Five Promising Stocks to Consider for Long-Term Growth
As investors seek growth, identifying stocks that can offer substantial returns is crucial. While pinpointing these “monster” stocks early on can be tricky, there are plenty of opportunities to invest in successful stocks that have already demonstrated strong performance.
This article highlights five stocks worth considering for the next decade. If you don’t own them yet, you may want to start acquiring some now and keep others on your watchlist for future investments.
Image source: Getty Images.
Data source: Morningstar.com as of Nov. 18, 2024.
For comparison, I’ve also included the performance of a standard S&P 500 index fund. Let’s examine each of the five stocks in detail.
Nvidia
Nvidia has established itself as a leader in the semiconductor industry, showcasing incredible growth, especially in recent years. While initially famous for its gaming chips, Nvidia is now a major player in the data center market, driven by increasing demand for AI technology. The company excels in both data center chips and PC graphics cards, commanding an impressive market share of 88% in the graphics card segment.
Current investors in Nvidia should consider maintaining their positions for the long term. For potential investors, the good news is that the stock appears to be fairly priced, with a forward P/E ratio of 36, which is below its five-year average of 41.
Netflix
Netflix is a household name known for its impressive long-term stock performance. Originally starting as a DVD rental service, it has evolved into a leading entertainment platform that offers vast original and licensed streaming content, including games and live sports.
With over 280 million paid streaming members globally, Netflix continues to grow. Its revenue increased by 15% year-over-year last quarter, with subscribers up by 14%. The company holds a considerable market lead over competitors and significant growth potential, particularly in international markets.
Currently, Netflix’s forward P/E ratio is at 34, close to its five-year average of 36, suggesting that the stock is reasonably valued for long-term investors.
MercadoLibre
MercadoLibre may not be widely recognized, mainly because it primarily operates in Latin America. However, it has experienced rapid growth, and its recent price decline offers a compelling buying opportunity. The company combines an e-commerce platform like eBay with financial technology services similar to PayPal.
Describing itself as the leading e-commerce and fintech company in Latin America, MercadoLibre operates in 18 countries, providing a comprehensive range of services for both individuals and businesses. Its forward P/E ratio of 41 is significantly below its five-year average of 85, indicating a potentially attractive valuation.
Meta Platforms
Meta Platforms, the parent company of Facebook, Instagram, Messenger, Threads, and WhatsApp, presents another interesting investment opportunity. Its stock has modestly declined despite strong revenue growth, with third-quarter revenue rising by 19% year-over-year. This pullback primarily arose from management projecting increased spending on AI initiatives.
Meta’s vast user base across its platforms creates numerous revenue possibilities. The company is already excelling in monetizing its audience, evident in its growing operating profit margin.
For current shareholders of these five stocks, holding onto their investments may prove beneficial. For those yet to invest, now could be the right moment to evaluate these stocks for inclusion in a long-term portfolio.
Should You Invest $1,000 in Nvidia Right Now?
Before purchasing Nvidia stock, consider this:
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Randi Zuckerberg, a former director of market development for Facebook and the sister of Meta Platforms CEO Mark Zuckerberg, serves on The Motley Fool’s board of directors. Selena Maranjian holds shares in MercadoLibre, Meta Platforms, Netflix, Nvidia, and PayPal. The Motley Fool has positions in and recommends MercadoLibre, Meta Platforms, Netflix, Nvidia, and PayPal. The Motley Fool also recommends eBay and holds specific options on PayPal. Please consult their disclosure policy for more information.
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
