6 Companies to Invest in Today for 10 Years of Growth

Advertisement

companies to invest in - 6 Companies to Invest in Today for 10 Years of Growth

Source: Shutterstock

Long-term investing is challenging during the best of economic times. But facing down an unprecedented global pandemic, it can look like a puzzle without a solution. The world has changed a lot over the past 10 weeks; which companies are the best investments for the next 10 years?

But in that statement lies the answer. Analysts from BlackRock (NYSE:BLK) say that stocks and other riskier assets remain the place to be as we navigate the severe lockdown measures that have been instituted throughout world.

And as you look at stocks, not just for the rest of this year, but for the future, you ought to consider those trends that were already emerging before the novel coronavirus outbreak, but now have become part of our everyday existence.

There’s a war on cash. E-commerce moved from being convenient to being essential. And the way we communicate with our doctor may be changing forever.

At the same time, there are some things that you can count on. Like the idea that our smartphones won’t become less important. And that good corporate leadership can keep a ship sailing smoothly when rough seas arrive.

Here are 6 companies you can look to buy now and thank yourself for in 2030.

  • PayPal (NASDAQ:PYPL)
  • Square (NYSE:SQ)
  • Shopify (NYSE:SHOP)
  • Amazon (NASDAQ:AMZN)
  • Verizon (NYSE:VZ)
  • Teladoc Health (NYSE:TDOC)

Not every company that was good to investors over the past decade will remain strong; a lot has changed in 10 weeks. But there are still plenty of ways for investors to buy into the next 10 years of stock market upside.

PayPal (PYPL)

As e-Commerce Soars, the Sky Is the Limit for PayPal Stock

Source: JHVEPhoto / Shutterstock.com

At the start of the 2010s, the 2008 financial crisis was fresh in consumer’s minds. That allowed cash to make a comeback of sorts.

But that comeback was short lived. As the bull market ran and ran, more consumers opted for the improved security and convenience of digital transactions.  And now with cash being seen as, quite literally, dirty money, consumers are making more digital transactions. This long-simmering trend is a major catalyst for PYPL stock that has exploded in response to the pandemic.

PayPal is one of the leading companies in the emerging financial technology (fintech) sector. PayPal is best known for facilitating digital payments for consumers and businesses. But PayPal has gradually expanded to look a lot more like a full-service bank. The company’s offerings include peer-to-peer fund transfer, debit cards, credit cards and small business loans.

However, PayPal is no longer alone in this space. Digital banking has become table stakes for traditional banks. But PayPal still holds a couple advantages.

First, it is an ideal form of payment in the gig economy.  PayPal is often a more convenient option than ACH transfers. And second, PayPal can be an option for a growing segment of Americans that are unbanked.

And to help capture as much market share as possible, PayPal has also introduced a new touchless feature on its mobile app. This will allow customers to use PayPal as a form of payment at places like farmers markets that may not be set up for digital payments.

Square (SQ)

Fueled by Cash App, SQ Stock Has an Impressive Long-Term Trajectory

Source: Jonathan Weiss / Shutterstock.com

Another option for investors looking to cash in on the fintech space is SQ stock. Whereas PayPal started as a peer-to-peer payment system, Square is a solution for merchants to accept remote payments for most major credit cards. The company is known for its signature square-shaped dongles that insert into a smartphone or table to allow small businesses to swipe credit cards.

And Square also has its own CashApp, which is similar to PayPal’s Venmo app. And as PayPal is moving into the touchless payment feature that allows it to compete with Square, it has some analysts concerned that PayPal and Square are on a collision course. However, the financial technology space is large, and there should be enough room for both companies to have plenty of growth.

That being said, Square faces some tough obstacles right now as many of the businesses most affected by the lockdowns are the same small mom-and-pop businesses that use its app the most. But when we’re talking about investing for the next 10 years, it’s important to remember the big picture. Some businesses will fail, but new businesses will pop up to take their place.

Shopify (SHOP)

Source: justplay1412 / Shutterstock.com

Which brings us to Shopify. Right now may seem like an odd time to invest in a stock that focuses on individuals starting a business. But when you’re considering investing for the next 10 years, you can’t be a prisoner of the moment. Shopify will benefit from the secular trend towards wider e-commerce adoption. In fact, less reliance on physical storefronts will make it more cost-effective to own and operate a business.

