Lifetime Investments: 7 Stocks That Promise Steady Growth for Decades
In the stock market, where tumultuous waves can lead to substantial losses or lucrative gains, investors often seek blue-chip stocks that generate favorable and stable growth over the years. Notably, an ongoing intersection of market trends, company strategies, and external factors has brought an opportunity to seize the stocks primed for a long-term value ascension. Ths has led to the rise of stocks to buy and hold.
Once the stalwarts of various industries, these stocks faced temporary challenges that led them to struggle to deliver market-leading returns. However, a closer look reveals a different resilience, adaptability, and foresight narrative.
Here, the article explores the strategic plans of these companies that have employed them to weather economic uncertainty and set themselves on the growth path. Interestingly, from revitalizing customer relationships to embracing new technological paradigms, these companies are rewriting their fundamentals, making their current valuation state a launchpad for new highs.
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Advance Auto Parts (AAP)
Source: shutterstock.com/Trygve Finkelsen
Advance Auto Parts (NYSE:AAP) aims to achieve long-term benefits by focusing on operational improvements, customer satisfaction, and competitive positioning. The company has taken significant steps to enhance its key performance indicators (KPIs). For instance, these improvements have led to a 50 basis point enhancement in on-hand rates regarding parts availability and supply chain fill rates. This makes it one of those stocks to buy and hold.
AAP has fine-tuned its pricing strategy to drive sustainable growth based on comprehensive research. AAP has adjusted its pricing targets by category, aligning with competitive benchmarks. The strategy has already yielded positive outcomes regarding transactions and unit performance.
Moreover, the company is focused on regaining its share of wallets with existing customers. It plans to achieve this through a back-to-basics approach, focusing on inventory optimization, parts availability, and competitive pricing. Despite these challenges, the company remains optimistic due to favorable industry drivers, including an increasing car park, an aging fleet, and moderate growth in miles driven.
Banner (BANR)
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Banner’s (NASDAQ:BANR) strong core deposit base, net interest margin, and controlled core expenses contribute to a healthy return on average assets of 1.02%. The company’s consistent execution of its super community bank strategy focused on client relationships, loyalty, and soundness aids in new client growth and maintains core funding.
Notably, the increase in loans by 11% from the previous year reflects the effectiveness of their community bank model. Even though the economic environment remains uncertain, Banner’s credit metrics remain robust. It has low delinquent loans (0.28% of total loans) and a moderate risk profile. The company’s diversification in loan types, including residential, commercial, and agricultural loans, helps navigate changing market conditions. All in all, it’s one of those stocks to buy and hold.
Furthermore, Banner’s recognition as one of America’s best banks and its focus on environmental, social, and governance factors showcase its value proposition. Additionally, the bank’s recognition by reputable entities like Forbes, Newsweek, and S&P Global Market Intelligence further validates its business model and value proposition. The consistent recognition, accolades, and outstanding CRA rating highlight its positive reputation and responsible business practices.
Finally, the bank’s prudent underwriting practices, diverse loan portfolio, and robust review processes contribute to its credit stability.
Concentrix (CNXC)
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Concentrix (NASDAQ:CNXC) benefits from its strategic positioning in various verticals, including healthcare, travel, insurance, and technology sectors. It maintains strong performance in key segments. The trend toward client-driven provider consolidation favors Concentrix due to its comprehensive capabilities in end-to-end process support. Also, the company anticipates clients will accelerate these plans if softness continues, potentially benefiting Concentrix.
Fundamentally, Concentrix has diverse capabilities. It includes generative AI moderation services, transformational omnichannel CX delivery models, and improved customer acquisition using analytics and AI. The company is also pursuing a transformative combination with Webhelp, diversifying its revenue, client base, and global footprint. Notably, The expected accretive nature of this combination, along with projected cost synergies of $120 million by 2025, bolsters Concentrix’s long-term growth prospects.
Further, generative AI is another area of focus. The company is utilizing AI tools across its operations to enhance productivity and proficiency. Concentrix acknowledges the value of generative AI but anticipates a gradual approach to large-scale deployment due to data ownership, security, and customer engagement concerns. Therefore, Concentrix’s expertise and role in providing AI solutions ensure consistent and positive outcomes for clients.
Daqo New Energy (DQ)
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Interestingly, the recent addition of the Inner Mongolia Phase 5A facility has boosted Daqo New Energy’s or Daqo’s (NYSE:DQ) annual polysilicon capacity to 205K metric tons. The projected Q3 polysilicon production volume of 55K to 57K metric tons represents a remarkable 21% to 26% YoY increase.
Furthermore, Daqo’s semiconductor-grade polysilicon project is set to start pilot production. It leverages fully digitized and automated systems to enhance operational efficiency, cost structure, and product quality.
