Wall Street Favorites: 3 Long-Term Stocks With Strong Buy Ratings for June 2024

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  • Put your portfolio on autopilot with these strong buy long-term stocks.
  • Sempra (SRE): Sempra benefits from a natural monopoly and a rising core population.
  • Shell (SHEL): Shell’s integrated oil business should be relevant for a long time.
  • ASML (ASML): ASML offers the expertise that makes tech innovations possible.
Strong Buy Long-Term Stocks - Wall Street Favorites: 3 Long-Term Stocks With Strong Buy Ratings for June 2024

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With so much focus on innovative technologies such as artificial intelligence, it’s easy to get tunnel vision. Certainly, the usual suspects in the equities sector deserve the attention they’re receiving. At the same time, if you’re playing the strategic game, you don’t necessarily need to chase the hottest flavors of the week. With that, we come to strong buy long-term stocks to consider.

Here, we’re not just banking on ideas with compelling and relevant underlying businesses. Rather, we’re specifically targeting enterprises that enjoy a rare strong buy assessment from Wall Street analysts. In some sense, there is strength (and confidence) in numbers. What makes this category of ideas distinct are the opinions undergirding them.

True, opinions are opinions – everyone has one. At the same time, the suits on the Street command years of education and industry acumen. It’s not just any random person that is selected to represent the research arm of a reputable investment firm.

In other words, you can better trust these ideas than their non-endorsed counterparts. On that note, below are strong buy long-term stocks.

Sempra (SRE)

The logo for Sempra (SRE) is seen at the top of an office building.
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One of the top diversified utilities players, Sempra (NYSE:SRE) represents one of the best strong buy long-term stocks for two reasons: first, utilities generally enjoy a natural monopoly and second, the core San Diego market is a massive and growing one. As an entrenched enterprise, would-be competitors don’t even bother with Sempra. The barriers to entry are too high.

More importantly, Sempra isn’t going anywhere. Yes, there’s a lot of talk about folks leaving California because of politics and whatnot. If only we could benefit from this supposed trend. When it comes to Sempra’s hometown of San Diego, America’s Finest City isn’t projected to see population declines until around 2042. That’s a long way out.

In the meantime, Sempra will continue marching ahead. During the trailing 12 months (TTM), the company posted net income of $2.86 billion, translating to earnings of $4.52 per share. Revenue in the cycle hit $13.8 billion. For fiscal 2024, earnings per share might rise 4.12% to $4.80, while revenue may slip 3.8% to $16.09 billion.

Overall, though, investors will be looking at the forward yield of 3.3%. With all things considered, SRE is one of the strong buy long-term stocks.

Shell (SHEL)

Shell logo on a gas station in Iceland. SHEL stock
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At first glance, a hydrocarbon giant like Shell (NYSE:SHEL) doesn’t seem a particularly viable idea for strong buy long-term stocks. However, the world continues to run on oil – and may do so for quite some time. Because of this reality, Shell’s integrated oil and gas business could continue ringing up the cash register. Plus, the company also made significant investments in hydrogen to flex its clean energy relevance.

Analysts appreciate the idea, rating SHEL a unanimous strong buy with a $90.33 average price target. Further, the most optimistic target calls for $95 per share. During the TTM period, Shell posted a net income of $18.01 billion, translating to $5.46 per share. Revenue in this cycle hit $302.14 billion. Still, it’s interesting that presently, its quarterly sales growth rate (year-over-year) sits at 16.7% below breakeven.

Nevertheless, for fiscal 2024, covering experts believe EPS may rise 3.7% to reach $8.62. On the top line, sales may hit $346.79 billion, up 9.5% from last year’s haul of $316.62 billion. It’s not an unrealistic target considering that geopolitical tensions could suddenly place upside demand pressure on oil.

With a robust yield of just under 4%, SHEL ranks among the strong buy long-term stocks.

ASML (ASML)

Closeup of mobile phone screen with ASML logo on computer keyboard
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While tech-centric enterprises compete on AI and other advanced innovations, all such players require complex semiconductors. That’s where ASML (NASDAQ:ASML) comes into the frame. As a specialist in lithography, ASML stands on unique grounds. It’s responsible for the complex patterns printed on silicon wafers – patterns that make the technologies we all enjoy possible.

Unless you envision a world where digital innovations fade away, ASML should be at the forefront of the broader tech ecosystem. Unsurprisingly, analysts rate shares a unanimous strong buy. That said, their average price target isn’t all that impressive at $1,102.25. Further, the highest price target is $1,185. That’s better of course but again, not that groundbreaking.

Still, people invest in ASML not to get rich quick but for the strategic outlook. In the past four quarters, the company has consistently beaten its bottom-line target, averaging EPS of roughly $4.86. This performance translates to an average earnings surprise of 8.18%.

Now, fiscal 2024 may only see a modest expansion in revenue. However, for fiscal 2025, analysts are calling for sales of $39.6 billion, up 32.4% from the projected 2024 top line. It’s easily one of the strong buy long-term stocks.

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.


Article printed from InvestorPlace Media, https://investorplace.com/2024/06/wall-street-favorites-3-long-term-stocks-with-strong-buy-ratings-for-june-2024/.

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