With thousands of publicly traded companies around the world—and a vast universe of exchange-traded funds (ETFs) and mutual funds—

investors today are faced with an overwhelming array of choices. Even seasoned investors often struggle to stay focused in a market

saturated with opportunities. While major U.S. stock indexes have yet to reclaim their all-time highs, there are still plenty of fundamentally

strong, attractively valued companies with long-term growth potential.

So, which stocks are the most compelling investments in 2025? While it’s impossible to predict with certainty which names will deliver the

highest returns, focusing on companies with solid financials, reasonable valuations, and industry leadership can help investors identify

opportunities for long-term outperformance.

Before diving in, here are three important considerations:

The best stocks to buy always depend on your individual financial situation and risk tolerance. If you haven’t built an emergency fund or

have an unbalanced portfolio, we recommend reading our “Stock Investing Guide” to build a foundational understanding before committing

capital.

The stocks featured in this article are long-term investment ideas. Even if these companies face short-term volatility or unexpected

headwinds, their underlying strength may allow them to weather market cycles and deliver sustained value over time. While we’ve included

companies from a variety of sectors, this list is not meant to serve as a comprehensive asset allocation strategy.

In today’s market environment, the following ten companies stand out for their strong fundamentals and long-term investment potential.

1. Alphabet (GOOGL)

Alphabet is a key driver in the artificial intelligence space, with its Google Cloud and DeepMind units continuing to invest heavily in AI model

development. In the first quarter of fiscal 2025, Alphabet reported a 12% year-over-year increase in revenue and a 46% rise in net income.

Advertising remains the core business, accounting for over 70% of total revenue. The ongoing iteration of the Gemini model is accelerating

the AI integration of its search and advertising products, enhancing overall business efficiency.

The company currently trades at around 18 times earnings, below the average valuation for large-cap tech peers. Free cash flow remains

robust, with cash and marketable securities totaling $95 billion at the end of Q1. Analysts are broadly optimistic about Alphabet’s long-term

growth prospects in AI, with consensus expectations for revenue growth to remain above 12% in 2025.

2. TSMC (TSM)

TSMC continues to solidify its position as the global leader in semiconductor foundry services, with a technological edge in advanced 3nm

and 2nm process nodes. In Q1 2025, the company generated NT$839.25 billion in revenue (approximately $27.9 billion USD), marking a

41.6% year-over-year increase. Gross margin remained above 58%, reflecting strong pricing power in high-end manufacturing.

The ongoing AI boom is fueling explosive demand for computing power, driving a sharp rebound in orders from major clients like NVIDIA,

Apple, and AMD—key contributors to TSMC’s accelerating performance. The company is actively expanding capacity to meet surging AI

chip demand, with new facilities in Taiwan and Arizona progressing steadily.

While geopolitical risks remain a concern for investors, they have yet to materially disrupt TSMC’s supply chain or customer relationships.

Backed by deep technological know-how and unmatched scale, TSMC has built one of the world’s most formidable competitive moats, with

strategic presence across high-performance computing (HPC), smartphones, and automotive chips.

TSMC shares are currently trading at around 24 times earnings, with a dividend yield of 1.22%, representing a fair-to-midrange valuation.

Most Wall Street analysts maintain a “Buy” rating, citing the company’s strong technological barriers and dominant market share as key

strengths throughout the AI cycle. As global demand for AI chips continues to surge, TSMC is well-positioned to deliver sustained high-

quality growth and remains a core asset in the AI hardware supply chain.

3. Amazon (AMZN)

Amazon’s AWS cloud segment remains the primary driver of profit growth. In Q1 of fiscal 2025, net income reached $17.13 billion, up 64%

year-over-year, with AWS revenue increasing 16.9% and operating margin holding above 30%. The company is accelerating development of

its AI chips, Trainium and Inferentia, to strengthen cloud-based AI inference capabilities.

In North America, Amazon’s e-commerce business is improving profitability through supply chain optimization, while advertising revenue

continues to grow at a robust pace. The company’s diversified business model provides solid valuation support. The stock is now trading

steadily above $200, with a forward P/E ratio of around 33x. Wall Street remains optimistic about Amazon’s long-term growth potential,

especially in its AI and advertising businesses.

