When the markets are volatile, one of the best investment strategies is finding the best long-term stocks to buy and hold.
With the Dow trading near record highs, some investors are wondering if it's time just to sit on the sidelines. But that is exactly the wrong strategy to take. At market peaks it is best to find solid companies to invest in, with rock-solid financials and solid growth.
That's why we're bringing you the best long-term stocks to buy and hold today...
Finding Long-Term Stocks to Buy and Hold
Finding the top long-term investments can be extremely difficult. When the markets are high, almost every stock looks like it is climbing. But that doesn't mean that they are all strong investments. In fact, corporate earnings as a whole are down in the third quarter, according to FactSet.
But some companies are going to remain profitable and exhibit growth regardless of market conditions. The best news? Temporary pullbacks in the market could provide some fantastic buying opportunities for new investors.
Here are five of the best long-term investments you can make today...
Long-Term Stocks to Buy and Hold No. 5: Caesars (Nasdaq: CZR)
When looking at the rest of the stocks on this list, it may be difficult to believe that a long-troubled casino company would be a recommendation. But Money Morning Global Credit Strategist Michael E. Lewitt has been saying this company's time would come, and it's finally here.
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Caesars Entertainment Corp. (Nasdaq: CZR) is on the verge of emerging from bankruptcy in the wake of a $5 billion deal with TPG Capital and Apollo Global Management LLC. The two private-equity firms essentially looted the casino giant, but the company is emerging from bankruptcy free of their $1 billion annual debt interest payments.
For long-term investors, this is good news. Right now, CZR presents a unique buying opportunity. The company will emerge from this dark chapter in its history with the tools to grow and prosper. You can pick up shares of CZR for just $7.45, and they have already risen nearly 20% in the just the past 30 days. Lewitt expects Ceasars' stock to rise both in the short and long term.
Long-Term Stocks to Buy and Hold No. 4: Apple (Nasdaq: AAPL)
The mobile revolution is considered by Money Morning experts to be one of the top unstoppable global trends. The Apple Inc. (Nasdaq: AAPL) iPhone has been on the market for less than a decade, yet every new model continues to break sales records.
Apple makes a majority of its revenue from its phones and laptop sales, yet a significant business segment for the company is its Apple services. Apple is gaining revenue each year from services including iTunes, Apple Pay, iCloud, and Apple Music. By 2020, the company projects that services will account for 29% of gross income, up from 15% today.
Apple is one of the best long-term stocks to buy. Shares of AAPL are trading at $113.05, and the stock is up 7.41% year to date (YTD). Money Morning Chief Investment Strategist Keith Fitz-Gerald has a four-year target price of $200 for the stock, giving investors significant room to grow.
Long-Term Stocks to Buy and Hold No. 3
Alibaba Group Holding Ltd. (NYSE: BABA) is an international tech powerhouse that initially proved its worth with a world record IPO in September 2014. The company is a Chinese online retailer of wholesale and retail goods, but that is just the tip of the iceberg when it comes to Alibaba's diversification.
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One of Alibaba's strengths is its unique online payment system, similar to Paypal, called Alipay. This payment system is used by more than 450 million Chinese users and is being expanded worldwide. The key to Alibaba's continued prosperity is its global expansion.
While initially a strictly mainland China company, Alibaba is now doing business in the UK, Australia, and Canada. The company has also expanded into cloud computing, a segment that has seen a 156% growth year over year.
BABA stock is currently trading at $105.79, with shares up 30.21% YTD. Money Morning Executive Editor Bill Patalon believes that Alibaba could be the world's first $1 trillion company, meaning that the current stock price would quadruple.
Long-Term Stocks to Buy and Hold No. 2: Facebook (Nasdaq: FB)
Facebook Inc. (Nasdaq: FB) has been on a run for several years, and the gains aren't likely to let up anytime soon. Since the beginning of 2014, the stock has outperformed the S&P 500 by nearly 63%. The company regularly beats Wall Street revenue and profit estimates, but it's the company's long-term business strategies that make FB stock a good buy.
Facebook owns Oculus VR, the makers of Oculus Rift, which many believe will be the future of virtual reality. There are also rumors that Facebook has its hand in emerging telecom, with investments in the new 5G technology. In addition, the company has a lot of unrealized revenue potential from its messaging platforms - WhatsApp and Messenger.
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FB is currently trading at $128.27, with shares up 22.56% YTD and 38% from this time last year. Money Morning Executive Editor William Patalon, III, believes that Facebook stock could hit $250 in the next few years, nearly double its current price.
Long-Term Stocks to Buy and Hold No. 1: Raytheon (NYSE: RTN)
If you've been following Money Morning Chief Investment Strategist Keith Fitz-Gerald's recommendations, you'll know that Raytheon Co. (NYSE: RTN) is top on his list of the best long-term investments today.
Not only does the company have millions of dollars in outstanding government contracts for missile systems, but it is also well-run and incredibly diversified. Cybersecurity is a hot-button issue this year. The U.S. government alone has proposed an $89 billion budget in 2017 to address the matter, and this doesn't account for the expenditures of private companies.
Raytheon has a massive cybersecurity division, and the company already has a $1 billion contract from the Department of Homeland Security. While other defense firms are struggling, Raytheon continues to beat earnings estimates, making it one of the best long-term stocks to buy and hold.
RTN is currently trading at $136.13 with shares up 9.32% YTD and over 28% year over year.
The Bottom Line: Making investment decisions in a volatile market is never easy. When market conditions are unsure, it's best to pick stocks that promise to deliver long-term results, regardless of outside factors.
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