In this article, we will take a look at the 10 safe stocks to invest in for the long term in 2024.
The Sectors with Promising Growth
The recent market action can be attributed to the Fed’s decision. To discuss the future of the equity market, Drew Pettit, Citi US equity strategist, appeared in an interview on Yahoo Finance on September 26, 2024.
According to Pettit, the market is yet to hit an all-time high if you look beneath the surface. He suggests that the Fed’s decision and if the potential softness in the labor data comes through, investors may regain confidence positioning the market for recovery. He adds that in the past quarter, cyclical and secular stocks have been performing well, but are yet to hit the market peak.
Speaking of growth sectors, some sectors have outperformed others, growing exponentially. Pettit adds that stocks with mature business models have yielded greater returns from minuscule upsides in sales. As for the tech sector, he believes that stocks will remain resilient and will be able to handle some deceleration. He advises investors to remain cautious of tech stocks moving forward and focus on overlooked areas of the market such as consumer goods, financials, and cyclicals.
Investors Must Focus More on Fundamentals
The market saw a great run-up after the easing cycle. However, the question of a soft landing still stands. On September 30, Liz Young Thomas, SoFi head of investment strategy, appeared in an interview on CNBC to discuss the latest market trends and opportunities for investors.
Thomas believes that the maximum gains have already been achieved up until the easing cycle, however, growth may continue till the end of 2024. She stresses that the next 30 to 60 days are extremely crucial for the market and will help investors understand the motive behind the rate cuts, and whether the cuts were needed in the first place.
While growth in the tech sector has been slowing down, other sectors have reportedly grown and more than 80% of the S&P 500 has been trading above the 200-day moving average. She adds that the tech sector has started to strengthen and the optimism surrounding the Chinese economy may combine to yield positive results for the market.
Thomas reiterates that while multiples are rich, to ensure a soft landing, the market must move to trade based on fundamentals rather than on multiples. She explains that this simply means that multiples are unlikely to expand from here, but earnings may get more steady. Sectors such as industrials have been growing and expanding while financials have been slower. Thomas advises investors to focus on stocks that have strong fundamentals and steady earnings growth.
Now that we have glanced at the market outlook following the easing cycle, let’s take a look at the 10 safe stocks to invest in for the long term in 2024.
A financial analyst looking at a monitor displaying the stocks of the public company.
Our Methodology
To come up with the safest stocks to invest in for the long term in 2024 we consulted multiple reports and also screened for reliable growers using the Finviz stock screener. We compiled an initial list of 30 stocks. We then referred to the 10% year revenue growth rate for each of the stocks along with their history of dividend payouts. Companies with the highest growth rates and a history of dividend growth were included in the list. The 10 safe stocks to invest in for the long term in 2024 are in ascending order of their 10-year revenue growth rate.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10 Safe Stocks To Invest In For The Long Term in 2024
10. Colgate-Palmolive Company (NYSE:CL)
10 Year Revenue Growth: 1.38%
Number of Hedge Fund Holders: 52
Colgate-Palmolive Company (NYSE:CL) is one of the safest stocks to invest in for the long term. The manufacturing company is based in New York, United States, and owns some of the most popular fast-moving consumer goods brands in the world. These include Protex, Speed Stick, PCA Skin, and Sanex.
In the second quarter of 2024, the company logged $5.06 billion in net sales, up by 4.9% year-over-year. For the past four quarters, Colgate-Palmolive Company (NYSE:CL) has been delivering double-digit growth rates in operating profits, net income, and earnings per share. For the complete fiscal year 2024, the company expects net sales to grow from somewhere between 2% and 5%.
Colgate-Palmolive Company (NYSE:CL) has a strong international presence, accounting for 70% of its revenue. The company believes making reinvestments into the business is one of the most important aspects of a solid entity. In its Q2 2024 earnings release, the company highlighted that its growing sales coupled with an increase in advertising by 18% secures the long-term expansion goals of the business.
Latin America is a major market for the company, accounting for 25% of the company’s sales. Sales from Latin America grew by 7.6% year-over-year, while organic sales expanded by 18.8%. The region also logged $417 million in operating profits, the highest among all divisions in terms of dollar value. The company’s position in this segment and global market share of 41.5% in toothpaste across 200 countries is proof of its dominant position in the industry.
At the end of Q2 2024, 52 hedge funds owned stakes in Colgate-Palmolive Company (NYSE:CL), with total stakes amounting to $2.73 billion. Of this, First Eagle Investment Management was the largest shareholder with a position worth $875.86 million, as of June 30.
ClearBridge Investments’ ClearBridge Sustainability Leaders Strategy stated the following regarding Colgate-Palmolive Company (NYSE:CL) in its Q2 2024 investor letter:
“Colgate-Palmolive Company (NYSE:CL), added to the portfolio in 2023, started outperforming materially toward the tail end of last year as growth, margin and market share momentum began to turn favorably, and that momentum has continued year to date as the stock has nicely outperformed the large cap staples group. The fundamental upside has been driven by a combination of healthy organic growth (with positive volumes), good gross margin progression, and strong re-investment spending supporting market share gains and future growth.”
9. Walmart Inc. (NYSE:WMT)
10 Year Revenue Growth: 3.30%
Number of Hedge Fund Holders: 95
Walmart Inc. (NYSE:WMT) is one of the biggest retail companies in the world and one of the safest stocks to invest in for the long term. It operates retail outlets, wholesale units, and e-commerce sites in more than 20 countries that serve more than 240 million customers every week.
The company has remarkably high speeds of delivery due to its massive network. It currently operates 210 distribution centers and has a private fleet of 9,000 tractors, 80,000 trailers, and 11,000 drivers, all of which enabled the company to deliver 30% of orders within 3 hours over the past 12 months in the United States.
Walmart Inc. (NYSE:WMT) is consistently improving, and we say that because of its investments in technology and expansion. In FQ1 2025, the company launched an AI-backed platform allowing customers to receive product recommendations based on their likes and dislikes. As for its brick-and-mortar stores, by the end of FY 2026, the company expects more than half of its stores and fulfillment centers to be automated.
Walmart is also a favorite among sellers, as evidenced by a 36% growth in sellers on its marketplace in the fiscal first quarter of 2025. In addition to that, the company is on track to add a staggering $130 billion in sales if it achieves its 4% sales growth target over the next five years. Such can be attributed to the company’s initiatives for sellers on the Walmart Marketplace. At the end of August, Walmart Inc. (NYSE:WMT) announced new categories, established personalized omnichannel experiences, and advanced its digital and fulfillment capabilities, improving the overall seller experience.
Coming to the internal use of technology, the company is leveraging data to better understand and increase its customer base. To make better use of data, the company launched its insights and analytics platform, Walmart Data Ventures, in 2021. This year, the client base of Walmart Data Ventures increased by 173%, and the presence of small to medium enterprises shot up by 100% year-to-date.
Over the past four quarters, the Walmart Marketplace has achieved over 30% sales growth, contributing to its ranking on our list. As the demand for online retail grows, so will Walmart’s position in the market.