In this article, we will discuss the Top 10 Stocks to Buy For Long Term.
Major US benchmarks are sitting at record highs following a slate of positive earnings results, solid economic data, and a positive outlook. The indices have recouped all losses incurred at the height of the US-Iran war, with investors looking past factors such as higher yields, surging oil prices, and the unending conflict in the Middle East.
“Investors are moving beyond the earnings season, and the macro environment is starting to take more center stage,” said Anthony Saglimbene, chief market strategist at Ameriprise.
There are also growing concerns that equities could face turbulence as investors come to terms with spiking inflation and rising bond yields. The 10-year Treasury yield has already hit its highest level since 2025, with the 30-year yield at its highest level since 2007.
Rising bond yields are negative for stocks, as they pressure valuations and raise borrowing costs for businesses. The yields have also risen significantly amid inflationary worries that could affect consumer spending power.
“Inflation concerns continue to flare,” said Jim Baird, chief investment officer with Plante Moran Financial Advisors. “You’re seeing upside in long-term Treasury yields that are kind of challenging the bond market and probably puts a practical lid on equities broadly if it persists for some period of time.”
Amid the growing concerns, strategists at Morgan Stanley remain optimistic about the stock market outlook. The strategists have raised their 12-month S&P 500 price target to 8,300, citing strong corporate earnings that are expected to bolster investor confidence.
“Our bullish index view is an earnings story, not a multiple expansion one,” the strategists wrote.
Morgan Strategists perceive the recent pullback in the S&P 500, below 10%, as healthy rather than alarming. Similarly, companies with solid underlying fundamentals and a track record are expected to continue outperforming as part of the ongoing bounce back amid near-term uncertainties.
With that in mind, let’s take a look at some of the best long-term stocks capable of shrugging off near-term uncertainties.
Our Methodology
To compile a list of the Top 10 Stocks to Buy for the Long Term, we used the Finviz screener to identify companies with strong balance sheets and sound financials. From that list, we identified companies with positive revenue growth of over 10% over the past five years and earnings per share growth of more than 10% over the next five years. Further, we settled on stocks with an upside potential of more than 30%. We also ensured that the selected companies have substantial institutional interest, based on Q1 2026 hedge fund 13F filings in Insider Monkey’s database. The stocks are ranked in ascending order based on their upside potential (as of May 25).
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows 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).
Top Stocks to Buy for Long Term
10. Netflix, Inc. (NASDAQ:NFLX)
Stock Upside Potential: 30.63%
Number of Hedge Fund Holders: 144
Netflix, Inc. (NASDAQ:NFLX) is one of the top stocks to buy for the long-term. On May 19, Netflix, Inc. (NASDAQ:NFLX) announced at Licensing Expo in Las Vegas that Moose Toys will be the master toy partner for its upcoming animated film, Charlie vs. the Chocolate Factory, and preschool series, Young MacDonald.
The company also partnered with the Ferrero Group to launch Wonka‑branded products across chocolate, confectionery, ice cream, and cereals, with 10 seasonal items debuting this fall in the U.S. and select European markets. These moves expand Netflix’s consumer products business in the kids and family segment, building on earlier toy partnerships with Jazwares, Mattel, and Hasbro.
On May 18, Bank of America reiterated a Buy rating on Netflix, Inc. (NASDAQ:NFLX) and a $125 price target. The positive stance underscores confidence in the company’s advertising business. The sentiments come on the heels of the company delivering impressive first-quarter 2026 results, with the company reiterating its focus on providing more entertainment to members. Netflix also continues to expand its offerings with video podcasts.
Revenue in the first quarter was up 16.2% to $12.25 billion, while operating income was $3.95 billion, resulting in an operating margin of 32.3%. Net income in the quarter totaled $5.28 billion and diluted earnings per share of $1.23.
Robust revenue growth in the first quarter was primarily driven by membership growth and higher pricing. Netflix also attributed the increase to higher advertising revenue. For the full year, Netflix projects revenue of between $50.7 billion and $51.7 billion, representing a 12% to 14% growth. The increase would be driven by advertising revenue doubling, underpinned by membership growth and strong pricing power.
Netflix, Inc. (NASDAQ:NFLX) is a global streaming service offering TV shows, movies, documentaries, and interactive content. It operates a subscription model, produces “Original” content, and supports both ad-free and ad-supported viewing across devices.
9. The Charles Schwab Corporation (NYSE:SCHW)
Stock Upside Potential: 31.13%
Number of Hedge Fund Holders: 101
The Charles Schwab Corporation (NYSE:SCHW) is one of the top stocks to buy for the long-term. On May 15, TD Cowen reiterated a Buy rating on The Charles Schwab Corporation (NYSE:SCHW) and raised the price target to $109 from $108. The research firm also raised its adjusted earnings per share for 2026 and 2027.
