In this article, we will take a look at some of the best stocks to buy for the medium term.
The market is attempting to recover from last week’s losses as investors regroup after a sharp sell-off that hit both tech and crypto. Traders are keeping an eye on upcoming U.S. data before the Thanksgiving holiday, including September retail sales and producer price figures.
Thanksgiving week has also tended to be a positive period for stocks. Bespoke Investment notes that since 1945, the S&P 500 has posted a median gain of 0.76% during this week.
Money markets currently suggest there is about a 75% chance that the Federal Reserve will cut rates at its December meeting. These odds have shifted in recent weeks but have been rising after policymakers made dovish comments emphasizing support for the labor market.
Lower interest rates typically reduce borrowing costs, which can encourage businesses to expand and consumers to spend more. This environment is generally favorable for medium-term investments that span three to five years.
To carry out this strategy successfully, investors need to look closely at several important factors when choosing companies. These include how the stock has performed over the past year, the company’s profitability, sales trends, debt levels, price-to-earnings ratio, and dividend payments. Reviewing revenue growth and payout ratios can also offer a valuable perspective.
Given this, we will take a look at some of the best medium-term stocks to buy now.
Our Methodology
For this list, we used a Finviz screener to find dividend stocks with an average revenue growth of over 10% over the past five years, highlighting companies with consistent sales growth. From that selection, stocks with a five-year average payout ratio of under 60% were chosen, indicating a strong cash position. The stocks are ranked according to their 5-year revenue growth rates.
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).
15. Merck & Co., Inc. (NYSE:MRK)
5-Year Average Annual Revenue Growth Rate: 10.5%
Merck & Co., Inc. (NYSE:MRK) is among the best stocks to buy for the medium term.
On November 17, BofA analyst Tim Anderson raised the firm’s price target on Merck & Co., Inc. (NYSE:MRK) to $105 from $98 and maintained a Buy rating on the shares, as reported by The Fly. He described the Cidara (CDTX) deal as “reasonable,” noting that the company’s experimental flu drug is a novel asset with a high likelihood of technical success and complements Merck’s Infectious Disease franchise.
In the third quarter of 2025, Merck & Co., Inc. (NYSE:MRK) reported revenue of $17.3 billion, up 4% from the same period last year. KEYTRUDA sales grew 10% to $8.1 billion. The company now expects worldwide revenue to reach between $64.5 billion and $65 billion.
Merck & Co., Inc. (NYSE:MRK) has also made progress with its new approvals. Winrevair, a treatment for pulmonary arterial hypertension launched last year, generated $360 million in the third quarter, putting it on an annual run rate above $1 billion. Capvaxive, a pneumococcal vaccine approved last year, reported $244 million in sales for the period. The company maintains a robust pipeline with more than 80 active clinical trials.
Merck & Co., Inc. (NYSE:MRK)’s animal health business added another growth driver, with sales rising 9% year-over-year to $1.6 billion in the third quarter, supported by rising pet-related spending.
Merck & Co., Inc. (NYSE:MRK) is a healthcare company providing solutions through prescription medicines, vaccines, biologic therapies, animal health, and consumer care products.
14. Arthur J. Gallagher & Co. (NYSE:AJG)
5-Year Average Annual Revenue Growth Rate: 10.54%
Arthur J. Gallagher & Co. (NYSE:AJG) is among the best medium-term stocks to buy now.
On November 3, Goldman Sachs lowered the firm’s price target on Arthur J. Gallagher & Co. (NYSE:AJG) to $315 from $361 while keeping a Buy rating on the shares, according to a report by The Fly.
Arthur J. Gallagher & Co. (NYSE:AJG) reported strong earnings for the third quarter of 2025, though it fell short of analysts’ expectations. Revenue reached $3.3 billion, up nearly 20% from the same period last year, marking the 19th consecutive quarter of double-digit top-line growth. However, revenue missed estimates by $90 million. Organic revenue growth was 4.8%, and acquisitions contributed more than $450 million. Net earnings margin stood at 13.8%, adjusted EBITDAC margin was over 32%, and adjusted EBITDAC increased 22%.
In another development, on November 3, Arthur J. Gallagher & Co. (NYSE:AJG) announced the acquisition of Tompkins Insurance Agencies, based in Batavia, New York, a wholly-owned subsidiary of Tompkins Financial Corporation. Tompkins Insurance Agencies offers a full range of property and casualty insurance products as well as employee benefits services to clients across New York and Pennsylvania. Gallagher has been active in acquisitions this year, having acquired AssuredPartners for approximately $13.8 billion on August 18, 2025.
Arthur J. Gallagher & Co. (NYSE:AJG) is a global insurance brokerage, risk management, and consulting services firm. The company operates in approximately 130 countries worldwide through its own operations and a network of correspondent brokers and consultants.
13. JPMorgan Chase & Co. (NYSE:JPM)
5-Year Average Annual Revenue Growth Rate: 10.65%
JPMorgan Chase & Co. (NYSE:JPM) is among the best stocks to buy now for the medium term.
On November 3, Wells Fargo raised its price target on JPMorgan Chase & Co. (NYSE:JPM) to $350 from $345 while maintaining an Overweight rating on the shares, according to a report by The Fly.
In the third quarter of 2025, JPMorgan Chase & Co. (NYSE:JPM) posted an impressive 20% return on tangible common equity (ROTCE), a key measure of profitability that shows how effectively a bank generates profits from its capital. This metric is often compared to operating margin in other industries, and JPMorgan’s ROTCE typically ranks above its peers. The company reported revenue of $47.1 billion in Q3, up 10.4% from the same period last year.
On November 14, JPMorgan Chase & Co. (NYSE:JPM) announced agreements that will ensure it receives payments from fintech companies for access to its customers’ bank account data via third-party apps, according to CNBC. The deals were made with data aggregators including Plaid, Yodlee, Morningstar, and Akoya, a spokesperson told Reuters.
JPMorgan Chase & Co. (NYSE:JPM) is a leading global financial services firm, operating across investment banking, commercial banking, financial transaction processing, and asset management.
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