4. Pfizer (PFE)

Pfizer maintains a leading position in the pharmaceutical sector, supported by its strong drug pipeline and ongoing innovation. In Q1 2025,

revenue declined 7.8% year-over-year to $13.72 billion, primarily due to generic competition and pricing pressures from Medicare rebates.

However, the company is increasing R&D investment in rare diseases and immunotherapies, which presents meaningful future growth

opportunities.

Pfizer currently trades at a P/E ratio of approximately 16x, with a valuation that is both reasonable and attractive. Analysts highlight Pfizer’s

competitive edge in innovative medicines and vaccines, coupled with stable cash flow and reliable dividends, making it a quality blue-chip

name that offers both growth and defensiveness in the healthcare sector. The stock trades at a 44% discount to Morningstar’s fair value

estimate of $42, and the projected 2025 dividend yield stands at 3.8%, offering a compelling mix of income and upside.

5. NVIDIA (NVDA)

NVIDIA delivered a blowout Q1 for fiscal 2026, with revenue surging 262% year-over-year to $26 billion. Gross margin held above 70%,

reflecting its dominant pricing power amid persistent supply-demand imbalances in the AI acceleration market. The data center segment

now accounts for nearly 87% of total revenue and remains the company’s primary growth engine. Its next-gen Blackwell architecture GPUs

are expected to further extend NVIDIA’s technological lead, ushering in a new cycle of AI compute demand.

Beyond hardware, NVIDIA is expanding its software ecosystem, including the CUDA platform and the newly introduced NVIDIA Inference

Microservices (NIM). This deep integration of software and hardware creates significant switching costs and customer stickiness, building a

system-level moat that is difficult for competitors to replicate. As enterprise clients shift from training to inference workloads, demand for

full-stack AI infrastructure continues to grow.

Year-to-date, NVIDIA has fully recovered earlier losses and, as of June 3, reclaimed the title of the world’s most valuable company with a

$3.46 trillion market cap, surpassing Microsoft. Market expectations for growth remain high, with a forward P/E ratio of about 30x. Given the

explosive expansion of its data center business, the stock’s valuation is still considered reasonable.

Analysts widely agree that NVIDIA’s end-to-end presence across AI hardware, software, and platform layers positions it for sustained

multi-year growth. It remains a top-tier core asset for exposure to the AI revolution.

6. Eli Lilly (LLY)

Eli Lilly achieved over 30% year-over-year revenue growth in 2024, significantly outperforming the pharmaceutical industry average, driven

by its blockbuster drugs—obesity treatment Zepbound and diabetes medication Mounjaro. GLP-1 class drugs (glucagon-like peptide-1

receptor agonists) are experiencing rapid global adoption, making them one of the fastest-growing segments in the pharmaceutical space.

Zepbound and Mounjaro have demonstrated outstanding efficacy in weight reduction and glycemic control, while also showing potential

across multiple indications such as cardiovascular disease, further expanding the addressable market.

Strong product sales have boosted the company's overall gross margin and provided ample funding for R&D. In Q4 2024, R&D expenses

increased by 18% to $3.02 billion, accounting for 22.3% of total revenue. This supports continued pipeline development across Alzheimer’s

disease, autoimmune conditions, and oncology, offering a broad long-term growth horizon. Currently, more than 20 pipeline assets are in

mid-to-late stage clinical trials, with several candidates expected to become future blockbuster drugs.

Although Eli Lilly is trading at a P/E ratio of over 60—historically high—this valuation premium reflects its robust earnings power, high growth

visibility, and recession-resistant profile. Analysts view Eli Lilly as a “core holding” in the healthcare sector, particularly in an environment

where tech growth stock multiples are under pressure and macro uncertainty persists. The company offers a rare combination of

defensiveness and growth, making it a compelling long-term allocation.

7. Disney (DIS)

Disney’s streaming business has turned profitable and is showing strong momentum. In Q2 2025, Disney+ reached 120 million subscribers,

while Hulu grew to 54.7 million, underscoring Disney’s strong competitive position in the streaming landscape. With ongoing investments in

content creation and technology, Disney is steadily enhancing user engagement and ARPU (average revenue per user), strengthening its

long-term earnings potential.

