Promising long-term stocks offer the potential for outsized returns. Unlike short-term trades, long-term investing harnesses the power of time and compound growth.
It requires both patience and a selective eye, favoring companies with sound fundamentals and strong growth prospects over fleeting trends. Identifying those stocks that will reward investors over decades is the key to building wealth in the stock market. With careful analysis, investors can position their investment portfolios for sustained prosperity over the long haul.
Now, let’s discover the three most promising long-term stocks to snap up in 2024!
Alphabet (GOOG, GOOGL)
Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) should be at the top of your buy list when considering the most promising long-term stocks to buy in 2024. The company is making serious strides in artificial intelligence (AI), and its growth in Google Search and YouTube should not be ignored.
Google holds a powerful position in search giving the company a massive advertising revenue engine. It holds more than 90% search engine market share, making it well-positioned to capitalize on the tailwinds in generative AI. The company also has a treasure trove of data, fueled for AI development that could further bolster its revenue and market share. Additionally, Alphabet continues to advance its LLM, Gemini Ultra, which boasts superior capabilities over its competition. But what got investors excited is GOOG’s recent announcement of its new Arm-based AI CPU. This will be a game-changer, set to compete directly with Microsoft’s (NASDAQ:MSFT) and Amazon’s (NASDAQ:AMZN) custom chips for advanced AI applications.
Walmart (WMT)
Walmart (NYSE:WMT) stock helped revolutionize retail with its ‘’everyday low prices’’ model and sprawling supercenters. Despite its size, the company has adapted well to changing dynamics, pushing aggressively into e-commerce and other omni channels.
Walmart’s robust and diversified business model serves as a solid foundation for long-term growth and stability. As the world’s largest retailer, Walmart operates a vast network of stores catering to a wide range of consumer needs. The approach helps mitigate risks associated with fluctuations in any single segment of the retail industry. Furthermore, its pricing power and sheer scale of operations, both physical and online, are a huge competitive advantage. In Q4 FY24, revenue accelerated 5.7% year-over-year (YOY), with operating income up 30.4% for the quarter. Global e-commerce sales were up 23%, surpassing $100 billion for the first time. With a recent 9% hike in WMT’s annual dividend, the stock remains one of the best long-term stocks to buy now.
Deere & Co (DE)
Deere & Co (NYSE:DE), known for its green and yellow tractors, is a force in agricultural and construction equipment. The agricultural sector is vital for maintaining human life and is relatively a safe haven stock for more conservative investors.
Deere has delivered strong top and bottom-line growth over the last 3 years, driven by strong demand for agricultural equipment. The company has averaged about 20% revenue growth and 63% EPS growth over the same period. It remains well-positioned to benefit from the Infrastructure Investments and Jobs Act, as well as the long-term growth of global infrastructure spending.
Furthermore, Deere’s strong cash flow generation and high return on equity (ROE) demonstrate its ability to effectively manage shareholder equity to drive profitable growth. The company has also shown a commitment to returning cash to shareholders, showcased by its 10% CAGR in its dividend over the last decade. That makes DE stock one of the best promising long-term stocks set to make early investors rich.
On the date of publication, Terel Miles did not hold (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.
