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.
12. Nucor Corporation (NYSE:NUE)
5-Year Average Annual Revenue Growth Rate: 11.28%
Nucor Corporation (NYSE:NUE) is one of the best medium-term stocks to invest in.
On November 14, Wells Fargo upgraded Nucor Corporation (NYSE:NUE) from Equal Weight to Overweight and raised its price target to $167 from $147, according to a report by The Fly. The firm cited higher US steel price forecasts for 2026, which are expected to lift 2026 EBITDA by 12% to $5.1 billion.
In the third quarter of 2025, Nucor Corporation (NYSE:NUE) raised its CapEx guidance to $3.3 billion from the prior $3 billion due to accelerated project spending. The company also noted that it now supplies more than 95% of all steel products used in data centers, from the building envelope to interior infrastructure.
Nucor Corporation (NYSE:NUE) has long focused on turning a portion of its bulk steel into specialized products, such as racks for housing data center technology and doors for warehouses and large structures. These examples are particularly relevant amid the ongoing artificial intelligence (AI) investment boom. These specialized products typically carry higher margins than commodity steel and tend to have more resilient demand.
Nucor Corporation (NYSE:NUE) manufactures and sells a broad range of steel and steel products, including sheet, plate, bar, and structural steel.
11. Tractor Supply Company (NASDAQ:TSCO)
5-Year Average Annual Revenue Growth Rate: 11.84%
Tractor Supply Company (NASDAQ:TSCO) is one of the best stocks for the medium term.
Evercore ISI upgraded Tractor Supply Company (NASDAQ:TSCO) to Outperform from In Line and raised its price target to $65 from $60, according to a report by The Fly. The analyst noted that traffic trends are improving, growth initiatives are gaining traction, and the stock’s valuation “now provides a compelling entry point.”
In the third quarter of 2025, Tractor Supply Company (NASDAQ:TSCO)’s comparable store sales rose 3.9% year over year, driven by growth in both transactions and average ticket size. Transaction count increased 2.7%, while the average ticket grew 1.2%. Combined with new store openings and a recent acquisition, these factors helped net sales for the quarter climb 7.2% to $3.72 billion. For comparison, second-quarter comparable sales grew 1.5%.
Looking ahead to Q4, Tractor Supply Company (NASDAQ:TSCO) expects comparable sales (same-store sales) growth of 1% to 5%. The midpoint of this range aligns with the long-term comp algorithm and suggests that sequential momentum could continue if seasonal categories perform as expected.
After opening roughly 90 new stores this year, management plans to open about 100 locations in 2026, partly supported by 18 recently acquired Big Lots sites. This represents a tangible unit-growth driver on top of an expected same-store sales growth of 3% to 5%, which could keep total revenue growth within the algorithm’s range even if same-store sales don’t hit the high end of the target.
Tractor Supply Company (NASDAQ:TSCO) is the largest rural lifestyle retailer in the US, offering products for farmers, ranchers, homeowners, and pet owners.
10. Applied Materials, Inc. (NASDAQ:AMAT)
5-Year Average Annual Revenue Growth Rate: 13.27%
Applied Materials, Inc. (NASDAQ:AMAT) is one of the best medium-term stocks to invest in.
On November 14, TD Cowen raised its price target on Applied Materials, Inc. (NASDAQ:AMAT) to $260 from $250 and maintained a Buy rating on the shares. The firm noted that the company’s guidance came slightly above consensus and aligned with the outlook of its peers. China is expected to see a decline in 2026, but this risk is mostly mitigated, particularly since China’s WFE has surprised to the upside over the past few years.
In fiscal Q4 2025, Applied Materials, Inc. (NASDAQ:AMAT) reported revenue of $6.80 billion, down 3% year over year. GAAP EPS came in at $2.38, up 14%, while non-GAAP EPS was $2.17, down 6% compared with the same period last year. Driven by AI adoption and strong investment in advanced semiconductors and wafer fab equipment, the company achieved its sixth consecutive year of growth in fiscal 2025.
Applied Materials, Inc. (NASDAQ:AMAT) is preparing its operations and service teams to meet higher demand starting in the second half of calendar 2026. R&D investments are being focused on developing new products and technologies to enable faster, more energy-efficient transistors, chips, and systems, supporting growth in the years ahead. Research and Development spending in Q4 was $917 million, up from $858 million in the same quarter last year.
