7 long-term stocks to buy before the bull market returns
Current market conditions are not conducive to short-term investments. It is notoriously difficult to pick winning stocks with a limited time horizon, and that becomes doubly true in this extremely volatile market! A better strategy would be to find long-term stocks to buy before the bull market returns and effectively reap gains over a long-term horizon.
One of the main principles of investing is that a rising tide will lift all ships. Therefore, it is best to be patient and understand how long it takes to see tangible results from your investment.
As a general rule, long-term stocks have the potential to explode thanks to their nascent underlying businesses. These businesses can provide consistent returns over an extended period of time and earn you money.
|GOOG, GOOGL||Alphabet||$118.22, $117.42|
Long-term stocks to buy before the bull market returns: QuantumScape (QS)
QuantumScape (NYSE:QS) is an emerging electric vehicle (EV) battery developer that aims to commercialize solid-state batteries.
Its batteries are likely to be a game-changer for the electric vehicle sector, with significantly higher energy density to deliver greater range for the same battery size. The company achieved all the goals it set for itself last year and successfully tested 10-layer cells. It is now concentrating on the development of commercial-sized multilayer cells.
In addition, the objective is to significantly reduce its manufacturing costs in volume. It plans to produce cells for testing in 2023 and will begin commercial production in 2024.
If everything is on point, he has a lot to gain from his first-mover advantage. Research suggests that the semiconductor market could grow by 36% from 2021 to 2028. Therefore, it could potentially explode over the next few years.
Shopify (NYSE:STORE) is an e-commerce juggernaut that has established itself as the premier provider of e-commerce infrastructure. For the past few years, she has operated a hyper-growth business that has consistently recorded double-digit growth. However, its stock has been impacted by the current market downturn and is trading at multi-year lows. Nevertheless, the long-term tailwinds of e-commerce adoption are not going anywhere.
In recent quarters, SHOP has missed analyst estimates by a fair margin, triggering a selloff. However, it still has a resilient business model with the robust financial flexibility to weather the storm effectively.
Moreover, despite the challenges, it continues to launch new products and updates to further enhance the quality of its service. Therefore, it remains an excellent company in a struggling industry at the moment.
Long-term stocks to buy before the bull market returns: ChargePoint Holdings (CHPT)
Charging point (NYSE:CHPT) holds a dominant position in the charging station niche offering an incredible value proposition to its investors. Its stock was on the rise during the pandemic years, but it’s been pretty beaten up in line with the broader market. Although it makes most of its sales in North America, it is growing rapidly in Europe. It has effectively diversified its revenue base from a handful of customers to a much larger pool of customers that will propel subscription sales to new heights.
ChargePoint currently operates 174,000 ports, including approximately 51,000 in Europe. Europe is a key market for electric vehicles, so CHPT’s expansion could add another layer to its growth story. The company generated incredible revenue growth of 65% last year, and judging by a 101.5% increase in sales in the first quarter, that’s not going to stop anytime soon.
Vista Energy (VIST)
The energy sector is booming due to rising inflationary pressures and the Russian-Ukrainian war. The oil and gas giants have had a strong run lately, and some of the lesser-known names in the space have performed even better.
Upstream oil and gas player based in Mexico Vista Energy (NYSE:VISIT) is one of those players who has flown under the radar and seen a gain of over 80% in the last 12 months.
Vista has its principal assets in Vaca Muerta, the second largest shale gas deposit in the world. Production is at an all-time high and the company plans to invest $2.3 billion to increase production to double digits from 2022 to 2026. Meanwhile, its free cash flow has gone from negative 0, $11 billion to a positive of $0.19 billion. Its top and bottom results are on an upward trajectory, and the current headwinds point to strong performance ahead.
Long-term stocks to buy before the bull market returns: Alphabet (GOOG, GOOGL)
Internet giant Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) has struggled with its advertising peers. The company generates more than 80% of its sales through Google’s advertising business, which includes its main search engine, its YouTube site and its advertising network. However, amid the drop in discretionary spending, its advertising business has taken a significant hit.
Nevertheless, it continues to grow at a healthy pace, while its Cloud business compensates for the loss of revenue on the advertising side. The boatloads of cash at its disposal are impressive, with cash and short-term investments totaling $125 billion at the end of June. Additionally, it returned a remarkable $15.2 billion in cash to its investors through share buybacks during the second quarter, demonstrating its commitment to shareholders.
Novo Nordisk (NVO)
Novo Nordisk (NYSE:NVO) is one of the most successful drug manufacturers with an enviable lineup of diabetes and obesity drugs. It has been a leader in the diabetes care industry for decades, generating 80% of its sales in this niche. Additionally, it claims a 30.1% market share globally in the diabetes care market. Additionally, its anti-obesity drug, Wegovy, increased sales by an incredible $480 million in the first quarter.
Both of these sectors are national health concerns, and the market will only grow at an incredible rate down the road. The prevalence of diabetes is projected to rise 54% to more than 54.9 million Americans by 2030. Novo has performed remarkably well in its bottom line over the past few years, and market tailwinds are likely to make that a fantastic long-term bet. .
Long-term stocks to buy before the bull market returns: McCormick (MKC)
McCormick (NYSE:MKC) is a specialty food giant and a leader in the production of herbs, seasonings and spices. Its flavoring solutions are sold in 170 countries, giving it global appeal. Perhaps more importantly for investors, he has established himself as a dividend champion, posting 36 consecutive years of dividend growth.
With the exception of the second quarter, the company has posted strong revenue and earnings for the past five quarters. Current macroeconomic pressures have proved spoiler for the company, but it has nothing on its incredible balance sheet. Its profit margins are spectacular, with a five-year average of 40.3%. Similarly, MKC generated a 7.3% increase in sales over the same period. The company has proven itself reliable over the years, and its penchant for rewarding its shareholders is the icing on the cake.
As of the date of publication, Muslim Farooque had (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.