In this article, we will discuss the 8 Best US Stocks to Buy and Hold for the Next 3 Years.
On March 30, Strategas Research Partners chairman & CEO Jason Trennert joined ‘Squawk Box’ on CNBC to discuss whether escalating geopolitical tensions could derail strong markets and the state of the US economy. Speaking about the reasons behind the market being up on that day, Trennert noted a clear inverse correlation between the market and oil prices that has held true for 12 of the last 13 trading days. He suggested that the current rise might be a bounce due to the market being slightly oversold.
However, he believes that it will be difficult for the market to make upside progress until certain issues, like oil, are resolved. Trennert noted that Brent crude is at 115 and argued that the spread is likely to widen over a long period because the US is self-sufficient. While oil prices are set globally, Trennert contended that with more domestic refining capacity, the US could almost disconnect itself, which would be beneficial for the country while negatively impacting nations that are not assisting the US.
This situation is different and may last longer than previous short-lived events, such as the situation in Venezuela or the attack on Iran the previous summer. Even if the war ended immediately, infrastructure damage in the region is significant, given that the natural gas plants may not be online for another 5 years. Additionally, shipping and insurance costs through the Strait are expected to rise meaningfully. While not seen as fatal to the market, these factors are expected to raise the cost of capital as more debt is issued and credit standards tighten.
Our Methodology
We used screeners to identify US stocks that are expected to grow their earnings by at least 25% over the next 5 years, 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.
Note: All data was sourced on April 1.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
8 Best US Stocks to Buy and Hold for the Next 3 Years
8. Snowflake Inc. (NYSE:SNOW)
Snowflake Inc. (NYSE:SNOW) is one of the best US stocks to buy and hold for the next 3 years. On March 31, Snowflake appointed Jonathan Beaulier as its new Chief Revenue Officer. A veteran of the company since 2016, Beaulier most recently served as the GVP of US Majors Sales and previously held senior roles within the Financial Services and Insurance sectors. He succeeds Mike Gannon, who is departing the organization for personal reasons.
In his new capacity, Beaulier will oversee Snowflake’s revenue and go-to-market teams to drive the company’s next phase of expansion. CEO Sridhar Ramaswamy highlighted Beaulier’s decade of contributions and his ability to deliver results at scale as critical assets during this market transformation. Beaulier expressed enthusiasm for the role and noted that Snowflake’s AI-first strategy provides a unique opportunity to provide enhanced value to its customer base.
Alongside this leadership transition, Snowflake Inc. (NYSE:SNOW) reaffirmed its financial guidance for both FQ1 and the full FY27. This outlook remains consistent with the projections originally shared during the February 25 earnings release. The company confirmed that its overall guidance philosophy has not changed.
Snowflake Inc. (NYSE:SNOW) is a technology company that offers a cloud-based data platform, such as the AI Data Cloud, for various organizations internationally.
7. Lumentum Holdings Inc. (NASDAQ:LITE)
Lumentum Holdings Inc. (NASDAQ:LITE) is one of the best US stocks to buy and hold for the next 3 years. On March 26, Lumentum announced plans to establish a new 240,000-square-foot manufacturing facility in Greensboro, North Carolina, dedicated to producing advanced indium phosphide/InP optical devices. The site, acquired from semiconductor chipmaker Qorvo, will focus on manufacturing continuous wave and ultra-high-power lasers essential for large-scale AI data centers.
This expansion strengthens Lumentum’s domestic production capabilities and utilizes a highly skilled local workforce and robust infrastructure. The facility is currently operational and will be retrofitted to support the production of 6-inch InP wafers, with a full production ramp-up expected by mid-2028. Nvidia will serve as a primary customer for the site, supporting the expansion of critical US infrastructure and research through existing strategic agreements.
Lumentum Holdings Inc. (NASDAQ:LITE) intends to invest hundreds of millions of dollars into the location over the coming years, aiming to enhance supply chain resilience and meet the rising demand for hyperscale cloud and AI networking. This project is expected to preserve and create more than 400 manufacturing and engineering jobs in the Greensboro area.
Lumentum Holdings Inc. (NASDAQ:LITE) is a communication-equipment company that specializes in optical & photonic products through the Cloud & Networking and Industrial Tech segments.
6. KKR & Co. Inc. (NYSE:KKR)
KKR & Co. Inc. (NYSE:KKR) is one of the best US stocks to buy and hold for the next 3 years. On March 31, KKR and Taiyo Holdings announced an agreement for KKR to acquire the company through a tender offer, leading to its privatization. The transaction received unanimous support from Taiyo Holdings’ Board of Directors, as well as key stakeholders, including the founding family and the largest shareholder, DIC Corporation. Currently, KKR has secured support from shareholders representing ~42.2% of the company’s outstanding shares.
The tender offer is priced at JPY 4,750 per common share, representing a significant premium over historical unaffected closing prices. By transitioning to a private entity, Taiyo Holdings aims to accelerate its ‘Beyond Imagination 2030’ management plan and focus on growth opportunities in GenAI, data centers, and pharmaceutical contract manufacturing. Management concluded that KKR’s global network and operational expertise provide the best pathway for long-term value creation.
Following the completion of the tender offer, the founding family intends to reinvest in the KKR-managed vehicle that will own the company. KKR & Co. Inc. (NYSE:KKR) is making this acquisition as part of its Asia Pacific private equity strategy. The commencement of the offer remains subject to customary conditions and various regulatory approvals.
KKR & Co. Inc. (NYSE:KKR) is a financial services company that operates as a private equity & real estate investment firm. The company invests in industries like software, fintech, data & information, security, semiconductors, IoT, and IT infrastructure.
While we acknowledge the potential of KKR 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 KKR and that has 100x upside potential, check out our report about the cheapest AI stock.
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