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Globe and Mail
20 hours ago
- Automotive
- Globe and Mail
3 Growth Stocks to Buy and Forget About
Key Points AutoZone has delivered strong returns and continues to expand its business and store count. Roku offers an early-stage growth opportunity in streaming and is still flying under the radar. IBM is tapping into the AI boom and remains a solid pick for long-term investors. Some investors trade often. Others take their time before pouncing on any particular stock, focusing on long-term investments they can just forget about for decades. Imagine you're setting up a brand new portfolio for the long haul. Sure, you could stick with a tried and true S&P 500 index fund and call it a day, but you want to beat the market with this mini-portfolio. And it needs to be a low-effort activity, where you can forget about checking up on its stocks for decades -- and never lose a minute of sleep over their performance. In this case, you should have a couple of clear objectives in mind: Many years of longevity and business growth. A true long-term investment should still be relevant and thriving in a decade or three. A competitive edge. Why settle for a decent performer in a strong industry when you can insist on top-shelf excellence? A diverse group of stocks. The markets will ebb and flow over time, so your long-term investment bets should have distinctly different target markets. A focused artificial intelligence (AI) portfolio is one thing, and a broad basket of long-haul growth stocks is another. So here are three growth stocks that meet all of these criteria. They are built to last, set up for long-lasting business growth, and leaders in their chosen fields. Together, their wide range of innovative operations should provide you with strong average returns across a wide range of stock market conditions. Just buy them and jump in the lazy river, watch your kids grow up, or learn guitar over the next couple of decades. You won't have to worry about your growth stocks. AutoZone's in the fast lane Car parts retailer AutoZone (NYSE: AZO) is a surprising performer. The stock has gained 238% over the last 5 years and 16% in the first half of 2025. These are market-beating returns, comparable to fellow sector giant O'Reilly Automotive (NASDAQ: ORLY). I wouldn't hate it if you picked O'Reilly instead of AutoZone, but this company has a couple of important advantages over the competition. First, the stock trades at significantly lower valuation multiples across the board. AutoZone also sports 12% higher annual revenues than O'Reilly, not to mention 8% richer bottom-line earnings. It even has an edge in long-term sales growth rates and a stronger balance sheet. The company isn't sitting on its work-gloved hands, either. AutoZone is making heavy investments in a more capable supply chain, while also opening 84 net new stores in the recently reported Q3 of 2025. And this happens to be a great time to stock up on shares in the retail sector. Many investors worry about tariffs and international conflicts, both of which can make consumers less likely to spend money. But I'm sure Americans will continue to fix and maintain their cars, regardless of the political climate. AutoZone should remain a leading name in that game for years and years, producing robust stock returns in the process. Roku is my favorite media-streaming underdog I keep coming back to Roku (NASDAQ: ROKU) when I'm looking for long-term growth stories. The media-streaming expert also happens to be undervalued most of the time, making it an easy pick in a crowded market. Sure, I could have recommended Roku's former parent company Netflix (NASDAQ: NFLX) instead. Both companies are exploring a global media market with top-notch innovation under their belts and promising growth trends. But Roku is at an earlier stage of its international growth story, with so much untapped market value left to grab. Netflix is far from stalled out -- but Roku is just getting started. This is the more exciting growth story today. The company is currently unprofitable, but that's by design. Roku's management is throwing everything but the kitchen sink at the company's growth opportunities, investing in everything from original content to powerful advertising platforms. The stock has been disappointing in recent years, but I see the downtrend as a wide-open buying window. If Roku isn't beating the market by 2035, I'll buy a hat just to eat it. Hold the salt, please. IBM proves that old dogs really can learn new AI tricks Finally, let's tap into the unstoppable generative AI boom. IBM (NYSE: IBM) may not strike you as a leader in that jam-packed industry, but that's a mistake. Big Blue is simply going after a different customer population than its headline-writing AI peers. As always, IBM is all about business-class services for enterprise customers. It's a massive target market, IBM's long-term AI focus is starting to pay off right now, and the stock looks dirt cheap anyhow. IBM shares are changing hands at the affordable price of 4.3 times sales or 21.5 times free cash flows. If IBM were a part of the "Magnificent Seven" group, it would be the lowest-priced option in terms of cash flow-based valuations. Plus, this company wrote the book on business longevity. IBM was founded more than a century ago, thriving despite a couple of world wars and a variety of economic crises. Big Blue should be the first place to look when you're on the hunt for long-term investment ideas. Should you invest $1,000 in Roku right now? Before you buy stock in Roku, 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 Roku 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 $699,558!