Investing in long-term stocks offers an excellent alternative to the frenetic world of day trading. Long-term stocks are about hitching your ride with companies that have stood the test of time, ensuring sustained growth and profitability for their stockholders. The allure of long-term stock picks lies in selecting businesses that exhibit steady growth instead of fizzling out after a short-lived rally.
The three long-term stocks discussed in the article fit the bill perfectly, boasting timeless business models that will continue rewarding their shareholders for the foreseeable future. These businesses stand out for their strong competitive moats and are positioned for more expansion, backed by impressive growth catalysts that can turn a $100,000 investment into $1 million given a sufficient holding period.
Amazon (AMZN)
eCommerce giant Amazon (NASDAQ: AMZN) has been one of the most prolific growth stocks, gaining over 1000% in value in the past decade. Its tentacles are spread across multiple tech verticals, with a diversified business model that’s second to none. Moreover, its strategic expansion has proven incredibly rewarding for its shareholders, with AMZN stock outpacing broader market gains repeatedly throughout the past decade.
Though it’s known for its pioneering eCommerce business, its true profit engine has been its game-changing cloud computing service in Amazon Web Services (AWS). AWS dominates the burgeoning cloud computing market, supporting millions of enterprises on a global scale. In highlighting AWS’s contribution to Amazon’s success, the division’s revenues were up 13% year-over-year (YOY) to $24.2 billion in the fourth-quarter (Q4) of 2023, while the company’s total quarterly sales increased by 14% to $170 billion.
Furthermore, AWS plays a critical role in powering AI technology with its cutting-edge cloud services. Moreover, its extensive resources and tools empower developers and businesses to develop new AI applications, cementing the company’s position at the forefront of the AI revolution.
Walt Disney (DIS)
Entertainment juggernaut Walt Disney (NYSE:DIS) needs no introduction. Its empire spans enchanting theme parks, blockbuster films, and streaming platforms, making it one of the most diversified entertainment businesses in the world.
The past few years for Disney have been tricky, though, as it has faced challenges from unsuccessful superhero films to political controversies. Nevertheless, its stock is ticking in the green again, delivering a 30% year-to-date (YTD) gain.
Moreover, there’s plenty that’s going for the business at this time, positioning it for robust gains ahead. It aims to achieve streaming profitability by the tail-end of this year with its powerful direct-to-consumer platforms of Disney+ and ESPN+. ESPN has proven especially lucrative due to growth in ad sales and the incredible success of sports streaming. Additionally, its timeless parks division has recovered from the pandemic-era uncertainty and earned an extra 10% in operating income during Q4. Also, Disney is looking to invest a whopping $30 billion over the next 10 years to bolster its parks division.
CrowdStrike (CRWD)
Crowdstrike (NASDAQ:CRWD) is one of the leading players in the cybersecurity industry, and it hasthat’s been delivering exceptional gains for its shareholders over the past few years. Its 3-year return stands at an impressive 54%, while its top-line has grown by more than 70% in the past five years. The mission-critical nature of its business makes it an excellent long-term stock pick, and the integration of AI makes its role even more crucial.
Cybersecurity in AI plays a major role in defending AI systems and ensuring data integrity and user trust. It involves the protection of AI algorithms and data from manipulation while maintaining ethical standards of AI applications across multiple sectors. Therefore, modern cybersecurity will have everything to do with AI, and Crowdstrike continues to grow its investments in transformative technology to gain additional market share.
Furthermore, CRWD has been killing it lately with its fundamentals, having bested analysts’ estimates across both lines in each of the four quarters last year. It generated upwards of $3 billion in annual recurring revenues while reporting a 33% YOY increase in Q4.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines