- 5 stocks to buy for long term in 2026, plus the best & worst S&P 500 performers so far. Don't chase momentum. Read this first.
If you are searching for 5 stocks to buy for long term in 2026, the list of this year’s hottest performers might be tempting. But be careful. Chasing momentum is a dangerous game.
The Standard & Poor’s 500 Index gained over 18% in 2025, but 2026 has brought a rotation. The “Magnificent 7” have mostly struggled, Microsoft down roughly 20% year-to-date, Tesla off more than 12%. Meanwhile, a different set of names has soared.
Below are the best-performing S&P 500 stocks so far in 2026. Then we will explain why they are not necessarily the 5 stocks to buy for long term in 2026, and which five actually belong on that list.
Best S&P 500 Stocks in 2026 (Year-to-Date)
| Company (Ticker) | Performance YTD 2026 |
|---|---|
| Sandisk Corp. (SNDK) | 172.8% |
| Texas Pacific Land Corp. (TPL) | 75.8% |
| Moderna Inc. (MRNA) | 68.6% |
| Generac Holdings Inc. (GNRC) | 64.8% |
| Corning Inc. (GLW) | 63.4% |
| Teradyne Inc. (TER) | 59.8% |
| Western Digital (WDC) | 58.3% |
| Comfort Systems USA Inc. (FIX) | 50.6% |
| Seagate Technology Holdings (STX) | 44.5% |
| Ciena Corp. (CIEN) | 43.1% |
These stocks have delivered incredible returns in a few months. But past performance, especially over such a short window, does not guarantee future success. Some of these names are cyclical, some are recovery plays, and others may be one-hit wonders.
For long-term investors, the goal is not to catch a 172% rally. It is to own companies that can compound at 10-15% annually for a decade. That requires a different set of criteria: durable moats, pricing power, and sustainable earnings.
Below are 5 stocks to buy for long term in 2026 that meet those criteria.
5 Stocks to Buy For Long Term in 2026
1. GE Aerospace (GE): The Razor-and-Blade Aviation Giant
GE Aerospace emerged from the General Electric breakup as a focused, pure-play aviation company. Its business model is simple: sell jet engines (the “razor”) and then sell high-margin maintenance, repair, and overhaul services (the “blades”) for decades.
In 2026, a global shortage of new aircraft is forcing airlines to fly older planes longer. That directly translates into more service revenue. First-quarter revenue rose 25% year-over-year.
For anyone considering 5 stocks to buy for long term in 2026, GE Aerospace offers predictable, recurring cash flow from an installed base of engines that airlines cannot easily replace.
2. Tyler Technologies (TYL): The Public Sector Software Monopoly
Tyler Technologies is not a household name. But if you have ever paid property taxes or registered a vehicle, you have probably used its software.
Governments do not switch software providers lightly. Data migration takes years. That gives Tyler an unusually sticky customer base. Net margins stand at 13.3%, with potential to reach 18% as more municipalities move to the cloud.
The stock trades at a premium (around 46 times earnings), but the long runway in recurring revenue makes it one of the 5 stocks to buy for long term in 2026 for investors who value high switching costs.
3. Rollins Inc. (ROL): The Defensive Anchor
If you want a stock that lets you sleep well at night, Rollins is it. The company owns Orkin, Terminix, and other pest control brands. Pest control is not discretionary. When termites appear, people call, recession or not.
Rollins has high customer retention, pricing power that outpaces inflation, and a flawless dividend track record. Return on equity stands at 38%.
Among 5 stocks to buy for long term in 2026, Rollins is the defensive anchor that balances higher-growth picks like Nvidia.
4. Broadcom (AVGO): The Silent AI Enabler
Broadcom does not make headlines like Nvidia, but its networking chips are essential for connecting thousands of GPUs in AI data centers. Every major hyperscaler, Amazon, Google, Microsoft, relies on Broadcom’s infrastructure.
The company generates massive free cash flow and returns most of it to shareholders through dividends and buybacks. Unlike pure-play AI stocks, Broadcom is diversified across networking, storage, and industrial chips, reducing single-point risk.
