3 Long-Term Stocks to Buy Now: Q2 Edition


  • Patient investors should target these long-term stocks to buy now.
  • Rio Tinto (RIO): Rio Tinto is an indirect play on myriad compelling industries.
  • Agco (AGCO): Agco represents a vital cog in the global food supply chain.
  • New Fortress Energy (NFE): New Fortress Energy could command relevance under the current geopolitical backdrop.
Long-Term Stocks to Buy Now - 3 Long-Term Stocks to Buy Now: Q2 Edition

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While the equities market offers a variety of engagement opportunities, arguably the best approach is to consider long-term stocks to buy now. Why the urgency? Basically, you need time for certain ideas to marinate properly.

Unlike betting on penny stocks or options plays, running the market’s equivalent of the marathon involves patience. You will probably not score right away. Instead, like a cagey football match, you just might have to grind out a W. However, in order to win a race, you first have to finish the race. And that’s why you need to get involved now so that you can eventually win later.

So, if you have the proper mentality, below are long-term stocks to buy now.

Rio Tinto (RIO)

Production of copper wire, bronze cable in reels at factory.
Source: Parilov / Shutterstock.com

One of the powerhouses in the basic materials sector, Rio Tinto (NYSE:RIO) engages in exploring, mining and processing mineral resources worldwide. Per its public profile, the company operates through Iron Ore, Aluminium, Copper and Minerals Segments. Fundamentally, Rio Tinto is exciting because it’s an indirect player for myriad relevant industries.

For example, the company may be best known for its copper production. As it turns out, the metal is a vital resource for the green and renewable energy sector. So, if you anticipate growth in renewables, acquiring RIO stock could be a shrewd idea.

However, the market isn’t exactly thrilled with the mining specialist. Since the start of the year, RIO has lost almost 12% of equity value. Still, this dynamic also makes shares an intriguing contrarian wager. Currently, the security is priced at a forward earnings multiple of 8.63X, lower than the sector median 15X.

If that wasn’t enough, analysts rate RIO stock a unanimous strong buy with a $79.50 average price target. That implies 21% upside potential, making it a solid choice for long-term stocks to buy now.

Agco (AGCO)

An image of AGCO's website, with a magnifying glass over the company logo.
Source: Pavel Kapysh/ShutterStock.com

A major player in the industrial arena, Agco (NYSE:AGCO) focuses on farm and heavy construction machinery. Per its corporate profile, Agco manufactures and distributes agricultural equipment and related replacement parts worldwide. Some of its specialties include tractors for crop production and grain storage bins. As an indispensable component of the food supply chain, AGCO offers a great idea for long-term stocks to buy now.

However, the market currently sees things differently. Since the beginning of the year, AGCO incurred a loss of 4%. In the past five sessions, it’s down almost 5%. Still, that makes the value proposition all the more enticing. Right now, shares trade at a trailing-year earnings multiple of 7.49X and a trailing-year sales multiple of 0.6X. Both stats are considered discounted relative to the underlying industry.

Granted, analysts anticipate a decline in both earnings and sales for fiscal 2024. However, that seems a bit harsh considering that in 2023, the company posted an average positive earnings surprise of 14.83%. Plus, the experts peg shares a moderate buy with a $140.50 price target, implying 20% upside potential.

New Fortress Energy (NFE)

Large tanker ship carrying natural gas at dusk in harbor
Source: shutterstock.com/Wojciech Wrzesien

Easily the riskiest idea on this list of long-term stocks to buy now, New Fortress Energy (NASDAQ:NFE) operates as an integrated gas-to-power energy infrastructure company that provides energy and development services to end-users worldwide. The company operates in two segments, Terminals and Infrastructure and Ships. With hydrocarbons garnering much focus due to the geopolitical environment, NFE could be cynically intriguing.

However, the market isn’t thrilled with the idea – not in the slightest. Since the start of the year, NFE stock plunged almost 26%. In the trailing one-year period, it has gone nowhere, losing about 9%. Given the scale of the volatility, investors may want to wait until the $26 level before moving in.

Still, New Fortress attracts attention because of its valuation. Shares are priced at 10.42X trailing-year earnings, lower than the sector median 14.53X. Even better, analysts are looking at this fiscal year’s earnings per share to hit $3.62. If so, that would be well above last year’s print of $2.65.

Also, projected sales of $3.57 billion could land nearly 48% higher than 2023’s haul of $2.41 billion.

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.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.

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