One of the best ways to generate wealth from the stock market is to invest in long-term stocks. As the saying goes, it’s not market timing, it’s market time. This saying is as true today as it was 10 years ago.
For those looking to invest over the next 10 years, this is definitely an exciting time. Those looking to put new capital into the business have a number of considerations to think about. First of all, will the epidemic be relevant in a few years? How many seemingly great companies today have business models that could falter due to competition or other market forces over the next decade? And what is the margin of safety for a particular company, compared to the other great options available?
In fact, being a stock picker and thinking about long-term stocks is not easy. We live in a society where trading and short term trends and technical analysis prevail. However, those who look at long-term trends and the potential winners from these trends may ask different questions.
With that background, let’s take a look at a few companies that have the potential for long-term success. These companies are from all different sectors, and represent interesting opportunities in my books. Here are seven companies that are on my watch list now as long-term potential stocks:
- Queen Piece (NASDAQ:Currency)
- Applied materials (NASDAQ:AMAT)
- Altria Group (New York Stock Exchange:MO)
- Intel Corporation (NASDAQ:INTC)
- Pfizer (New York Stock Exchange:PFE)
- Novartis (New York Stock Exchange:NVS)
- Stunko (NASDAQ:STNE)
Top Long-Term Stock: Coinbase (COIN)
Let’s start with perhaps the most speculative option on this list, shall we?
Coinbase Global is among the most popular cryptocurrency exchanges. However, Coinbase is a relatively recent addition to the market, only being introduced to the public last year. Since hitting as high as $430 a share immediately after it came to market, COIN shares have been in a downtrend, and are now trading for nearly half of that peak.
What gives? Well, the crypto market has been very volatile over the past year. Some tokens have done very well, but the massive losses we have seen in some of the tokens have given many investors reason to be cautious with this space. fair enough.
However, given the long-term performance of many cryptocurrencies such as Bitcoin and Ethereum, it is easy to prove that Coinbase can be a long-term contract. This is because the fee-based revenue stream of this exchange works well when the crypto market as a whole is doing well. Thus, investors do not need to choose a winner, you only need to bet on a long-term trend. I love that.
Applied Materials (AMAT)
Applied Materials is a large player in the semiconductor capital equipment sector. In addition, the company has also transformed into a leading manufacturer of advanced displays. For long-term investors looking for sectors with a strong tailwind, these are good places to look.
Of course, as a long-term holding, Applied Materials has the kind of stock chart most investors like to see: It’s rising to the right. However, more and more of the company’s stock price performance is derived from the company’s fundamentals. With a reasonable P/E ratio (around 24x), and a small but growing return, there is a lot to like about this tech infrastructure game.
In the company’s advanced packaging sector, Applied Materials has seen an impressive growth in its 3D NAND production in recent years. As a result of this epidemic, the role of applied materials in the field of semiconductors and advanced manufacturing is becoming more and more important. Investors understand that for everything in the global technology supply chain to work, companies like Applied Materials have to do well. Accordingly, this is a company that long-term investors may want to take a look at for any dips moving forward.
Top Long-Term Stock: Altria Group (MO)
Altria is best known for being the company behind the Marlboro cigarette brand, a company that investors either love or hate. In fact, this company’s core business is still alienating many investors. fair enough. Cigarettes are big business, but there is no doubt that this type of business is horrific for the overall health of the world’s population.
Of course, Altria may not be suitable for every investor for this reason. However, those looking past where Altria started in the direction it’s headed may want to take a look at this company. That’s because a greater percentage of the company’s sales actually come from the non-cigarette business over time.
Among the growing businesses under the Altria umbrella are e-cigarettes, vapes, and other cannabis-related products. The company’s market share in these growth segments is taking off. And many investors like the direction this company is taking – encouraging smoking reduction and tobacco alternatives.
This is a huge turnaround for Altria. However, the company reported very strong results in the last quarter, which boosted its dividend on the back of strong projected future cash flows and stellar earnings. For those looking for a stock with a 7.3% dividend yield, Altria is a great option to look at right now.
