In this article, we will take a look at the 13 Best Performing Long Term Stocks to Invest In.
According to a recent CNBC report, financial experts at Vanguard warned that keeping too much money in cash could quietly weaken long-term wealth. This applies whether the cash is stored physically or left in a bank account that earns little or no interest.
The main issue is inflation. Over time, inflation reduces the purchasing power of cash. Data from the Bureau of Labor Statistics shows that $126 in 2026 would buy about the same amount as $100 did in 2020. The difference builds gradually, but the impact becomes meaningful over several years. Traditional savings accounts offer limited returns. The Federal Deposit Insurance Corporation reports that the average interest rate on these accounts is just 0.39% per year. At the same time, inflation stood at about 2.4% in January 2026, based on BLS data. This means cash in many savings accounts loses value in real terms.
Some high-yield savings accounts offer better returns. Bankrate reports that certain accounts can earn up to 4% interest annually. Still, most people earn less. A Vanguard survey conducted in January 2025 found that more than half of Americans earn under 3% interest on their savings. Nearly one-quarter of respondents said their savings earn less than 1%. Kathy Kellert, head of index equity product at Vanguard, made the following statement:
“I think the reason why people hold on to extra cash is it can feel safe. But it can also quietly erode progress that investors are making towards meeting their long-term financial goals.”
Given this, we will take a look at some of the best-performing long-term stocks.
Our Methodology:
We used screeners to identify stocks that have exhibited strong share price performance over the past fiveyears, 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).
13. Stryker Corporation (NYSE:SYK)
5-Year Share Price Return: 59.6%
On February 24, UBS raised its price recommendation on Stryker Corporation (NYSE:SYK) to $400 from $386. The firm kept a Neutral rating on the stock.
During the Q4 2025 earnings call, CEO Kevin Lobo described 2025 as an outstanding year. He said both the fourth quarter and the full year delivered strong results across key financial measures. Organic sales increased 11% in the fourth quarter and 10.3% for the full year. This helped push total revenue past $25 billion. He noted that growth came from multiple parts of the business. Neurocranial, Endoscopy, Instruments, and Trauma and Extremities all delivered double-digit organic sales growth worldwide. This showed that performance was not limited to one area but spread across the portfolio. He added that “Full-year U.S. organic sales growth was an impressive 11.2%, and international organic sales growth of 7.5%,” and indicated that emerging markets, along with South Korea and Japan, contributed meaningfully to international growth.
Lobo also spoke about steps taken to strengthen the company’s long-term position. He said the company created the SmartCare business unit by combining Vocera and care.ai. This move brought its digital healthcare solutions under one structure. He also pointed to the launch of a dedicated breast care sales team within the Endoscopy segment, which was intended to increase focus and improve execution in that area.
Stryker Corporation (NYSE:SYK) is a medical technology company. It provides products and services across MedSurg, Neurotechnology, and Orthopaedics to support better patient and healthcare outcomes. Its business is organized into two main segments: MedSurg and Neurotechnology, and Orthopaedics.
12. Marsh & McLennan Companies, Inc. (NYSE:MRSH)
5-Year Share Price Return: 62.07%
On February 27, Mizuho analyst Yaron Kinar downgraded Marsh & McLennan Companies, Inc. (NYSE:MRSH) to Neutral from Outperform. The analyst also lowered the price target to $199 from $213. The firm made the change after the recent selloff across the insurance property and casualty sector. The analyst said there is a “low disruption threat” to insurance brokerage firms that focus on middle-market and large accounts from AI. He explained in a research note that Mizuho sees disintermediation risk as “geared to mass market personal lines and the smaller end of SME.” This suggests the pressure is more likely to affect smaller accounts rather than the company’s core client base.
On February 2, the company announced it had acquired Robinson & Son, LLC., an agency based in Hudson Falls, New York. The firm specializes in the maritime industry. Financial terms of the deal were not disclosed. Robinson & Son was founded in 2005 by James Robinson and his father, Peter Robinson, who has since retired. The agency provides property and casualty insurance solutions to businesses and individuals nationwide, with a strong focus on marine insurance. All employees, including Co-Founder and Agency Principal James Robinson, will join Marsh McLennan Agency and continue working from their current office.
