With the recent market selloff, now could be the perfect time to make long-term investments and take advantage of compounding.
That's because history has shown that market dips often present the best opportunities for investors willing to hold high-quality Australian stocks for the long run.
With that in mind, if you are looking for great Australian stocks to buy and hold for the next decade, here are three that analysts believe could deliver strong returns over time.
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CSL Limited (ASX: CSL)
One top pick for a long-term investment could be CSL. It is a global biotechnology leader with operations spanning plasma therapies, vaccines, and kidney disease treatments through its CSL Behring, CSL Seqirus, and CSL Vifor businesses.
CSL has long been a powerhouse of growth, although it recently faced post-COVID margin headwinds. However, these challenges appear to be fading, positioning the company for renewed growth. Especially given its robust product portfolio, strong demand for immunoglobulins, and continuous investment in research and development (R&D).
In respect to the latter, this Australian stock reinvests approximately 11% of its sales back into R&D. This ensures that it has a pipeline of innovative and potentially lucrative treatments.
Goldman Sachs is bullish on CSL and has a buy rating and $318.40 price target on its shares.
NextDC Ltd (ASX: NXT)
Another top long-term investment option could be NextDC. It is a leading data centre operator in the Asia-Pacific region. As digital transformation accelerates and businesses increasingly rely on cloud computing and artificial intelligence, demand for data centre capacity continues to soar.
The team at Morgans believes NextDC is exceptionally well-positioned to capitalise on this trend. The broker estimates that the company's EBITDA could double in the coming years based on existing customer agreements. And looking beyond this, with data consumption and cloud services growing exponentially, NextDC stands to benefit from the ongoing shift toward digital infrastructure.
Morgans has an add rating and $18.80 price target on NextDC's shares.
REA Group Limited (ASX: REA)
Finally, REA Group could be an Australian stock to buy and hold. It is the company behind Australia's most visited real estate website, realestate.com.au.
The company dominates the Australian property listings space with this website and has a significant advantage over competitors.
In fact, during the first half of FY 2025, REA Group reported that an average of 5.1 million more Australians visited its website each month compared to its nearest competitor. This dominant market position gives it strong pricing power and a firm foundation for future growth.
Analysts at UBS are very positive on the company and have a buy rating on its shares with a price target of $294.00.