Intel is one of the more old companies that made this list. The semiconductor (computer chip) company was formerly a leader in the server and desktop market. However, these markets have been transforming very quickly in recent times. Many investors have sought other smaller growing companies in this field in recent years.
Intel has lost market share to most of its mobile processor peers. AMD has taken the desktop PC market from Intel with its high-powered Ryzen processor. Furthermore, AMD’s Epyc chip outperforms Intel’s Xeon option. In the field of semiconductors, Intel is losing ground, and investors have noticed.
However, this chip giant is taking strategic steps that are worth considering. In addition to cutting prices to bolster market share, the company’s 12th-generation Alder Lake processor is likely to spur additional growth in the medium term. It is difficult to assess the competitive dynamics of this space. However, Intel has been a leader for decades for a reason. I like the company’s fundamentals, which include a price-to-earnings ratio of around 10, and a dividend yield of 2.5%.
Top Long-Term Stock: Pfizer Corporation (PFE)
Pharma major Pfizer has been in big business for the past year. As a truly diversified global player in a range of drugs, vaccines and other treatments and treatments for a wide range of diseases, Pfizer is a company with a proven track record of healthy performance over time.
However, Pfizer’s focus has recently been turned to its high-profile partnership with BioNTech for a pioneering Covid-19 vaccine. Sales of this vaccine are expected to reach $65 billion by the end of this year. This is impressive, and has definitely given a boost to Pfizer’s basics lately.
However, it is important to remember that Pfizer is much more than just a company with a Covid-19 vaccine. In fact, before the pandemic, Pfizer was often known as “the company that owns Viagra.” The range of branded drugs developed or acquired by this company over time is impressive. Those who are betting on continued growth from the pharmaceutical industry cannot go wrong with owning Pfizer in the long term.
Novartis Airport (NVS)
Another healthcare company making this list, Novartis is definitely an interesting company to watch. This provider of a range of pharmaceutical and healthcare products is one whose basics I’ve recently begun to research into. Novartis currently boasts a dividend yield of 3.6%, combined with a price-to-earnings ratio of 19 times earnings, and relatively stable long-term growth.
During the company’s most recent earnings report, Novartis noted revenue growth of 6% to $13 billion year-over-year. While these short-term results may fall short of some investors’ expectations, the company’s upcoming Entresto and Cosentyx drugs will likely improve sentiment over time. That’s because Entresto, a blood pressure drug, is expected to bring in $5 billion in revenue in the coming years. Additionally, projections suggest that Cosentyx, a monoclonal antibody intended to treat psoriasis, could generate $7 billion in higher revenues. These are not lowly numbers.
Novartis, like Pfizer, is a broad-based, slower-growing company that many investors would like to see. However, from the point of view of stability and defense, I like this company. It is difficult to find a company with a beneficial return but also attractive long-term growth prospects in this market. However, Novartis fit the law now.
Top Long-Term Stock: StoneCo (STNE)
Finally, we have StoneCo, the financial technology provider, to end this list. Perhaps the riskiest choice on this list for long-term investors, those who take a more guesswork approach may like the value behind this company.
First of all, SoneCo is a multi-channel game for retailers, particularly in the Brazilian market, to integrate physical, online and mobile sales. Essentially, StoneCo is helping retailers truly integrate into the online economy and has seen previous surges in interest during the onset of the pandemic.
However, last year was not friendly to this company. That’s because technical delays and the suspension of a major product lowered the company’s net profit margin forecast. From a fundamentals standpoint, there is some hair with this stock, and investor sentiment remains depressed.
However, those who take a long-term view of this stock may look beyond the company’s recent negative earnings and its slower-than-expected growth. In the high-growth Brazilian market, StoneCo is increasing its market share among small and medium-sized companies. Accordingly, those who take a truly long-term view may want to consider this growth niche player, who is now trading at over 80% off from a 52-week high.
At the date of publication, Chris MacDonald did not (directly or indirectly) hold any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author, and are subject to InvestorPlace.com’s posting guidelines.
Chris MacDonald’s love of investing has led him to pursue an MBA degree in Finance and to take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, along with his enthusiasm for finding undervalued growth opportunities, contribute to his long-term conservative investment vision.