2 Brilliant Stocks to Buy Now and Hold Forever

The best stocks to hold forever pair beloved brands with management teams that keep improving the business. Amazon (NASDAQ: AMZN) and On Holding (NYSE: ONON) fit that description, and both trade at reasonable valuations even though analysts expect earnings to grow by 20% or more per year. That makes them brilliant buys right now.

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Amazon

Amazon has multiple business lines, including fast-growing revenue streams from cloud and advertising services, but e-commerce still accounts for the largest share of its total revenue. The stock is up about 23% over the past year as profits climbed, with operating income up 43% year over year in the quarter ending June 30, 2026.

Its opportunity to lower costs and expand margins with robotics is an overlooked catalyst. On Oct. 19, Morgan Stanley named Amazon a top pick, citing its robot-filled warehouses. Amazon is making a huge push to shorten shipping distances, speed up delivery times, and reduce package handling.

Faster delivery gives shoppers another reason to make Amazon their first stop. As part of this effort, it expects to more than double its fleet of robotic arms, like Cardinal and Sparrow, this year. This is on top of the more than 1 million robots already deployed across its e-commerce operation.

Morgan Stanley says that every 10% of unit sales that are processed through Amazon's robot-powered fulfillment network can save the company up to $4 billion a year in costs.

Amazon is a dominant e-commerce brand and should keep delivering returns for investors for many years. The stock trades at a forward price-to-earnings (P/E) multiple of 32 times based on 2026 earnings estimates. This is in line with its past trading range even as analysts still expect earnings to grow by more than 20% annually over the next several years. At this price, investors should expect Amazon stock to grow in line with earnings and fuel market-beating returns.

On Holding

On Holding is a Swiss sportswear brand known for its premium running shoes, such as the Cloudmonster and Cloudsurfer. On's apparel sales jumped 56% year over year in the quarter ending June 30, 2026, yet the stock is down about 15% over the past year after sales didn't quite meet Wall Street's estimates.

However, the sales miss was partly by design. Management made a deliberate decision to ship less to retailers rather than discount to drive demand, a move that can undermine the brand's value. It still expects sales to grow in the low 20% range this year, excluding currency swings.

On is growing sales at double-digit rates despite holding firm on pricing, indicating the kind of brand strength that could turn it into the next Nike. This supports higher margins, with the company's earnings having grown at a 57% annualized rate over the past three years.

The stock trades at about 20 times forward earnings. With analysts expecting 25% annualized earnings growth over the next several years, On Holding stock trades at a price-to-earnings-to-growth (PEG) ratio below 1.0, which is usually a signal that the market is underpricing future earnings. This makes the recent dip an attractive buying opportunity. Only about 30% of consumers worldwide are aware of the brand, giving the brand a long runway to keep winning new customers.

John Ballard has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Nike, and On Holding. The Motley Fool has a disclosure policy.