Latest news with #longterm
Yahoo
a day ago
- Business
- Yahoo
MJ's Motivation: 'Dig the well before you need water'
Dig the well before you need water: A popular Chinese takes time to dig, and its hard work. We might need the water tomorrow, or in ten years, who knows? Regardless of when it arrives, the time to dig is not when you're dying of thirst. We live in a world where urgency trumps importance. Life is often geared towards the short term, but there is wisdom in preparation, spending time digging even though you aren't parched just ago, Netflix invested heavily in streaming even though DVD's were still dominant at the time. Look where we are now. Athletics, relationships, careers; this concept transcends it ask yourself: Have I started digging?If not, there is no better time to pick up the shovel. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Globe and Mail
4 days ago
- Business
- Globe and Mail
Long-Term Investing: 2 Monster Stocks to Own for Decades
In recent weeks, it was easy to observe the dangers of short-term investing. In the blink of an eye, the three major benchmarks -- which had climbed over the past two years -- suddenly found themselves in the doldrums. The S&P 500, the Dow Jones Industrial Average, and the Nasdaq Composite each slid in March and April on concern that President Trump's import tariffs would hurt economic growth. Investors who aimed to sell stocks they recently bought may have found themselves in a difficult situation. But the picture for those who buy and hold on for the long term looked a lot brighter. History shows us that the indexes always have gone on to win over the years. So times of declines represent great buying opportunities -- you'll get in on quality stocks for reasonable prices and potentially set yourself up for a win farther down the road. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » With this in mind, let's consider two monster stocks that you'll want to hang onto for decades. They've proven their ability to grow earnings and share price performance over time, have solid competitive advantages, and are heading for ongoing success. 1. Amazon Amazon (NASDAQ: AMZN) has built leadership in e-commerce and cloud computing, two areas that helped net sales climb to $638 billion in the latest full year. And this isn't an exception. Amazon has generally grown revenue, net income, and return on invested capital over the years. AMZN Revenue (Annual) data by YCharts And when Amazon saw earnings drop because of rising inflation a few years ago, it revamped its cost structure -- a move that helped it return to profit in a year. This move also was smart as it set Amazon up to operate more efficiently throughout any market environment. One big part of this was shifting U.S. fulfillment from a national to a regional system. By bringing items closer to the customer, Amazon has saved on costs and has boosted its ability to deliver faster -- something that pleases customers. Amazon's fulfillment network worldwide as well as its Prime subscription program, which offers regular customers many benefits, are part of the company's solid moat or competitive advantage. Moats are something to look for when you aim to invest for the long term as they signal a company has what it takes to maintain its market position. We can't end a conversation about Amazon without mentioning its cloud business, Amazon Web Services (AWS). After all, this business drives profit for the entire company. AWS is the world's leading cloud company, and in recent years, it's gone all in on the high-growth technology of AI. The cloud business offers a wide range of AI products and services to customers, and that's helped it achieve an annual revenue run rate of $117 billion. Today, Amazon shares trade for 33 times forward earnings estimates, down from more than 42 late last year, making it an excellent player to scoop up right now. 2. Coca-Cola While indexes were struggling in recent weeks, Coca-Cola (NYSE: KO) took the opposite path, advancing 15% so far this year. Why have investors flocked to this player? As the world's biggest nonalcoholic beverage maker and a dividend powerhouse, Coca-Cola offers investors elements of safety during tough times. Thanks to its solid brands -- from the eponymous Coca-Cola to Minute Maid juices -- and its extensive distribution network, Coca-Cola has a strong moat. Coca-Cola often is the first name that comes to mind when someone thinks of soda, and its flagship drink is practically a staple in bars and restaurants around the world. The company also has continued to innovate, creating specific flavors and experiences for different markets to ensure growth. All of this makes it easier for Coca-Cola to advance through tough economic times. As for dividends, Coca-Cola has shown its commitment to rewarding shareholders by boosting its dividend for more than 50 consecutive years. That's put it on the list of Dividend Kings. With this sort of track record, it's likely Coca-Cola will continue being a prominent dividend player. Now, what about Coca-Cola's performance during better market times? It's true this beverage giant won't offer you the explosive growth you'll get from certain technology players or companies involved in cutting edge areas like quantum computing. But Coca-Cola over time has grown revenue and net income, thanks to the strong market position I mentioned, and looks reasonably priced today at 24 times forward earnings estimates -- all of this makes it a company you can buy with confidence and hold on to for decades. Should you invest $1,000 in Amazon right now? Before you buy stock in Amazon, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Amazon wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,761!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $826,263!* Now, it's worth noting Stock Advisor 's total average return is978% — a market-crushing outperformance compared to170%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 19, 2025
