In this article, we will take a look at the 13 Most Promising Long-Term Stocks to Buy According to Hedge Funds.
A report by BNY Wealth noted that volatility has always been part of the stock market. Since 1946, the S&P 500 has experienced an average pullback of more than 13% within a single year. These declines can feel unsettling when they happen. Yet over time, the market has shown a clear pattern of recovery.
Despite these drops, the stock market has delivered positive annual returns about 70% of the time since 1946. The report also found that periods of higher uncertainty around fiscal and monetary policy have often been followed by stronger returns. On average, when policy uncertainty is elevated, the S&P 500 has returned more than 20% over the next year. That is more than double the return seen after periods of lower uncertainty.
A recent report by JPMorgan focused on another key point. Many investors move to cash during uncertain periods, thinking it offers protection. While cash avoids short-term market swings, it loses value slowly due to inflation. If money remains uninvested, its purchasing power declines over time. With inflation at 2% per year, cash can lose more than half its real value over 40 years. At 3% inflation, the loss becomes even greater. The money may look the same on paper, but it buys far less.
The report also explained the power of compounding. Compounding allows investments to grow not only from the original amount but also from the returns earned over time. This effect becomes more noticeable over longer periods. Starting early makes a meaningful difference. For example, saving £5,000 per year beginning at age 25 and earning a 5% annual return would result in nearly £300,000 more by age 65 compared with starting at age 35. This happens even though the total additional amount invested would only be £50,000.
Given this, we will take a look at some of the best long-term stocks to invest in.
Photo by Scott Graham on Unsplash
Our Methodology:
We used screeners to identify stocks with an average upside potential of at least 30%, 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. Alight, Inc. (NYSE:ALIT)
On February 23, BofA lowered its price recommendation on Alight, Inc. (NYSE:ALIT) to 50c from $1.40. The firm reiterated an Underperform rating on the shares. In a post-earnings note, the analyst said the “biggest surprise and negative takeaway” was the company’s weak Q1 revenue guidance. This metric pointed to a meaningful decline in net revenue retention. The firm updated its model to reflect what it described as “missteps on renewals.” It also cited slower project activity and near-term margin pressure tied to ongoing growth investments. These factors weighed on the firm’s outlook for the company.
During Alight’s Q4 2025 earnings call, CEO Rohit Verma spoke about the company’s strengths. He pointed to its scale, long-standing client relationships, and industry expertise. He also highlighted its global presence, which allows Alight to support clients across multiple regions. Verma said these advantages have helped the company build a leadership position in its market.
He noted that Alight serves a wide range of employers, including many Fortune 100 companies. Its platform is designed to support different client needs, especially in managing employee benefits. At the same time, Verma acknowledged that the company did not meet its internal expectations in 2025. Financial targets were missed, and both new business wins and contract renewals came in below what the company had planned. This shortfall led to results that fell short of earlier forecasts.
Looking ahead, Verma outlined several priorities. The company plans to improve service quality and operational performance. It also intends to advance product innovation, using AI to create a more modern and efficient user experience. Strengthening client relationships remains another key focus, with the goal of building long-term partnerships.
Alight, Inc. (NYSE:ALIT) operates as a cloud-based human capital technology and services provider. The company delivers human capital management solutions, including the implementation and administration of employee benefits such as health, wealth, and leave programs.
12. SunCoke Energy, Inc. (NYSE:SXC)
On February 18, B. Riley lowered its price recommendation on SunCoke Energy, Inc. (NYSE:SXC) to $9 from $10. The firm maintained a Neutral rating on the shares. In a research note, the analyst said SunCoke reported Q4 adjusted EBITDA of $56.7M, which came in below expectations. Industrial Services contributed $22.7M and helped offset weaker results in other areas. Logistics and Domestic Coke volumes were softer during the quarter, which weighed on overall performance.
During the company’s Q4 2025 earnings call, CEO Katherine Gates announced a leadership transition. CFO Mark Marinko is retiring, and Shantanu Agrawal will step into the role. Gates said the change is intended to preserve continuity in financial discipline and operational priorities. She also highlighted the company’s safety performance. SunCoke, excluding Phoenix, ended 2025 with a total recordable incident rate of 0.55. Gates described this as a notable achievement and pointed to it as a reflection of the company’s focus on safety across its operations.
For the full year, consolidated adjusted EBITDA reached $219.2 million. Gates said the results were influenced in part by the addition of Phoenix Global, which contributed for part of the year. At the same time, volumes in the terminals segment were weaker.
The Domestic Coke segment also faced several challenges. Gates said performance was affected by changes in the mix between contract and spot coke sales. Profitability was also impacted by the Granite City contract extension and a contract breach by Algoma.
SunCoke Energy, Inc. (NYSE:SXC) supplies coke to customers in domestic and international markets. The company operates through three main segments: Domestic Coke, Brazil Coke, and Logistics.
