unchanged, which exhibits confidence in the group being in the early stages of the investment cycle.
Cantor Fitzgerald previously released a rating update on KLA Corporation (NASDAQ:KLAC) on December 16, upgrading the stock to Overweight from Neutral and lifting the price target to $1,500 from $1,350. It told investors that the SOX is positioned to lead markets upwards after outperforming the S&P by roughly 30 points in CY2025, with the trends supported by the early stages of the AI era, and bolstering demand across memory, computer, networking, and equipment.
The firm further stated that while cyclical factors may lead to mixed signals, other factors, such as the anticipated exponential growth in AI infrastructure spending and the macro backdrop, support a long position in the SOX, along with an overweight exposure to AI-related plays into CY2026.
Cantor Fitzgerald’s January 8 rating came the same day KLA Corporation (NASDAQ:KLAC) announced that it will review second-quarter fiscal year 2026 earnings on January 29 at 2 p.m. PT.
KLA Corporation (NASDAQ:KLAC) is involved in the supply of process control and yield management solutions for the semiconductor and related nano-electronics industries. The company’s operations are divided into the following operations: Semiconductor Process Control, Specialty Semiconductor Process, and PCB, Display and Component Inspection.
