7 Stocks to Buy Now or Regret It for the Next Decade

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  • Boeing (BA): The aerospace titan won’t be knocked down so easily despite near-term bearishness.
  • Crocs (CROX): This comfy footwear brand resonates with Gen Z and is seeing international growth.
  • Shopify (SHOP): The surging merchant base could help the stock rally more.
  • Read more about the top stocks to buy for the next decade!
stocks to buy for the next decade - 7 Stocks to Buy Now or Regret It for the Next Decade

Source: Vova Shevchuk / Shutterstock.com

If you’re looking for stocks to buy for the next decade, there are a lot to choose from, especially if you’re looking to buy on weakness. After all, buying on weakness can often help you realize outstanding returns over the long haul.

In addition, companies that have a well-established customer base and offer products with staying power are unlikely to disappoint in the long run. A big plus is if they have megatrend tailwinds that will boost them even further in the next 10 or so years. Here are seven such stocks to buy for the next decade.

Boeing (BA)

BA stock: a blue and white Boeing 787 flying in the sky above the clouds
Source: vaalaa / Shutterstock

Boeing (NYSE:BA) has been one of the hardest-hit stocks.

Year to date, for example, it’s down about 29%. All thanks to news its planes were having severe maintenance issues. Worse, there were valid criticisms of how the company manufactures its planes and the potential negligence in the production line. These criticisms gave birth to even more trouble for Boeing, with two whistleblowers dying within a short span of each other.

The good news, though, is that with most of the negativity firmly priced into the Boeing stock, it created a buying opportunity. After all, Boeing is one of the world’s biggest suppliers of commercial passenger aircraft.

Also, at a time when China is expanding its own Boeing copy “COMAC,” I find it hard to believe that Boeing will not receive lots of support going forward. There are no big financial problems here, and once rate cuts kick in, I expect the stock to significantly outperform.

BA EPS. stocks to buy for the next decade
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Source: GuruFocus

Crocs (CROX)

The front of a Crocs (CROX) store in Chiang Mai, Thailand.
Source: Wannee_photographer / Shutterstock.com

Crocs (NASDAQ:CROX) is a company that is very popular with the younger generation. This is primarily why I think CROX could perform well going forward.

Since recommending CROX in mid-2022, it’s up 160%. However, I still strongly believe it can return even more in the next decade.

Helping, analysts believe EPS expansion will be around 8-9% annually going forward, along with mid-single-digit revenue growth in the next few years. These aren’t stellar numbers by any means. However, I still expect it to outperform those expectations, just as it has in every quarter since Q2 2020. It has also made smart acquisitions, like HEYDUDE. Plus, cash flow growth for CROX has been impressive.

crocs cash flow. stocks to buy for the next decade
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Source: GuruFocus

In my opinion, international markets will be where Crocs shines the most in the coming years. In Q4, International Crocs revenue jumped 24.9% to $261.2 million. DTC revenue soared 40.0%, while wholesale revenue jumped 18.3%. Asia revenue jumped 36%, with Europe up 16%.

Shopify (SHOP)

Shopify on the phone display.
Source: Burdun Iliya / Shutterstock.com

Shopify (NYSE:SHOP) is an e-commerce company that is also up triple digits since I first started covering it. And, again, I see a lot more gains going forward. E-commerce is certainly the future, and more businesses are expanding their outreach by listing their products online.

A lot of small and mid-sized businesses use Shopify for this. Granted, they can use Amazon (NASDAQ:AMZN) for this, but Shopify allows businesses to have their own dedicated e-commerce sites.

SHOP revenue. stocks to buy for the next decade
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Source: GuruFocus

A metric that makes me really bullish is the merchant count. Shopify’s merchant count is growing fast, and so is the volume. Analysts expect EPS to grow over 5X from $1 to $5.4 from 2024 to 2033, along with revenue growing from $8.6 billion to $35.1 billion in the same period. I think the current premium for the stock is worth it with this sort of growth. FCF was $905 million in 2023 compared to -$186 million in 2022.

SHOP FCF. stocks to buy for the next decade
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Source: GuruFocus

Advanced Micro Devices (AMD)

Sign of AMD office in Markham, Ontario, Canada. Advanced Micro Devices, Inc. is an American multinational semiconductor company.
Source: JHVEPhoto / Shutterstock.com

Advanced Micro Devices (NASDAQ:AMD) has been one of the biggest winners since 2022. It’s also one that could continue to deliver stellar returns over the next decade.

