It may not look like it over the last few days, but the bull market just celebrated its tenth birthday. From a low of 666 points in March 2009, the benchmark S&P 500 has soared over 300%. However, the search for the best stocks to buy today is much more complicated.
For starters, the current bull market is the longest one in U.S. history. While that’s an enviable position to be in, especially considering global jitters, it’s also a target. Prospective investors will likely require more fundamentally positive news to drive equities higher. Otherwise, they might adopt a defensive stance, which might hurt even the best stocks to buy.
On the other hand, every investor who’s not approaching retirement anytime soon wants some exposure to growth names. Unfortunately, international markets don’t provide much joy: ambiguity over the U.S.-China trade war clouds Asia, while European indices have failed to break above their bearish trend channels.
If you’re looking for the best stocks to buy, or just stocks in general, you’ll only find the most reliable names right here in the U.S. Here are ten companies that may spark growth for the next ten years:
I’m going to go out on a limb and place semiconductor firm Nvidia (NASDAQ:NVDA) at the top of my list of best stocks to buy. Admittedly, it’s a scary proposition. Since the beginning of last October, NVDA stock has dropped nearly 47%. This year, shares have gained over 12%, but much work remains.
Still, the theme of this gallery isn’t about what are the best stocks to advantage right now; instead, we’re discussing companies that will not only survive, but thrive over the next decade. Irrespective of whether we continue this bull market or not, I have confidence in the longer-term prospect for NVDA stock.
Here’s why: Nvidia is deeply involved in multiple industries of tomorrow. From driverless technologies to deep learning and artificial intelligence, the company constantly pushes the envelope. And don’t forget about bitcoin: should cryptocurrencies rise again — and they very well could — NVDA stock almost surely swings higher.
In terms of relevant, long-term plays, Cisco Systems (NASDAQ:CSCO) easily represents one of the best stocks to buy. Its dominant position in the networking and telecommunications-equipment sectors makes CSCO stock a reliable, albeit typically boring name.
However, Cisco has recently shed its somewhat dull reputation. On a year-to-date basis, CSCO stock has jumped nearly 20%. A few days ago, shares hit a multi-year high. As such, you may want to wait for a pullback before diving in.
That said, Cisco isn’t mooning without justification. Because of the Huawei controversy and the trade war, the Donald Trump administration has essentially blacklisted the Chinese firm. And despite the fierce rhetoric in Washington, punishing Huawei is a bipartisan priority.
That suits Cisco just fine, as Huawei is a prime competitor to its business.
While we’re on the subject of telecommunications, we’ve got to talk about AT&T (NYSE:T). Depending on what camp you fall under, you either believe T stock holds undervalued opportunity, or that it’s cheap for a reason.
My colleague Vince Martin holds the latter position, and I strongly recommend reading his analysis. Mature investors always want to know the reasons why they should avoid a stock; after all, you’ve already made a decision why you want to buy it in the first place.
To briefly summarize, AT&T has struggled to grow in a saturated sector, and that has reflected poorly on T stock. Plus, with the telecom giant overextending itself with its aggressive acquisitions, obvious questions cloud the investment.
At the same time, T stock represents a viable play in the next-generation 5G network. Specifically, AT&T will focus on the business aspect, while Verizon Communications (NYSE:VZ) attacks the residential market. The burgeoning network should provide ample opportunities for both, making AT&T a risky, but also a somewhat easy choice.
I almost hate mentioning this company because I’ve mentioned it many times before. However, I can’t deny the painfully obvious, so I won’t even try. If you want a list of the best stocks to buy for the long haul, you must include Amazon (NASDAQ:AMZN).
Sure, AMZN stock has taken a dive since October of last year, technically making it an undervalued prospect. Furthermore, recent volatility suggests that speculators may get another shot at a generous discount. Considering that Amazon has a long track record of success in the markets, you can certainly buy with confidence.
But the biggest argument I offer is the company’s disruptive nature. They’ve upended traditional, brick-and-mortar retail. At the same time, e-commerce trends show that AMZN stock has more growth to extract in this arena.
More importantly, management operates with a chip on its shoulder. Always hungry, they’ll stop at almost nothing to expand their presence, even if that means stomping on everyone else.
Magellan Health (MGLN)
Automatically, you’ll find healthcare-related companies included in almost any extensive list of best stocks to buy. Naturally, this industry benefits from consistent, almost captive demand. Everyone eventually requires medical attention. Moreover, the rapidly aging baby boomer demographic ensures a robust revenue stream.
However, focused plays within this broader category, like Magellan Health (NASDAQ:MGLN) may net significant longer-term profits. Unlike many of its competitors, Magellan incorporates a holistic approach to wellness. As they make clear on their website, this includes behavioral health.