Globe and Mail
5 days ago
- Business
- Globe and Mail
My Forever Portfolio: 5 Spectacular Dividend Stocks You Can Buy Now and Hold Forever
Investing for a very long-term horizon requires a different set of priorities for investors. *Stock prices used were the afternoon prices of May 26, 2025. The video was published on May 28, 2025. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » Should you invest $1,000 in Walt Disney right now? Before you buy stock in Walt Disney, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Walt Disney wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,389!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $830,492!* Now, it's worth noting Stock Advisor 's total average return is982% — a market-crushing outperformance compared to171%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Parkev Tatevosian, CFA has positions in Visa and Walt Disney. The Motley Fool has positions in and recommends Home Depot, Visa, and Walt Disney. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
Globe and Mail
6 days ago
- Business
- Globe and Mail
4 Monster Stocks to Buy Right Now and Hold for 20 Years
Market volatility over the past few months could lead investors to sell and take their winnings home before things get worse. But investing success means riding out the short-term waves and holding on to long-term winners. The S&P 500 (SNPINDEX: ^GSPC) has already made up whatever it lost in value earlier this year, and it would have been a shame to have sold at a low and missed out on the quick rebound. If you can hold on for at least 20 years, you can choose excellent stocks and let them work their magic on your investments. Amazon (NASDAQ: AMZN), Shopify (NASDAQ: SHOP), MercadoLibre (NASDAQ: MELI), and SoFi Technologies (NASDAQ: SOFI) are four monster stocks that should reward you well over the next 20 years. 1. Amazon: E-commerce and AI Amazon is the leader in e-commerce and cloud computing, two massive growth industries. It has about 40% of the U.S. market share in e-commerce and about 30% of the global market for cloud computing. Both of these industries are growing organically, and Amazon is benefiting from these organic tailwinds. Shoppers know Amazon as the king of e-commerce, and the company is heavily investing in keeping its lead there. But management has identified generative artificial intelligence (AI), primarily through the Amazon Web Services (AWS) cloud-computing business, as its main growth driver over the next few years. Amazon said it would invest upwards of $100 billion in 2025 alone to keep building out this business, and it offers a huge assortment of features and tools to every size and stripe of client. AWS itself generated a 17% year-over-year increase in sales in the first quarter and has a $117 billion annualized revenue run rate. Management expects that with generative AI, that rate will increase. "We thought AWS had the chance to ultimately be a multihundred-billion-dollar revenue run rate business," CEO Andy Jassy recently said of the pre-generative AI opportunity. "We now think it could be even larger." Advertising and streaming continue to grow and add value to the business, and Amazon is investing in new concepts like Zoox autonomous vehicles and Project Kuiper broadband. It has a huge growth runway, and its stock should keep rewarding investors over many years. 2. Shopify: The other e-commerce giant You won't see Shopify on any list of highest e-commerce sales because it doesn't sell products, it sells e-commerce services, like websites and payment processing. But its gross merchandise volume (GMV) is similar to Amazon's e-commerce sales, giving you a picture of Shopify's important and dominant position in the e-commerce space. Shopify is also benefiting from the organic tailwinds of e-commerce growing as a percentage of retail sales. According to eMarketer, e-commerce accounted for 20.3% of retail sales in 2024, and that's expected to increase to 23% by 2027. Even that's still a small percentage, and with each percentage point translating into trillions of dollars, Shopify has a long growth runway. It also continues to identify new ways to expand its market share and help its clients increase their sales. It has gone from a platform helping small businesses get online to targeting large businesses with individual e-commerce components. It offers a full-service omnichannel platform combining physical and digital retail, and it's making a bigger move into international, where there are several bigger players. International sales only accounted for 30% of the total in Q1, and that could be a huge growth driver in the coming years. Patient investors should expect Shopify to be a top stock as it keeps growing and innovating for the foreseeable future. 