Meanwhile, Disney’s traditional businesses continue to rebound. The theme parks and cruise lines saw a solid recovery, with Q2 2025

revenue up 6% year-over-year and per capita spending surpassing pre-pandemic levels. The company is pushing forward with innovation

and digital transformation, including AI-powered personalized services and intelligent queueing systems to elevate the guest experience and

improve operational efficiency. This not only boosts customer satisfaction but also lays a strong foundation for future growth.

Given its iconic brand portfolio and diversified revenue streams, Disney trades at a forward P/E of about 17, offering an attractive valuation.

Wall Street analysts are optimistic about the company’s earnings recovery and the growth potential of its content ecosystem, making Disney

a solid long-term value play.

8. PayPal (PYPL)

PayPal is undergoing an aggressive restructuring and transformation strategy focused on cost-cutting, process simplification, and optimizing

its core payments portfolio. In Q1 2025, the company reported revenue of $7.791 billion, up 1.19% year-over-year, while net income surged

44.93% to $1.287 billion, signaling improving profitability. Amid slowing top-line growth, the company has successfully driven margin

expansion through stringent cost control and operational efficiency.

AI is increasingly embedded across PayPal’s operations, especially in enhancing personalized customer experiences, reducing transaction

risks, and boosting user satisfaction. Additionally, the company has resumed its share buyback program and continues to generate solid

free cash flow, highlighting a more aggressive capital return policy and management's confidence in long-term value creation.

Currently, PayPal trades at a forward P/E of under 12—well below its five-year average and peers in the fintech space. While investor

concerns linger over growth momentum and competitive pressures, the company’s clear strategic direction, healthy balance sheet, and

large user base position it well for a rebound. For investors seeking undervalued turnaround opportunities with solid fundamentals, PayPal is

returning to the spotlight.

9. Cisco (CSCO)

Cisco is accelerating its transition from a traditional networking hardware provider to a high-margin subscription software and AI

infrastructure platform. Although Q1 2025 revenue declined 6% year-over-year, reflecting a slowdown in hardware purchasing cycles,

adjusted free cash flow remained strong at over $3.7 billion. The company returned $3.6 billion to shareholders via dividends and

buybacks. With a dividend yield of 2.67% and a consistent payout history, Cisco stands out as a high-dividend, defensive tech stock.

From a business mix perspective, subscription-based software now contributes over 45% of total revenue, including security services,

collaboration platforms, and data center management tools. At the same time, Cisco is ramping up AI-related hardware offerings, such as

next-generation Ethernet switch chips and modular data center solutions aimed at enterprise AI demand. The acquisition of Splunk also

strengthens Cisco’s capabilities in enterprise security and data analytics, boosting customer stickiness.

Cisco currently trades at a forward P/E of about 17, well below most large-cap tech peers. While it may not match the growth pace of AI

leaders, Cisco’s consistent earnings, strong cash flow, and leadership in enterprise infrastructure offer a compelling valuation buffer and

defensive qualities. It serves as a stable anchor within tech portfolios amid market volatility and rising macro uncertainty.

10. Constellation Brands (STZ)

Constellation Brands is a global leader in premium alcoholic beverages, with best-selling brands such as Corona beer and Robert Mondavi

wines. In Q1 2025, the company’s revenue grew approximately 6% year-over-year, driven by strong demand for premium products and solid

performance in the North American market.

Despite facing inflation and supply chain pressures, Constellation maintained stable margins through product mix optimization and

operational efficiency. The company continues to expand its high-end and innovative product lines to align with consumer preferences for

quality beverages. With a current P/E of around 22 and a dividend yield of approximately 2.3%, Constellation offers steady cash returns for

investors.

The stock is also a holding of Warren Buffett’s Berkshire Hathaway. Analysts are bullish on Constellation’s leadership in the high-end

beverage market and its sustained growth potential. With its strong brand equity and recession-resistant profile, Constellation stands out as

a quality stock in the consumer staples sector worth close investor attention.