In this article, we discuss 5 best long-term growth stocks for strong returns. If you want to see more best long-term growth stocks for strong returns, the risk/reward, and methodology of this list, go directly to 11 Best Long-term Growth Stocks for Strong Returns.
It is impossible to know the future. As such, it isn’t possible to know stocks that will generate strong returns for sure.
Nevertheless, there are leading companies that benefit from secular growth trends that could potentially generate substantial profits in the future. Here are 5 of them:
5. The Walt Disney Company (NYSE:DIS)
Number of Hedge Fund Holders: 99
The Walt Disney Company (NYSE:DIS) is an entertainment giant that ranks #5 on our list of 11 Best Long-term Growth Stocks for Strong Returns given 99 hedge funds in our database owned shares of the company at the end of Q4. The Walt Disney Company (NYSE:DIS) benefits from the secular trend of continued economic development around the world as higher incomes mean potentially more demand for the company’s entertainment products such as Disney+. The Walt Disney Company (NYSE:DIS) could also potentially benefit from the growth of the metaverse as the company could potentially do substantial licensing for games and other entertainment experiences. As of March 9, shares trade for a forward P/E of 17.43.
4. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders: 100
JPMorgan Chase & Co. (NYSE:JPM) is one of the leading U.S. banks that could face near term headwinds if the economy worsens too much. Nevertheless, JPMorgan Chase & Co. (NYSE:JPM) is still a really quality bank in the long term given its huge scale, leading technology, and substantial normalized earnings power. If the U.S. economy expands in the long term and JPMorgan Chase & Co. (NYSE:JPM) maintains or grows its banking market share, the bank could potentially lend out more money, have more assets, and demand for many of its capital market services will also increase.
3. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 194
Meta Platforms, Inc. (NASDAQ:META) is a social media giant that could potentially benefit from the growth of the metaverse which the company has invested tens of billions on in the last few years. In addition, Meta Platforms, Inc. (NASDAQ:META) could benefit from the secular growth of AI given the company’s substantial investments in that sector and its billions of monthly active users that the company could offer AI services to. In the near term, Meta Platforms, Inc. (NASDAQ:META) is reportedly planning to layoff thousands more of its employees to cut costs.
2. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 240
Amazon.com, Inc. (NASDAQ:AMZN) is a tech giant that benefits from the secular growth in AI processing which could increase demand for its cloud services. The company could also benefit from the secular growth in e-commerce as incomes rise further and as technology advances so delivery is faster and cheaper. In the future, Amazon.com, Inc. (NASDAQ:AMZN) is planning to expand in groceries and also increase the number of its physical stores so it offers consumers an even better experience. Amazon.com, Inc. (NASDAQ:AMZN) trades for a forward P/E of 36.77 as of March 9, indicating the market expects fairly substantial earnings growth in the future even if the company might have near term headwinds if the economy slows.
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 259
Microsoft Corporation (NASDAQ:MSFT) ranks #1 on our list of 11 Best Long-term Growth Stocks for Strong Returns given 259 hedge funds in our database owned shares of the tech giant at the end of Q4. In terms of tech companies, Microsoft Corporation (NASDAQ:MSFT) is arguably one of the highest quality blue chips given its substantial free cash flow, its leading position in enterprise software, and also its growing cloud business. Furthermore, Microsoft Corporation (NASDAQ:MSFT) potentially benefits from growth in AI given its $11 billion total investment in OpenAI which makes the popular app, ChatGPT. Although ChatGPT makes mistakes, the app is one of the fastest growing consumer apps in history.
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