A decade may seem like an eternity in the business world. However, while there’s a lot of uncertainty over such a long timeframe, there also are some serious opportunities. Consider that some of the most impressive growth stories of the 21st century involve stocks that consistently outperformed — and kept putting up the numbers year in and year out.
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By way of example, Chinese tech giant Alibaba Group Holdings Ltd. (BABA) hadn’t yet held its massive $22 billion public offering 10 years ago — an event that would become the biggest-ever U.S. IPO to date. Dominant social media platform TikTok was still years away from being created 10 years ago.
While the day-to-day news cycle does indeed matter, and recent volatility has proven that fortunes can be made and lost in just a matter of months, it’s important to remember the powerful potential of long-term investing.
The following five investments are some of the best growth stocks out there right now, and ones with the potential for sustained growth that lasts 10 years into the future, or even longer.
| Growth stock | Year-to-date return (as of May 10 close) |
| Apple Inc. (ticker: AAPL) | 33.8% |
| DexCom Inc. (DXCM) | 8.2% |
| Fortinet Inc. (FTNT) | 37.1% |
| Tesla Inc. (TSLA) | 36.8% |
| Tractor Supply Co. (TSCO) | 8.9% |
Apple Inc. (AAPL)
It’s hard to build a list of long-term growth stocks and not start with Big Tech icon Apple. The firm has an enviable history of innovation and expansion along with world-class execution, and has grown to more than $2 trillion in market value as a result.
But don’t think that the growth is all in the rearview mirror. For instance, Apple announced impressive earnings at the beginning of May that showed sales of its all-important iPhone topped $50 billion in the quarter for the first time. That’s proof that an already popular product can still generate bigger sales in spite of its current dominance. On top of that thriving smartphone biz, management also pointed to strong response for its new high-yield savings account plan. Apple has already begun to ramp up its “services” business via Apple TV and Apple Music, so an entry into financial services could open up even more paths to growth in the years ahead.
Throw in recently approved plans to repurchase an additional $90 billion of its own stock and continue to pay dividends on top of its potential share appreciation, and there are lots of reasons to believe in Apple for many years to come.
DexCom Inc. (DXCM)
DexCom is a specialized medical device company that’s laser focused on diabetes and glucose monitoring systems. With about one in 10 adults, or about 530 million people, on the planet suffering from diabetes and nearly 30 million Americans either diagnosed or waiting for a diagnosis, there is a huge patient pool that DXCM can tap into for its products.
Its flagship products allow people to sync their monitor with digital health apps and smart devices for data analysis or real-time alerts. And for many diabetics, this 21st century medical technology is literally the difference between life and death as they monitor and manage their chronic condition.
Perhaps unsurprisingly, DXCM has seen rapid growth as more people find value in its products. Revenue has soared from $1 billion in 2018 to $2.9 billion in fiscal 2022, and is projected to top $4.2 billion by the end of 2024.
With worldwide demographic and health trends that seem to only be fueling growth in its potential user base, Dexcom has a lot of runway ahead to build on this track record of success.
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Fortinet Inc. (FTNT)
One of the best performers of 2023, cybersecurity player Fortinet is up an impressive 35% or so since Jan. 1. But the growth story here is definitely a longer-term one, with shares up 450% in the last five years.
At $50 billion, FTNT is one of the largest cybersecurity companies on the planet with about 650,000 customers worldwide. And unlike tech conglomerates like Cisco Systems Inc. (CSCO) that do cyber as part of their other operations, Fortinet is a cyber native that primarily focuses on this important area. That allows it to ride the tailwind of growth in this space, with a track record of growth where revenue has surged from $1.8 billion in 2018 to $4.4 billion last year — and plans to hit $6.5 billion by the end of 2024.
In the wake of the Russian invasion of Ukraine and the related uptick of cyber risks worldwide, it’s hard to believe that spending won’t continue to ratchet higher in this area. Fortinet is a natural beneficiary of this long-term trend, in addition to having specific growth potential thanks to its dominance and short-term momentum.
Tesla Inc. (TSLA)
Consumer technology is dynamic generally, but electric vehicle manufacturing is undeniably a megatrend that has huge long-term implications. The natural leader in this category is Tesla, which is the dominant brand in the space and one of the few established electric vehicle players that is not overly reliant on a legacy business of internal combustion engines.
From a growth perspective, the opportunity is clear; in 2022, production grew 47% to 1.37 million all-electric vehicles sold. Founder and CEO Elon Musk isn’t content with resting on his laurels, either, with a publicly stated vision to make Tesla to be the world’s top vehicle producer by 2030 — just seven short years from now, and with a final target of roughly 9 million vehicles sold.
It remains to be seen whether or Tesla can execute, as growing another five or six times from here is no easy task. But opportunity is certainly there — and based on its track record, many investors may want to give Tesla the benefit of the doubt.
Tractor Supply Co. (TSCO)
In the age of e-commerce, you may not think that any retail stock other than Amazon.com (AMZN) is worth your while. But specialized retailer Tractor Supply Company has a strong brand that continues to make inroads with rural customers who either want a traditional shopping experience, demand a physical store where it’s easier to kick the tires on ATVs, or simply can’t get specialized orders like livestock feed from mainstream websites like Amazon.
The long-term growth story speaks for itself, with TSCO revenue jumping from about $7.9 billion in fiscal year 2018 to $14.2 billion in fiscal 2022. And looking forward, Wall Street analysts are expecting the company to top $16.2 billion in sales by the end of fiscal year 2024.
Shares are up an impressive 250% or so in the last five years, and recently set a new 52-week high on continued success in 2023. Some retail or consumer names rotate quickly in and out of favor, but Tractor Supply seems to be a stock with a durable growth story investors can believe in for many years to come.
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Update 05/11/23: This story was previously published at an earlier date and has been updated with new information.
