Most research shows that buying and holding a diversified basket of stocks for the long haul is much better for your portfolio than trading in and out of positions. Finding the best growth stocks for the next decade, then, is perhaps an easier task than many investors would think.
The first step is to look beyond the day-to-day market gyrations caused by economic trends or flashy headlines. Sure, a small company may have one good earnings report and gap up on the news, but can it sustain that success? Yes, a leading tech stock may have underperformed for a few months, but is it still a dominant force on Wall Street?
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If you look beyond the near-term distractions, you can identify durable growth stories that will last for many years to come. The following stocks are among the best growth stocks for the next 10 years based on their long-term track records as well as more recent momentum for share price and revenue growth:
— Costco Wholesale Corp. (ticker: COST)
— CrowdStrike Holdings Inc. (CRWD)
— DaVita Inc. (DVA)
— First Solar Inc. (FSLR)
— Microsoft Corp. (MSFT)
— Novo Nordisk A/S (NVO)
— Salesforce Inc. (CRM)
— Shopify Inc. (SHOP)
— SoFi Technologies Inc. (SOFI)
Costco Wholesale Corp. (COST)
Market capitalization: $374 billion Sector: Consumer staples
Costco is a behemoth among consumer staples retailers, with an army of loyal customers and a value proposition that makes it the go-to store for most household needs. And with roughly 130 million card-carrying members at the end of fiscal 2023 generating a baseline of $4.6 billion in revenue flowing in to the company, COST has found a very tangible way to cash in on its brand appeal.
The low-cost emphasis of Costco ensures it is insulated from any economic downturns, as consumers will cut back on other things, and its continued expansion into unconventional areas from auto care to apparel to eyeglasses makes it much more than an alternative to the grocery store — and a good bet for continued growth in the decade to come.
CrowdStrike Holdings Inc. (CRWD)
Market capitalization: $87 billion Sector: Information technology
As cybersecurity remains a top concern for all manner of enterprises in the 21st century, CrowdStrike remains a vital partner for many organizations looking to safeguard their operations. While some diversified tech names dabble in cyber, this leader in the space is among the largest security-focused firms out there by market cap. It also continues to outperform its peers and tighten its dominance in the space, and analysts expect about 30% revenue growth this fiscal year and another 26% next year. CrowdStrike stock has exploded by about 460% since its 2019 IPO, but this impressive growth story seems to be just getting started.
DaVita Inc. (DVA)
Market capitalization: $12 billion Sector: Health care
DaVita is a highly specialized health care company with a very bright future. After all, one of the most reliable long-term growth investments you can make is to bank on the demographic shift that’s leading to increased demand for care as the American public ages. DaVita’s specialty is perfectly aligned with this trend, too, with a business dedicated to dialysis treatment for patients with chronic kidney conditions. With more than half a million Americans who require regular care, DVA has a big pool of current customers and a massive footprint that ensures it can meet the needs of the future.
Of particularly note for investors is the fact that Warren Buffett’s Berkshire Hathaway Inc. (BRK.A, BRK.B) first took a stake in the stock back in 2011 and has increased its position steadily to account for about a 41% ownership in the firm. More recently, shares have outperformed the market nicely with 34% returns over the last 12 months to indicate strong momentum as DVA looks to the future.
First Solar Inc. (FSLR)
Market capitalization: $23 billion Sector: Energy
In an era of climate concerns, there’s a long-term tailwind for alternative energy stocks like First Solar that present investors with a unique opportunity to be part of a low-carbon future. A leader in the solar space, FSLR was founded in 1999 in the U.S. and isn’t an aggressive small-sized player in an overseas market.
While its shares are a bit volatile thanks to the ups and downs of the evolving energy market, the growth story is quite clear: Revenue is expected to jump 36% this year and another 25% in 2025 to top $5.6 billion. In the long run, it seems hard to believe there’s a future that exists without alternative power — or a solar industry that exists without this thriving market leader.