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $976,677!* Now, it's worth noting Stock Advisor 's total average return is1,060% — a market-crushing outperformance compared to180%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 June 30, 2025
Globe and Mail
25-06-2025
- Business
- Globe and Mail
3 High-Yielding Dividend Stocks to Buy for the Long Haul
The average stock on the S&P 500 yields just 1.3%. That's a modest return on your money, but that's only the average. There are many dividend stocks that pay you much more than that. While you don't necessarily want to go for double-digit yields (which involve stocks that tend to be extremely risky), you can find plenty of safe, high-yielding stocks to own and hang on to for the long haul. Three high-yielding stocks with strong financials that you may want to consider adding to your portfolio today are UnitedHealth Group (NYSE: UNH), Restaurant Brands International (NYSE: QSR), and AT&T (NYSE: T). 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 » UnitedHealth Group: 2.9% yield Health insurance giant UnitedHealth is the type of stock that can make for an excellent long-term holding in your portfolio. This year, it has been struggling and facing a lot of adversity due to question marks around its billing practices, and rising costs have caused it to underperform expectations recently. That has pushed the healthcare stock to multi-year lows. But over the long term, the business can and should recover. Insurance companies can be polarizing and controversial, but they're also necessary to help keep costs down for patients and industries. UnitedHealth's current problems may seem daunting, but years from now, they may be resolved and no longer weigh on its share price. UnitedHealth is massive, with the company reporting more than $400 billion in sales last year and a profit of $14 billion. Its payout ratio is still fairly modest at just 35% of earnings, so it's in a good position to continue making regular payments for the foreseeable future. Although the stock is trading down 40% so far this year (as of June 24), UnitedHealth can be an underrated income-generating investment to buy and hold. Restaurant Brands International: 3.8% yield You can collect even more dividend income from Restaurant Brands International. The restaurant company owns iconic and popular brands such as Burger King, Tim Hortons, Popeyes, and Firehouse Subs. It has grown via acquisitions and by expanding into new markets. Fast-food restaurants are facing challenges amid rising prices and consumers using GLP-1 weight loss drugs, which can curb appetites. But fast food still offers consumers a fairly low-cost option for eating out, and with top brands in its portfolio, Restaurant Brands can be among the better fast-food stocks to own over the long haul. Last year, it earned $1.4 billion in profit on sales of $8.4 billion, for a solid profit margin of 17%. Its payout ratio is around 80%, which is a bit high but suggests the dividend is sustainable nonetheless. The company's free cash flow has totaled $1.2 billion over the past four quarters, which is more than the $1 billion it has paid out in dividends over that time frame, and it further demonstrates the safety of its payout. AT&T: 4% yield AT&T is the highest-yielding stock on this list, and it wasn't all that long ago that its yield was even higher. Investors have been bullish on AT&T with its share price rising more than 53% over the past 12 months. The company has proven that its operations are safer than they appeared to be even a few years ago when it was still involved in streaming. Last year, it announced it was selling its stake in DirecTV as it focuses solely on its telecom operations. The company is effectively sacrificing some diversification and growth opportunities in exchange for greater stability and better overall financials. But that's not to say it isn't still planning on growing. It recently announced it will be acquiring nearly all of Lumen 's mass-market fiber business, which will help it grow its fiber locations -- AT&T plans to double its reach and hit 60 million locations by the end of 2030. AT&T expects to generate at least $16 billion in free cash flow this year, which puts it in an excellent position to continue paying its dividend, which costs it about $8.3 billion per year. By simplifying its business and being a pure-play telecom investment, it's a much more attractive stock for income investors to buy and hold. Should you invest $1,000 in UnitedHealth Group right now? Before you buy stock in UnitedHealth Group, 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 UnitedHealth Group 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 $676,023!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $883,692!* Now, it's worth noting Stock Advisor 's total average return is793% — a market-crushing outperformance compared to173%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 June 23, 2025
