You may want to hold certain stocks for the long term.
“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.
Methodology Used For These Long-Term Stock Picks
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.
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3 Top Long-Term Stocks To Buy In 2025
Data source: YCharts.
1. Bunge Global (BG)
Business Overview
Bunge Global is what is referred to as an agribusiness company. It has four divisions, covering a wide range of areas, mostly related to the production and distribution of food. Its business deals with a variety of agricultural commodity products, including soybeans, wheat and corn. The company also processes oilseeds into vegetable oils and protein meals, primarily to feed animals. The Refined and Specialty Oils business sells packaged and bulk products including cooking oils, margarines and mayonnaise. This is no newcomer. Bunge Global SA was founded more than 200 years ago, in 1818.
Why BG Is A Top Choice
In a stock market that is wildly overvalued in many popular segments, companies related to basic needs such as food production have been left behind by investors. BG has the discounted valuation and profitability metrics I seek, and sells at more than 30% below its 2022 high price.
2. Albertsons (ACI)
Business Overview
Albertsons is well known to those who go grocery shopping in the areas of the United States in which it operates, including California, Nevada and Arizona. That may be less obvious to some consumers, since ACI owns several brands that do not bear its name. For instance, Safeway, Vons, Tom Thumb, Acme, Shaw's, Star Market and Kings Food Markets are all properties of ACI, which is based in Boise, Idaho and dates back to 1960.
Why ACI Is A Top Choice
If BG operates at one end of the literal “food chain,” then ACI is at the other end. It serves a vital purpose in the local neighborhoods it services, and this appears to be one area in which consumers are not going all-in on shopping digitally.
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3. Prudential Financial (PRU)
Business Overview
“Get a Piece of the Rock” is the slogan many of us associate with insurance and financial services giant Prudential Financial. Over time it has expanded from its insurance roots to business including investment management, private credit and corporate retirement services. This is another iconic brand with a long history. The Newark, New Jersey company dates back to 1875.
Why PRU Is A Top Choice
PRU’s stock has not dropped as much as the other two on my list in recent years. In fact, it is near an all-time high. But as with many stocks I find in my work, it has spent the past several years simply making up for lost time, and lost shareholder value. Its stock price is right around where it started the year 2018. Its dividend has produced T-bill like returns over that time, but if the stock market up move continues, PRU has a combination of stability and yield that make it an intriguing long-term consideration for me.
Bottom Line
This is one strange stock market. Some stocks are hitting new highs every day, artificial intelligence is stealing everyone’s thunder, and yet other stocks are down in the dumps. This article highlighted an initial screen for profitability, valuation and price trend. There’s a lot more to equity analysis, but understanding what you want for yourself, and taking account of what type of market environment we are in, is a key early step on the way to long-term success. However you define “long-term.”
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