With the U.S. equities sector commanding a long-term upward bias, many financial experts recommend investors focus on powerful long-term growth stocks that can likely stand the test of time. Further, it might be time to do away with listening to guidance from random YouTube channels and instead listen to the real luminaries on Wall Street.
Prior to the coronavirus pandemic, the personal finance industry bemoaned that millennials in particular were not investing for the future. Now, seemingly everyone is a Gordon Gekko, which poses its own set of challenges. Largely, novice investors have chased incredibly speculative fare while not spending a proportionate amount of attention toward viable long-term growth stocks.
That might soon change, with Wall Street top dogs eyeballing particular companies that can withstand the current inflationary — and potentially recessionary — pressures. To be fair, even the best analysts get it wrong. However, in troubled waters, you’ll want to listen more carefully to those who have the certified qualifications to assess the markets.
With that, here are the seven long-term growth stocks that Wall Street analysts still love.
|BAC||Bank of America||$32.2|
Ambarella (NASDAQ:AMBA) is a fabless semiconductor design company, which is a type of technology firm that designs microchips but contracts out the actual production to other companies (called semiconductor foundries).
Currently, Ambarella is best known for its artificial-intelligence-based processors for edge applications. As a result, the company has significantly powerful implications for connected innovations such as the Internet of Things.
Of course, the broader tech sector has been one of the heaviest hit among economic categories due to Covid-19. With supply chains snarled and geopolitical tensions threatening further disturbances, AMBA has understandably not been a great investment. Since the start of the year, it’s down a whopping 68%.
So, why on Earth is Needham’s Quinn Bolton optimistic about Ambarella? Ultimately, Bolton believes the procurement issues hurting the semiconductor firm are temporary, with supply chain challenges possibly cooling down in the second half of this year. If so, AMBA could be an excellent contrarian candidate among long-term growth stocks to buy.
As an athletic apparel retailer, Lululemon (NASDAQ:LULU) had surprising relevance during the worst of the Covid-19 pandemic. It’s just like a December 2020 op-ed from the Washington Post stated: the new normal was “our pajama moment.” So, out with the office attire and in with whatever we were comfortable wearing.
However, circumstances might be changing. Over the past few months, an increasing number of companies have asked their employees to return to the office. Most notably, Elon Musk of Tesla (NASDAQ:TSLA) wrote a rather scathing view of telecommuting, saying basically that building the best business in the world can’t happen by phoning it in.
Although LULU is down 27% on a year-to-date basis, it appears the volatility in the trailing month has died down. Further, Guggenheim analyst Robert Drbul is encouraged by Lululemon’s strong first-quarter 2022 earnings print, along with the company’s international expansion efforts. Certainly, the latest technical performance suggests LULU could be one of the best long-term growth stocks to buy.
A specialist in graphics processing units (GPUs), Nvidia (NASDAQ:NVDA) enjoyed two distinct phases of the new normal. First, throughout 2020, Nvidia benefitted from the surge in video game sales. With billions of people across the world stuck in their homes at one point or another, gaming provided much-needed stress release.
Then, in the following year, the cryptocurrency boom rocked the globe. As you probably know, Nvidia’s GPUs are very popular for crypto-mining operations or the process to mint new digital assets. Unfortunately, 2022 came around and provided a sharp dose of reality. As I write this, NVDA finds itself down nearly 42% YTD.
Investors shouldn’t fear though. That’s according to the implications of Evercore ISI analyst C.J. Muse’s “buy” rating on NVDA, who has a price target of $300. Must believes shares will soon reach a bottom, with multiple catalysts — such as AI technologies — providing an upward catalyst. Since it’s difficult to imagine automation-related research going out of style, NVDA makes for an interesting name among long-term growth stocks to buy.