Globe and Mail
21-06-2025
- Business
- Globe and Mail
1 Stock That Turned $1,000 Into More Than $1 Million
Investors understand that when you extend your time horizon into decades with high-quality businesses, the power of compound growth can work wonders. This is why it's so beneficial to be a long-term owner of companies, allowing their improving fundamentals to positively impact your portfolio. This strategy is far more consistently reliable than constantly trying to time the market. With this perspective in mind, there are definitely some businesses that have generated tremendous wealth for their long-term shareholders. In fact, here's one stock that over the course of the past 28 years would have turned a $1,000 initial investment into a holding worth more than $1 million. 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 » Becoming one of the world's dominant enterprises Since this company's initial public offering in May 1997, its shares have produced an unbelievable return of 217,000%. Had you been able to allocate $1,000 to this stock when it went public, you'd be staring at a balance of nearly $2.2 million today. The company in question is none other than Amazon (NASDAQ: AMZN). Its journey -- characterized by constant innovation and pushing the envelope -- has been nothing short of spectacular. Amazon started out in the mid-1990s selling books online. While this was a narrow focus, it was a revolutionary idea at the time. The company wanted to stick to a product category that was easy and low-risk to ship, and one that had a massive selection of items for shoppers to choose from. Over time, Amazon evolved to start selling virtually anything under the sun, and it continues to expand its footprint. In December, for example, the business launched a partnership that allows consumers to buy new Hyundai vehicles on its e-commerce site. The entire car-buying process, from arranging financing to scheduling the delivery from a nearby dealer, can be handled on Amazon. The company enticed shoppers to spend more money on its site by pioneering fast, free shipping, and offering it as a perk of its Prime membership program in 2005. Today, it is estimated that there are more than 200 million Prime members across the globe. In 2006, the company began offering Amazon Web Services (AWS) to external customers. Management realized that other businesses might need solutions to scaling IT infrastructure based on changing needs -- the same issue Amazon faced with its e-commerce operation. In 2024, AWS generated $108 billion of revenue and $40 billion of operating income. It is the world's largest cloud-computing infrastructure provider and a major artificial intelligence (AI) platform. Thanks to the tremendous amount of traffic gets these days, as well as the success of the Prime Video streaming platform, Amazon has become an advertising juggernaut. During the first quarter of 2025, it collected $13.9 billion in digital ad revenue. What the future might hold With a market capitalization of $2.3 trillion and trailing-12-month revenue of $650 billion, Amazon has grown into a colossal entity and delivered incredible gains to its long-term shareholders. But it would be unreasonable to expect it to do anything similar in the future -- it's already one of the five largest companies in the world. Growth can't continue at a rapid pace indefinitely, and given Amazon's current scale, there are limited opportunities for it to do things that could move the financial needle. That doesn't necessarily mean Amazon isn't a worthy investment candidate, though. According to Wall Street consensus analyst estimates, its revenue is projected to increase at a compound annual rate of 9.5% between 2024 and 2027. That's certainly an encouraging sign. Even better, its bottom line is soaring thanks to cost cuts and operational efficiencies. Diluted earnings per share (on a split-adjusted basis) went from $3.21 in 2021 -- and a $0.27 loss in 2022 -- to $5.53 in 2024. Those impressive gains make the current valuation reasonable, in my view. As of June 19, the stock trades at a forward price-to-earnings ratio of 34.3. Amazon won't turn a $1,000 investment into $2.2 million over the next 28 years. However, this business should be on every long-term investor's radar. 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 $664,089!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $881,731!* Now, it's worth noting Stock Advisor 's total average return is994% — a market-crushing outperformance compared to172%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 June 9, 2025
Yahoo
19-06-2025
- Business
- Yahoo
3 Growth Stocks to Buy and Forget About
