Top 3 Stocks for Long-Term Investment: Buy and Hold With $1,000 Forever

Top 3 Stocks for Long-Term Investment: Buy and Hold With ,000 Forever

THE S&P500 The index is up 31% over the past year, but several big companies have bright prospects and are poised to generate more gains. If you have an extra $1,000 to invest, invest that money in a well-selected group of projects. growth stocks could do wonders for your savings goals in the future.

To get started, read why three Motley Fool contributors believe Amazon (NASDAQ:AMZN), HR (NYSE: RH)And Shopify (NYSE: SHOP) could make your money grow for years to come.

The story of this winning action is far from over

Jennifer Saibil (Amazon): Amazon has already created wild shareholder wealth for those who invested early enough. It’s one of the best stocks ever on the stock market, and it’s up 82% in the past year alone.

But there is so much more to come. Amazon is an eternal stock and its various activities offer it many opportunities.

It’s still the king of e-commerce that started the whole story, and e-commerce continues to grow as a percentage of total retail sales. Amazon is better positioned than any other company to benefit from this organic growth engine. It already accounts for more than a third of all U.S. e-commerce, and no other company comes close to its market share. It continues to upgrade its systems to improve and keep a big distance from its competitors. This delivers to more customers overnight and adds millions of products so shoppers don’t have to travel to get what they need.

Amazon Web Services (AWS) also has a leading position in cloud computing and is launching powerful generative AI tools that help it stay competitive. It is the preferred solution for leading companies like Walt Disney And VerizonCommunications, and it has a strong pipeline of new customers and expanded offerings. AWS is a high-margin business that accounted for 54% of total operating profit in Q4 2023.

It is working to develop other new professions, such as advertising, its fastest growing segment. Total revenue increased 14% year over year, while advertising increased 27%. It’s also a high-margin business that helps drive profits, and CEO Andy Jassy said it’s “still early days.”

Even if you’ve missed out on Amazon’s gains so far, you can still join today and enjoy years of growth.

A confirmed winner who reaches the milestone

Jeremy Bowman (right): It’s been a rough few years for RH, the high-end furniture company formerly known as Restoration Hardware, but there are signs it’s finally turning the corner into what CEO Gary Friedman called “the most difficult real estate market in three decades”. “

Recent results have also suffered from sharply declining net income over the past year, but that sets the company up for a recovery, and Friedman predicted RH would gain significant market share this year.

2024 is shaping up to be a transformational year for the company as it launches “its most compelling product transformation and platform expansion in history.”

RH has also been repurchasing its shares aggressively to take advantage of the recent sell-off, which also prepares it well for a recovery. In 2023, it reduced its outstanding shares by 20%, and over the past two years, outstanding shares have fallen by 35%.

The company continues to expand its physical retail presence, unlike most of its peers, with plans to add five new design galleries in North America and two more internationally. The company is also doubling its marketing efforts in anticipation of a recovery, doubling the circulation of its reference books and increasing advertising in design publications.

RH has significantly outperformed the S&P 500 over its history, and it appears to be entering another growth cycle as it ramps up its marketing efforts and benefits from an expected decline in interest rates and a recovery in the estate market.

With an expected return to growth and a substantial decline in shares outstanding, RH’s profits are expected to soar over the next few years.

Shopify’s Growth Story Just Keeps Getting Better

John Ballard (Shopify): The leading online shopping and payments platform has put together several strong earnings reports. The stock is up 73% in the past 12 months, but as the company begins to expand its offerings, it could enter a period of lucrative growth to reward shareholders.

Shopify is not just a platform helping businesses create an online storefront. It also continues to introduce new features to the Shop app, which serves as a mobile storefront for small businesses and a powerful shopping assistant for consumers. The app reached $100 million in gross merchandise volume in a single month during the fourth quarter.

Another emerging growth catalyst is Shopify’s point-of-sale solutions for brick-and-mortar locations. The company’s offline gross merchandise volume (GMV) grew 28% year-over-year in Q4 2023, faster than Shopify’s total GMV, which grew 23%.

Another opportunity is business-to-business (B2B) solutions. Shopify Collective is a new service that allows merchants to source products from other brands and ship them directly to customers. B2B represents a $450 billion opportunity and management expects it to be a key driver of growth in 2024.

With these services, Shopify is expanding its network to capture not only a greater share of e-commerce spending, but also, increasingly, the entire commerce market. The stock offers many long-term benefits.

Should you invest $1,000 in Amazon right now?

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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 at Walt Disney. Jeremy Bowman holds positions at Amazon, HR, Shopify and Walt Disney. John Ballard has no position in any of the stocks mentioned. The Motley Fool holds positions and recommends Amazon, Shopify, and Walt Disney. The Motley Fool recommends RH and Verizon Communications. The Motley Fool has a disclosure policy.

3 Obvious Stocks to Buy Now with $1,000 and Hold Forever was originally published by The Motley Fool

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