2 Most Compelling Stocks to Buy for Long‑Term Investors Right Now

Even as broader equities continue to perform well, several otherwise quality stocks have been left behind due to various headwinds. That's the case with Intuitive Surgical (NASDAQ: ISRG) and Microsoft (NASDAQ: MSFT). However, given their long-term prospects, these market leaders can bounce back and deliver excellent returns to patient investors, making them particularly compelling buys on the dip. Here is why Intuitive Surgical and Microsoft are excellent picks.

Image source: The Motley Fool.

Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »

1. Intuitive Surgical

Steep tariffs are harming Intuitive Surgical's financial results. And by the looks of it, the company will have to deal with this issue for a little while longer. Even so, the medical device specialist continues to post strong financial results, driven by increased adoption of its famous da Vinci system. In the first quarter, Intuitive Surgical's revenue and procedure volume both grew at a good clip. It also expanded its installed base, helping cement its lead in the robotic-assisted surgery (RAS) niche as new competitors try to eat into its market share.

Intuitive Surgical's future still looks bright because of the large RAS addressable market, even before we account for the world's aging population, which will further expand its opportunities.

Meanwhile, the company is still earning new indications. In December, it announced that the da Vinci SP had secured clearance from the U.S. Food and Drug Administration for inguinal hernia repair, cholecystectomy, and appendectomy. A growing number of indications helps boost the company's revenue while making it even harder for the competition to catch up. Further, Intuitive Surgical's newest model of its famous device, the da Vinci 5, is still gaining significant traction. It accounted for almost 54% of the company's placed systems during the first quarter.

Selling newer systems is important for Intuitive Surgical, even beyond the higher upfront costs they carry compared to older models. The fact that the newer model is experiencing strong adoption helps cement Intuitive Surgical's technological edge. It also grants it access to even more feedback from surgeons in real-world procedures (through features older models may not possess) that can help further improve its devices.

So, between technological improvements, expanded indications, a large and growing market, as well as Intuitive Surgical's moat from switching costs -- da Vinci systems are quite expensive -- the company seems to be in a great position to perform well over the long run. The stock may have underperformed broader equities of late, but that's one of the reasons it's a compelling buy-and-hold option right now.

2. Microsoft

Some investors think Microsoft's services will be replaced by artificial intelligence (AI). That's a key reason the company's shares have underperformed broader equities. There is also the fact that the tech giant is pouring small fortunes -- to the tune of $190 billion in 2026 -- in capex to support its AI-related ambitions. Clearly, Microsoft's management thinks AI will help, not harm, the company's prospects. My view is that the former is more likely to be the case.

In fact, Microsoft has already benefited from the AI revolution. As the company said when it recently released its financial results for the third quarter of its fiscal year 2026, ending on March 31: "Our AI business surpassed an annual revenue run rate of $37 billion, up 123% year-over-year."

Microsoft is evolving with the times, launching AI products and services to better serve its customers. That should provide the company with a massive tailwind, as we are still arguably in the early innings of the AI revolution. Several other aspects of the company's business make it an excellent long-term option. For instance, Microsoft has a strong brand name and deep, long-standing enterprise relationships. That's a significant advantage in the fast-growing cloud computing market, where it is a leader. The company's cloud backlog as of its most recent period surged 99% year over year to $627 billion.

Lastly, we can point to the strength of Microsoft's underlying business, as evidenced by its AAA credit rating (the highest possible) from S&P Global, and its outstanding dividend track record: Microsoft has increased its payouts by 153% over the past decade. The stock is down 8% over the past year, but at current levels, Microsoft is a compelling bet for long-term investors.

Prosper Junior Bakiny has positions in Intuitive Surgical. The Motley Fool has positions in and recommends Intuitive Surgical and Microsoft. The Motley Fool recommends the following options: long January 2028 $520 calls on Intuitive Surgical and short January 2028 $530 calls on Intuitive Surgical. The Motley Fool has a disclosure policy.