Fundamentally, MGLN stock rides a powerful tailwind. According to a report last year from NBC News, major depression is on the rise in every demographic. That fact alone provides immediate legitimacy to Magellan and its holistic health approach.
Moreover, mental health concerns have sharply impacted the under-18 crowd. It’s a problem that necessitates a response, as Generation Z will soon enter the labor force en masse. Therefore, Magellan’s relevancy will definitely rise, as may MGLN stock.
It’s always the hope that problems can be solved nonviolently. Unfortunately, in some cases — such as North Korean dictator Kim Jong-un — other options also need to be available. In these awful situations, you call Raytheon (NYSE:RTN), which has been a leader in electronics and defense since 1922.
The recent failed negotiations between the U.S. and North Korea highlight how important it is to have a company like Raytheon in your corner.
Although the second round of talks ended miserably for Trump, it boosted relevancy for RTN stock. To keep our enemies and adversaries in check, they must recognize and respect American military supremacy.
Further, the modern nature of warfare emphasizes precision targeting as opposed to old-school carpet bombing. This again benefits RTN stock, where the underlying company is on the cutting edge of weapons deployment.
Source: David via Flickr (Modified)
Common misconceptions lead many people to believe that we have an unassailable technological edge over terrorist states like North Korea. While no one can match us in the digital realm, that doesn’t mean our enemies are in the stone ages.
For example, a recent report from the U.N. Security Council revealed that North Korean hackers have infiltrated cryptocurrency exchanges to circumvent economic sanctions. Because it’s a rogue nation, any cyberattack they commit has an overwhelming asymmetrical leverage: they can devastate us while we can’t do much in retaliation (short of war).
As a result of this asymmetry, I think investors should consider FireEye (NASDAQ:FEYE) for the long haul. Granted, FEYE stock isn’t the most stable name within the cybersecurity industry. Nevertheless, it has tremendous growth potential because the industry itself enjoys guaranteed demand.
More importantly, cybersecurity is a broad category. Whether you’re an individual, a corporation, or a government agency, everyone needs online safety. The cost for a cyber-breach is simply too detrimental to ignore. That fear factor will likely keep FEYE stock running for the next decade, and beyond.
Robert Half International (RHI)
If you needed proof that the nine-to-five concept of employment was dying, the gig economy’s rise is it. Rather than depend on a single employer to provide a living wage, workers today seek temporary or contract work. As independent contractors, their professional lives are never dull, which is an important factor for millennials.
According to a report from Intuit, by 2020, 40% of American workers will ply their trade in the gig economy. That’s next year, which means you likely know someone who has ditched the cubicles for a more dynamic lifestyle. Although not a direct play on this phenomenon, the movement nevertheless benefits Robert Half International (NYSE:RHI).
In prior years, Robert Half specialized in job placements for their corporate clients. They still do, but the emphasis among workers has changed from stability to variability. That works to the company’s advantage, as they have many clients that require temporary help. Not only that, an increasing number of organizations actively encourage the gig economy.
So while RHI stock is going through turbulence now, expect this name to do big things over the next decade.
Source: Bixentro via Flickr
Back when I was in the dating scene, online dating was a bit of a novelty. That’s actually putting it nicely. If you couldn’t meet someone through the traditional channels, something was wrong with you.
Things have dramatically changed since those days. Now, it’s very common for people to hook up through the internet. Today, 40% of Americans use online-dating services, and that figure will likely increase over the next several years. Obviously, this boosts dating site Match Group (NASDAQ:MTCH) and by logical deduction, MTCH stock.
But what further bolsters the case for including MTCH in this list of stocks to buy is gender representation. Unsurprisingly, more men than women use online dating services. However, that gap is a lot smaller than you might initially think: 52.4% of men versus 47.6% of women.
What this translates to is an ample consumer base that should yield long-term growth for MTCH stock.
Last year, cannabis firms ranked very highly among stocks to buy. This year, the situation is significantly more muted. For instance, during a brief moment one September day last year, Tilray (NASDAQ:TLRY) was a $300-a-pop company. Today, you can buy TLRY stock for around $70.
Such extreme volatility has knocked the wind out of the sector, pushing would-be investors away. Look, I don’t blame them. While I love weed — as an investment, just to be clear — I admit it’s not a sector for everyone. But where will TLRY stock be in 10 years’ time? Probably a lot higher than $70.
I say this because marijuana’s Schedule I classification is on its last leg. Just look at the evidence. Public opinion on legalization has completely reversed from the turn of the century. Conservatives like John Boehner and Michael Steele have conspicuously supported the green revolution.
Even Trump and the Democrats saw eye-to-eye on the farm bill, which legalized hemp. Really, what more evidence do you need than this?
And once Schedule I classification goes, it’s open season. Without fear of federal reprisal, financial institutions will back cannabis firms, legitimizing the industry.
As of this writing, Josh Enomoto is long bitcoin and T stock.
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