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7 Stocks to Own For the Next Decade in 2020

7 Stocks to Own For the Next DecadePosted on Friday, June 5th, 2020 by MarketBeat Staff

According to Blackrock (NYSE:BLK) analysts, investors who are looking for growth as the economy begins to recover need to be in stocks. In fact, many investors are breathing a sigh of relief for not panicking when the market sold off in February and March.

But while a Black Swan event like the Covid-19 pandemic can teach investors short-term lessons, the trick to buy-and-hold investing is identifying companies that give you the confidence to invest for not just 10 weeks, but 10 years.

For many investors this means identifying key trends. Prior to the pandemic, trends were emerging. Those trends, such as e-commerce, financial technology, digital healthcare, are quickly becoming part of our “new normal.” Think about it. Cash is now literally “dirty money”. E-commerce is not just convenient, it’s essential. And we’ve figured out that the patient-doctor relationship can take place via videochat.

And all of this feeds into other trends, which includes the idea that our smartphones are only going to become more powerful, and more important. But the next 10 years are not destined to be the decade of stealth small-caps. Many of the companies that are well positioned for the next decade will be familiar to most investors.

Here are 7 companies that are going to become increasingly relevant over the next decade. When you buy them now, you’ll be thanking yourself when the calendar turns to 2030.

#1 - PayPal (NASDAQ:PYPL)

Paypal logo

PayPal (NASDAQ:PYPL) is one of the leading companies in the emerging financial technology (fintech) sector. Although the company has been around for quite some time, it still manages to behave like a young startup.

For example, PayPal is best known for its ability to allow consumers and businesses to make digital payments. That has spawned Venmo, a cash app that allows individuals to send money to each other without the need to carry cash. But PayPal has expanded to look a lot more like a full-service bank. Today, the company offers peer-to-peer fund transfers, debit cards, credit cards, and small business loans under its Working Capital program.

This diversity of services is highlighting two very important target audiences. First, gig workers often times are sole proprietors that need to find a payment method other than cash. After the financial crisis, cash made a brief comeback, but as e-commerce continued to grow, there became a need for small businesses to get payments without ACH transfers and the like. That’s where PayPal excels.

One limitation of PayPal was its ability to accept payments in remote settings. To help correct this, PayPal is introducing a new touchless feature on its mobile app. This will allow customers to use PayPal as a form of payment at places like farmers markets that may not be set up for digital payments.

If this sounds like another company you know, keep reading.

About Paypal
PayPal Holdings, Inc operates as a technology platform and digital payments company that enables digital and mobile payments on behalf of consumers and merchants worldwide. Its payment solutions include PayPal, PayPal Credit, Braintree, Venmo, Xoom, and iZettle products. The company's Payments Platform allows consumers to send payments, withdraw funds to their bank accounts, and hold balances in their PayPal accounts in various currencies. Read More 

Current Price: $177.21
Consensus Rating: Buy
Ratings Breakdown: 30 Buy Ratings, 5 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $157.11 (-11.3% Upside)



#2 - Square (NYSE:SQ)

Square logo

Square (NYSE:SQ) is another leader in the fintech sector. In a society where businesses are becoming more mobile, Square allows merchants to accept remote payments for most major credit cards. Square is most easily identified by its signature square-shaped dongle. Merchants insert the dongle into their smartphone or tablet and they have a way to accept safe, secure credit payments.

And like PayPal, Square is expanding on its base service to meet the needs of its users. It has its own peer-to-peer payment solution, CashApp that is similar to Paypal’s Venmo app.

One of the concerns is that as Square and PayPal begin to offer complementary services they will begin to cannibalize each other’s businesses. That may be a concern by 2030, but in the short term there’s plenty of business to go around.

A more clear and present danger for Square is the damage done to small businesses due to the mitigation measures taken due to the Covid-19 pandemic. Mom and pop businesses have been among the hardest hit and most likely to not come back. However, if you’re looking to invest in companies that you can own for the next ten years, then you have to believe that other businesses will open as others close. That makes Square a great option.

About Square
Square, Inc provides payment and point-of-sale solutions in the United States and internationally. The company's commerce ecosystem includes point-of-sale software and hardware that enables sellers to turn mobile and computing devices into payment and point-of-sale solutions. It offers hardware products, including Magstripe reader, which enables swiped transactions of magnetic stripe cards; Contactless and chip reader that accepts EMV® chip cards and Near Field Communication payments; Chip card reader, which accepts EMV® chip cards and enables swiped transactions of magnetic stripe cards; Square Stand, which enables an iPad to be used as a payment terminal or full point of sale solution; and Square Register that combines its hardware, point-of-sale software, and payments technology, as well as managed payments solutions. Read More 

Current Price: $113.39
Consensus Rating: Hold
Ratings Breakdown: 18 Buy Ratings, 17 Hold Ratings, 5 Sell Ratings.
Consensus Price Target: $75.64 (-33.3% Upside)



#3 - Shopify (NYSE:SHOP)

Shopify logo

If there’s one thing that has millions of Americans sheltered in place taught us is that e-commerce will only continue to grow. There is no company that’s poised to overtake Amazon, but Shopify (NYSE:SHOP) is proving to be a worthy competitor.