Alphabet continues to innovate and adapt for long-term growth. Fiverr has huge growth potential despite recent share price struggles. Netflix has rewarded patient investors with outstanding returns, and keeps coming up with better business plans. 10 stocks we like better than Alphabet › The best growth stocks are the ones you can just forget about. Buy them once and leave them alone. The road ahead may be bumpy, but these companies should be able to overcome their challenges in the long run. And since many investors don't have this unshakable long-term perspective, the stocks may be undervalued from time to time. Here are some of these cruise-control growth stocks from my own portfolio. Some of them are cheap these days and others aren't, but I'd be happy to start brand new positions in all of them today. Except I can't, because I already own them and have no plans to sell my shares anytime soon. I bought my first Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) share in December 2010, when the company still was called Google. By June 17, 2025, those stubs have gained 1,065%. I'm not complaining. If anything, I only wish I had picked up some Google stock even earlier. The trillion-dollar tech giant you see today was once a little upstart with advanced technology and big ambitions. The company's mission is still to "organize the world's information and make it universally accessible and useful," and that's a goal without a time limit. Alphabet is both very profitable and extremely flexible. That rare combination sets the company up for decades of continued business growth. The Alphabet you see in 2040 or 2050 may look very different from the online search and advertising specialist you've seen so far, and that's alright. This company does more than simply rolling with the market's punches -- Alphabet usually leads the charge into whatever new era comes next, such as high-powered smartphones and artificial intelligence (AI). Freelance services facilitator Fiverr International (NYSE: FVRR) is a different story. My first Fiverr share has fallen a hair-raising 87% since January 2021, and the best performer among five additions to my position is down by 27% in three years. So the stock is struggling, but have you seen Fiverr's financial results? Here's a taste of its steady revenue growth and skyrocketing cash flows over the past three years: Top-line sales increased by 24% over this period while free cash flows tripled. I keep coming back to this stock whenever I have fresh cash to invest, because it often looks undervalued. Like Alphabet, Fiverr has a beefy long-term target. This company wants to "change how the world works together." The effort so far has focused on matching online freelancers with unfilled gigs. Fiverr is all about digital service delivery at this point, from translation and graphic design to music recordings and effective AI prompts. The growth opportunity is enormous. With $405 million of total revenues in the last four quarters, Fiverr controls less than 0.2% of this addressable market. Most of today's freelancing is managed offline, via traditional channels such as personal contacts, phone networks, or printed ads. That doesn't sound like a sustainable future to me, giving Fiverr a fantastic growth opportunity. I can't wait for my Fiverr investments to turn profitable, but I also can't complain about having this exciting stock available at low prices. Fiverr's stock trades at just 12 times free cash flows and 10.8 times forward earnings estimates today. So I keep buying Fiverr stock while it's cheap. Setting up just a single purchase of this undervalued growth stock will serve you well over time. Here's another classic set-and-forget investment. The oldest Netflix (NASDAQ: NFLX) shares in my portfolio today have gained 10,120% over the years. I picked them up at a discount during the Qwikster panic of 2011. The media-streaming veteran is often misunderstood by bearish investors, who often see it as a risky play on unproven business ideas. I see long-term opportunity and innovation in the same ideas. The company that dominated video rentals and destroyed Blockbuster moved on to a lightweight digital streaming model, later buttressed with a costly but effective content production strategy. Netflix has embraced ad-supported subscriptions more recently, focusing on profitable growth for the first time. There's still a lot of world left to conquer out there, and Netflix is still trying brand new business tactics. Yes, the stock is setting new all-time highs on a regular basis and it rarely looks cheap. But it's also the gift that keeps on giving in the long haul. Before you buy stock in Alphabet, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Alphabet 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 $658,297!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $883,386!* Now, it's worth noting Stock Advisor's total average return is 992% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Anders Bylund has positions in Alphabet, Fiverr International, and Netflix. The Motley Fool has positions in and recommends Alphabet, Fiverr International, and Netflix. The Motley Fool has a disclosure policy. 3 Growth Stocks to Buy and Forget About was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