Despite challenges like price volatility, Daqo’s robust financial position, characterized by no financial debt, positions it well to weather market fluctuations. Also, the company’s emphasis on high-quality N-type polysilicon aligns with industry trends as the solar energy sector continuously evolves and requires purer materials.
The rising demand for high-purity polysilicon, particularly N-type technology, allows Daqo to differentiate itself from competitors. Moreover, Daqo’s solid growth trajectory is further supported by the global expansion of solar photovoltaic (PV) energy and the ongoing reduction in PV production costs.
As solar energy adoption increases and more regions demand localized production, Daqo’s presence in strategic markets such as the U.S., Europe, and the Middle East positions it to capitalize on evolving market dynamics.
Foot Locker (FL)
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Foot Locker (NYSE:FL) stands to benefit in the long term through its Lace Up strategy. Its Lace Up strategy aims to leverage its heritage and brand equity to tap into the growing sneaker market. In detail, the strategy focuses on four key imperatives: expanding sneaker culture, powering up the portfolio, deepening customer relationships, and becoming a best-in-class omnichannel retailer. This uniqueness is reflected in over 90% brand awareness and robust social media engagement.
First, by expanding sneaker culture, Foot Locker aims to serve more sneaker occasions, offer more choices, and drive greater distinction in its offerings. It plans to diversify its assortment through brands like On, HOKA, and Hey Dude and enhance its exclusive sales mix. Second, the power-up of the portfolio involves creating clear banners and optimizing real estate. This includes closing underperforming stores, transitioning Champs to focus on active athletes, and opening new store formats to express the category fully. This makes it one of those stocks to buy and hold.
Furthermore, Foot Locker seeks to deepen customer relationships by reimagining its loyalty program and building better CRM capabilities. It aims to increase loyalty penetration to 50% by 2026 and 70% in the long term. Lastly, Foot Locker plans to be a best-in-class omni-channel retailer by seamlessly improving its digital presence and integrating channels, aiming to reach 25% digital sales penetration by 2026.
Harley-Davidson (HOG)
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Harley-Davidson (NYSE:HOG) focuses on profitable growth by prioritizing its most profitable motorcycle categories. These include touring bikes, trikes (+10% YoY), and cruisers (+22% YoY). Notably, the increase in gross margins reflects the emphasis on profitability over sheer unit growth.
Furthermore, Harley-Davidson’s selective expansion strategy aims to capitalize on brand strength and product capabilities. Partnerships with companies like Hero MotoCorp and QJ are helping the company enter geographies that matter. Simultaneously, it attracts new riders to the brand as pre-orders exceed expectations for products like the X440 in India.
Various programs like HD Membership and Rider Pass offer personalized benefits, rewards, and experiences, strengthening customer engagement and loyalty. Additionally, the ongoing transformation of dealerships and omnichannel capabilities aims to provide a superior in-person and online customer experience.
Similarly, Harley-Davidson’s venture into electric motorcycles with the LiveWire brand is also promising, as the company is expanding its lineup to make electric motorcycles more accessible to a broader segment of riders. Finally, the ST platform, including models like Del Mar, holds the potential to capture the growing interest in electric vehicles.
GoPro (GPRO)
Source: Larry George II / Shutterstock.com
GoPro’s (NASDAQ:GPRO) long-term prospects are bolstered by a comprehensive go-to-market strategy that involves restoring camera pricing to pre-pandemic levels, discontinuing subscription-related discounts at purchase, and reinvigorating its presence in global retail markets.
GoPro seeks to drive substantial volume and subscriber expansion by reintroducing entry-level cameras at attractive prices. This strategy has already generated promising results, with immediate demand surges across all regions after the pandemic. Moreover, the strategy includes expanding retail distribution to influential partners, amplifying marketing investments to pre-pandemic levels, and enhancing brand visibility through updated point-of-purchase displays.
Moreover, GoPro’s subscription business stands out, with a 27% YoY increase in subscribers, reaching 2.44 million (Q2 2023). Also, high attach rates for subscriptions from retail and GoPro.com customers emphasize the value customers find in the subscription offering.
Finally, GoPro is capitalizing on the digital imaging software realm by introducing an all-new desktop app for subscribers. This strategic move and the anticipated expansion of GoPro’s relevance as a software solution for a broader audience enhance the company’s value potential.
This concludes our list of stocks to buy and hold.
As of this writing, Yiannis Zourmpanos held a long position in DQ and GPRO. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Yiannis Zourmpanos is the founder of Yiazou Capital Research, a stock-market research platform designed to elevate the due diligence process through in-depth business analysis.
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