Long-term thinking. For the past decade, in the era of central bank-controlled markets, easy money and low interest rates, it was simple. You bought some index funds and let the markets go. Companies adjusted their earnings by using huge sums of cash to buy back their stocks until the economies turned around enough to actually grow real earnings.
The stock markets went higher, year after year, with little drama. But those days are over.
Inflation is starting to look like it’s waking from its slumber and the Federal Reserve is out to find it … though what it will do with it is anyone’s guess. But what we’ve seen so far shows that there are significantly different opinions on how this will all pan out.
And until there’s a generally unified vision, volatility is going to be a major factor.
That’s why I’ve picked these 10 stocks to buy for the next 15 years. While the storm swirls, these companies will keep churning out the profits.
Stocks to Buy for the Next 15 Years: Lumentum holdings (LITE)
Lumentum Holdings Inc (NASDAQ:LITE) is one the top global players in the optical and photonic products space. This isn’t a high-profile sector for consumers, but it’s a huge deal for telecommunications, cloud, networking and manufacturing sectors.
And the biggest demand is now coming from 3D sensing. That is what enables touchscreens to work and powers game boxes that can see what a player it doing. It will also have huge implications for augmented reality and virtual reality.
Simply put, LITE is at the heart of the Digital Age’s biggest growth sectors. And that’s why the stock is up 18% year to date.
Stocks to Buy for the Next 15 Years: Yandex (YNDX)
Yandex NV (NASDAQ:YNDX) is the Google of Russia. It is the top search engine in Russia, Ukraine, Belarus, Kazakhstan and even Turkey.
And just like its U.S. counterpart, it does more than simply enable robust search. It has classified business units for travel, jobs, real estate and cars.
But most important moving forward is its taxi business. Well, its driverless taxi business.
Yandex.Taxi operates in nearly 50 cities around the region and it is starting to deploy driverless cars. One of its self-driving cars negotiated the streets of Moscow in a light snow in 21 F weather with great success. That is a significant achievement.
YNDX stock is up over 30% year to date.
Stocks to Buy for the Next 15 Years: Advanced Drainage Systems (WMS)
Advanced Drainage Systems Inc (NYSE:WMS) is a rock-solid infrastructure play. It’s not some high-tech firm that is going to make cloud computing more efficient or allow us to communicate telepathically.
It makes drainage systems for commercial, industrial and government clients.
Upgrading a cloverleaf on an interstate? Call WMS to sort out the drainage. Building a new bedroom community? Call WMS.
As the global economy gets back into growth mode, whether on the infrastructure side or the commercial growth side, WMS is there. More than 8.5 billion feet of WMS’ pipe has been laid around the world since its beginning in 1966.
Up 13% year to date, there’s plenty of solid growth left.
Stocks to Buy for the Next 15 Years: SORL Auto Parts (SORL)
SORL Auto Parts, Inc. (NASDAQ:SORL) is one of the leading commercial and passenger vehicle OEM brake manufacturers in China. It also provides aftermarket brakes and brake products for international markets as well.
Bear in mind, it’s a small-cap company in the U.S. — a $119 million market cap. That means the stock can take some wild rides, so SORL stock is not for the faint of heart.
But if you are patient and look to the long term, this can be a great choice. For example, year to date, SORL stock is off 8%. But in the past 12 months, the stock is up 96%.
Stocks to Buy for the Next 15 Years: GrubHub (GRUB)
GrubHub Inc (NYSE:GRUB) gapped up on its Feb. 8 open because of its blowout earnings. In the past month, the food delivery company has seen its stock run up 38%.
The reason?
Well, it’s starting to look like GRUB is getting bigger, scaling its business well around the country and making money while doing it. Plus, it signed Yum! Brands Inc (NYSE: YUM) as a customer.
That means national chains Pizza Hut and Taco Bell are now delivering and contracting out the work to GRUB. That’s a pretty powerful endorsement.
GRUB stock’s triple-digit annual growth may not last forever, but it has a lot of significant growth left.
