There were many tickers that made headlines this year, and today we examine a few stocks to buy that are worthy of holding into the next decade. Boeing (NYSE:BA), Uber (NYSE:UBER) and Canopy Growth (NYSE:CGC) are three that could yield tremendous profits in the future.
All three stocks have two things in common: They are battling tremendous negative rhetoric, and they are out of favor on Wall Street. Also, all three are lagging the averages badly, with CGC and UBER at around 30% this year.
However, most investors are focusing on the short-term hurdles instead of looking past them and seeing the tremendous potential ahead. The idea here is to hold BA, CGC and UBER stocks for years and let time heal the current wounds plaguing them now.
So, let’s take a look at each company individually to see why you should get in now in order to reap the benefits for the next decade.
Stocks to Buy and Hold Into the Next Decade: Canopy Growth (CGC)
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CGC stock has done better than most of its competitors. The sector is still in the throws of a major correction that started in October 2018. While the rest of the stock market overcame that correction and are now in all-time highs, the pot stocks are still depressed.
In addition to the macro-headline difficulties, it has been almost nothing but bad news on their fundamentals. Not so much specific results, but rather a collection of tidbits that is causing the obstacles to linger. Canopy Growth and the rest of the Canadian Cannabis cohort also still have to overcome more walls than normal since cannabis is still illegal in most U.S. states.
Nonetheless, all hope is not lost. The future of the cannabis industry is still viable. And, among these companies, Canopy Growth has the best odds of success perhaps thanks to the cash infusion from Constellation Brands (NYSE:STZ). This company has served not only as a financial lifeline for CGC, but also added a legitimacy factor that undoubtedly opened doors for Canopy faster than its competitors.
So, if the assumption is that cannabis will be a growth sector long term, then CGC stock is the stock to hold into the next decade. Meanwhile, it doubles as a great trading vehicle for the active traders — but that is a topic for another day.
Uber (UBER)
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Most investors when debating the viability of UBER stock consider only the people transport aspect of it. They also bring up the challenges that it and Lyft (NASDAQ:LYFT) have with their classification of their drivers, but this is only scratching the surface of UBER.
It is very different from LYFT, as it is global and has aspirations of being like an Amazon (NASDAQ:AMZN). UBER is looking like a company that will have dozens of major income streams among which there will be a few cash cows. They are already on their way, as they now have several legitimate opportunities with Uber Eats, Uber Freight and more.
Therefore, judging it by today’s metrics is making short term decision — while the biggest opportunity lies in holding UBER stock for the next decade. Yes, they spend a lot of money, but so did Amazon and it too drew fire from critics and shorts.
However, it prevailed in the end and UBER can also do the same. Only time can tell, and that is exactly the point we are making today. The best opportunities are not always so obvious, and the potential is here for Uber and it’s worth a look.
Boeing (BA)
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Boeing is under tremendous scrutiny from regulators and the general public — but not without cause. After two tragic crashes, management has failed to win over the public opinion that they admit any fault and that they will make it right going forward. However, some movement was made earlier this week when the company cut ties with now-former CEO Dennis Muilenburg.
Overall, BA stock is struggling to gain traction on Wall Street. But, that’s the opportunity.
The fact that after such tremendous trepidation, BA stock is still holding up relatively well and still slightly positive on the year shows that investors are itching to buy it again.
This is a company that has had decades of tremendous cash generation, but now all these aces that made the stock great to own are under threat. Earlier this year, the company finally halted production of their 737 Max model while they await its clearance for flight.
So, this is the emblem of today’s opportunity. BA’s one model release date is the definition of short term. Unless the assumption is that Boeing will fall apart from here, these are short-term hurdles that eventually will be gone. It will take time to rebuild the momentum, but with a long backlog of orders in a duopoly, BA can do it.
Time is the one ingredient all of today’s stocks need more than anything else. Otherwise, each has its own set of reasons why the long-term future should be bright.
Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. Join his live chat room for free here.
