7 stocks to buy and hold forever
With many good stocks down due to unwarranted concerns about the Federal Reserve, now is a great time to identify stocks to buy and hold for many years to come.
Importantly, Fed Chairman Jerome Powell recently indicated that the central bank only plans to raise its key rate to around 3.5% at most this year.
Given that the Fed’s benchmark rate after its July meeting is 2.25% to 2.5%, that means it only has about a full percentage point of hikes left this year. Many analysts previously thought the Fed would end the year with a target rate of around 4-4.5%.
Now that the market realizes that the Fed isn’t really as hawkish on inflation as the bears thought, many stocks are likely to jump going forward. Therefore, I think August is a good time to buy and hold stocks.
|BED||Global X Lithium & Batteries ETF||$75.93|
Stocks to Buy and Hold: Best Buy (BBY)
best buy (NYSE:BBY) has a few attributes that make it a great choice for many decades to come. First, the company is the only widely known retailer that primarily focuses on consumer electronics. And the chain has become famous for the know-how of its salespeople. At a time when many consumer electronics products are quite complicated and there are so many choices, that reputation is very valuable. This significant competitive advantage should last indefinitely.
Best Buy’s comparable sales in the United States fell 8.7% in the first quarter of 2022. But, as the company’s CEO noted, the retailer faces tough comparisons, as well as the pent-up demand for consumer experiences. Of course, this latest trend has been hurting most retailers recently.
Still, I expect demand for experiences to dissipate later this year, boosting bottom lines for many retailers, including Best Buy.
And with its 4.6% dividend yield, the stock is paying investors to wait for this latest reversal. It is also important to note that the forward price/earnings ratio of BBY stock is now very attractive at 8.9.
One of the world’s leading solar module manufacturers, JinkoSolar (NASDAQ:JKS) is benefiting from very strong demand for solar energy in Europe and China. Given the European Union and Beijing’s unwavering commitment to solar energy and Jinko’s advanced solar technology, the company is expected to generate very large profits for many decades.
In the company’s latest earnings call, it said its strong business in Europe would offset any challenges it faces in the United States (and after President Joe Biden waived tariffs on solar products from several countries Southeast Asia, JinkoSolar’s problems in the United States have diminished This is because the company has several factories in Southeast Asia).
Corroborating the very optimistic vision of Jinko on the European solar sector, Phase (NASDAQ:ENPH) CEO Badri Kothandaraman said, “Revenue in Europe increased 69% sequentially and 89% year-on-year, driven by strong demand for our microinverters in the Netherlands, France, in Germany, Belgium, Spain and Portugal.
In China, the combined electrical output of newly installed solar systems jumped an incredible 137% in the first half of 2022, compared to the same period a year earlier.
It should also be noted that JinkoSolar has signed partnerships related to hydrogen and energy storage. These two deals can generate huge revenue for Jinko in the long run.
The forward price/earnings ratio for JKS stock is a rather low 15.9.
Stocks to Buy and Hold: EVgo (EVGO)
EVgo (NASDAQ:EVGO) associates with General Engines (NYSE:GM) to create “a coast-to-coast electric vehicle fast-charging network”. Given the popularity of GM’s recently launched electric vehicles, including the Hummer and Cadillac Lyriq, as well as the strength of the electric vehicle revolution, the deal leaves EVgo well positioned to thrive for many decades to come.
EVgo’s partnerships with JP Morgan (NYSE:JPM), Philadelphia and California. These agreements indicate, respectively, that the company is highly respected by American companies and Democrats. As a result, the company is likely to secure many other partnerships that will allow it to rapidly expand its charging network.
Meanwhile, EVgo will likely benefit in the longer term from Washington’s commitment to developing a comprehensive national electric vehicle charging network.
The $2.5 billion market capitalization of EVGO shares continues to grossly underestimate the company’s long-term potential.
The electric vehicle manufacturer’s alliances with two giants – United Parcel Service (NYSE:UPS) and Uber (NYSE:UBER) — both validate its products and position it very well to excel in the long term.
In addition, Arrival (NASDAQ:ARVL) recruited a management team with solid automotive experience. For example, its chairman, Avinash Rugoobur, was “head of strategy and mergers and acquisitions for General Motors Cruise” from September 2017 to January 2019. He also “held multiple engineering and management positions at General Motors , including approximately four years at the head of advanced technology activities. in Silicon Valley.
The EU’s decision to certify the Arrival Van is also noteworthy and encouraging. This news provided further validation of the automaker’s technology.
With the market capitalization of ARVL shares still close to $1 billion, the market vastly underestimates the company’s long-term potential.
Stocks to Buy and Hold: Goldman Sachs (GS)
Goldman Sachs (NYSE:GS), in good and bad economic times, always seems to generate solid financial results. Given its presence in most financial sectors, including mergers and acquisitions, trading and wealth management, it is very well positioned to benefit from the strength of the US economy and the US financial sector over the long term. .
Goldman recently reported stronger-than-expected Q2 financial results, with its Q2 EPS of $7.73, versus an average analyst outlook of $6.58. And confident in its outlook, Goldman increased its dividend by 25%.
In the medium term, the bank should benefit from the rise in interest rates and the renewed confidence in the American economy. Also worth noting is the idea that as a major financial institution, Goldman, in all likelihood, will never be allowed to fail.
Power socket (PLUG)
As I pointed out in previous columns, Plug hole (NASDAQ:PLUG) has recruited huge partners for its hydrogen-fuel business. Among these important allies are walmart (NYSE:WMT), Sask., Renault and Airbus (OTCMKTS:EADSY).
Speaking of Airbus, I think within a decade Plug should be selling a significant amount of hydrogen to aircraft manufacturers and airlines. Such a development would give Plug Power and the stock PLUG a big boost.
Coming back to the present, the company recently reiterated its full-year revenue forecast of $900-925 million. This indicates that its growth prospects remain on track.
Given the company’s strong growth and huge potential, its forward price-to-earnings ratio of 7.5 is actually quite attractive.
Stocks to buy and hold: ETF Global X Lithium & Battery Tech (LIT)
In light of the current electric vehicle revolution, the demand for batteries and lithium is insatiable, making the long-term prospects of the Global X Lithium & Battery Tech ETF (NYSEARC:BED) irresistible.
Find a colorful way to explain the demand for lithium batteries, You’re here (NASDAQ:TSLA) CEO Elon Musk recently said that “lithium batteries are the new oil.”
Indeed, earlier this year, PBS reported that “global lithium demand was approximately 350,000 tonnes (317,517 metric tons) in 2020, but industry estimates project demand will be up to six times higher by 2030.”
And with many automakers starting to launch electric vehicles, the mad rush for electric vehicle batteries is only going to intensify.
As of the date of publication, Larry Ramer held long positions in PLUG, LIT, ARVL, JKS and EVGO. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.