University of Kwazulu-Natal

3 Best Long Term Stocks To Buy In 2025 October Edition Forbes

Bonisiwe Shabane
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3 best long term stocks to buy in 2025 october edition forbes

“Long-term investing” might be the most misunderstood concept in investing. What does long-term mean? It depends on who you are. For some, anything held longer than 12 months meets the definition, since that’s when the capital gains tax rate drops. Other investors still subscribe to the “one decision stock” idea. In other words, a stock is bought with the idea that you’ll never have to sell it.

And of course, there is an ocean of variations in between. This article will focus on the shorter end of that spectrum. These are companies that in my view represent potentially profitable stocks with a three-year time frame in mind. That allows for a major market decline, but also pays homage to the severe undervaluation that might be attached to these three stocks. I used a combination of valuation, profitability and technical indicators, as is my regimen. In particular I started by screening for stocks selling at less than half the S&P 500’s trailing price-earnings ratio of 27, and at least twice its current dividend yield.

In other words, stocks selling at 13x earnings or below, and a yield of at least 2.3%. I also limited the screen to stocks with at least a $10 million market capitalization. That produced a short list of about 30 stocks listed on U.S. exchanges. I then applied my usual technical analysis to select three with what I felt was the best combination of yield, stability, valuation and long-term price trend. All this was in contemplation of a three-year holding period.

Much more than breaking news, our diverse reporting digs deeper with unparalleled insights that empower you to make better informed decisions. Become a Forbes member and get unlimited access to cutting-edge strategies, actionable insights, and updated analysis from our network of leading finance experts. Unlock Premium Access — Free For 25 Days. U.S. voters have picked their next president, which may have prompted you to rethink your portfolio. Learn what factors are in play for stocks in 2025 and meet seven picks that look promising for the new year and beyond.

Looking at the factors most likely to influence the financial markets next year, two themes emerge: economic policies implemented by the incoming Trump administration and the evolution and adoption of innovative technologies. U.S. President-elect Donald Trump has promised tariffs and tax cuts to strengthen the U.S. economy. He has suggested tariffs of 10% or more on all imports, with higher duties on Chinese products. Trump may also reduce the corporate tax rate from 21% to 15%.

Any tax cuts will support higher earnings, which is good for shareholders. Tariffs, however, will raise costs for businesses that rely on imported goods. Mark Malek, CIO at financial services firm Siebert, predicts rising costs across several industries, including automotive, consumer electronics, machinery, agriculture, construction, infrastructure and retail. Higher costs usually get passed along to consumers as higher prices, which can dampen consumer spending. David Bianco, Americas CIO at asset manager DWS Group, sees a different outcome. Bianco believes the benefits of the tax cuts may simply be offset by the cost impact of tariffs.

Investing in high-growth companies with a long-term perspective is a proven strategy for building wealth, but not all fast-growing companies are created equal. The opportunity lies in identifying stocks poised to capitalize on sustainable trends, with a minimal risk of degrading into obsolescence. The article highlights a small selection of growth stocks that meet these benchmarks. Brazilian aerospace company Embraer (ERJ) produces a fleet of commercial, business and defense jets. It is popular for its single-aisle E175-E2 commercial planes, the C-390 Millennium military transport aircraft and the Phenom 300, a top-seller in the light jet category for the last 12 years. The ERJ stock has climbed more than 125% in the past year, and returned to investment grade credit rating.

Whether Embraer can disrupt the Boeing-Airbus duopoly, because of Boeing’s brutal year and Airbus’ supply-chain snags, is debatable. However, the Brazilian plane maker appears strategically positioned to capitalize on its robust order backlog and strong performance across all of its segments. Embraer’s firm order backlog rose to $22.7 billion in the third quarter of 2024, marking its highest level in the past nine years. This provides visibility for steady cash flow in the years ahead. 2. Rising deliveries despite supply chain constraints

Q4 has been the strongest period in any year, leading to 60% of all gains in the S&P 500. There are facts to keep in mind about the month of October: As this favorable period begins, the ten-day moving average of advances less declines is oversold, a positive sign for the start of a rally. And, the new lows versus new highs condition is constructive. The next projected turning points are on the 7th (likely a high) and the 10th. A rally through the first week in October and further into yearend is highly probable.

From 1928, September has been the weakest month of the year. However, the S&P closed on the upside. Here is the subsequent performance when September has closed on the upside. All cycles point up. This includes the one, four, and ten-year cycles. Also, the dynamic composite cycle rises into January.