Marsh & McLennan Companies, Inc. (NYSE:MRSH) operates as a professional services firm focused on risk, strategy, and people. Its business runs through two main segments: Risk and Insurance Services, and Consulting.
11. Waste Management, Inc. (NYSE:WM)
5-Year Share Price Return: 117.19%
On February 17, CIBC raised its price recommendation on Waste Management, Inc. (NYSE:WM) to $242 from $231. The firm reiterated a Neutral rating on the stock after meeting with management. The firm said key discussion points included the current volume and pricing environment, the outlook for WM Healthcare, and the company’s use of technology as a structural advantage.CIBC also reviewed the company’s free cash flow priorities as it begins to benefit from its sustainability investments. The firm said the price target increase reflected the operational momentum WM is currently seeing across its business.
During the Q4 2025 earnings call, CEO James Fish said the company delivered another strong year in 2025. He pointed to record efficiency in operating expenses relative to revenue. He also noted that cash generation remained strong, with operating cash flow growing at a double-digit rate and free cash flow rising nearly 27%. He said the results were driven by steady performance in the core collection and disposal business. The integration of Healthcare Solutions also supported growth, along with continued expansion in sustainability-related operations. He explained that investments in a newer truck fleet and improved retention among frontline workers helped reduce labor and maintenance costs. This contributed to better operating efficiency over the year.
Fish also highlighted progress in renewable energy. He said the company commissioned seven new renewable natural gas facilities during the year. This expanded its renewable energy network and strengthened its position in environmental sustainability. He also discussed the recycling business, which delivered more than 22% operating EBITDA growth. This came even as commodity prices fell nearly 20% during 2025. He said the performance reflected the strength of the company’s strategy and the impact of its operational improvements.
Waste Management, Inc. (NYSE:WM) provides environmental solutions. The company offers collection, recycling, and disposal services to millions of residential, commercial, industrial, and municipal customers across the United States and Canada.
10. American Express Company (NYSE:AXP)
5-Year Share Price Return: 128.3%
On February 25, The Wall Street Journal reported that American Express Company (NYSE:AXP) plans to build a new global headquarters at 2 World Trade Center in Lower Manhattan. The company said the state-of-the-art building is expected to be completed in 2031.
American Express plans to be the sole owner and occupant of the property. The building will span about 2 million square feet and rise 55 stories. It will have space for up to 10,000 employees. The company has operated from its current headquarters at 200 Vesey Street since 1986. It plans to remain there until the new headquarters is ready.
American Express did not disclose the cost of the project. It said the development is expected to contribute about $5.9 billion to New York City’s economy and about $6.3 billion to the state’s economy overall. Construction is scheduled to begin in the spring of this year.
American Express Company (NYSE:AXP) operates as a global payments and premium lifestyle brand supported by technology. Its card-issuing, merchant-acquiring, and card network businesses provide products and services to consumers, small businesses, mid-sized companies, and large corporations worldwide.
9. The TJX Companies, Inc. (NYSE:TJX)
5-Year Share Price Return: 144.9%
On February 26, Baird analyst Mark Altschwager raised the firm’s price objective on The TJX Companies, Inc. (NYSE:TJX) to $172 from $168. It reiterated an Outperform rating on the shares. The firm updated its model after the company reported strong Q4 results and issued conservative guidance.
CNBC reported on February 25 that TJX continues to show the strength of its off-price retail model. The company buys excess inventory from well-known brands and retailers and sells those products to customers at discounted prices. This approach has connected well with shoppers who are focused on getting more value for their money.
The company reported results that exceeded expectations across all four operating divisions. These include Marmaxx, HomeGoods, TJX Canada, and TJX International, which covers Europe and Australia. This marked the fourth straight quarter in which every segment outperformed projections. The consistency reflects steady demand across the business.TJX also reached an important milestone. Annual sales surpassed $60 billion for the first time in the company’s history. Same-store sales, which include stores and online platforms operating for at least two full fiscal years, increased 5%. This came in well above the analyst consensus estimate of 3.7%.