Stocks to Buy for the Next 15 Years: AlarmCom Holding (ALRM)
AlarmCom Hldg Inc (NASDAQ:ALRM) is focused on the cloud-based smart home and business sector.
Basically this means you can monitor and control your home or office whether you’re there or not, remotely. All the functionality can be delivered to you on your smartphone or computer.
And nowadays, that also means via voice-command through Alexa as well.
But beyond the sheer geekiness of this, being able to real-time monitor the energy use and security of your various properties has significant value, especially when it’s this convenient.
ALRM is one of the leaders in the expanding industry and will either become a major player in its area or will be bought out by one of the major players at a significant premium.
Stocks to Buy for the Next 15 Years: Data I/O Corporation (DAIO)
Data I/O Corporation (NASDAQ:DAIO) is a programming company.
Now, that may sound like something pretty much everyone does that makes flash memory devices and microcontrollers, but they don’t.
DAIO works with eight of the nine top automobile manufacturers in the world. It also works with almost every major contractor and subcontractor in the automotive, wireless, IoT and energy management systems sectors.
This is the specialty work that makes all our tech-driven devices work and communicate with us and with each other.
This sector is not going away, it’s going to continue to expand.
DAIO stock is down on its Q4 earnings report, which makes this a good time to get involved. Revenue, margins and earnings are all growing strongly. But it’s a small company, so beware of short-term volatility.
Stocks to Buy for the Next 15 Years: FRP Holdings (FRPH)
FRP Holdings Inc (NASDAQ:FRPH) is basically three businesses in one.
Its first business is property development and management in the Baltimore and Washinton, D.C. metropolitan areas. Primarily these properties are warehouses and commercial spaces from 60,000 to 150,000 square feet.
Its second business is land leases for mining operations, primarily in Florida and Georgia. Since both states are undergoing significant growth, its properties are highly valued for construction materials like concrete and brick as well as other commercial properties.
The third business is developing lands. For example, it has a 6-acre parcel of land on the Anacostia River in Washington, D.C. adjacent to the Washington Nationals’ baseball stadium that is developing into an apartment complex. It will also have retail, office and hotel space added in different phases.
It’s up 14% so far this year.
Stocks to Buy for the Next 15 Years: Hollsys Automation (HOLI)
Hollysys Automation Technologies Ltd (NASDAQ:HOLI) is all about, well, automation. It’s especially well known in the Chinese rail sector for its automation products and services.
But its services span a wide variety of industries that are fundamental to the growth and health of the nations it serves.
HOLI stock is an infrastructure play on China, pure and simple. It works with everything from rail to energy to manufacturing sectors, building systems that make these large, complex systems operate efficiently and safely.
At a market cap of $1.5 billion it’s not a major global player, but the local Chinese market and its familiarity with it, make it a major force when the Chinese economy is expanding.
Stocks to Buy for the Next 15 Years: Ligand Pharmaceuticals (LGND)
Ligand Pharmaceuticals Inc. (NASDAQ:LGND) is a new generation biotech firm.
Instead of looking to build a portfolio of drug candidates, looking for a powerful firm to buy in with research money or licensing deals, it takes a more focused, less swing-for-the-fences approach.
It keeps things simple. LGND focuses on drug discovery, early-stage drug development, product reformulation and partnering. It plays to its strengths and helps bigger pharmas worry about the back-end. LGND does the “lab” work and lets its partners to the “fab” (fabrication) work.
And it seems to be working well. LGND stock is up nearly 50% in the past 12 months, and 11% year to date. Its $3 billion-plus market cap also shows that the market thinks there’s something there.
Louis Navellier is a renowned growth investor. He is the editor of five investing newsletters: Blue Chip Growth, Emerging Growth, Ultimate Growth, Family Trust and Platinum Growth. His most popular service, Blue Chip Growth, has a track record of beating the market 3:1 over the last 14 years. He uses a combination of quantitative and fundamental analysis to identify market-beating stocks. Mr. Navellier has made his proven formula accessible to investors via his free, online stock rating tool, PortfolioGrader.com. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.
