If you have invested in the stock market, you are either trading or holding. Stock trading means you are buying and selling stock to gain potential profits in the short-term perspective. On the other hand, holding means buying and not selling (holding) for the long run to allow investors to benefit from the power of compounding while helping them ride disruptive trends in various industries.
When it comes to stocks, choosing well what companies to invest in is crucial. While big is not always better, big companies are more likely to deliver consistent returns over the long haul compared to small ones. Click here to learn more about stocks, the market and various trends that will help you maximize your profits.
There are some stocks that have demonstrated significant growth over the years and delivered terrific returns to investors. This article focuses on 5 growth stocks worth holding on to for the next decade as discussed below. This is because they have the potential to continue to be big stock market winners in the long run.
Advanced Micro Devices (AMD)
AMD stock prices have gone down 32% in 2022 creating an opportunity for investors to buy in while the prices are still low. Shares of AMD are trading at 39 times trailing earnings. This is lower than its five-year average of 108 and 2021’s earnings multiple of 44. It would be wise to AMD at these multiples as it may turn out to be a profitable long-term bet as the company can benefit from multiple growth drivers over the coming years.
Another stock that could maintain an outstanding momentum over the next decade is Amazon. It has massive potential in the markets it operates. Amazon is expected to grow over fourfold by 2030 to $17.5 trillion as compared to $4.2 trillion in 2020. Amazon, being one of the biggest e-commerce companies in the world, accounted for a 13% share of the gross merchandise value in the year 2020. This places the company in a nice position to make the most of the end-market opportunity on offer.
In just four years as a publicly-traded company, Google has garnered immense success and now has a market value of $105 billion. As a business, it is an advertising firm; a pay-per-click search-engine advertising represents 90% of revenues, and all advertising taken together brings in 97%. The company has made enormous profits over the past few years that have enables the company to pursue lofty goals such as digitizing all books ever written as they have the cash.
As the tech space evolves, Google also benefits as it sees more ad dollars shift from old media to new media. Experts expect Google’s earnings to grow at a 22% rate annually over the next few years. Therefore, holding Google stocks would be a great call.
Procter & Gamble (PG)
Procter & Gamble shareholders are assured of hundreds of millions of consumers around the globe will use Gillette razors, Crest toothpaste and Head & Shoulders shampoo on a daily basis. This is because shaving, bathing and brushing teeth are part of people’s daily routine. P & G’s brands are powerful and dominant such that they can pass on price increases in raw materials to their loyal customers.
Their consistency has allowed them to compound earnings by 10% a year over the past ten years. Similar results are projected for at least the next five years by Wall Street. This makes P & G stocks an attractive ten-year holding as shareholders are guaranteed of a rising dividend stream.
Monsanto is regarded as one of the great growth stocks of this decade. It has consistently returned an annualized 44% over the past five years. The world is in need of grain, meat and ethanol. Monsanto has continued to boost the productivity of corn, soybean, cotton and wheat farms through its high-tech seeds, genomics and herbicides. Wall Street projects that Monsanto stocks will continue to grow and the rate of profit growth will exceed 30% annualized in a couple of years. This shows that the 10-year horizon is definitely brighter.
With stocks, sometimes you have to play the long game and hold for long-term returns. The growth stocks discussed in this article have stood the test of time and shown great potential for immense returns in the future. Don’t be left behind! Invest in one of these stocks today to secure your future with increased returns and profits.