While the Nasdaq and S&P 500 hit new all-time highs and many individual stocks are trading at their 52-week highs, several others are marching fiercely upwards. Identifying a real winner in the stock market isn’t easy but some stocks have stood the test of time and stood strong amidst market volatility. Some of the best long-term S&P 500 stocks to buy are solid, dividend-paying companies that have a strong presence in the industry and have reported impressive financials.
These stocks are worth buying and holding now. As the economy improves, these seven stocks could soar higher. If you are looking to rebalance your investment portfolio for the second half of 2024, here are the long-term S&P 500 stocks to buy and hold.
Nvidia (NVDA)
Industry darling and top tech stock, Nvidia (NASDAQ:NVDA) has the potential to drive the market higher or bring it down. The company is on a roll and its artificial intelligence (AI) prowess has taken the revenue to unimaginable highs. NVDA stock has become affordable for investors after the recent stock split and this is a chance to buy and hold the tech giant.
It is exchanging hands for $123 and is up 8% in the past month. It will continue to rule the market with its exceptional AI chips and GPUs. The soaring demand for chips will drive revenue higher for the company. When Nvidia rises, it takes the market along with it.
It saw a 262% year-over-year jump in the first-quarter revenue and it will continue beating expectations in the upcoming results. The management aims to report a revenue $28 billion in the current quarter. Buy NVDA stock in every dip, it isn’t done yet.
Visa (V)
One of the best fintech companies, Visa (NYSE:V) holds a strong market share with over 4 billion cards in circulation. The stock is exchanging hands for $266 right now and has lost most of the gains it made since the start of the year.
Any dip in Visa stock is a chance to buy. It is a steady business with low operating costs and a global presence. Visa charges a fee on every transaction made using its card. As we move towards digital payments, this fee is only going to increase. While the stock might seem expensive right now, its valuation is justified.
The company has reported strong revenue growth and as the economy improves, consumer spending will rise, benefitting Visa. There aren’t many businesses as profitable as Visa and it enjoys a powerful network effect with its 130 million merchant locations. Despite competition, Visa has managed to grow. It also pays a dividend and has a yield of 0.78%
Walmart (WMT)
Known for offering consumer goods at low prices, Walmart (NYSE:WMT) operates a chain of hypermarkets and it is steadily expanding across the U.S. With a large number of locations, it has become easier for people to quickly reach a Walmart and pick consumer goods.
WMT stock is up 27% YTD and is exchanging hands for $67. The company sets itself apart with affordability. Walmart’s financials were solid with a 6% jump in revenue for the recent quarter and a 21% jump in the e-commerce segment. The company did not accept defeat when people started online shopping, instead, it started to invest money in the e-commerce business which is now thriving. Walmart also makes revenue from ads which saw a 24% YOY jump.
The 3-for-1 stock split earlier this year has made Walmart affordable and buying it below $100 is a very smart move. Walmart is a dividend-paying stock with a yield of 1.22% and it recently hiked the dividend by 9%. This dividend is its 51st consecutive hike.
Oracle (ORCL)
I have been talking about Oracle (NYSE:ORCL) for a while now. The growing demand for cloud and the rising popularity of AI have led to a massive growth in Oracle’s business. It already has a rich history and a strong presence in the software database industry.
As companies migrate to the cloud, Oracle’s business is steadily growing. Up 34% YTD, the stock is exchanging hands for $140 and is very close to the 52-week high. The company recently stated that a TikTok ban could impact its business but I think this impact will be short-lived.
Oracle has established itself as a strong industry player and has partnerships with some of the biggest tech giants. It is also expanding into the healthcare industry which can boost long-term growth. Oracle’s total outstanding performance obligations in the recent quarter stood at $98 billion, showing its strength in the competitive market.
It has a dividend yield of 1.14% and has a lot of room to run.
Chevron (CVX)
Oil and gas giant Chevron (NYSE:CVX) is set to benefit from the soaring oil prices. Crude oil is trading at over $80 per barrel today and this means this company is going to report impressive quarterly numbers. It had some of its best days in 2022 and I think it could see a similar time this year. CVX stock is exchanging hands for $156 and is up 4% YTD. It has been trading in the range of $141 to $169 in the last 12 months.
Billionaires are betting big on this stock and even if you are someone who believes that renewables will take over the world, it will take time. Until then, we will need oil and the demand for it is only growing.
Chevron is Warren Buffett’s favorite play and the merger with Hess (NYSE:HES) is going to make it a giant energy powerhouse. It will give Chevron access to the Guyana assets which can help increase production. Its dividend yield of 4.17% makes it even more attractive.
Delta Airlines (DAL)
The upcoming summer travel season could be huge for Delta Air Lines. Americans are planning to travel a lot this year with an expected 71 million people traveling for the Fourth of July. This is where Delta Air Lines (NYSE:DAL) is set to benefit. The company has an extensive domestic and international route and the management is highly optimistic about the summer travel season.
DAL stock is already up 20% YTD and is exchanging hands for $48. While it is near the 52-week high, there is potential for further upside. The company is expecting earnings in the range of $6 and $7 per share which could drive the stock higher to $55.
It has managed to reduce debt while seeing an improvement in operating income. In the first quarter, it reported a 6% YOY jump in operating revenue and swung into profit from a loss in the first quarter of 2023.
I believe Delta Air Lines is set for a second-half surge and its quarterly results could be impressive.
Airbnb (ABNB)
Trading at $151, and up 12% YTD, Airbnb (NASDAQ:ABNB) is receiving a boost from the summer travel season. Its first-quarter earnings came in hot and the management signalled for a slower growth in the second quarter, which led to a drop in the stock. However, if you look at the long-term picture, the business looks strong and it enjoys several competitive advantages.
The first quarter revenue soared 18% YOY to $2.14 billion and the EPS doubled to $0.41. The strong numbers were driven by the Easter holiday and an interest income. In the other three quarters, Airbnb is set to benefit from the Memorial Day weekend, summer travel, and Christmas.
This could be an excellent time to load up on the stock. The management is aiming for a revenue growth in the range of 8% to 10% for the second quarter and while it is lower than the growth reported in the first quarter, it could be a temporary slowdown. The third quarter could also see a revenue boost from the Euro Cup and Summer Olympics.
On the date of publication, Vandita Jadeja 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.