The new $109 price target represents 15 times TD Cowen’s 2027 earnings estimate compared to the previous 16 times. Additionally, the research firm has touted the company’s higher earnings projections, which appear balanced against the lower valuation multiples.
Charles Schwab Corporation released its Monthly Activity Report, which showed that core net new assets totaled $7.2 billion in April, consistent with prior years. Total client assets were up 27% to $12.61 trillion, as New Brokerage accounts opened remained flat at 437,000. On the other hand, average interest-earning assets were up 3% year over year to $444.6 billion in April and up 2% from March 2026.
The Charles Schwab Corporation (NYSE:SCHW) is a major American financial services company that operates as a brokerage firm, bank, and wealth management provider. It provides everyday investors and institutions with tools to trade, save, and invest in the financial markets.
8. Microsoft Corporation (NASDAQ:MSFT)
Stock Upside Potential: 33.78%
Number of Hedge Fund Holders: 282
Microsoft Corporation (NASDAQ:MSFT) is one of the top stocks to buy for the long-term. On May 20, Microsoft Corporation (NASDAQ:MSFT) affirmed its push for opportunities around enterprise AI applications and on-device AI processing. The company launched the Surface Pro for Business and Surface Laptop for Business.
The refreshed Surface devices run on Intel’s Core Ultra-Series chips and are designed to offer more than 90% faster performance. They also offer up to 35% better graphics efficiency than other devices. They come with a hardware privacy screen that can block outside viewers’ access to the screen from various angles.
Meanwhile, RBC Capital Markets has reiterated an Outperform rating on Microsoft Corp (NASDAQ: MSFT) and a $640 price target. The research firm remains bullish on the company’s long-term prospects, citing its growth opportunities and ability to maintain and expand its AI leadership position.
Microsoft Corporation (NASDAQ:MSFT) is a global technology giant. It develops, manufactures, licenses, and supports a vast ecosystem. This includes computer software, consumer electronics, cloud computing, and artificial intelligence (AI) solutions.
7. Meta Platforms, Inc. (NASDAQ:META)
Stock Upside Potential: 33.99%
Number of Hedge Fund Holders: 262
Meta Platforms, Inc. (NASDAQ:META) is one of the top stocks to buy for the long-term. On May 21, Meta Platforms, Inc. (NASDAQ:META) received complaints from European Union consumer groups over claims it does little to protect users on its platform from financial scams.
The European Consumer Organization BEUC and 29 member groups have already filed the complaints with the European Commission. The complaints were filed under the Digital Services Act, which requires Meta Platforms and other internet service companies with large online platforms to increase efforts to protect users against illegal and harmful content.
“Meta, TikTok and Google not only fail to proactively remove fraudulent ads but also do little when being notified about such scams,” BEUC Director General Agustin Reyna said in a statement.
Consumer groups have already alleged that over 900 advertisements violate EU laws. While online platforms removed 27% of the flagged ads, 52% of the reports ended up rejected or ignored. Consumer protection groups are urging regulators to investigate whether Meta and other companies comply with the rules and to impose penalties for violations.
Meta Platforms, Inc. (NASDAQ:META) develops social media, consumer electronics like VR headsets, and AI. It primarily earns revenue from targeted advertising platforms.
6. Palantir Technologies Inc. (NASDAQ:PLTR)
Stock Upside Potential: 35.41%
Number of Hedge Fund Holders: 96
Palantir Technologies Inc. (NASDAQ:PLTR) is one of the top stocks to buy for the long-term. On May 21, Rosenblatt reiterated that Palantir Technologies Inc. (NASDAQ:PLTR) is a Buy and maintained a $225 price target following a meeting with the company’s Chief Financial Officer, David Glazer, among other executives.
Following the meeting, the research firm reiterated that Palantir Technologies has what it takes to reach $225 per share level and achieve a market capitalization of more than $1 trillion within 5 years. The research firm remains confident that the company’s Artificial Intelligence Platform, AIP, will be the key growth driver, acting as the arbiter and optimizer of multiple large language models and machine learning systems.
Additionally, the research firm expects Palantir Technologies to continue capitalizing on strong business momentum from FoxTrot, one of its key partners. The sentiments align with the company delivering solid first-quarter results, with earnings per share reaching $0.33, exceeding the $0.28 expected. Revenue totaled $1.633 billion, above the $1.54 billion expected, driven by strong demand in the US government segment and national security solutions.
Palantir Technologies Inc. (NASDAQ:PLTR) is a software company that builds digital infrastructure for big data analytics. It specializes in connecting fragmented data into a single platform, allowing organizations to integrate, analyze, and deploy Artificial Intelligence (AI) models.
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 the cheapest AI stock.
Click to continue reading and see the Top 5 Stocks to Buy for Long Term.
Disclosure: None. Follow Insider Monkey on Google News.
