Anytime you bring up the concept of “forever stocks,” you’re running the risk of incurring a serious tail risk. Obviously, forever is a long time – long enough for something to go wrong. Still, certain entities stand out because they basically command permanent relevance.
To be sure, my ideas for forever stocks are boring – there’s no way getting around that. And while I could elect some spicier enterprises, here’s the problem: I just don’t know if such entities would be around for the long haul. Even something as vaunted as Tesla (NASDAQ:TSLA) could collapse. I’m not saying it will. But it’s not entirely out of the realm of possibility.
Instead, I focused on companies that I’m confident will be around when you and I will no longer be on this Earth. I don’t want to turn this discussion into a macabre narrative but that’s where my mind is. On that note, below are high-conviction forever stocks to consider.
Waste Management (WM)
When it comes to forever stocks to add to your portfolio, Waste Management (NYSE:WM) is about as close to a no-brainer as you’re going to get. Frankly, with the advent of generative artificial intelligence platforms, I discovered that I don’t know much about the world. And so, predicting what would be the best technology growth stock 30 years down the line would be a fool’s errand (with all due respect to those with crystal balls).
However, whatever the world looks like decades or even centuries from now, I’m virtually 100% certain we will produce waste. And somebody will have to manage the rubbish, which is why WM is so appealing. According to a report from WWF International a few years back, the amount of plastic waste in the world’s ocean may hit 300 million tons by 2030.
You’re probably not going to get rich speculating on WM. But would I personally feel comfortable with WM in my portfolio? You can abso-freakin’-lutely bet I would.
Unsurprisingly, analysts rate WM a moderate buy with a $183.20 target, implying almost 12% upside.
Perhaps the most controversial idea on this list of forever stocks to consider, Chevron (NYSE:CVX) will likely raise eyebrows. Sure, we all know that hydrocarbons remain relevant at the present juncture. Even with gasoline prices skyrocketing, that hasn’t fueled demand for electric vehicles. Indeed, we’re seeing the opposite situation: dealerships report EV inventories piling up, reflecting broader pressures against the consumer economy.
Eventually, though, such pressures should abate. To be blunt, I have zero idea when that recovery point will materialize. But this too shall pass, meaning that Chevron’s days as a hydrocarbon giant may be numbered. With so much political and ideological fervor pushing sustainability protocols, an integrated oil and gas stalwart appears anachronistic. Still, I’m getting doubts about the new energy directive.
Yes, the future may be electric. But when will that be? No one knows. In the meantime, increased consumption from a robust workforce along with population gains means we need energy now.
Chevron fits the bill and analysts like it, pegging it a moderate buy. Also, the price target stands at $183.44, implying over 27% growth.
Formerly under the consumer healthcare unit of Johnson & Johnson (NYSE:JNJ), following a spinoff, Kenvue (NYSE:KVUE) represents its own entity. What I appreciate about the company is that it features myriad personal care brands, from diverse products such as Aveeno, Band-Aid, Tylenol and Visine. To be sure, both J&J and its spinoff represent strong ideas for forever stocks. However, Kenvue might have an edge.
While J&J will now focus on pharmaceuticals and medical technologies, the reality is that not all can afford such innovations. And I’m not going to presume what the economy will be like decades from now. However, if the rise of the unhoused population is a barometer, circumstances might not be so swell. On the flipside, everyone will get the sniffles and can afford over-the-counter meds.
Also, one of Kenvue’s most important products is Imodium. I can’t predict what the next big pandemic will be and whether J&J can develop a vaccine for it. But the runs? Someone has that right now.
Indeed, analysts are running to KVUE, rating it a moderate buy with a $24.89 target, implying nearly 32% upside.
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.