7 Buy-and-Hold Stocks to Play Investing’s Biggest Trends

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stocks to buy - 7 Buy-and-Hold Stocks to Play Investing’s Biggest Trends

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Based strictly on recent news, you might come away with the assumption that the markets are back on the saddle. With President Donald Trump indicating that his administration is moving forward with a “Phase One” trade agreement, the major indices inched higher from prior sessions. And if we do get that deal signed, finding buy-and-hold stocks will get much easier.

Unfortunately, nothing is easy or straightforward in this current political climate. While Trump is undoubtedly pleased with himself, others take an unsurprisingly different approach. For instance, CNN Business’s Christine Romans described the trade war as “two steps forward, three steps back.” Perhaps the search for the best buy-and-hold stocks is more complicated after all.

Romans makes a great point that the very idea of a trade war resolution has lost credibility. She wrote that “investors have been fooled before. Tariffs threatened, then delayed. The Chinese backtracking. Talks crumbling. New tariffs.” In this situation, the best stocks to buy remain those with relatively limited exposure to or dependency on China.

On a different note, those who are seeking buy-and-hold stocks shouldn’t just consider the immediate headlines. Instead, they should assess longer-term trends. If their target company has a viable pathway to growth or to steady earnings ten years out, a good chance exists that they’re already staring at exactly what they want.

Below, I’ve complied a list of what I believe are the best stocks to buy and forget. With ample relevancy for both the near- and long-term picture, these seven buy-and-hold stocks are well worth consideration.

Costco (COST)

Retail Stocks to Buy for the Long Run: Costco (COST)

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For the past few years, one of the most consistently pressured investment sectors is retail. Given the rise of e-commerce, brick-and-mortar businesses seem antiquated. Yet the warehouse business model of Costco (NASDAQ:COST) has remained relevant for decades, bolstering COST stock.

But can COST stock survive in an era where online businesses are encroaching on physical retailers? I don’t have the same confidence of course for every retailer. But with Costco, all bets are off.

For one thing, Costco’s average shopper’s income at $92,236 dwarfs the competition. For instance, big-box retailer Target (NYSE:TGT) boasts an average shopper income of $65,000 among 25 to 34 year olds. On the lower range, Walmart (NYSE:WMT) shoppers average $53,125. Granted, these are respectable figures, but they’re nowhere near Costco.

Finally, Costco has become a cultural phenomenon. Often times, people shop there as an experience or as an addiction. Either way, it benefits COST stock.

Amazon (AMZN)

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Speaking of disrupting the retail space, no discussion about buy-and-hold stocks is complete without mentioning Amazon (NASDAQ:AMZN). When you hear the term e-commerce, most people think about Amazon.com. Simply put, it has expanded from humble origins to impact almost every facet of our society. But the bullish narrative for AMZN stock isn’t just about ringing the cash registers.

Instead, the underlying company has a generational catalyst. Even many younger millennials have some recollection of their analog heritage. But with the emerging Generation Z, or roughly those born in the early 2000s, they know nothing but e-commerce and digitalization. And that’s especially true for the younger members of Gen Z.

This is why last year I said that AMZN stock is on the verge of unprecedented greatness. Everything that Amazon strives to do matches with this generation’s ethos and aptitude.

Plus, I didn’t even begin to talk about Amazon’s effective disruption of lucrative sectors including cloud computing and even hardware. With such a powerful, multivariate approach, AMZN stock is simply one of the best stocks to buy for the long haul.

CareTrust REIT (CTRE)

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I wouldn’t call real estate investment trust CareTrust REIT (NASDAQ:CTRE) an indefinite hold. However, CTRE stock certainly belongs on your list of buy-and-hold stocks for at least the next several years. As a specialist in senior care, this is an industry that is only going to soar in demand.

According to Washington Post journalist Andrew Van Dam, the youngest baby boomers are around 55 years old. On the other hand, the oldest are in their 70s. Additionally, every day that passes another 10,000 boomers turn 65 years old — the traditional retirement age. These three facts drive the case for CTRE stock.

First, medical advancements have made living into your 80s and 90s a not-so-unusual event. Therefore, even the oldest boomers will require care, bolstering the case for CTRE stock and its ilk. Second, with the youngest boomers aged around 55 years, investors have a long tail to advantage.