Performance varied slightly between segments. Same-store sales growth improved at HomeGoods, rising from 5% to 6%, and at TJX International, which increased from 3% to 4%. Growth slowed modestly at Marmaxx, easing from 6% to 5%, and at TJX Canada, declining from 8% to 7%. Even so, both segments continued to deliver solid results.
The TJX Companies, Inc. (NYSE:TJX) operates as an off-price apparel and home fashions retailer in the United States and international markets. Its segments include Marmaxx and HomeGoods in the U.S., along with TJX Canada and TJX International, which covers Europe and Australia.
8. Cintas Corporation (NASDAQ:CTAS)
5-Year Share Price Return: 148.06%
On February 17, BofA analyst Curtis Nagle reinstated coverage of Cintas Corporation (NASDAQ:CTAS). The analyst reiterated a Neutral rating and a $215 price target. The move came as the firm resumed coverage of 19 Information and Business Services stocks. The analyst said the firm is “generally constructive” on the group. It expects average revenue growth of 7%, EPS growth of 12%, and free cash flow growth of 11% in 2026. These projections reflect steady expectations for the sector’s overall performance.
On February 10, Bloomberg reported that UniFirst Corp. has entered early-stage acquisition talks with Cintas Corp. This follows Cintas renewing its takeover offer at $275 per share in December. The discussions come after several earlier attempts, including offers made in 2022 and 2025, which did not lead to meaningful negotiations. UniFirst’s board is currently reviewing the proposal with its advisers. The goal is to determine whether the offer aligns with shareholders’ interests. The talks are still at an early stage, and there is no agreement yet on price or timing. There is also no certainty that a deal will be completed.
Following the report, UniFirst shares moved higher in premarket trading. Even with the increase, the stock remained below the offer price. The company continues to be controlled by the Croatti family, whose dual-class share structure has allowed them to maintain control and resist activist efforts calling for a sale.
Cintas Corporation (NASDAQ:CTAS) develops and manages uniform programs built around fabric-based products. The company serves businesses of all sizes across the US, with additional operations in Canada and Latin America.
7. The Progressive Corporation (NYSE:PGR)
5-Year Share Price Return: 148.5%
On February 23, UBS analyst Brian Meredith lowered his price recommendation on The Progressive Corporation (NYSE:PGR) to $218 from $226. The analyst reiterated a Neutral rating on the shares.
On February 18, the company reported that January net premiums written are estimated at $6.74 billion, compared to $6.48 billion in the same period last year. This reflects steady growth in policy activity over the past year. The company also estimated January net premiums earned at $6.92 billion, compared to $6.59 billion a year ago. This increase points to continued revenue expansion from its insurance operations.
GAAP EPS is expected to be $1.98 for the month, compared to $1.90 in January last year. This suggests modest improvement in profitability. The combined ratio is projected at 84.4%. This remains an important measure of underwriting performance and cost control. Pretax net realized gains on securities are forecast at $103 million, down 6% from $109 million in January 2025. This reflects lower gains from investment activity compared to the prior year.
The Progressive Corporation (NYSE:PGR) operates as an insurance holding company with both insurance and non-insurance subsidiaries and affiliates. Its business is organized into Personal Lines, Commercial Lines, and Other indemnity segments.
6. Johnson Controls International plc (NYSE:JCI)
5-Year Share Price Return: 158.6%
On February 18, Johnson Controls International plc (NYSE:JCI) signed an agreement to acquire Alloy Enterprises, a Boston-based company that develops advanced thermal management platforms for high-performance data centers and other mission-critical industrial applications. The acquisition is expected to strengthen Johnson Controls’ position and expand its capabilities in the fast-growing data center cooling market.
Founded in 2020, Alloy Enterprises focuses on thermal, mechanical, and materials sciences innovation. Its proprietary platform includes advanced direct liquid cooling components designed to improve thermal management efficiency by up to 35%. This allows heat to be removed faster and more effectively. The system can also reduce pressure drop by up to 75%, allowing fluid to move more easily. These improvements lead to lower overall cooling system energy use.
The acquisition supports Johnson Controls’ efforts to expand its thermal management portfolio. It also aligns with the company’s goal of delivering more differentiated cooling solutions for data centers. Alloy’s proprietary manufacturing process improves liquid cooling efficiency across key components such as GPUs, CPUs, memory, and network interfaces. These capabilities add to Johnson Controls’ existing range of end-to-end cooling technologies.