Applied Materials, Inc. (NASDAQ:AMAT) designs, manufactures, and services equipment for the semiconductor and display industries, establishing itself as a leader in materials engineering solutions for chips and advanced displays.
9. Matson, Inc. (NYSE:MATX)
5-Year Average Annual Revenue Growth Rate: 13.65%
Matson, Inc. (NYSE:MATX) is among the best stocks for the medium term.
On November 7, Wolfe Research upgraded Matson, Inc. (NYSE:MATX) from Peerperform to Outperform and set a price target of $142, according to a report by The Fly.
In the third quarter of 2025, Matson, Inc. (NYSE:MATX) reported revenue of $880 million, down 8.5% from the same period last year, but still $42.7 million above analysts’ estimates. In its Ocean Transportation segment, container volume for Hawaii service increased 0.3% year-over-year. In contrast, container volume in China fell 12.8% due to continued uncertainty and volatility driven by tariffs and global trade conditions.
For the quarter, consolidated operating income declined $81.3 million year-over-year to $161 million, with Ocean Transportation and Logistics contributing $79.5 million and $1.8 million less, respectively. Looking ahead to the fourth quarter of 2025, consolidated operating income is expected to be roughly 30% lower year-over-year.
Matson, Inc. (NYSE:MATX) is an American company providing ocean transportation and logistics services.
8. Expedia Group, Inc. (NASDAQ:EXPE)
5-Year Average Annual Revenue Growth Rate: 13.65%
Expedia Group, Inc. (NASDAQ:EXPE) is one of the best medium-term stocks.
On November 17, Mizuho analyst Lloyd Walmsley raised the firm’s price target on Expedia Group, Inc. (NASDAQ:EXPE) to $270 from $240 while maintaining a Neutral rating on the shares, according to a report by The Fly. He noted that the company delivered a strong earnings report and guided for mid- to high-single-digit sales growth in Q4, along with further margin expansion in 2026. Mizuho views Expedia’s risk/reward as balanced at current levels.
In fiscal Q4 2025, Expedia Group, Inc. (NASDAQ:EXPE) reported revenue of just over $4.4 billion, up 9% year-over-year and above the Wall Street consensus of $4.3 billion. Earnings came in at $7.57 per share, 23% higher than a year ago and 9% above the $6.95 estimate. Booked room nights grew 11% year-over-year, the fastest pace in more than three years, driven largely by business-to-business sales.
Margins expanded by more than 2 points in the quarter, supported by operational discipline and volume leverage. The company also highlighted that AI offers an opportunity to significantly improve efficiency and effectiveness over time.
Expedia Group, Inc. (NASDAQ:EXPE) is a global travel company operating a portfolio of online travel brands, including Expedia.com, Hotels.com, and Vrbo, providing a wide range of booking services for both consumers and businesses.
7. Badger Meter, Inc. (NYSE:BMI)
5-Year Average Annual Revenue Growth Rate: 15.08%
Badger Meter, Inc. (NYSE:BMI) is among the best stocks for the medium term.
On November 7, Badger Meter, Inc. (NYSE:BMI) announced that its Board of Directors declared a regular quarterly cash dividend of $0.40 per share, payable on December 5, 2025, to shareholders of record on November 21, 2025.
The Board also approved a new share repurchase program authorizing up to $75 million of the company’s outstanding common stock through November 30, 2028. This new program replaces the existing authorization approved in February 2023, which was set to expire in February 2026. Under the prior authorization, the company bought 82,448 shares of its common stock for a total of approximately $15 million during the fourth quarter of 2025.
Kenneth C. Bockhorst, Chairman, President, and Chief Executive Officer, made the following statement:
“Our strong balance sheet, history of free cash flow generation and durable business model position us well to capitalize on the secular trends that will drive growth in our industry. Disciplined adherence to our capital allocation framework has served both the company and shareholders well over time. Returning capital to shareholders via dividend growth has been a consistent component of total shareholder return for 33 consecutive years. The expansion of our share repurchase authorization gives us added flexibility to continue opportunistic buyback activity when our shares appear undervalued by the market, further enhancing our ability to deliver long-term shareholder value.”
Badger Meter, Inc. (NYSE:BMI) develops and manufactures smart water solutions that measure, control, and manage the flow of water and other liquids through pipes.
