12 Best Young Stocks To Buy and Hold For 10 Years

10. Atlas Energy Solutions Inc. (NYSE:AESI)

3-Year CAGR as of February 11: 85.14% 

Number of Hedge Fund Holders: 11

Atlas Energy Solutions Inc. (NYSE:AESI) produces and sells mesh and sand proppant for well completion in the Permian Basin. It also provides related services, which include transportation, logistics, storage, and contract labor, primarily to oil and natural gas exploration and production companies.

The company’s core business is providing proppant (frac sand) and related logistics services, primarily in the Permian Basin. In Q3 2024, it sold 6 million tons of frac sand, which generated $145.3 million in revenue. The average selling price was $24.34 per ton. The logistics and delivery services brought in another $159.1 million. A major catalyst for the company’s future growth is the Dune Express. This innovative conveyor belt system is almost finished and will improve how sand is transported to well sites, reducing truck traffic and emissions.

For 2025, Atlas Energy Solutions Inc. (NYSE:AESI) has already secured contracts for over 60% of the Dune Express’s capacity, with a portion destined for the Delaware Basin. Its combination of high-quality sand reserves and advanced logistics, including the Dune Express, gives it a competitive edge in a market facing headwinds like lower rig counts and tighter spending by oil and gas companies.

ClearBridge Small Cap Value Strategy sees Atlas Energy Solutions Inc. (NYSE:AESI) as a well-positioned, low-cost proppant producer that benefits from rising energy prices. It stated the following regarding Atlas Energy Solutions Inc. (NYSE:AESI) in its first quarter 2024 investor letter:

“Rising energy prices helped to support the performance of exploration and production (E&P) companies Magnolia Oil and Gas and Matador Resources and increased demand for energy equipment services, lifting companies like Atlas Energy Solutions Inc. (NYSE:AESI). We continue to have high conviction in Magnolia and Matador due to their strong and demonstrated ability to generate incremental returns on investment capital. Meanwhile Atlas continues to benefit from being the premier lowest-cost producer of materials needed by E&Ps in the Permian Basin. Building on its already strong distribution network and proprietary technology, Atlas’s recent announcement of its intention to acquire competitor Hi-Crush will make it the largest producer in the country of proppant, a material mixed with fracturing fluid for shale production, and solidify its position as a premier industry logistics provider. Expanding its product volume while maintaining its current fixed cost structure should support long-term returns.”