We all know the headline stocks are running up the score when we look for stocks to buy. Nvidia (NASDAQ:NVDA), Super Micro Computer (NASDAQ:SMCI), and even Carvana (NASDAQ:CVNA) have all turned in phenomenal performances over the past year that likely minted more than a few new millionaires.
What many don’t see are the low-key companies doing the hard work year in and year out that can make investors fabulously wealthy. These overlooked stocks might not be trumpeted from the rooftops, but you would be remiss not to buy them. They are wealth-generating machines and are stocks to buy today for many more years of outsized returns.
Stocks to Buy: Old Dominion Freight Line (ODFL)
The first stock to buy if you want to become a millionaire is a surprising pick: trucking company Old Dominion Freight Line (NASDAQ:ODFL). Unlike traditional point-to-point full-truckload companies, Old Dominion is the second-largest player by revenue in the less-than-truckload (LTL) space behind FedEX (NYSE:FDX). Its Freight division generated $10.1 billion in revenue last year, while ODFL produced almost $6.2 billion.
Old Dominion, however, has been picked as the No. 1 LTL trucking company by the market researchers Mastio for 14 consecutive years. The trucker consistently comes out on top across 28 separate categories, such as on-time delivery, damages, shortages, and service.
LTL companies pick up shipments at terminals, sort and consolidate them based on the destination, and then deliver freight from multiple shippers to multiple destinations.
Over the past 10 years, Old Dominion Freight Lines stock has been an excellent investment. Its total return is 752% versus 239% for the S&P 500. A $10,000 grubstake in ODFL in 2014 would be worth over $85,200 today.
The LTL industry is not like the tech industry. You won’t get moonshots but steady growth at about 4% annually. You’ll find this overlooked stock a “steady Eddy” that wins the race with fewer bumps along the road.
Axon Enterprise (AXON)
Axon Enterprise (NASDAQ:AXON) is probably more familiar to most investors. The maker of the Taser stun gun has enjoyed even better stock performance over the past decade than Old Dominion. Shares have grown by more than 2,000% over the last 10 years, turning $10,000 into more than $211,000. Last November, I said if you only have $100 to invest, Axon would make an excellent addition to your portfolio. The stock has been up 31% since then. It remains a top pick today.
Sales at Axon are on the rise because law enforcement agencies demand a less-than-lethal alternative. But even more important to the stun gun maker’s growth has been the sale of body cameras. In an era of accountability where protecting the public and law enforcement officers is equally vital, the use of body cameras has exploded.
Where Taser sales were up 33% in the first quarter, sensors and software—Axon’s body cam business—were soaring 51% year over year.
Demand is not letting up either, not just in the U.S. but worldwide. In addition to the devices, there are the “consumables” for the Tasers and the evidence database management system for the cameras. Often purchased on a subscription basis, they create a sticky environment that keeps customers returning for more. As such, I think it is one of the best stocks to buy.
Deckers Outdoor (DECK)
Another surprise pick for minting millionaires is Deckers Outdoor (NASDAQ:DECK). Who knew Uggs would have such staying power? They generated $2.2 billion in sales last year, a 16% increase from the year before. Yet as powerful a brand as the footwear remains, Decker’s fastest-growing brand is its Hoka running shoes. They generated $1.8 billion in sales last year, up 28% year-over-year.
In the fourth quarter, Hoka sales accelerated their growth spurt, surging 34% and surpassing Ugg with $533 million in sales. Ugg notched $361 million in sales for the period, a 15% increase.
Decker found a new life for Uggs with the extreme popularity of TikTok and influencers wearing the brand. Direct-to-consumer sales now account for 43% of the total, up from less than a third a decade ago.
Over the last 10 years, Decker Outdoor stock generated returns of 1,160% for investors, meaning $10,000 invested in the footwear stock would be worth $126,000 today. Look for the Ugg maker to keep kicking it higher in the coming decade.
On the date of publication, Rich Duprey 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.