6. Micron Technology, Inc. (NASDAQ:MU)
5-Year Average Annual Revenue Growth Rate: 15.6%
Micron Technology, Inc. (NASDAQ:MU) is one of the best stocks for the medium term.
On November 10, Citi reiterated a Buy rating on Micron Technology, Inc. (NASDAQ:MU) and kept its $275 price target in place, as reported by The Fly.
The stock has climbed nearly 159% since the beginning of 2025 as the surge in generative artificial intelligence (AI) continues to drive demand for high-capacity data storage. That momentum has brought a wave of analyst upgrades and prompted the company to lift its outlook. Micron Technology, Inc. (NASDAQ:MU) is known for its high-bandwidth memory (HBM) and advanced DRAM, which supports fast access to data within computing systems.
Micron Technology, Inc. (NASDAQ:MU) business was once viewed as highly cyclical, with growth that rose and fell alongside shifting demand for memory. The rise of generative AI, however, is setting the stage for an unusually long stretch of revenue expansion, prompting investors to reassess the company’s valuation.
In fiscal 2025, Micron Technology, Inc. (NASDAQ:MU) reported sales of $37.5 billion, up 50% from the prior year and marking a new record. Gross margin improved by 17 points to 41%. Operating cash flow reached $17.53 billion, compared with $8.51 billion a year earlier.
5. CF Industries Holdings, Inc. (NYSE:CF)
5-Year Average Annual Revenue Growth Rate: 15.73%
CF Industries Holdings, Inc. (NYSE:CF) is one of the best stocks for the medium term.
Wells Fargo initiated coverage on CF Industries Holdings, Inc. (NYSE:CF) on November 11 with an Overweight rating and a $100 price target, slightly below the earlier target of $105, according to a report by The Fly.
The company delivered strong results in the third quarter of 2025, posting revenue of $1.66 billion, up 21.09% from a year earlier and ahead of analysts’ estimates by $4.41 million. Net earnings for the quarter were $353 million, or $2.19 per diluted share, with EBITDA at $671 million and adjusted EBITDA at $667 million. CF also completed its $3 billion share repurchase program authorized in 2022 and began its new $2 billion repurchase program approved in 2025 during October.
In its earnings release, CF Industries Holdings, Inc. (NYSE:CF) noted important progress in its clean energy strategy, including securing premium pricing for its first certified low-carbon ammonia cargoes and receiving 45Q tax credits as expected. Management said the financial returns from its low-carbon ammonia and decarbonization investments remain very strong for shareholders.
Gross ammonia production for the first nine months of 2025 totaled about 7.6 million tons, compared to 7.2 million tons in the same period of 2024. Third-quarter production was roughly 2.4 million tons, matching the prior-year level. The company expects full-year 2025 gross ammonia output to reach approximately 10 million tons.
CF Industries Holdings, Inc. (NYSE:CF) is a global producer and distributor of nitrogen-based products, including ammonia and other fertilizers.
4. EOG Resources, Inc. (NYSE:EOG)
5-Year Average Annual Revenue Growth Rate: 16.26%
EOG Resources, Inc. (NYSE:EOG) is among the best stocks for the medium term.
On November 18, Piper Sandler cut its price target on EOG Resources, Inc. (NYSE:EOG) to $124 from $129 and maintained a Neutral rating. The firm updated its exploration and production models following the Q3 results. According to the analyst, the sector delivered solid performance, with operations, efficiencies, and costs all moving in the right direction, though the broader oil macro environment “still doesn’t feel great.” Piper also noted that the rally in gas equities “has run a bit too far.”
In the third quarter of 2025, EOG Resources, Inc. (NYSE:EOG) reported revenue of $5.85 billion, a decline of almost 2% from a year earlier. Adjusted net income came in at $1.5 billion, or $2.71 per share. The company generated $1.4 billion in free cash flow, paid $545 million in regular dividends, and repurchased $440 million worth of shares.
Oil, gas, and NGL volumes in the third quarter exceeded the midpoints of guidance. The combination of higher volumes and lower–than–expected per–unit cash operating costs and DD&A supported strong financial performance.
EOG Resources, Inc. (NYSE:EOG) is an independent oil and gas producer focused on exploring, developing, producing, and marketing crude oil, natural gas, and natural gas liquids.