Johnson Controls International plc (NYSE:JCI) focuses on smart building solutions. The company operates through three segments: Americas, EMEA, and APAC. Its business includes engineering, manufacturing, commissioning, and retrofitting building products and systems.
5. Welltower Inc. (NYSE:WELL)
5-Year Share Price Return: 205.04%
On February 24, RBC Capital raised its price recommendation on Welltower Inc. (NYSE:WELL) to $230 from $207. The firm reiterated an Outperform rating on the shares after the company reported stronger-than-expected Q4 results. The analyst said Welltower continues to lead in the seniors housing sector. Recent portfolio restructuring and ongoing investments in technology have positioned the company to benefit from favorable industry trends. RBC also said its updated price target reflects expectations that AFFO will grow at a 17% compound annual rate through 2031. This outlook points to sustained earnings growth over the coming years.
During the fourth-quarter earnings call, CEO Shankh Mitra said 2025 marked a turning point for Welltower. He highlighted strong financial performance across the business. Revenue increased 36%, EBITDA rose 32%, and FFO per share grew 22%. He also said the company strengthened its balance sheet by reducing leverage, while continuing to invest in technology and its workforce to support long-term growth.
Mitra said the company made several key strategic moves during the year. These included launching its private funds management business and updating incentive programs for employees and operating partners. The company also continued implementing its Welltower Business System to improve consistency and execution. He pointed to the launch of the Tech Quad initiative, which is focused on expanding technology capabilities and improving operational efficiency.
Welltower Inc. (NYSE:WELL) is a healthcare real estate company that focuses on senior housing and wellness communities across the United States, the United Kingdom, and Canada. Its portfolio includes more than 2,000 properties that provide housing and care-focused environments for older adults.
4. Costco Wholesale Corporation (NASDAQ:COST)
5-Year Share Price Return: 205.40%
On February 27, BofA reinstated coverage of Costco Wholesale Corporation (NASDAQ:COST) with a Buy rating. The firm set a $1,185 price target on the stock. The analyst said Costco’s strong appeal among higher-income consumers, combined with its industry-leading pricing, continues to attract shoppers focused on value. He added that Costco is “well-positioned to remain a leader in this K-shaped economy,” reflecting confidence in the company’s ability to perform across different consumer segments.
A recent CNBC report also highlighted Costco as one of the emerging dividend stocks identified by Wolfe Research. The company, known for keeping its rotisserie chicken priced at $4.99 for years, has shown similar consistency with its dividend policy. It has steadily increased its dividend over the past two decades. Costco most recently raised its regular dividend in April, increasing the quarterly payout to $1.30 per share from $1.16. The company has also paid large special dividends at times, which have added to its appeal among income-focused investors.
Investors have continued to move toward Costco during this year’s market volatility. The stock is up 18.33% in 2026 and currently offers a dividend yield of 0.5%. The steady performance has reinforced its position as a defensive retail name. Earlier this month, JPMorgan also pointed to Costco as a key beneficiary of tax season. Analyst Christopher Horvers said the following in a February 6 report:
“Demographically, COST is positioned to be the biggest winner into a stimulated consumer environment given geographic, member demographic, and mix differences.”
He also said Costco’s exposure to higher-income customers allows it to “screen the best in the club sector to expected spring tax stimulus, especially in light of COST’s big-ticket gen merch assortment.”
Costco Wholesale Corporation (NASDAQ:COST) operates membership warehouses and e-commerce platforms that offer a wide range of nationally branded and private-label products across multiple categories.
3. Applied Materials, Inc. (NASDAQ:AMAT)
5-Year Share Price Return: 215.01%
On February 25, Morgan Stanley raised its price recommendation on Applied Materials, Inc. (NASDAQ:AMAT) to $432 from $420 and maintained an Overweight rating on the shares. The analyst also named the stock a Top Pick in U.S. Semiconductor Production Equipment. The firm increased its wafer fab equipment market growth forecasts for 2026 and 2027. It now expects growth of 23% and 27%, up from earlier estimates of 13% and 19%. The revision reflects stronger expected spending on DRAM memory, which continues to drive demand across the semiconductor equipment sector.