As with Square which we mentioned above, you have to avoid being a prisoner of the moment when it comes to Shopify. The next 10 years will make us less reliant on physical storefronts. It is simply going to be more cost-effective to own and operate a business online.

And to do that, businesses need a website with all the tools to make e-commerce convenient and secure. Shopify helps companies build their online storefront with its suite of tools. What’s very attractive about the company’s business model is that they draw a high margin from their core offering. That makes the growth formula pretty simple.

Of course, Shopify faces competition, not the least of which is Amazon and its Amazon Web Services (AWS). But Shopify does offer e-tailers some unique benefits and that means for the foreseeable future there will be plenty of room in this space.

And that’s important because Amazon is not going away.

About Shopify
Shopify Inc provides a cloud-based multi-channel commerce platform for small and medium-sized businesses in the United States, the United Kingdom, Canada, Australia, and internationally. Its platform provides merchants with a single view of business and customers in various sales channels, including Web and mobile storefronts, physical retail locations, social media storefronts, and marketplaces; and enables to manage products and inventory, process orders and payments, ship orders, build customer relationships, leverage analytics and reporting, and access financing. Read More 

Current Price: $1,029.97
Consensus Rating: Hold
Ratings Breakdown: 10 Buy Ratings, 18 Hold Ratings, 2 Sell Ratings.
Consensus Price Target: $694.63 (-32.6% Upside)



#4 - Amazon (NASDAQ:AMZN)

Amazon.com logo

The rapid expansion of e-commerce activity is even putting strain on Amazon (NASDAQ:AMZN). But the company has virtually limitless financial resources and it is using them to make sure that packages are getting delivered on schedule.

But for investors looking at the next 10 years, Amazon should be considered because it is always looking for the next new thing. But Amazon doesn’t just look for it; it seeks to dominate that space. For example, Amazon has created its own streaming movie service, Amazon Video, that is a natural extension of its Amazon Prime service, and a segue into its game streaming service, Twitch.

But the company is doing more than just targeting the consumer. Amazon is expanding into enterprise services such as cloud computing and has several initiatives in artificial intelligence (AI). Simply put the company finds ways not only to branch out, but to make an impact in that space.

It’s also one reason why Amazon does not yet pay a dividend. For as big as the company is, they are still reinvesting back into their business.

About Amazon.com
Amazon.com, Inc engages in the retail sale of consumer products and subscriptions in North America and internationally. The company operates through three segments: North America, International, and Amazon Web Services (AWS) segments. It sells merchandise and content purchased for resale from third-party sellers through physical stores and online stores. Read More 

Current Price: $2,890.30
Consensus Rating: Buy
Ratings Breakdown: 45 Buy Ratings, 3 Hold Ratings, 1 Sell Ratings.
Consensus Price Target: $2,708.09 (-6.3% Upside)



#5 - Verizon (NYSE:VZ)

Verizon Communications logo

Verizon (NYSE:VZ) is a pure play among wireless stocks. Unlike some of its competitors, such as AT&T (NYSE:T), Verizon isn’t a player in the streaming wars. It will however be a major beneficiary of the 5G revolution.

But even as consumers are looking for temporary relief from their wireless payments, Verizon is showing its strength by enabling American workers to seamlessly use solutions such as Microsoft’s (NASDAQ:MSFT) Skype app and Zoom Communications (NASDAQ:ZM). With a developing sense that many workers will continue to work from home for the foreseeable future, ensuring the wireless bill gets paid will be a priority.

With more Americans cutting the cord, our mobile devices have become windows to the world. And that isn’t going to go away anytime soon.

Verizon may be lagging behind other growth stocks. However, Verizon is a rock-solid dividend play. The company has increased its dividend for 15 consecutive years and has a payout ratio of just over 50%.

About Verizon Communications
Verizon Communications Inc, through its subsidiaries, offers communications, information, and entertainment products and services to consumers, businesses, and governmental agencies worldwide. The company's Wireless segment provides wireless voice and data services; Internet access on various notebook computers and tablets; international travel wireless services; and network access services to deliver various Internet of Things products and services, as well as offers digital advertising and digital media services platforms. Read More 

Current Price: $54.79
Consensus Rating: Hold
Ratings Breakdown: 7 Buy Ratings, 14 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $61.61 (12.4% Upside)



#6 - Teladoc Health (NYSE:TDOC)

Teladoc Health logo

Teladoc Health (NYSE:TDOC) operates on such a simple premise that it’s amazing it’s taken this long. Why shouldn’t we be able to pick up the phone and call a doctor to get medical advice, particularly as it relates to something that is not life-threatening. Parents with young children frequently need to decide on whether to wake up their (hopefully) on-call pediatrician or relying on what they read on WebMD.

