Top 5 Stocks to Buy for Long Term

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1. Shopify Inc. (NASDAQ:SHOP)

Stock Upside Potential: 52.45%

Number of Hedge Fund Holders: 88

Shopify Inc. (NASDAQ:SHOP) is one of the top stocks to buy for the long-term. On May 20, Piper Sandler reiterated an Overweight rating on Shopify Inc. (NASDAQ:SHOP) and a $150 price target. The bullish stance contrasts with the stock’s underperformance and decline of over 30% over the past six months.

The research firm remains optimistic about the company’s long-term prospects, as Sidekick use is up by 100%-200% among expert merchants. Sidekick is Shopify’s built-in AI commerce assistant that executes tasks, generates reports, and edits store settings. While net new business slowed in the first quarter, it has shown signs of improvement in the second quarter.

In the first quarter, Shopify exceeded expectations, with gross merchandise volume growing 35% year over year. Operating margin improved 12.1% as revenue growth reached multi-year highs of 34%, with free cash flow margins of 15%.

Shopify Inc. (NASDAQ:SHOP) is a cloud-based e-commerce platform that allows individuals and businesses to create, customize, and manage their own online stores. It provides the digital infrastructure to sell physical and digital products across multiple channels, process payments, track inventory, and manage shipping.

While we acknowledge the potential of SHOP 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 SHOP and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 14 Best 52-Week High Stocks to Invest In According to Short Sellers and 15 Best Micro and Small Cap Stocks to Buy According to Jim Simons’ Renaissance Technologies.

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