18-06-2025
- Business
- Globe and Mail
2 Monster Stocks to Own for 10 Years or More
Whenever the stock market experiences significant volatility, as it has this year, it can be helpful to step back and examine the performance of broader equities over a decade or more. Doing so puts things in perspective. Corrections appear as pretty minor blips on a chart of the S&P 500 's long-term performance, which consistently moves upward for those who wait long enough. That's why panic selling is never a good solution to market volatility. Even in challenging times, it's worth it to purchase shares of excellent companies that can perform well over 10 years or more. Amazon (NASDAQ: AMZN) and Coca-Cola (NYSE: KO)are two notable examples. 1. Amazon Amazon started as a modest online bookstore, expanded into broader e-commerce offerings, and then launched its cloud segment, Amazon Web Services (AWS), in 2006. More recently, it made a significant impact in the artificial intelligence (AI) market. Here's where it gets interesting: The company arguably still has massive whitespace in each of those industries. E-commerce made up 16.2% of total retail transactions in the U.S., as of the first quarter. It hasn't peaked yet. Analysts continue to project that the e-commerce market will expand at a good clip. Meanwhile, Amazon CEO Andy Jassy says that more than 85% of IT spending still occurs on-premises, i.e., not in the cloud. And the recent AI explosion is also just beginning. These are opportunities Amazon could ride for well beyond the next 10 years. And what's even more promising is that Amazon's newer opportunities carry higher margins than its legacy e-commerce business. As of the end of 2024, the segment had an annualized run rate of $115 billion. That doesn't seem that impressive compared to Amazon's total sales of almost $638 billion it reported last year. But AWS is growing faster than the rest of the business, already accounts for over 50% of the company's operating income, and by 2035 should make up a far larger percentage of its top line, leading to even even greater profits and margins. Amazon's AI business will speed up the process. Then there is the company's rapidly growing advertising business. The company's namesake website, which is one of the most visited websites worldwide, should help it maintain a robust, rapidly growing ad business. Furthermore, Amazon generates substantial cash flow and, thanks to its massive ecosystem of Prime users, has numerous monetization opportunities. It is ramping up some of them, including in the healthcare sector. Although it may take some time, initiatives like Amazon Pharmacy should become far more prominent in a decade. That's just one example. Finally, Amazon has a wide moat from multiple sources, including its brand name, a network effect, and high switching costs. Though Amazon will encounter some issues -- including potential tariff-related troubles and slowdowns in economic activity that could harm its business -- its long-term prospects are impeccable. Investors can't go wrong with this stock. 2. Coca-Cola Coca-Cola's business isn't as exciting as that of some major tech companies. But it is effective. The company markets a vast portfolio of drinks across nearly every category. Coca-Cola has sports drinks, water brands, alcohol, tea, coffee, juice, etc. Of course, the company remains most famous because of its namesake soft drinks. Coca-Cola's popularity -- it is one of the most valuable brands in the world -- means it attracts regular business from consumers and generates steady revenue and profits. Revenue growth might not be outstanding, but the stability of its business is a significant strength. Further, it won't be too disrupted by tariffs. Although Coca-Cola is a global brand, it has substantial manufacturing and supply chain operations in every region. It makes most of the products sold to U.S. consumers in the country, shielding the company from import duties. Coca-Cola did encounter some headwinds in recent years. The pandemic severely disrupted its business. The company could also suffer due to changing consumer demands. However, Coca-Cola survived the worst of the outbreak, and its financial results rebounded. Additionally, the company frequently introduces new beverage options to meet the evolving needs and demands of its consumer base. That's how Coca-Cola has thrived for as long as it has, and although the past is no guarantee of future success, the beverage specialist still has the qualities to perform in the long run. Lastly, Coca-Cola is an outstanding dividend stock. It increased its payouts for 63 consecutive years, making it a Dividend King. This is one income stock investors don't have to worry about cutting its payouts. Reinvesting the dividend should lead to superior returns over the next decade and beyond. 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 $660,821!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $886,880!* Now, it's worth noting Stock Advisor 's total average return is791% — a market-crushing outperformance compared to174%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 June 9, 2025
