3 Stocks to Buy and Hold: The Long-Term Play for Your Portfolio

Market timing doesn't work, not consistently anyway. While short-term fluctuations can be unsettling, holding stocks for the long term allows investors to ride out market downturns and benefit from the overall upward trend of the market over time.

If you have the patience to put cash into great stocks and let them grow even when other investors are jumping ship and rushing to sell, you can benefit from both the best and worst days in the market.

On that note, here are three top stocks for long-term investors to buy and hold no matter what the market does next.

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1. Costco

Costco's (NASDAQ: COST) business has remained resilient amid consumer struggles due to its profitable membership model, aggressive cost leadership, and continued ability to meet value-seeking consumer demands during uncertain economic times. Its primary source of profitability is the steady income from its annual membership fees, which are renewed at high rates that often exceed 90%.

This provides a stable, high-margin revenue stream that broadly insulates the company from fluctuations in retail sales. The prospect of saving money by purchasing items in bulk at low prices is especially appealing to consumers concerned about inflation and stretched household budgets. This is driving customers to join or renew memberships, and to make larger purchases per visit.

As consumers become more value-conscious, Costco has observed and adapted to shifts in buying habits. Management has noted increased sales of its lower-cost options and private-label goods, while sales of more expensive discretionary items have slowed recently. Beyond groceries, Costco offers a range of other services like gas stations, pharmacies, and travel services, which increases store traffic and adds value for members who see their shopping experience as a multi-purpose visit.

Costco's fiscal 2025 results underscore the continued strength of the company as a business and as an investment. Total net sales for the year reached $269.9 billion, an increase of 8.1% from one year ago, and net income was $8.1 billion, up slightly from the $7.37 billion recorded in the previous year. Online sales showed strong momentum too, growing by 15.6% for the full fiscal year. If you're looking for a steady long-term buy for your portfolio and a little dividend income to boot, Costco consistently looks like a worthwhile addition to a diversified portfolio.

2. Lululemon

Lululemon (NASDAQ: LULU) is facing some challenges right now, as evidenced by the fact that the stock is down by more than 50% over the trailing-12-month period. The company is seeing a major slowdown in North America (its largest market), higher tariff rates have compressed the company's gross and operating margins, and competition is rising in the athleisure market.

Still, Lululemon has successfully built a premium brand with strong pricing power that's supported by a loyal customer base. While the U.S. market has experienced softness, international net revenue surged 22% in the second quarter. Lululemon's strategic focus on the Chinese market has proven to be a major growth driver, with revenue increasing 25% in China alone during the three-month period.

The company remains heavily focused on high-growth international regions. While the impact of these changes will take time to manifest, Lululemon is implementing various strategies to offset tariff costs, including negotiating with vendors, selective pricing adjustments, and diversifying its supply chain. Lululemon remains very profitable, and it reported net income of about $371 million in Q2 and a gross margin of 58.5%.

The company plans to increase its new styles from 23% to 35% of its overall assortment by spring 2026 to recapture customer interest. And, despite the negative outlook, Lululemon has continued to repurchase its shares, signaling management's belief in the company's long-term value. All of that being said, there are still some notable reasons to consider this stock for a durable buy-and-hold position, particularly while it's trading at a discount.

3. Shopify

Shopify (NASDAQ: SHOP) provides merchants with a one-stop shop for scaling a brand both online and offline, with features like built-in duties calculation for cross-border payments, local filters for consumers, and tools to manage duty collection. This helps merchants navigate complex trade regulations, which can help mitigate the effects of tariffs and support international sales in a rapidly evolving commerce environment.

Despite inflationary pressures and tariffs, e-commerce spending remains robust. Shopify is actively working to mitigate its risk of over-reliance on small and medium-sized businesses, which are more vulnerable during recessions, and is successfully moving upmarket to attract larger enterprise-level clients. Artificial intelligence (AI) is a central component of Shopify's long-term strategy to drive productivity, empower its merchants, and expand its market leadership.

For example, Shopify's AI-powered Store Builder can generate a complete storefront -- including the layout, product descriptions, and banners -- from a simple text prompt. Shopify's recently announced partnership with OpenAI allows for an Instant Checkout option within ChatGPT, which could open a new AI-driven sales channel for Shopify merchants.

From a financial perspective, Shopify continues to go from strength to strength. Its Q2 revenue totaled $2.68 billion, up 31% year over year, and gross merchandise volume (GMV) jumped about 31% to approximately $88 billion. International GMV in Europe grew 42% year over year, and revenue from merchant solutions increased by 37% year over year. Shopify also posted its eighth consecutive quarter with a double-digit free cash flow margin. While the stock isn't cheap, long-term investors can still find a lot to like about Shopify.

Rachel Warren has positions in Shopify. The Motley Fool has positions in and recommends Costco Wholesale, Lululemon Athletica Inc., and Shopify. The Motley Fool has a disclosure policy.