Top Stocks To Buy For Long Term

 

The Ultimate List of Top Stocks To Buy For Long Term Wealth Creation

 Table of Contents

1. Introduction

2. Campbell’s CPB

3. Yum China Holdings YUMC

4. Coloplast CLPBY

5. GSK GSK

6. Constellation Brands STZ

7. FAQ's

1 Introduction

Lately, the US stock market has started looking a bit overheated again. With rising inflation and interest rate hikes, global investors are getting cautious—much like how traders on Dalal Street react when the RBI signals tighter liquidity. The question now buzzing among investors is simple: Which stocks are still worth buying when valuations are stretched?

In every market phase, whether it’s a rally or a correction, investors prefer companies that bring some stability, strong fundamentals, and predictable cash flows. These are the stocks that tend to hold up even when volatility hits the Nifty50 or Sensex. That’s exactly why this blog dives deep into companies that not only look promising but also carry the potential to become future multibaggers.

Meanwhile, let’s be honest—no one can say with full certainty whether a company is truly undervalued or overvalued. It all depends on research, earnings outlook, and valuation models. What matters is understanding which businesses have long-term strength even in a rising rate environment.

So, in this post, we’ve handpicked 10 fundamentally strong companies that still trade at reasonable valuations despite all the global market noise. Each of these names reflects strong business potential and steady cash flows—qualities that matter most when building wealth patiently.

Let’s understand the situation better and see which of these undervalued stocks could turn into tomorrow’s winners as we move closer to Stock Market Forecast 2025.

·        10 Best Stocks to Buy Now—August 2025

-        Here are the top 10 most undervalued stocks as per our analysis till August 3, 2025

1.      Campbell’s CPB

2.      Yum China Holdings YUMC

3.      Coloplast CLPBY

4.      GSK GSK

5.      Constellation Brands STZ

Here's why we like these companies at these prices, as well as key metrics from our blog. All data is as of market close on August 3, 2025

2) Campbell’s

·        Price/Fair Value: 0.52

·        Uncertainty Rating:  Medium

·        Capital Allocation Rating: Standard

• Industry: Packaged Foods

Campbell's stock is the lowest price on this month's buy list. The company is successful thanks to its products and brands, including its namesake brand, Pace, Prego, and Swanson. Research shows that Campbell's politics are solid. By leveraging technology, data insights, and artificial intelligence, the company brings products to shelves on time that consumers appreciate. He adds, "We believe Campbell is committed to eliminating inefficiencies from its supply chain and distribution network, optimizing direct-to-store routes, and investing in automation. Campbell recently announced plans to unlock savings of $250 million by fiscal year 2018. Similarly, the company's supply chain network works very well, due to which the company's growth is happening well, and we should take advantage of this.

3) Yum China Holdings

·        Price/Fair Value: 0.61

·        Uncertainty Rating: Medium

·        Capital Allocation Rating: Standard

•      Industry: Restaurants

Campbell's stock is the lowest price on this month's buy list. The company is successful thanks to its products and brands, including its namesake brand, Pace, Prego, and Swanson. Research shows that Campbell's politics are solid. By leveraging technology, data insights, and artificial intelligence, the company brings products to shelves on time that consumers appreciate. He adds, "We believe Campbell is committed to eliminating inefficiencies from its supply chain and distribution network, optimizing direct-to-store routes, and investing in automation. Campbell recently announced plans to unlock savings of $250 million by fiscal year 2018. Similarly, the company's supply chain network works very well, due to which the company's growth is happening well, and we should take advantage of this.

4) Coloplast

·        Price/Fair Value: 0.67

·        Uncertainty Rating: Medium

·        Capital Allocation Rating: Exemplary

• Industry: Medical Instruments and Supplies

Coloplast's name cannot be left off of the purchasing list.  First off, at 33 percent, Coloplast seems cheap.  Coloplast, a Danish company, is a pioneer in ostomy and continence treatment worldwide.  According to analysis, the company has a long history of consistent and significant innovation, which has helped it grow in the US and take the lead in Europe.  in contrast to our estimated fair value of $14.10 per share since 2008.  As it concentrates on profitable growth, the company has done a good job of figuring out its cost structure.  Coloplast is now concentrating on expanding into new regions to boost growth, with a particular emphasis on the US.  Investors are considering making bulk purchases as a result of this growing expansion.

5) GSK

·        Price/Fair Value: 0.67

·        Uncertainty Rating: Medium

·        Capital Allocation Rating: Standard

• Industry: Drug Manufacturers—General

Several senior analysts believe GSK's innovative new product lines and its list of patent-protected claims create a broad economic advantage, as GSK's diverse drug portfolio protects the company from problems associated with any single product, and its many patented drugs has been positioned separately in the market. GSK's strong product pipeline is the result of a shift in order strategy; the company has moved from previously focusing on modest improvements to now focusing on true innovation, expanding into emerging markets. We expect GSK to be a contender in the HIV and vaccines areas in the next year. GSK's stock is trading at 38% below our fair value estimate of 58 per share.