Teladoc Health improves on that dynamic by allowing patients to talk to a licensed physician. This is becoming even more important as patients are afraid that going to a doctor’s office may make them sicker than when they arrived.

But put the safety issue aside. What Teladoc is tapping into is what doctors and patients have always known. There are times when office visits simply are not necessary. There are things that can be handled with a phone call, at least initially. Health care costs are not likely to come down anytime soon. Any service that helps reduce costs is going to have an advantage in the next decade.

Investors may be concerned that Teladoc is a fly-by-night concept. But they shouldn’t worry because there are companies like Zoom that are eager to get into this space. That could lead to a second concern, that is, does Teladoc have a moat. Well, it may not have a large moat, but for now it has a small one and a great first-mover advantage. Eventually, health insurance companies will probably get involved with this and that may weed out competition.

About Teladoc Health
Teladoc Health, Inc provides telehealth services. It offers a portfolio of services and solutions covering 450 medical subspecialties, such as flu and upper respiratory infections, cancer, and congestive heart failure. The company provides its services through mobile devices, the Internet, video, and phone. Read More 

Current Price: $208.89
Consensus Rating: Hold
Ratings Breakdown: 11 Buy Ratings, 13 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $161.17 (-22.8% Upside)



#7 - Chegg (NYSE:CHGG)

Chegg logo

For millions of American students and parents, remote learning was a reality this spring. And while it’s looking more likely that students at all educational levels will return to the classroom this spring, the pandemic did showcase that digital learning is already in place. And that’s the case for Chegg (NYSE:CHGG).

Chegg is a pioneer in connected learning. The company has a new platform that will become the standard for virtually all U.S. high school and college classrooms over the next ten years. Chegg allows students to access on-demand resources including e-textbooks, homework solutions, online tutoring, test preparation, writing help, etc.

It’s a one-stop shop for academic resources. And it’s all digital. While not all students will want to learn this way, a fair amount will. And that’s where the story gets really exciting for investors. Chegg operates in a small niche of approximately 3 million high school and college students today. However, the company projects that it will reach all 36 million students in 10 years.

More subscribers will bring more revenue. And more revenue means larger profits, and an increase in share price.

About Chegg
Chegg, Inc operates direct-to-student learning platform that supports students on their journey from high school to college and into their career with tools designed to help them pass their test, pass their class, and save money on required materials. The company offers Chegg Services, which include digital products and services; and required materials that comprise its print textbooks and eTextbooks. Read More 

Current Price: $70.20
Consensus Rating: Buy
Ratings Breakdown: 10 Buy Ratings, 4 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $62.00 (-11.7% Upside)

 

If there’s anything the recent run in the market is reminding us of it’s that the market is forward looking. And right now the market is projecting that the economy will recover. But what does that have to say about the market not only for the rest of 2020, but for the next decade?

Investors that bought Netflix in 2010 would be delighted (mostly) in 2019. Streaming content and cutting the cord was one of the megatrends of the past decade that came to pass. Of course other trends like the impeding marijuana boom have not quite panned out, yet.

In this presentation, we’ve given you seven stocks that should pass the test of the next ten years. Not surprisingly, many of these stocks are in the technology sector, but not just technology in the broad sense, but technology in a way that will impact consumers and businesses in the next decade.

And all of these businesses pass a key test that is attributed to Warren Buffett. That is, invest in what you know. These companies have business models that are easy to understand and therefore should give you confidence as investors.

13 Stocks Institutional Investors Won't Stop Buying

University endowments, pension funds, sovereign wealth funds, hedge funds and other institutional investors have recently been pouring money into a a group of 13 elite stocks.

These institutional investors don't get easily swayed by hot stocks that are popular with retail investors. You probably won't see a Tesla or a SnapChat in this group, because institutional investors know that these "popular kid" stocks almost always aren't great investments. However, you will find some incredibly solid companies on this list backed by real earnings and real fundamentals.

In order to identify these stocks, we had to comb through every 13D and 13F filing that institutional investors have filed with the SEC in the last quarter. After reviewing more than 5,000 filings, we have identified 13 companies that institutional investors have been buying left. Big money investors are pouring hundreds of millions of dollars into these stocks.

View the "13 Stocks Institutional Investors Won't Stop Buying" Here.






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