3. Steel Dynamics, Inc. (NASDAQ:STLD)
5-Year Average Annual Revenue Growth Rate: 16.28%
Steel Dynamics, Inc. (NASDAQ:STLD) is among the best stocks for the medium term.
On November 4, UBS analyst Andrew Jones downgraded Steel Dynamics, Inc. (NASDAQ:STLD) to Neutral from Buy while raising the price target to $165 from $158, as reported by The Fly. The downgrade was driven by valuation, as the stock has risen 22% since August. The analyst noted in a research note that Steel Dynamics is still dealing with a difficult demand backdrop.
In the third quarter of 2025, Steel Dynamics, Inc. (NASDAQ:STLD) posted revenue of $4.8 billion, up 11% from a year earlier. Consolidated operating income grew 33% and adjusted EBITDA rose 24% sequentially. The company reported operating income of $508 million and net income of $404 million. Adjusted EBITDA reached $664 million, and cash flow from operations totaled $723 million.
Steel Dynamics, Inc. (NASDAQ:STLD) has produced finished aluminum flat rolled products for the industrial and beverage can markets, as well as hot band for the automotive sector, which have been qualified by several customers sooner than expected. The company also reported record quarterly steel shipments as imports eased from the high levels seen earlier in the year and Sinton’s performance strengthened.
Steel Dynamics, Inc. (NASDAQ:STLD) is a major US steel producer and metal recycler, operating multiple steel mills and finishing facilities nationwide.
2. Imperial Oil Limited (NYSEAMERICAN:IMO)
5-Year Average Annual Revenue Growth Rate: 16.42%
Imperial Oil Limited (NYSEAMERICAN:IMO) is one of the best medium-term stocks to buy now.
On November 5, RBC Capital raised its price target on Imperial Oil Limited (NYSEAMERICAN:IMO) to C$118 from C$117 while maintaining a Sector Perform rating.
In its third quarter 2025 results, the company announced a restructuring aimed at supporting its long-standing strategy of boosting cash flow and delivering leading shareholder returns. Imperial reported strong downstream performance, with refinery capacity utilization reaching 98%.
Imperial Oil Limited (NYSEAMERICAN:IMO) posted revenue of C$12.05 billion, a drop of more than 9% from a year earlier. Cash flow from operating activities came in at C$1.798 billion, up from C$1.487 billion in the third quarter of 2024. The company also highlighted that production averaged 316,000 barrels per day, marking “its highest quarterly production in the asset’s history,” and noted that the new Leming SAGD development at Cold Lake is close to delivering first output.
Imperial Oil Limited (NYSEAMERICAN:IMO) is a Canadian integrated energy company involved in upstream oil and natural gas production as well as downstream refining and petroleum product marketing.
1. Eli Lilly and Company (NYSE:LLY)
5-Year Average Annual Revenue Growth Rate: 16.74%
Eli Lilly and Company (NYSE:LLY) is among the best medium-term stocks to invest in.
On November 18, JPMorgan analyst Chris Schott raised the firm’s price target on Eli Lilly and Company (NYSE:LLY) to $1,150 from $1,050 while maintaining an Overweight rating after meetings with management. JPMorgan said the discussions reinforced its positive view on the company. The analyst noted that Lilly’s agreement with the Trump Administration to expand access to obesity medicines is a net positive.
Over the past five years, Eli Lilly and Company (NYSE:LLY) has seen major success with its weight loss drugs. The company holds a leading position in the new class of GLP-1 inhibitor drugs, which is significant given the prevalence of obesity and related health risks.
In Q3 2025, revenue rose 54% to $17.60 billion, driven by volume growth from Mounjaro and Zepbound. Reported EPS increased by $5.14 to $6.21, while non-GAAP EPS rose by $5.84 to $7.02. Pipeline progress included positive results in four Phase 3 trials of orforglipron for type 2 diabetes and obesity, with plans to submit for global regulatory approval for obesity treatment by year-end.
Eli Lilly and Company (NYSE:LLY) is a pharmaceutical company that discovers, develops, manufactures, and markets medicines addressing medical needs in areas including diabetes, oncology, immunology, neurodegeneration, and pain.
While we acknowledge the potential of LLY 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 LLY and that has 100x upside potential, check out our report about this cheapest AI stock.
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