The stock checks all the boxes. First, this is a company that is well-positioned to exploit the biggest tech breakthrough we’ve seen in decades, which is artificial intelligence (AI). Some even think the AI windfall will end up being bigger than the internet.

The second is that this company is sort of like the underdog here, and AMD already has a lot of experience being the underdog. AMD is currently lagging behind Nvidia (NASDAQ:NVDA) in the AI chips sector just as it was lagging Intel (NASDAQ:INTC) a few decades before in the CPU sector.

AMD is working on AI chips that can rival those of Nvidia in the next few years and already has MI300. In my view, AMD can repeat history and dethrone Nvidia in the AI chips space just as it managed to crack Intel’s CPU dominance. Even if it doesn’t, you’re unlikely to see losses with a company like AMD.

United Airlines Holdings (UAL)

a picture of an airplane flying with the sun in the background. Airline Stocks to Buy and Hold
Source: Shutterstock

United Airlines (NASDAQ:UAL) is one of the biggest airline companies, and it almost doubled its debt load from $20.5 billion in 2019 to $39.4 billion in 2021.

Taking on this much debt to keep the business afloat was a necessary evil. Unfortunately, it also created substantial long-term issues. For example, with sky-high interest rates, the company has been forced to pay ~$430 million in interest expenses every quarter on average since Q3 2020. This has put a dent in profits. However, the company has been recovering very well and paying off debt despite this pressure.

UAL interest expense. stocks to buy for the next decade
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Source: GuruFocus

Debt is down to $32.3 billion as of Q1, with $14 billion in cash. Moreover, the three-year free cash flow growth rate is at 66.6%. In addition, the three-year sales growth rate is 43.3%. I think this is a remarkable rebound, which should translate into the stock bouncing much higher in the coming years as well.

Tesla (TSLA)

Tesla (TSLA) Service Center. Tesla designs and manufactures the Model S electric sedan IV. Tesla layoffs
Source: Jonathan Weiss / Shutterstock.com

Tesla (NASDAQ:TSLA) is a controversial pick, but I find it hard to believe that this company won’t deliver stellar gains if you hold it for the next decade. It is going through near-term weakness mainly due to rate hikes that have caused many consumers to pull back on big-ticket purchases that involve borrowing. Once rates come down, we should see a rebound in sales and the momentum should continue.

Tesla sales estimates. stocks to buy for the next decade
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Source: GuruFocus

The thing that makes me really bullish about Tesla is that there is simply no competition here in the West. Many Chinese EV companies and startups are doing well right now, but those are unlikely to ever dominate the U.S. market. The EV startups that are in the U.S. are burning billions in cash with no light at the end of the tunnel. Tesla looks like the obvious winner in the EV space.

BofA Securities analyst John Murphy upgraded their rating to buy from neutral and affirmed a $220 price target. Morgan Stanley analyst Adam Jonas maintained an Overweight rating and a $310 price target.

Ouster (OUST)

Graphic demonstrating self-driving car technology
Source: Shutterstock

Ouster (NYSE:OUST) is also an indirect automotive pick, but the stock can benefit from the booming robotics market as well. It is a lidar supplier and it has been delivering robust gains recently. The stock is up 120% in the past year and I think it can deliver quadruple-digit gains in the next decade if the stars align.

Lidar is better than radar and camera technology but is prohibitively expensive for automakers to adopt. However, lidar costs have been coming down, and many companies are trying it out.

In my opinion, if the current trajectory continues, costs could come down enough for it to be adopted more widely. Ouster is expected to see its revenue grow from $116.2 million in 2024 to $2.2 billion in 2030. It is not profitable yet, but profitability is expected in 2027 with significant expansion afterward. It also has $190 million in cash to provide a buffer against near-term losses.

On the date of publication, Omor Ibne Ehsan 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.

Omor Ibne Ehsan is a writer at InvestorPlace. He is a self-taught investor with a focus on growth and cyclical stocks that have strong fundamentals, value, and long-term potential. He also has an interest in high-risk, high-reward investments such as cryptocurrencies and penny stocks. You can follow him on LinkedIn.


Article printed from InvestorPlace Media, https://investorplace.com/2024/05/7-stocks-to-buy-now-or-regret-it-for-the-next-decade/.

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