The S&P targets are 6735, short-term, and 7460, due in 2026 if not in 2025. The NASDAQ Composite target is 26250. As we move through 2025, the stock market continues to reward companies positioned at the intersection of technological innovation and essential infrastructure. While headline-grabbing names like NVIDIA and Microsoft have delivered solid returns, some lesser-known players have crushed the market with triple-digit gains. This analysis focuses on the standout performers among S&P 500 companies with market capitalizations exceeding $10 billion. These aren't speculative penny stocks or volatile small-caps – they're substantial businesses that have managed to capture investor imagination while delivering real operational results.

From artificial intelligence enablers to energy infrastructure plays, the top performers tell a fascinating story about where smart money is flowing in the evolving market landscape of 2025. The methodology for identifying these market leaders is straightforward but selective. I screened all S&P 500 constituents with market capitalizations above $10 billion as of July 2025, then ranked them by year-to-date percentage returns. This market capitalization threshold ensures that we're examining established companies with meaningful institutional ownership and trading liquidity, rather than smaller, speculative plays. The $10 billion cutoff eliminates the volatility often associated with smaller companies while focusing on businesses large enough to impact portfolios and broader market indices meaningfully. These companies have demonstrated their staying power and represent sectors that institutional investors consider to have sustainable competitive advantages in today’s rapidly evolving economic environment.

Palantir's stunning 113% gain represents the single best performance among large-cap S&P 500 stocks in 2025. The data analytics and software company has successfully transitioned from a government-focused contractor to a diversified enterprise software provider, with commercial revenue growing at an explosive pace. The company's Foundry platform has gained significant traction among Fortune 500 companies seeking to harness artificial intelligence for operational efficiency. It's tough to say for sure which growth stocks will be winners without a crystal ball. But investors may wish to consider investing in AI data center operator Applied Digital, AI semiconductor provider Broadcom and the pharmaceutical company Eli Lilly. These three companies have solid prospects for gains in addition to some better-known companies, such as Nvidia and Palantir.

Applied Digital, Broadcom and Lilly have the potential to rise in the short and long term. If they beat earnings targets and raise guidance, their share prices will keep rising. If they tap their strong competitive positions to win more market share, they'll see lasting success. These stocks were selected based on their rapid growth, good chance of exceeding expectations, and strong products and management. If a company is growing rapidly now and has a track record of beating expectations, its stock is likely to rise. However, to sustain those increases over time, a company must innovate.

If the company has great products and excellent management, better-than-expected growth is more likely to last. The three best growth stocks are ranked below in descending order of their stock price change in 2025 as of Oct. 21. More generally, the three stocks are ranked from the highest to lowest return and risk. Read on to learn why. Concerns about the steep valuations of artificial intelligence (AI) stocks and a questionable outlook for an interest rate cut in December weighed on investor sentiment in recent trading sessions.

For now, however, Nvidia's solid earnings last week seemed to undermine the idea that everything tied to AI investment is in a bubble. Investors looking to capitalize on the recent selloff and pick up some attractive stocks for the long term can track the recommendations of top Wall Street analysts. These experts can help provide key insights into a company's growth potential. Here are three stocks favored by the Street's top pros, according to TipRanks, a platform that ranks analysts based on their past performance. Windows and Xbox owner Microsoft (MSFT) is viewed as one of the major beneficiaries of the AI boom. Last month, the company reported better-than-expected results in its fiscal first quarter, with revenue from the Azure cloud business growing by 40%.

Recently, Baird analyst William Power initiated coverage on Microsoft with a buy rating and a price target of $600. TipRanks' AI Analyst is also optimistic on MSFT, giving it an "outperform" rating and a price target of $628. These five stocks are underperforming the S&P 500 in 2025, but have what it takes to reward investors over the long term. As we enter the final three months of 2025, some investors may be looking for red-hot growth stocks with room to run. Whereas others may be searching for beaten-down stocks at compelling valuations to boost their passive income. With the major indexes near record highs and just a handful of companies able to move the entire S&P 500 (^GSPC +0.08%), some investors may feel that there's little choice but to ride the...

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“Long-term investing” might be the most misunderstood concept in investing. What does long-term mean? It depends on who you are. For some, anything held longer than 12 months meets the definition, since that’s when the capital gains tax rate drops. Other investors still subscribe to the “one decision stock” idea. In other words, a stock is bought with the idea that you’ll never have to sell it.

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And of course, there is an ocean of variations in between. This article will focus on the shorter end of that spectrum. These are companies that in my view represent potentially profitable stocks with a three-year time frame in mind. That allows for a major market decline, but also pays homage to the severe undervaluation that might be attached to these three stocks. I used a combination of valuat...

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