As market volatility continues, it might be best to rely on Wall Street analysts. By referring to their work, you can see which stocks offer the most long-term growth.
Wall Street’s favorite stocks are those with high analyst consensus estimates, companies with the potential to grow faster than their peers and can outperform their competitors in the long run.
These companies typically have strong fundamentals, but they also tend to be more volatile than other stocks in their sector and general.
However, a word of caution, Wall Street analysts can be wrong sometimes. They are often too optimistic about their predictions and a company’s potential. The Wall Street consensus estimate is the average estimate of Wall Street analysts. It is not necessarily the most accurate, but it gives you an idea of what the market thinks about a stock.
With that in mind, let’s look at ten stocks that analysts love and which promise the most long-term growth:
- Netflix (NASDAQ:NFLX)
- General Motors (NYSE:GM)
- Walt Disney (NYSE:DIS)
- Block (NYSE:SQ)
- Apple (NASDAQ:AAPL)
- Intuitive Surgical (NASDAQ:ISRG)
- DocuSign (NASDAQ:DOCU)
- Nvidia (NASDAQ:NVDA)
- PayPal (NASDAQ:PYPL)
- Adobe (NASDAQ:ADBE)
Long-Term Growth Stocks: Netflix (NFLX)
Netflix has become a household name in the last few years and has made its mark on the entertainment industry.
Netflix is not just a movie service provider. It also provides TV shows, documentaries, stand-up comedy specials, and reality series.
The company is maintaining its growth despite the competition from Amazon (NASDAQ:AMZN) and Disney. It has approximately 222 million total subscribers and continues to dominate Nielsen ratings. As its American business saturates, the streaming company turns its attention to foreign markets.
Netflix’s business is expanding its reach to include countries like India, where the streaming market is predicted to grow rapidly in the coming years. It has proven that it can make money abroad, but it still needs to adjust its strategy for success.
Despite rivals emerging in recent years, Netflix remains the biggest streaming company globally. There are many other streaming services, but Netflix has stuck around maintaining solid long-term growth and returns. Therefore, we have excellent entry points with the tech sell-off for the company.
General Motors (GM)
General Motors has a rich history of making innovative cars that have changed the way people view automobiles.
Some believe that the auto industry will have a tough time moving from gas-fueled cars to electric ones and autonomous driving, but others think otherwise. General Motors is one such enterprise. Rather than rest on its laurels, it invests aggressively in several business areas rooted in its future.
Autonomous cars and electric vehicles are becoming increasingly more available despite the cost. Hence, GM is investing $35 billion for five years through 2025.
It is also spending roughly $6.6 billion in its home state of Michigan through 2024 to build a new EV battery cell plant and produce electric pickup trucks. It’s important to remember that this is an evolving situation. So, we are likely to have several more announcements in the coming years.
Tesla (NASDAQ:TSLA) has been an innovator, changing the auto industry with electric cars. With Tesla’s position as a company at the forefront of innovation and disruption, it makes sense to focus on them while also understanding their place in the market. Nevertheless, you have to put things into perspective.
Tesla delivered 936,000 vehicles last year, up 87% from 2020 sales. In comparison, GM sold 6.3 million cars last year. So, while GM stock might seem like yesterday’s news, it is a solid business preparing for the future.
Long-Term Growth Stocks: Walt Disney (DIS)
The Walt Disney Company recently has been making headlines as they have made several investments in the digital world to stay relevant and be sure that they are on the cutting-edge of technology.
The company is a pioneer of diversification as it has grown into many other fields like animation, television, radio, shopping centers, and theme parks. It was also one of the first companies to have its TV channel (Disney Channel).
Walt Disney is an excellent example of how a company can succeed by diversifying its business and investing in new technologies. In particular, due to the Covid-19, Disney had to pivot quite sharply to the streaming space.
Disney’s streaming service, Disney+, is a far cry from the company’s original plans to launch its cable network. However, no one denies that the streaming service has not been a rousing success. Disney+ has 129.8 million subscribers worldwide as of Q1 this year. That number will only grow from here, with the company expected to pour billions into the space.
In addition, the entertainment giant has big plans for the metaverse. Technology giants are pouring billions into the metaverse. Facebook owner Meta (NASDAQ:FB) is one of them, and Microsoft (NASDAQ:MSFT) is another. Therefore, it is not surprising that Disney is following suit. They have tapped Mike White, a Disney veteran, to lead the charge.
Overall, if you look at these recent initiatives, Walt Disney is looking ahead to the future.
Block (SQ)
Square changed its corporate name to Block last year. Jack Dorsey is rebranding the company and shifting its focus to new technologies such as blockchain.
Under the company’s corporate banner, the company has Square, Cash App, Spiral, music streaming service TIDAL, and Afterpay, the “Buy Now, Pay Later” payments business.
The biggest application in its portfolio is Square. It is a mobile payments start-up that has been around since 2009. Square’s mobile payment technology allows people to swipe credit cards on smartphones or tablets. Square is the first company to offer this service, which has become a staple in many retail stores and restaurants.
The company has had a lot of success with its service, and it is now one of the most popular payment providers in the United States.
Meanwhile, the peer-to-peer payment service, the Cash App, became Square’s bread and butter during the pandemic. Financial services are changing in the digital era. With the help of AI, financial services providers can now offer personalized and more relevant digital services to a wider audience.
Cash App is taking advantage of this secular shift. Plus, with the integration of Afterpay, the Cash App will continue to grow by leaps and bounds.
We cannot touch upon the cryptocurrency ambitions of this company at this point. It is an area they are actively pursuing, and investors should also keep their eyes on it.
