10 Best Stocks to Buy for the Long-Term According to Charles Akre

7. Roper Technologies, Inc. (NASDAQ:ROP)

Akre Capital Management’s First Major Purchase: 2014

Akre Capital Management’s stake value: $834.34 million

Number of Hedge fund holders as of Q3: 40

Roper Technologies, Inc. (NASDAQ:ROP) is a diversified technology company that develops software and engineered products for niche markets. The stock has underperformed the market, going by a 3.36% year-to-date gain compared to a 26% gain for the S&P 500.

Nevertheless, Roper Technologies, Inc. (NASDAQ:ROP) is one of the best long-term stocks to buy as it demonstrates resilience in a challenging market landscape. Strong financial results and strategic moves underscore the company’s long-term prospects and growth metrics. The technology company delivered better-than-expected third-quarter results on October 23, 2024.

Revenue in the quarter increased 13% year-over-year to $1.76 billion as distributable earnings per share surged 6% to $3.40. Its free cash flow increased 15% to $719 million, affirming financial health and ability to fund future growth initiatives. Roper Technologies, Inc. (NASDAQ:ROP) raised its full-year guidance amid continued expansion of its recurring revenue base and improving demand for business mission-critical solutions.

The company has also turned to acquisitions to accelerate growth. It is in the process of acquiring Transact Campus for $1.5 billion. The acquisition should increase its Card Systems/Integrated Security Solutions sector market share.

Conestoga Capital Advisors stated the following regarding Roper Technologies, Inc. (NASDAQ:ROP) in its Q3 2024 investor letter:

“Roper Technologies, Inc. (NASDAQ:ROP) operates a collection of market-leading vertical software franchises and industrial technology businesses. The company reported an uncharacteristic miss in revenue, the first in nearly three years. Its smart meter business, Neptune, faced operational issues during the quarter (since corrected), leading to delayed revenue. Looking ahead, the highly acquisitive company is seeing an attractive pipeline of M&A targets that should see more reasonable valuations in the coming months, a key source of earnings growth.”