While a lot of signs point to the macro environment remaining difficult throughout 2023, now’s not the time to sit on the sidelines. In fact, as fear, uncertainty, and doubt continue to rock the markets, it remains a good time to build positions in the best long-term stocks to buy and hold.
Some of the names in this category are your standard blue-chip stocks, shares in established, venerable companies, providing solid returns through consistent dividends and steady price appreciation. However, this category also includes some names that many investors today would consider speculative.
For example, shares in companies in emerging, fast-growing industries, such as renewable energy. There are also a few early-stage companies that, while not generating significant revenue/earnings today, have a strong chance of doing so down the road. In turn, making them fantastic long-term opportunities from a risk/return standpoint.
So, what are the best long-term stocks to buy and hold today? Consider these seven. Each of them earns either an A or B rating in Portfolio Grader.
Bloom Energy (BE)
Bloom Energy (NYSE:BE) is a renewable energy company. As I discussed late last month, Bloom builds, sells and installs solid oxide platforms used to generate both electricity and hydrogen. With businesses looking to pivot away from fossil fuels, BE has strong potential to level up on its success thus far, and continue growing at a rapid clip.
This catalyst was more than enough to entice investors in late 2020 and early 2021 when enthusiasm for clean energy stocks was off the charts. Over the past two years, however, BE stock has delivered mixed returns. The market has cooled on speculative growth stocks, “future of energy” stocks in particular.
Still, current sentiment for shares, Bloom’s aforementioned tailwinds have not gone away. As businesses continue to go “carbon-free,” this business, and in turn, B-rated BE stock will likely take off again over the next few years.
Hycroft Mining (HYMC)
Hycroft Mining (NASDAQ:HYMC) is another of the best long-term stocks to buy and hold that’s (at the moment) out of favor in the market. A year ago, shares in this exploration-stage gold and silver mining company took off.
Mostly, thanks to the buzz resulting from AMC Entertainment (NYSE:AMC) making a large investment in HYMC stock, purchasing a 22% stake. Yet while the excitement surrounding AMC’s involvement has long since passed, that doesn’t necessarily mean that this is not the last the world will be hearing about Hycroft.
There is ample untapped potential at its Nevada-based flagship mining project. At the site, Hycroft has measured and indicated reserves of 9.6 million ounces of gold, and nearly 446 million ounces of silver. Just achieving partial success developing this site could send HYMC, B-rated in Portfolio Grader, back “to the moon,” and keep it there.
Kala Pharmaceuticals (KALA)
Shares in Kala Pharmaceuticals (NASDAQ:KALA) have sprung back to life in recent weeks. After briefly falling to penny stock levels, KALA began to skyrocket in price after hours on Dec. 27. The reason is major progress with the biopharma firm’s lead pipeline candidate.
The Food and Drug Administration has accepted Kala’s investigational new drug application for KPI-012, a treatment for persistent corneal epithelial defect, or PCED.
Since then, KALA stock has continued to rocket higher, thanks to Kala’s confirmation that it has received an additional $25 million in financing. This capital infusion will enable the company to proceed with further development of this promising candidate.
Despite its nearly six-fold jump since December, don’t assume KALA is merely a flash-in-the-pan, short-term play. With significant commercial potential with its rare eye disease treatment, this B-rated healthcare stock could keep soaring, although likely at a more gradual pace.
Eli Lilly (LLY)
Last year may have been a tough one for the overall stock market, but not for investors in Eli Lilly (NYSE:LLY) stock. If you bought shares at the start of last year and held them until year’s end, you would be up by more than 33% on your position.
That said, don’t assume the ship has sailed with LLY stock. Far from it, given the long-term opportunity at hand with the key reason behind the stock’s strong 2022 performance: Mounjaro. That’s the company’s current key drug candidate. While originally developed as a diabetes treatment, there may be a far larger total addressable market for the drug.
If Eli Lilly obtains regulatory approval to market Mounjaro as an obesity treatment, the drug could become a “mega-blockbuster.” Add in the potential of its Alzheimer’s treatment candidate, and there’s more than enough in play to keep this A-rated stock in winning mode.
Petroleo Brasileiro (PBR)
With ongoing political turmoil in its home country, it makes sense why investors may be hesitant to consider Petroleo Brasileiro (NYSE:PBR), also known as Petrobras, as one of the best long-term stocks to buy and hold.
Admittedly, even as the most recent unrest simmers down, there’s still a lot of uncertainty regarding the impact of policy changes from new President Luiz Inacio Lula da Silva.
As InvestorPlace’s Josh Enomoto discussed last week, PBR stock tanked following news of Lula’s appointment of a leftist political ally (Jean Paul Prates) as CEO of the company, which is publicly traded but state-controlled.
However, said uncertainty about Petroleo Brasileiro making strategic moves aligned with Lula’s political aims, at the expense of shareholders, is more than accounted-for in the dirt-cheap valuation (2 times earnings).
Furthermore, the fact Lula’s political opponents still control Brazil’s parliament may limit his ability to enact further material policy changes.
It’s not difficult to see why PepsiCo (NYSE:PEP) makes for a great long-term portfolio holding.
The beverage and snack food giant sports high operating margins, consistent profitability, and a deep economic moat. This has enabled shares to appreciate at a steady pace over a long timeframe.
PEP stock is also a “dividend king,” as the company has raised its dividend 50 years in a row. Currently, at $1.15 per share, PEP’s quarterly dividend has been raised by an average of 7.39% annually over the past five years. At today’s prices, this payout gives shares a 2.54% yield.
As its operating results remain solid, despite the economic challenges, PepsiCo is likely to continue inching higher, in tandem with earnings growth. Sell-side analysts expect earnings to grow by around 7.4% this year.
Via steady appreciation and a growing dividend, PEP is well-positioned to keep delivering strong returns.
Viking Therapeutics (VKTX)
Viking Therapeutics (NASDAQ:VKTX) spiked in late December, due to recent news indirectly related to the biopharma firm, and its efforts to bring a treatment for non-alcoholic steatohepatitis (or NASH) to market.
As InvestorPlace’s William White reported Dec. 19, positive clinical trial results for Madrigal Pharmaceuticals’ (NASDAQ:MDGL) NASH treatment candidate have made the market bullish about Viking’s candidate to treat the disease, VK2809.
The massive move VKTX stock made due to this news may at first appear to be an overreaction, but looking at the details, that may not be the case.
Both of these treatments are similar, signaling that Viking’s offering could achieve similar results. Not only that, larger pharma firms looking to add a NASH candidate to their pipeline may see this company as a more ideal acquisition target. All of this makes B-rated VKTX worthy of a closer look as a potential long-term buy and hold.
On the date of publication, Louis Navellier has positions in PBR and PEP. The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
Biotech, Energy, Healthcare, Industrial, Renewable Energy, Battery, Lithium, Natural Gas, Precious Metals