Over the past 25 years, certain stocks to buy have topped the charts and had undeniably incredible gains. Monster Beverage’s (NASDAQ:MNST) and Apple’s (NASDAQ:AAPL) gains have been a direct result of adapting their business to meet changing consumer choices. This can be seen in Apple’s yearly technological developments or Monster’s recent release of alcoholic beverages.
It’s conceivable that either one of these could be the top stocks to buy for the next 25 years.
However, while I love both businesses, selecting three other stocks to buy that look to achieve market-beating returns over the next 25 years makes sense.
Here are my choices.
Celsius Holdings (CELH)
Celsius Holdings (NASDAQ:CELH) is the modern version of Monster Beverage. In November 2020, I suggested that the functional drink maker was a micro-cap stock to buy and hold for the next 10 years. It’s up 432% in the three years since.
In my article, I pointed out that the company’s gross margins were 45.8%, about 15 percentage points less than Coca-Cola (NYSE:KO). However, I expected them to improve as they gained scale in the U.S. and elsewhere.
Celsius’s gross margins in Q2 2023 were 48.8%, 1,030 basis points higher than a year earlier. Coca-Cola’s Q2 2023 gross margins were 59.4%, closing the gap by 360 basis points. I expect the gap to continue to shrink over the next three years.
In the first six months of 2023, the company’s revenues were $585.8 million, 104% higher year-over-year. It will undoubtedly exceed $1 billion in annual sales by the end of 2023. More importantly, its net margin in the second quarter was 12.5%, up considerably from 6.0% a year ago.
And let’s not forget the investment and distribution partnership PepsiCo (NASDAQ:PEP) signed with Celsius in August 2022. Pepsi invested $550 million in the company and became its official U.S. distributor.
This has Monster success written all over it.
Nvidia (NVDA)
My biggest concern with picking Nvidia (NASDAQ:NVDA) is that CEO and co-founder Jensen Huang won’t be around for 25 years. He’s easily one of America’s best CEOs.
In September 2021, I said that Huang was America’s most influential CEO, pointing out that a $10,000 investment in the chip designer in its January 1999 IPO was worth $8.5 million. Fast forward to 2023, and it’s more than doubled to approximately $17 million.
The company’s push into artificial intelligence (AI) hit a bit of a speed bump recently when the U.S. federal government announced new restrictions on American firms exporting AI chips to China.
Nvidia’s slower versions of the H800 and A800 chips were added to the list of restricted exports. On October 17, CNBC reported that U.S. Commerce Secretary Gina Raimondo’s commented: reporters on October 17.
“The updates are specifically designed to control access to computing power, which will significantly slow the PRC’s development of next-generation frontier model, and could be leveraged in ways that threaten the U.S. and our allies, especially because they could be used for military uses and modernization.”
As a result, NVDA shares dropped on the company’s admission that sales would fall in the long term. Frankly, it will be a blip on the radar, given Nvidia’s dominance in AI-related chips.
It’s going to be just fine.
Procore Technologies (PCOR)
Procore Technologies (NYSE:PCOR) is a leading provider of construction management software. The company’s software has helped complete more than $1 trillion in construction projects.
With $14 trillion in construction spending estimated in 2025, the company has a significant opportunity to capture a big chunk of this spending.
Like most software businesses, AI is a big part of the selling proposition. On September 19, Procore announced the launch of Procore Copilot, which uses AI to enable its customers to automate processes on the Procore platform. CEO Tooey Courtemanche stated in the press release:
“By leveraging artificial intelligence, we’re able to reflect this data back to our customers in the form of valuable insights to not only help them solve issues quickly, but to anticipate them before they happen.”
According to its press release, 18% of project time is spent searching for data, dramatically reducing efficiency.
As its September Investor Presentation highlights, the company has over 15,700 customers using its software platform, with more than a million monthly web users. That’s growing dramatically.
In Q2 2023, Procore added 615 net new organic customers, generating revenue of $229 million, 33% higher than Q2 2022. For 2023, it expects revenue of at least $921 million, 28% higher than in 2022. While it will lose money in 2023, look for it to become profitable in 2024 and beyond.
Although PCOR stock is up 40% year-to-date, it’s sideways from its May 2021 IPO price of $67, so you still have time to get on board this option in stocks to buy.
On the date of publication, Will Ashworth 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.