Microsoft Corp. (MSFT)
Market capitalization: $3.3 trillion Sector: Information technology
A dominant tech stock that needs no introduction, Microsoft has seen amazing growth over the past few decades. That journey is continuing in earnest, too, as evidenced by a nearly $70 billion deal approved in 2023 for Microsoft to acquire game studio Activision Blizzard and add to its impressive Xbox video game arsenal.
Already a major player in productivity software and cloud services, Microsoft is also looking to the future of the workplace through its investment in and partnership with ChatGPT-maker OpenAI. With current dominance and a lot of ambitious efforts in the pipeline, Microsoft is a tech stock with a bright future.
Novo Nordisk A/S (NVO)
Market capitalization: $606 billion Sector: Health care
Danish health care leader Novo Nordisk may not be the first name that many consumers think of when it comes to Big Pharma, but thanks to the success of its obesity blockbuster Ozempic, it’s set to be one of the leading drugmakers for many years to come. While long a specialist in the diabetes space — a lucrative specialty given that roughly 12% of Americans had diabetes as of 2021 — the addition of Ozempic has sparked a meteoric run for NVO stock recently.
Shares are up about 466% in the last five years, and analysts project about 29% revenue growth this year followed by 20% growth in 2025. That’s a long-term growth story that’s the envy of the health care sector.
Salesforce Inc. (CRM)
Market capitalization: $244 billion Sector: Information technology
With a clever ticker that represents the acronym “customer relationship management,” software giant Salesforce is the go-to brand to help marketing and sales staff make the most of their workdays. In fact, Salesforce’s core CRM product has been ranked No. 1 by market research firm International Data Corp. for 11 years in a row. While some of the sales biz is cyclical, meaning it depends on the broader economic environment’s ups and downs, the great thing about being a market leader is that when times are good, people are eager to use Salesforce to maximize sales. And when times are bad and companies are struggling to hit their numbers, they are just as eager to use Salesforce to maximize sales.
The company set aside $10 billion for stock buybacks in 2023, showing a long-term commitment to protecting shareholder value by reducing its share count. That all adds up to a great long-term success story investors can depend on.
Shopify Inc. (SHOP)
Market capitalization: $84 billion Sector: Information technology
Another go-to technology solution for businesses in a digital age is Shopify, an e-commerce infrastructure company that helps small- and mid-sized firms sell products more effectively through online channels. That doesn’t just include building mobile storefronts and enabling digital payments and loyalty programs; it’s also back-end inventory and sales platforms to support “omnichannel” integration with brick-and-mortar locations.
Admittedly, SHOP stock is down sharply from its post-pandemic highs after many companies made a big one-time investment in digital upgrades and didn’t stick with that spending plan. But with 21% revenue growth projected in 2024 and 20% growth in 2025, this is not a company that’s in trouble. In fact, even with its fall from record levels in 2021 it’s still up more than 100% in the last five years to outperform the S&P 500. That shows that while there maybe volatility along the way, this is a growth stock to believe in for the long haul.
SoFi Technologies Inc. (SOFI)
Market capitalization: $8 billion Sector: Financials
SoFi is a bit of an oddball as it is one of the smaller names on this list, and it’s in a sector that most investors wouldn’t choose for the biggest growth potential. After all, financial services giants like JPMorgan Chase & Co. (JPM) and Bank of America Corp. (BAC) dominate Wall Street and aren’t going anywhere. But SoFi is a unique way to play the long-term growth potential of finance in the 21st century, as a digitally native enterprise built for young and “underbanked” customers and businesses who either don’t prefer or don’t trust traditional financial firms.
For starters, SoFi operates without the overhead of traditional brick-and-mortar financial institutions, and relies heavily on online marketing to grow its business. That growth seems durable, too, as SoFi is tracking 16% revenue growth in 2024 and 15% in 2025 as its top-line exceeds $2 billion annually. This stock is a bit riskier than the bigger firms on this list, but the ceiling is also much higher considering the addressable market in the years ahead.
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9 Best Growth Stocks for the Next 10 Years originally appeared on usnews.com
Update 07/17/24: This story was previously published at an earlier date and has been updated with new information.