Marvell Technology (MRVL)
A semiconductor producer and a developer of related innovations, Marvell Technology (NASDAQ:MRVL) under ordinary circumstances would easily qualify as one of the best long-term growth stocks to buy. With solutions geared toward some of the most groundbreaking industries such as 5G, connected vehicles and data centers, Marvell keeps the lights running for our 21st century economy.
However, because of its dependency on stable global supply chains, MRVL stock has suffered significantly. Since the start of this year, it’s down 48%, essentially giving up all the gains made in 2021. Still, all hope is not lost, especially because the company posted a solid Q1 earnings report. During that disclosure, management provided an upbeat guidance for the near term.
Moreover, Deutsche Bank analyst Ross Seymore reiterated a “buy” rating on MRVL, who was particularly encouraged with the underlying firm’s data center business. This segment should accelerate into the second half of fiscal year 2023, based on the strengths of Marvell-specific design elements.
One of the titans of American economic power, Amazon (NASDAQ:AMZN) has grown synonymous with e-commerce, in much the same way that internet search has become interchangeable with Google from Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL). That kind of influence alone will afford you solid gains in the capital markets.
Of course, the Covid-19 situation represented a fortuitous catalyst for AMZN. Data from the U.S. Census Bureau demonstrated that its peak in Q2 2020, e-commerce as a percentage of total retail sales hit 16.4%. Since then, however, this metric has waned. As well, inflationary pressures have not exempted online retailers and marketplaces, thus putting the hurt on AMZN stock.
Nevertheless, at least a few Wall Street analysts believe it’s worthy to be considered among the best long-term growth stocks to buy. Per Jefferies analyst Brent Thill, evidence points to Amazon not losing market share to its core rivals Walmart (NYSE:WMT) and Target (NYSE:TGT). Instead, a changing consumer economy has equally hurt retailers across the board.
However, Thill believes that conditions can start changing positively as early as the second half of this year. If so, AMZN is one to watch.
When the Covid-19 crisis first struck the U.S. and western economies, the natural tendency was to assume that all consumer discretionary companies will suffer severely.
Rather than buying the latest gizmos and gadgets, people were stomping on each other for toilet paper. Indeed, even mighty Apple (NASDAQ:AAPL) — like most other publicly traded securities — succumbed to the spring 2020 doldrums.
Soon after, though, AAPL soared. Bolstered by unprecedented government stimulus programs, the American consumer quickly got back on its feet. Further, the push to normalization helped lift Apple sales. Unfortunately, this year tells a different tale, with the stock down almost 20% YTD.
Despite some ugly headwinds — primarily supply chain constraints and soaring inflation — Deutsche Bank analyst Sidney Ho is optimist, reiterating a “buy” rating (though trimming the price target to $175 from $200). Interestingly, Apple did not provide guidance for its fiscal Q3 but Ho anticipates low single-digit year-over-year growth.
In addition, Apple in Ho’s assessment is performing as well as (if not better) than its mega-capitalization peers. Therefore, AAPL’s sheer influence could make it one of the long-term growth stocks to buy.
Bank of America (BAC)
Financial institutions like Bank of America (NYSE:BAC) are tricky investments in conditions such as the one we’re in today. On one hand, an environment of rising interest rates is good for BofA’s business since it enhances the profitability of its lending services. But on the other hand, rising borrowing costs disincentives’ taking business risks.
Frankly, on a related note, you can see that with declining demand for mortgages. Why bother taking out a major loan when it’s going to cost you dearly on a monthly basis?
Well, RBC Capital analyst Gerard Cassidy has an opposing take. In a recent research note, Cassidy stated, “As a result of the expected increases in short-term interest rates, we increased our net interest income estimates which were more than offset in 2022 by lower than expected investment banking revenues but only partially offset in 2023.”
Further, Cassidy argued that historically, monetary and fiscal policies resulted in higher core deposits for BofA. It’s one of the riskiest long-term growth stocks to buy but if you believe Cassidy, BAC should be on your radar.
On the date of publication, Josh Enomoto 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.