Ali Ahmed
10 min read
In this article, we will be looking at the 5 best American stocks to invest in for long term.
Recent economic and corporate developments have highlighted the importance of identifying businesses with durable growth opportunities. According to the US Bureau of Economic Analysis, the real gross domestic product (GDP) increased at an annual rate of 3.4% in the third quarter of 2026, accelerating from 2.2% in the previous quarter.
Investment and consumer spending were the main contributors to the increase. At the same time, recent corporate earnings have highlighted continued demand for cloud computing and AI infrastructure, which is creating more growth opportunities across different industries. Readers looking for opportunities in the AI space can also explore our list of the Best Performing AI Stocks of 2026.
In an investor letter dated November 2, 2026, Pershing Square founder Bill Ackman has argued that investors may be underappreciating the future revenue and earnings potential of hyperscalers.
Ackman believes hyperscalers’ revenue growth could beat analyst expectations over the next several years. He also noted that investors are focusing too much on current capital expenditure without adequately accounting for the revenue and earnings these investments could generate.
However, investors should also be mindful of potential downside risks and may want to stay away from overblown stocks. See: Analysts Just Sounded the Alarm on These 10 Overhyped Stocks.
We shared the expanded list of the 10 Best US Stocks to Invest In for Long Term here. You can find the top 5 stocks below.
Our Methodology
To compile our list of the best US stocks to invest in for long term, we looked for US companies with a compound annual growth rate (CAGR) in revenue exceeding 20% over the past 5 years. Next, we focused on the top stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q2 2026 database of 1006 elite hedge funds. Finally, the best US stocks to invest in for long term were ranked in ascending order based on the number of hedge funds holding stakes in them at the end of the second quarter.
Why do we care about what hedge funds do? 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. Insider Monkey’s quarterly newsletter strategy selects 14 small-cap and large-cap stocks every quarter and has returned 612.3% since May 2014, beating its benchmark by 375 percentage points (see more details here).