6) Constellation Brands

·        Price/Fair Value: 0.69

·        Uncertainty Rating: Medium

·        Capital Allocation Rating: Standard

•       Industry: Beverages—Brewers

Constellation Brands holds the largest share in the beer, wine, and spirits category in the United States, generating 80% of revenue from Mexican imports under the brands and brands selling beer. While overall beer volumes in the US have remained stable, Constellation has taken advantage of the favorable conditions of the premium current to boost volume growth, marking a high point in previous years. Veteran analysts acknowledge near-term demand challenges due to their gearing, but the Concepcion brand will continue to benefit from consumer loyalty and a solid news/helpline project. Constellation Brands' shares are trading at a 21% discount to our fair value estimate, and hence we see valuations in these markets, due to which their demand may increase in the future.

Updates : November 2025

🇺🇸 Examples from the US Market (November 2025 Context)

1. Intel Corporation (INTC)

   • Intel has been trading at relatively low valuations compared to other semiconductor peers like NVIDIA and AMD.

   • The company is investing heavily in chip manufacturing plants in the US, aiming to regain its leadership in the semiconductor race.

2. Pfizer Inc. (PFE)

   • After the COVID boom, Pfizer’s stock cooled off significantly, leaving it undervalued despite strong cash reserves and a healthy dividend yield.

   • Many investors see it as a defensive bet in times of inflation.

3. PayPal Holdings (PYPL)

   • Once a market darling, PayPal’s valuation dropped sharply in recent years.

   • However, the company still has strong fundamentals and a global user base, making it a potential turnaround story.

4. Ford Motor Company (F)

   • Ford is transforming rapidly towards electric vehicles, and its valuation remains far below pure EV players like Tesla.

   • Solid dividend and strong US demand make it a steady long-term pick.

5. Micron Technology (MU)

   • A key memory chipmaker that benefits from AI growth but still trades at a discount to semiconductor giants.

   • Often considered undervalued by analysts when looking at its earnings potential.

7) FAQ’S

1. Why is the US stock market looking expensive right now?

The US stock market looks expensive mainly because of rising inflation and higher interest rates from the Federal Reserve. When borrowing costs go up, corporate earnings slow down—which makes valuations in major indices like the S&P 500, Nasdaq, and Dow Jones appear stretched.

2. How do high interest rates impact the US stock market?

When interest rates rise, liquidity in the system decreases. Growth-heavy sectors such as technology and AI stocks often see corrections, while defensive sectors like healthcare, utilities, and consumer staples tend to stay more stable.

3. Which are the best undervalued US stocks in 2025?

As per current valuations, some undervalued US stocks for 2025 include Intel (INTC), Micron Technology (MU), Pfizer (PFE), Ford (F), and PayPal (PYPL). These companies have strong fundamentals, consistent cash flows, and recovery potential as inflation cools.

4. Is the semiconductor sector still a good investment in 2025?

Yes, the semiconductor industry remains one of the most promising spaces globally. Companies like Lam Research (LRCX), Applied Materials (AMAT), and Micron Technology (MU) are key players driving the AI, 5G, and EV revolution, making them attractive long-term investments.

5. How can Indian investors invest in the US stock market?

Indian investors can easily invest in the US stock market through platforms such as Groww, INDmoney, and HDFC Securities Global Investing. They can also choose mutual funds or ETFs that track US indices like the S&P 500 ETF or Nasdaq 100 ETF.

6. What are the safest sectors to watch in the US market right now?

In 2025, analysts are positive on semiconductors, renewable energy, defense, and healthcare sectors. These industries show steady demand and long-term growth, even when interest rates stay high.

7. Why do investors look for undervalued stocks?

Investors search for undervalued stocks because they offer a margin of safety—you buy good companies below their fair price. When market sentiment improves, such stocks often deliver multibagger returns over time.

8. How can I identify undervalued US stocks myself?

Look at fundamental ratios like the P/E, P/B, and debt-to-equity, along with free cash flow and earnings growth. Compare these with industry averages and focus on businesses showing consistent profitability and strong management.

9. What is the US stock market forecast for 2025?

The US stock market forecast for 2025 suggests moderate growth. As inflation eases and the Fed hints at possible rate cuts, sectors like semiconductors, AI technology, and green energy may lead the next bull phase.

10. Is 2025 a good year to invest in US stocks?

Yes — 2025 could be a great opportunity for long-term investors. Even though valuations are high, several quality US stocks are trading below their peak levels. A disciplined SIP-style approach in global markets can deliver steady returns over time.

 

 ⚠️ Disclaimer

This blog post is meant only for educational and informational purposes. The content shared here is based on public data, market research, and personal analysis. And not be treated as financial or investment advice.

Stock markets are subject to risk and volatility. Prices and valuations may change based on global events, Federal Reserve policy updates, inflation trends, or company-specific developments. Always do your own research (DYOR) or consult a registered financial advisor before making any investment decisions.

The examples and stocks mentioned here — including Lam Research (LRCX), Intel, Micron, and others — are discussed purely for learning purposes. The author or blog does not hold any responsibility for profit or loss arising from investments based on this article.

Stay informed, stay invested wisely, and make decisions that suit your financial goals and risk profile.