For long-term investors, focusing on quality stocks is a smart cornerstone strategy for building sustainable wealth. Combining this approach with a disciplined, long-term mindset can allow investors to press on through market volatility, avoid the emotional pitfalls of investing, and harness the full power of compounding returns through the years.
There are plenty of stocks that the market has hit hard recently thanks to investor ire that still look like tempting buys for the long-term. Here are three such names to consider for your portfolio right now.
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1. Toast
Toast (TOST 0.06%) shares are down about 16% over the last six months due to a combination of factors. There's the general concern that investors are feeling about the restaurant space, which is very vulnerable to shifts in consumer spending.
A few months back, an analyst's report highlighted significant price reductions on Toast's software packages for smaller restaurants, which led investors to fear a lack of pricing power or increased competitive pressure. Toast clarified these changes were due to a website glitch and quickly reverted the prices, but the initial news caused the stock to slide.
There are plenty of reasons to like Toast stock though, and consider buying the business on the dip. The company offers an all-in-one, cloud-based technology platform that acts as an operating system for restaurants to handle everything from point-of-sale and payments to payroll, inventory, and marketing.
This integrated system creates significant switching costs for customers that makes them very likely to stick with Toast's services, which also provides the company an economic moat against competitors.
NYSE: TOST
Key Data Points
Toast has a substantial runway for growth and only controls a 15% market share in the U.S. restaurant market, but there is a potential for it to expand to millions of locations globally. The company is consistently adding thousands of new locations each quarter and expanding into new areas including enterprise clients, international markets, and adjacent verticals such as grocery stores.
In Q3 2025, Toast reported revenue of $1.63 billion, a 30% year-over-year increase in annual recurring revenue to over $2.0 billion, and a 24% rise in gross payment volume. The company has successfully shifted toward profitability and generated GAAP earnings of $105 million in the quarter. Toast looks like an intriguing buy right now.
2. Chipotle
Chipotle Mexican Grill (CMG 0.24%) shares are down about 40% over the trailing 12 months. A slowdown in customer traffic amid a challenging macro environment and multiple subsequent reductions to its sales forecasts haven't rested well with shareholders.
The most significant factor is a broad pullback in frequency of visits among key consumer groups, especially those with household incomes under $100,000 and the 25-to-35 age demographic. These consumers are facing economic pressures like inflation, the resumption of student loan payments, and slower wage growth that's leading them to eat at home more often.
Chipotle has cut its same-store sales growth forecast for three consecutive quarters in 2025. The company initially projected low-to-mid single-digit growth but now expects a decline in the low single-digit range for the full year.
The fast-casual restaurant chain also faces rising costs for ingredients like beef, but has opted not to fully offset these with aggressive price increases to defend its value proposition against competitors. Unsurprisingly, that strategy has compressed restaurant-level operating margins.
NYSE: CMG
Key Data Points
All of these factors are relatively short-term in the context of a multi-year investment in this leading quick service restaurant stock. Chipotle maintains best-in-class unit economics and a strong balance sheet with minimal debt. Digital sales represent a significant portion of revenue (over 36%) and are supported by a large and engaged loyalty program of 40 million members.
For the first nine months of 2025, Chipotle's total revenue totaled $8.94 billion, and net income came to $1.2 billion. Chipotle could be a smart buy on the dip.
3. Lululemon
Lululemon Athletica (LULU 0.68%) is down about 45% from where it was trading one year ago. The biggest concern investors likely have about Lululemon is softening demand in the U.S., the company's largest market. It's also the case that cautious consumer spending and new tariffs are significantly impacting gross margins and profits. While the athleisure space in its core markets is more competitive than it was a decade ago, the macro environment and tariffs impacts have broad industrywide implications.
On the plus side, newer international markets, particularly mainland China, are proving to be key growth engines for Lululemon's business. In Q3 2025, international revenue surged 33%, with China growing 46% year-over-year. The company is expanding into new markets like Greece, Austria, Poland, Hungary, Romania, and India in 2026, which offers significant untapped potential outside its core North American base.
NASDAQ: LULU
Key Data Points
Lululemon has a highly loyal customer base and a premium brand image that allows it to maintain high gross margins (around 55-58%) despite competitive pressures. The company is leveraging its Science of Feel technology to innovate and diversify its product lines, and management's goal is to increase new product styles to 35% by spring 2026. Expansion into categories like men's apparel and footwear continues to gain traction as well.
The secular trend of consumers prioritizing health and wellness provides a long-term tailwind that aligns perfectly with Lululemon's lifestyle-oriented products and brand values. The company also remains highly profitable, having raked in $885 million in free cash flow and $1.7 billion in net income over the trailing 12 months alone. The stock's current depressed valuation could prove an attractive entry point for certain long-term investors.