During the fiscal Q1 2026 earnings call, President and CEO Gary Dickerson said the company delivered revenue and earnings above the midpoint of its guidance range. He said the semiconductor equipment business is expected to grow more than 20% during the calendar year. Demand is likely to be stronger in the second half, as cleanroom capacity availability affects the timing of customer investments. He also highlighted the company’s position in key technology areas, including leading-edge logic, high-bandwidth memory DRAM, and advanced packaging. He said the shift to gate-all-around nodes is expanding the company’s addressable market and creating new opportunities to gain share.
Dickerson also discussed product innovation. He said the company’s cold field emission eBeam technology is gaining adoption. Revenue from this product line is expected to double during the year and exceed $1 billion. He said its role in process diagnostics and control is expanding, and it is becoming one of the company’s fastest-growing businesses in 2026.
He also said the company plans to introduce more than a dozen new products during the year. This includes three products focused on advanced logic and DRAM, which were announced earlier in the week.
Applied Materials, Inc. (NASDAQ:AMAT) provides materials engineering solutions. The company supplies equipment, services, and software to the semiconductor, display, and related industries.
2. Southern Copper Corporation (NYSE:SCCO)
5-Year Share Price Return: 226.9%
On February 26, BofA downgraded Southern Copper Corporation (NYSE:SCCO) to Underperform from Neutral. It raised its price target on the stock to $175 from $162. The firm said the downgrade reflects concerns about the stock’s “stretched” valuation and weaker near-term operating outlook.BofA said the company’s valuation has become “difficult to justify” following the recent rally in its shares. The firm expects Southern Copper’s production to decline by 3% through 2027. It also said the stock appears to reflect a more optimistic scenario that may not materialize.
Earlier, on January 30, Morgan Stanley raised its price recommendation on Southern Copper to $156 from $137. The firm reiterated an Underweight rating on the shares. The update came after the firm revised its estimates to reflect current commodity prices, foreign exchange assumptions, and the company’s latest guidance following its Q4 earnings report.
Southern Copper Corporation (NYSE:SCCO) operates as an integrated copper producer. The company produces copper, molybdenum, silver, and zinc. Its mining, smelting, and refining operations are based in Peru and Mexico, and it also conducts exploration activities in Argentina, Chile, and Ecuador.
1. Palantir Technologies Inc. (NASDAQ:PLTR)
5-Year Share Price Return: 474.05%
On February 27, UBS upgraded Palantir Technologies Inc. (NASDAQ:PLTR) to Buy from Neutral. The firm set a $180 price target on the stock. UBS said the upgrade reflects the stock’s valuation after a 35% decline from its peak. The analyst described Palantir as a “premier growth story” in software and said it sits “at the nexus of the two most powerful spending trends – AI and Data.” UBS said current valuation levels make the shares “very attractive,” based on its forecast for 70% revenue growth in 2026 and stable margins in the mid-50% range. The firm also said its latest checks indicate that Palantir is “facing a very strong demand backdrop.”
CNBC reported on February 27 that Palantir could benefit from a dispute between Anthropic and the US Department of Defense. Anthropic refused to remove safeguards from its AI model for unrestricted military use. This has led the Department of Defense to explore alternatives, including OpenAI and Google. If Palantir integrates these AI models into its platforms, its role as an infrastructure provider could expand.
The report also noted that Palantir’s long-term growth is increasingly supported by its commercial business. At the same time, additional defense contracts could strengthen its leadership in military AI. CEO Alex Karp’s continued support for defense partnerships has helped position the company in this area. It also described an options strategy using a three-leg debit spread to gain exposure to the stock while limiting downside risk. The trade had a net cost of $3.50 per spread and offered defined downside risk, with unlimited upside if the stock rose above $143.50.
Palantir Technologies Inc. (NASDAQ:PLTR) develops software platforms that support counterterrorism investigations and operations. Its main platforms include Palantir Gotham, Palantir Foundry, Palantir Apollo, and the Palantir Artificial Intelligence Platform.
While we acknowledge the potential of PLTR 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 PLTR and that has 100x upside potential, check out our report about this cheapest AI stock.
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