4 Buy-and-Hold-Forever Stocks Available at a Bargain

Key Points

• Buy-and-hold stocks available at a bargain present an opportunity for investors to enter a position they plan to maintain for a long time.
• Some companies stand poised to benefit from growing demand, while others are expanding operations to take on larger competitors.
• EPD, LUNR, ALK, and SCI all make compelling choices for investors seeking a long-term position.

Even as Warren Buffett prepares to officially retire as CEO of Berkshire Hathaway Inc. NYSE: BRK.B, investors are likely to continue to honor his legacy by emulating his investing strategies. One of the hallmarks of Buffett's approach is identifying exceptional stocks and maintaining positions in them for a long time—even decades in many cases. For many investors, a buy-and-hold approach works well in that it minimizes the temptation to trade impulsively or too often.

A critical challenge to buy-and-hold investing is selecting appropriate companies to target. Each investor's stipulations for what constitutes an attractive hold-forever stock are different, but one common consideration is whether a company represents a good value. Consider the four companies below, all of which offer a compelling investment proposition at a bargain price.

Upside Potential and a 6.7% Dividend Yield Make This Midstream Stock a Long-Term Buy

Midstream energy outfit Enterprise Products Partners L.P. NYSE: EPD saw share prices drop in early April amid tariff concerns, and as of mid-June, they have yet to fully recover. This presents a unique opportunity for investors to gain exposure to an energy company with 15% upside potential and eight analysts flashing a Buy rating.

Although Enterprise missed earnings expectations in its last quarterly report, it nonetheless noted nearly 5% year-over-year (YoY) revenue growth during a period of difficult external challenges.

This suggests the company is resilient in the face of threats. Analysts predict earnings growth to accelerate even further going forward.

Enterprise draws attention from long-term investors for its dividends. The company provides a high dividend yield of 6.70%. Although the dividend payout ratio of 80.15% is on the high side, the firm's strong balance sheet and nearly three-decade history of increasing distributions speak to its ability to manage cash effectively.

Opportunity to Solidify Position as Leading Space Services Provider for Lunar Missions

Intuitive Machines Inc. NASDAQ: LUNR provides space station, satellite, and other orbital services, as well as lunar data services. With NASA renewing plans to send humans to the moon in the coming years through the Artemis program, Intuitive has an opportunity to cement itself as the leading services provider for any number of future lunar missions beyond Artemis.

The company aims to provide a wide range of tools to make communication, mining, and energy generation possible in space.

Investors watching for short-term financial success might overlook Intuitive, given its lack of profitability and minimal capacity to generate revenue thus far. But analysts are more willing to take a longer view, with six out of nine recommending LUNR as a Buy and assigning upside potential of more than 47%.

Should the Artemis missions prove successful, Intuitive could play a significant role in humanity's next wave of space exploration.

Ambitious Expansion Plans and Attractive Profit Proposition

Alaska Air Group Inc. NYSE: ALK is often overlooked compared with larger rivals, but this one-time regional airline is rapidly expanding through its ambitious Alaska Accelerate initiative. Thanks to its acquisition of Hawaiian Airlines in 2024, the company is on track to deliver $1 billion in incremental profit by 2027 as it expands its global footprint and builds customer loyalty.

Alaska's margins are strong, its balance sheet and cash flow have historically caught investor attention, and it is growing its premium revenue at a steady pace. The airline seems poised to position itself as a major contender for air travel across the United States and internationally alongside legacy competitors.

Shares of Alaska are down about a quarter in the last year, but analysts see strong upside potential going forward, and 11 out of 12 analysts view ALK as a Buy. This dip may represent an opportunity to buy ALK shares before they soar again.

Death Care Demand Likely to Grow, Fueling Interest in Service Co.

Although investors may not like to think about it, cemetery and funeral services providers can be lucrative businesses. Service Co. International NYSE: SCI is among the largest of these companies readily accessible to investors, with a market cap nearing $12 billion.

The death services market is poised to accelerate growth in the coming decades; by the early 2030s all Baby Boomers will be senior citizens, and this generation of roughly 76 million will need to make plans for eventual end-of-life processes.

Service Co. is successfully adapting to changing demands and has pivoted toward an insurance-funded pre-need sales model while maintaining a strong average revenue per service and growing its overall services.

Perhaps most importantly, the company has the infrastructure in place to accommodate increasing demand, even as the overall number of funeral homes across the country is in decline.