Long-Term Growth Stocks: Apple (AAPL)
Apple has been a pioneer in creating innovative products that have impacted the world. It is one of the most successful companies in history, and its products have changed our lives.
Apple has proven to be very successful in several markets through its diverse range of products, including iPhone, iPad, Mac, Apple Watch, etc.
This is a company that has been able to stay ahead of the competition with its innovative products and services, releasing new products that have changed how people use technology at home and work.
Apple has been one of the top 10 tech stocks for many years and is forecasted to grow healthy. This makes it an attractive investment opportunity for many individuals looking for long-term returns.
It also is an all-weather investment, so it consistently ranks as one of the safest companies. For years, they have been ranked high in customer satisfaction rankings and keep a top AAA credit rating.
You can rest easy by investing in this one.
Intuitive Surgical (ISRG)
Intuitive Surgical is a company that has been at the forefront of robotic surgery since its inception in 1990. The company’s first product, the da Vinci Surgical System, is widely used in minimally invasive prostatectomies.
The da Vinci System has been designed with 3D cameras and sensors to track the surgeon’s movements in real-time and send them back as feedback. This allows surgeons to operate on patients without worrying about their hands slipping or moving.
It is one of the most advanced robotic systems on the market, but it is also one of the most expensive. Still, the da Vinci system has been used in hospitals worldwide for years now, providing surgeons with an alternative as an assistive tool to help them perform more complex procedures.
Apart from the da Vinci surgical systems, the company sells disposable instruments and accessories. Although the segment is not large, it contributes to overall top-line growth.
The company managed to generate revenues of $1.5 billion in its latest quarter, which is higher than the year-ago period by 17%. Out of the total number, $843 million is dedicated to the disposable instruments and accessories segment.
Long-Term Growth Stocks: DocuSign (DOCU)
E-signatures are an internet-based way of procuring signatures from different people. Since many people cannot show their signature in person, e-signatures provide a secure way for people to provide consent.
DocuSign is an electronic signature service that helps businesses and individuals sign documents electronically with no risk of losing a hard copy. It’s a cloud-based solution, making it easy to use and quick.
DocuSign’s features include e-signature, digital signatures, and document sharing. The company also offers a variety of tools for organizations to manage their contracts digitally, including the ability to create arrangements in one click.
DocuSign is a popular choice among businesses because it provides an easy way to sign documents digitally. A company can also use DocuSign to share information with customers and employees without worrying about data leaks or identity theft.
Although the concept of DocuSign is new, it was particularly profitable during the pandemic. With strict stay-at-home instructions, work had to be done remotely. Therefore, the company did very well as usage surged during the pandemic.
There was a concern that the company would not do too well after things returned to normal. Although growth has slowed down, the company is still progressing at a healthy clip.
In the fourth quarter, the company reported revenues of $580.8 million, an increase of 35% over the year-ago period. Net income increased 28% to $99.9 million, or $0.48 per share, noticeably better than the previous year’s figure. For fiscal 2022, total revenue increased by 45%, and billing increased by 37%.
We covered the ratings of three analysts that weighed in on the stock’s future. It’s an interesting read that provides more color to the numbers.
Nvidia (NVDA)
Nvidia is a company that specializes in graphics processing units. They have been at the forefront of the computer graphics industry since 1993 and have been developing new technologies to improve their products.
Nvidia has been the leader in GPU technology since its inception. It has been the most successful GPU manufacturer worldwide over the past decade, with a market share of around 83%. Nvidia’s success comes from its research and development of parallel computing technologies for GPUs.
They have developed new ways to process data that developers can use for applications such as computer games, scientific simulations, engineering, and more.
Nvidia has grown its revenue significantly by releasing new products and technologies. The company has introduced several new technologies to improve their products, such as RTX ray tracing for photorealistic rendering and deep learning supercomputers for AI applications.
It has also reduced its reliance on selling chipsets for personal computers with the release of GPUs for data centers.
In the past few years, virtual reality and augmented reality have been experiencing a surge in popularity. But, these technologies are still new, and the most interesting element of Nvidia’s future is the focus on the metaverse.
This is a world where people can be fully immersed in their realities. We have covered these developments extensively. But without getting granular, the investment in the space.
Long-Term Growth Stocks: PayPal (PYPL)
PayPal is a company that provides online payment services and online money transfers. It has been around since 1998, and it is one of the most well-known companies in the world.
PayPal is one of the most popular and reliable options to complete transactions online. It has a long history of providing services to people in countries where it might not be as easy to use other payment methods like credit cards or bank transfers. It has 426 million active users from across the globe.
PayPal allows users to send money through their PayPal account or mobile device, convenient for people who don’t want to carry cash, checks, or even cards.
Twenty or so years ago, PayPal went public. It has continued to grow and is one of the most important payment processing companies globally. However, like several tech stocks, PayPal has been under pressure this year. Therefore, for the risk-averse investor, the time to strike is now.
Adobe (ADBE)
Adobe products allow users to create content easily with color and design. Adobe also provides content-creation software like InDesign and Illustrator, which designers use to create various types of documents such as newsletters, brochures, posters, books, magazines, etc.
It is taking an aggressive approach to the digitalization of content creation. They are investing in their creative cloud and software, which makes it easy for people to create and edit documents on the go with just their smartphones. This will allow them to create more relevant & engaging marketing material with less effort.
The year thus far has not been very kind to Adobe. Due to lackluster guidance for the first quarter and the full year. The enterprise, however, is a strong one with consistent returns. As Nicolas Chahine made the case in his piece, it’s not the right time to bail on ADBE stock.
On the publication date, Faizan 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.