Analysts view Broadcom as one of the 5 stocks to buy for long term in 2026 because of its consistent execution and reasonable valuation relative to its AI-exposed peers.
5. Texas Pacific Land Corp. (TPL): The Unique Land Royalty Play
Texas Pacific Land is one of the most unusual companies in the S&P 500. It owns over 880,000 acres in West Texas. It does not drill for oil itself. Instead, it collects royalties from companies that do. This model requires almost no capital expenditure.
The stock is up 75% year-to-date, making it one of the best performers. But unlike many momentum names, TPL’s underlying business is simple and profitable. It has no debt, wide margins, and a history of special dividends. For investors willing to look past short-term volatility, TPL deserves a spot among 5 stocks to buy for long term in 2026.
What to Look for When Choosing Stocks to Buy
Before adding any stock to your long-term portfolio, run it through a simple checklist. No single factor guarantees success, but ignoring any of these increases your risk.
- Financial health. Open the balance sheet. Does the company have more debt than it can handle? Are profit margins expanding or shrinking? A company with deteriorating fundamentals is rarely a good long-term hold.
- Competitive position. Can customers easily take their business elsewhere? If yes, the company has little pricing power. Look for wide moats, brands, patents, network effects, or regulatory barriers that keep rivals out.
- Growth track record. Has the company grown sales and earnings over the past three to five years? One bad year is fine. A pattern of decline is not. Shrinking revenue limits every other option.
- Valuation. Even a wonderful company can be a terrible investment if you overpay. Compare the stock’s price-to-earnings ratio to its own history and to industry peers. Be honest about whether you are paying for perfection.
- Management behavior. Read shareholder letters. Check insider ownership. Do executives sell large amounts of stock regularly? Do they communicate clearly when things go wrong? If management treats shareholders as an afterthought, walk away.
- Future runway. Does the company have credible opportunities to grow over the next decade? A business that has peaked may still generate cash, but it is unlikely to deliver market-beating returns.
These six factors are a starting point. Also consider capital allocation, stock buybacks, dividends, and debt repayment. A company that wastes cash on bad acquisitions will destroy value regardless of its other strengths.
Worst-Performing S&P 500 Stocks in 2026 (Year-to-Date)
Not every stock has participated in this year’s rotation. While Sandisk and Texas Pacific Land have soared, a different set of names has been hammered. As of early May 2026, the worst performers are concentrated in tech, software, and consumer growth names that benefited from low-interest-rate narratives but are now falling out of favor.
For long-term investors, this list is not necessarily a sell signal. Some of these beaten-down names may never recover. But others, companies with solid balance sheets and temporary problems, could become the outperformers of 2027. The table below shows the steepest year-to-date declines in the S&P 500.
| Company | Ticker | YTD Performance | Core reason for decline |
| Genius Sports | GENI | -60.0% | Sports betting data saturation |
| Intuit | INTU | -45.6% | AI agent automation fears |
| AppLovin Corp | APP | -44.3% | Ad-tech volatility & revenue reset |
| Gartner | IT | -42.1% | Decelerating research contracts |
| Workday | WDAY | -42.0% | High restructuring costs ($303M) |
| The Trade Desk | TTD | -41.0% | Shifting digital ad-spend cycles |
| Fair Isaac | FICO | -40.0% | Higher-for-longer interest rates |
| CRISPR | CRSP | -40.0% | Biotech funding slowdown |
Conclusion
The stock market rewards patience, not panic. The best-performing names of early 2026, Sandisk up 172%, Texas Pacific Land up 75%, look irresistible. But chasing them today means buying after most of the gains have already happened. The worst-performing names, Genius Sports down 60%, Intuit down 45%, look terrifying. Yet some of those beaten-down stocks may be the bargains of 2027. Nobody knows which is which. That is the honest truth.
What you can control is your process. Focus on strong balance sheets, wide moats, and management teams that treat shareholders fairly. Spread your risk across different sectors. Keep a long time horizon. And if picking individual stocks feels like too much work, there is no shame in buying an S&P 500 index fund. It will never give you bragging rights at a dinner party. But it will put you ahead of most active traders over any 10-year period. That is the only score that matters.