Finally, with 10,000 potential customers entering the space every day, one thing is clear: CTRE stock will not lose relevancy for many years to come.

Exxon Mobil (XOM)

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With the surge in popularity of electric vehicle makers like Tesla (NASDAQ:TSLA) and Nio (NYSE:NIO), oil giant Exxon Mobil (NYSE:XOM) doesn’t seem like the most appropriate choice for buy-and-hold stocks. After all, EVs imply a push toward cleaner, electrical energy, leaving fossil-fuel energy sources in the dustbin of historical artifacts.

However, the recent California wildfires have brought a new framework to XOM stock. According to a CNBC report, PG&E (NYSE:PCG) disclosed that its power lines may have sparked two of those fires. If so, it’s a damning indictment against EV momentum.

First, our electrical grids are already stressed. Apparently, some utility firms are so out of sorts that they can’t ensure proper operation of their equipment. Shifting fossil-fueled cars to EVs will only make this problem worse.

Second, traditional automobiles represent a separate, “independent” power source. That is, if the power goes out, you can still drive your car. This dynamic supports the case for XOM stock, surprisingly making it one of the best long-term stocks to buy now.

Duke Energy (DUK)

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As a counterpoint to the above argument for XOM stock, electric power holding company Duke Energy (NYSE:DUK) and those like it will enjoy a strong burst of demand if EVs successfully steal substantial market share from fossil-fueled vehicles. With over 280 million registered vehicles in the United States, DUK stock would be one of the biggest beneficiaries of EVs.

However, even if the EV takeover doesn’t quite happen as some advertise, DUK stock presents a case for being one of the best stocks to buy for the long haul. Let’s be real: We live in a digitalized world and this trend will only increase in scope and magnitude.

This also means that we’re digitally dependent. Alarmingly, some kids today don’t know how to read analog clocks. Thus, with the ramp up in technology, it becomes even more vital to support it. Nothing will kill us quicker than turning on the switch without seeing any light.

International Business Machines (IBM)

While It Looks Good Long Term, IBM Stock Has a Bumpy Ride Ahead

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Over the past several days, one of the biggest ripples in the tech space came from Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) and its quantum computer. Impressively, its next-generation processor completed a problem in 200 seconds. That problem would have taken the latest supercomputer 10,000 years to resolve. So, why am I listing International Business Machines (NYSE:IBM) and IBM stock, and not GOOGL shares?

For starters, you typically want your buy-and-hold stocks to deliver some passive income. IBM stock currently yields a generous 4.8% dividend. In sharp contrast, Alphabet yields a whopping 0%.

Second, Alphabet’s innovation was a testing ground for many more innovations to come. And with IBM stock, you’re not just getting exposure to enterprise cloud computing platforms. Instead, “Big Blue” has its own robust quantum computing program.

Don’t get me wrong: Alphabet is very much one of the best stocks you can buy. However, IBM stock is a dividend-bearing, down-and-out investment that could chart a serious comeback. Just from a pure upside potential perspective, I believe Big Blue has much to offer.

AbbVie (ABBV)

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Despite serious political controversies, you usually can’t go wrong with big pharmaceuticals for buy-and-hold stocks. And few are as big and well known as AbbVie (NYSE:ABBV). A spinoff from Abbott Laboratories (NYSE:ABT), ABBV stock offers a generous 5.5% dividend yield. Just from that angle, this is a company worth considering.

More importantly, ABBV stock technically has exposure to the legal cannabis market. Granted, it’s a very small exposure, coming from its cannabis-based treatment Marinol. However, this one, seemingly insignificant move relative to the company’s broader portfolio has deep-seated implications.

The raging opioid crisis has negatively impacted the pharmaceutical space. And with AbbVie’s planned acquisition of Allergan (NYSE:AGN), ABBV stock is indirectly exposed to possible opioid-related litigation.

However, what the opioid crisis did was to bring to question the credibility of man-made therapies. On the other hand, Marinol’s main active ingredient is cannabis, a plant used for thousands of years.

Quite possibly, pharmaceutical companies’ slow embrace of cannabis may represent a paradigm shift in the industry. Such an exciting development makes AbbVie one of the most intriguing buy-and-hold stocks.

As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.


Article printed from InvestorPlace Media, https://investorplace.com/2019/10/7-buy-and-hold-stocks-to-play-investings-biggest-trends/.

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