3. MercadoLibre: The Latin American tech disruptor MercadoLibre is similar to Amazon in that its core business is e-commerce, but it has dipped its toes into several other businesses that are driving fantastic growth. It operates in Latin America and offers a host of digital services in both e-commerce and financial technology. It consistently reports strong growth across metrics, such as a 40% increase in GMV year over year and a 72% increase in total payment volume in the 2025 first quarter. The opportunity here is enormous because Latin America lags many other global regions in both e-commerce and digital penetration. In fact, 85% of sales are still offline, and some of its regions are underbanked, leading to a greater necessity for digital financial services. Because its regions are still in their early innings in its industries, there are so many levers MercadoLibre can pull to move growth. It's doing so step by step, bringing in new, unique visitors to its ecosystem and generating higher purchase frequency. It's launching all sorts of innovative services, such as a new, free streaming initiative powered by its growing ad business. MercadoLibre has a wide-open runway and tons of opportunities to grow its business and stock gains. 4. SoFi: The modern way to bank SoFi is a digital financial disruptor offering all banking services online. It targets the young professional who's just starting their financial journey and appreciates SoFi's tech focus and easy-to-use interface. Although its core business is lending, it has successfully expanded into a large array of financial services like bank accounts and investing tools. These are fee-based products that have low costs and are becoming incredibly profitable. Even the lending business is bouncing back as interest rates go lower, and lending revenue increased 25% year over year in Q1. Financial services, though, more than doubled, and contribution profit increased 299%. It's adding members at a high rate and generating higher engagement through cross-selling and upselling, and SoFi has a massive growth opportunity over the next 20 years as it gets closer to its ambition of becoming a top-10 U.S. bank. Should you invest $1,000 in Amazon right now? Before you buy stock in Amazon, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Amazon wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,389!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $830,492!* Now, it's worth noting Stock Advisor 's total average return is982% — a market-crushing outperformance compared to171%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 19, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Jennifer Saibil has positions in MercadoLibre and SoFi Technologies. The Motley Fool has positions in and recommends Amazon, MercadoLibre, and Shopify. The Motley Fool has a disclosure policy.
Yahoo
18-05-2025
- Business
- Yahoo
Lowe's Companies' (NYSE:LOW) five-year earnings growth trails the impressive shareholder returns
The main point of investing for the long term is to make money. But more than that, you probably want to see it rise more than the market average. Unfortunately for shareholders, while the Lowe's Companies, Inc. (NYSE:LOW) share price is up 92% in the last five years, that's less than the market return. Meanwhile, the last twelve months saw the share price rise 1.4%. After a strong gain in the past week, it's worth seeing if longer term returns have been driven by improving fundamentals. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. During five years of share price growth, Lowe's Companies achieved compound earnings per share (EPS) growth of 18% per year. This EPS growth is higher than the 14% average annual increase in the share price. So one could conclude that the broader market has become more cautious towards the stock. The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image). We like that insiders have been buying shares in the last twelve months. Even so, future earnings will be far more important to whether current shareholders make money. It might be well worthwhile taking a look at our free report on Lowe's Companies' earnings, revenue and cash flow. When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. We note that for Lowe's Companies the TSR over the last 5 years was 109%, which is better than the share price return mentioned above. The dividends paid by the company have thusly boosted the total shareholder return. Lowe's Companies shareholders gained a total return of 3.3% during the year. But that was short of the market average. On the bright side, the longer term returns (running at about 16% a year, over half a decade) look better. It may well be that this is a business worth popping on the watching, given the continuing positive reception, over time, from the market. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For example, we've discovered 2 warning signs for Lowe's Companies (1 is significant!) that you should be aware of before investing here. Lowe's Companies is not the only stock that insiders are buying. For those who like to find lesser know companies this free list of growing companies with recent insider purchasing, could be just the ticket. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