But in order to make these sales, businesses need websites, and that’s where Shopify comes in. The company helps stores build their own online selling presence with its suite of tools. Furthermore, Shopify is a high margin business. This means the formula for growth is very simple. As sales grow, so will profits, and by extension, so should SHOP stock.

Shopify does have some competition in this space, not the least of which will come from Amazon, specifically its Web Services division. But this is still an emerging space, meaning there is likely plenty of room for both companies to succeed.

Amazon (AMZN)

Amazon Stock Is Just Way Too Hot to Touch Right Now

Source: Sundry Photography / Shutterstock.com

Speaking of Amazon, the tech giant belongs on this list for one simple reason. The company has consistently shown that it not only looks for “what’s next” in technology, but promptly sets out to become a major player in that space. And that’s why investors in AMZN stock can continue to look forward to growth.

While many investors were trying to find the next Netflix (NASDAQ:NFLX), Amazon was building a streaming movie service, Amazon Video, that is now the second largest in the world. And as streaming content continues to become a larger part of our lives, Amazon will also see increased relevance through its videogame streaming service, Twitch.

But that’s not all. From expanding into cloud computing to their initiatives in artificial intelligence, the company simply continues to find ways to branch out and not only be a player, but an impactful player.

And as much as Amazon continues to grow, they still behave like a start-up in the way they reinvest profits. But the thing about Amazon is that they make it work.  And don’t forget the e-commerce element. Amazon has only become more relevant as millions of Americans are stuck at home.

Verizon (VZ)

5G stocks

Source: Ken Wolter / Shutterstock.com

The case for VZ stock is undoubtedly about 5G. But since the outbreak of the Covid-19 pandemic, the company is also seen as the key to enabling work-from-home solutions such as those by Microsoft (NASDAQ:MSFT) and Zoom Communications (NASDAQ:ZM). These are key to not only keeping businesses productive but in enabling social distancing in non-work settings besides.

In the short-term, Verizon may lag behind some other stocks, as many Americans are cutting expenses. But the wireless bill is going to get paid regardless. Smartphones and tablets have become the window to the world. And that isn’t going to go away anytime soon.

Investors are taking note. VZ stock was down almost 20% after the sell-off sparked by the Covid-19 pandemic, but has since nearly recouped that loss. In fact, the company looks poised to charge higher for the rest of 2020 and beyond.

And Verizon is a good stock for value investors as well. The stock has increased its dividend in each of the last 15 years, with a payout ratio of just over 50%.

Teladoc Health (TDOC)

Source: Piotr Swat / Shutterstock.com

Going to the doctors may never be the same again. Before the novel coronavirus dropped the words “asymptomatic carrier” into our daily vocabulary, many people were afraid of going to the doctors. This was particularly true of senior citizens, many of whom are the ones most in need of these services.

But now, consumers are frightened a trip to the doctor could leave them even sicker than when they arrived. Enter Teladoc Health.

The idea is simple. Patients can get round-the-clock access to licensed physicians who can advise them about medical conditions. Parents with young children no longer have to make the decision between waking up their (hopefully) on-call pediatrician or relying on what they read on WebMD.

There is no doubt that the Covid-19 pandemic is helping Teladoc Health thrive at the moment. But this is no flash in the pan. As America returns to a “new normal”, it is likely that many patients will continue to use the service.

That’s because, beyond the safety aspect, Teladoc taps into something that patients have always known. Neither house calls nor office visits are always necessary. Sometimes all you need is some reassurance that what you’re doing is right. And that can be handled with a phone call.

If you need further convincing, other companies such as Zoom are trying to get into this space. But Teladoc has a significant first mover advantage that should serve TDOC stock well.

Chris Markoch is a freelance financial copywriter who has been covering the market for over five years. He has been writing for InvestorPlace since 2019. As of this writing, Chris Markoch did not hold a position in any of the aforementioned securities.

Chris Markoch is a freelance financial copywriter who has been covering the market for over five years. He has been writing for InvestorPlace since 2019.


Article printed from InvestorPlace Media, https://investorplace.com/2020/05/6-companies-to-invest-in-today-for-ten-years-of-growth/.

©2024 InvestorPlace Media, LLC