When it comes to looking for “buy and hold forever” stocks, there are some important things to pay attention to. Most notable is the ability of these companies to capitalize on trends that are likely to remain important over long periods of time. These trends can allow stocks that appear expensive to continue delivering strong returns.
Like all stocks, these companies will rise and fall based on their financial performance, company news, and market conditions. However, the trends that benefit these companies mean that in the long term, shares could continue to rise. Additionally, the phrase “buy and hold forever” does not mean that monitoring these companies is not important. Tracking radical changes in strategy, management or competition is vital, as is monitoring shifts in long-term trends. However, here are three stocks where the buy-and-hold-forever moniker is appropriate.
Definition: Advertising, artificial intelligence and virtual reality
Meta platforms today
- 52 week range
- $385.66
▼
$649.24
- Dividend yield
- 0.31%
- P/E ratio
- 30.56
- Price target
- $654.20
Meta platform Nasdaq: Meta The business largely revolves around digital advertising, artificial intelligence and virtual reality. Throughout human history, advertising has been a staple of business. It is necessary to sell products and services, if no one knows about them, they will not be able to make purchasing decisions. Scholars date back to the first advertisements in ancient Egypt, and advertising will remain an essential part of civilization and business for centuries to come. Meta runs one of the largest advertising companies in the world. It sells ads on Facebook and Instagram. Incorporating AI into its advertising system has helped tremendously by creating highly personalized ads. This means that advertisers are willing to pay large amounts for space on Meta platforms.
Meta must continue to innovate its apps to fend off new social media competitors. But it is difficult to see it losing the dominance it has established. The Meta App family had 3.3 billion daily active individual users in the last quarter, about 40% of the global population. The company’s advertising business supports its ability to invest in virtual reality (VR) devices, on which it loses billions annually. As VR becomes more embedded in traditional video, most people expect continued rapid growth in adoption. Meta is the undisputed leader in VR hardware, allowing it to benefit greatly from this trend in the long term.
Tesla: Pioneer of self-driving electric cars
Tesla today
- 52 week range
- $138.80
▼
$488.54
- P/E ratio
- 112.92
- Price target
- $309.48
Tesla Nasdaq: Tesla It capitalizes on the long-term trends of electric vehicles and autonomous driving. Although growth is slowing, electric vehicle sales are increasing while gas-powered vehicle sales are declining. Tesla is one of only three companies that can profitably manufacture and sell electric cars. He got the hardest part of this trip out of the way. The company lost market share over time. But the massive increase in competition makes this unsurprising. With most major car companies following Tesla’s lead into electric vehicles and significant support from governments, this trend is here to stay. Tesla remains by far the best electric car company in the United States, and the experience it has gained so far will allow it to continue winning.
Tesla’s position as a profitable EV manufacturer is especially useful in the era of less favorable treatment toward EVs heralded by the Trump administration. Tesla no longer takes advantage of EV credits because they are too large; They mostly help small and unprofitable up-and-coming players. Trump’s policies are largely helping to bolster Tesla’s moat. In addition, autonomous driving is another trend in which Tesla is fully involved. However, opinions on whether or not a company is a leader in this space vary widely depending on who you ask.
Intuitive Surgery: A leader in robotic surgery with room to grow
Intuitive Surgical Today
Surgical intuitive
- 52 week range
- $364.17
▼
$616.00
- P/E ratio
- 94.49
- Price target
- $566.83
Surgical intuitive Nasdaq: ISRG Developed a revolutionary technology for performing robotic-assisted surgeries. This technique reduces surgical errors and speeds up the patient’s recovery. Based on The market size is estimated at $11.5 billion In 2024, Intuitive has a 73% market share with its partners $8.35 billion in revenue. The company’s revenue and installed base are impressive, consistently exceeding expectations.
The company still has significant potential to continue growth given its total addressable market (TAM) size. Long-term TAM estimates for the company are in place 20 million operations annually. Its devices are currently used in approximately 2.7 million procedures annually. Intuitive has successfully launched different and improved products over time. This gives the company what it takes to continue to grow in TAM, especially with competition so far away.
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