Certain stocks are primed to continue growing exponentially through 2030 and beyond. Many well-established, blue-chip companies have a consistent history of executing on their plans and delivering on promises year after year. The market rewards these reliable stocks accordingly, with premium valuations that have been climbing in an exponential trajectory. These types of stocks to buy for growth should form the core of your portfolio if you want to outperform the broader market over the long term.
We are clearly in a bullish period of the market cycle right now, so some of these stellar stocks may seem expensive and due for a breather in valuation in the near term. But if you hold onto quality businesses for the long haul, they are unlikely to ever deliver a loss. These stocks represent very safe, long-term bets that will deliver consistent returns over a multi-year period, regardless of when you initially buy them.
With this perspective in mind, let’s take a look at the following stocks to buy for growth all the way through 2030:
Microsoft (MSFT)
Microsoft (NASDAQ:MSFT) has taken the throne away from Apple (NASDAQ:AAPL) as the world’s biggest company, and rightfully so. While Apple hasn’t dipped its toes into the AI mania and has instead stuck with the iPhone and showcased a very expensive VR hardware product called Vision Pro, Microsoft has been firing on all cylinders. Microsoft has been focusing more and more on software and cloud, and the company has even been testing its own AI GPU chips so it will no longer have to pay crazy margins on Nvidia’s high-in-demand AI GPUs. All of this sets the stage for further growth in the years to come as AI gets smarter and gets more use cases.
Looking ahead, Microsoft is poised to continue growing exponentially through 2030 and beyond. With AI and machine learning becoming more prevalent across industries, Microsoft’s investments position it to be a leader in providing software and cloud services to power next-generation AI applications.
Plus, Microsoft has a hold on the world’s most-used operating system, and the white-collar world cannot survive without its productivity software like Microsoft 365. The biggest driver of growth so far has been Microsoft Azure, and it is second only to Amazon’s (NASDAQ:AMZN) AWS. Microsoft also has significant investments in quantum computing. So I think there is significant upside potential as Microsoft goes all in on AI and data. You are paying 35 times forward earnings for a very safe blue-chip tech stock with double-digit growth on both its top and bottom lines. I don’t think that elevated valuation is too bad right now given Microsoft’s immense growth prospects.
Berkshire Hathaway (BRK-A, BRK-B)
Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B) is a company every investor should own a slice of, no matter the market environment. Warren Buffett has outsmarted the market every cycle, and his portfolio has delivered very similar gains to the Nasdaq and has even outperformed it sometimes. Sure, he does own an outsized stake in the laggard Apple and the banking sector, but his foresight is something you can use as a retail investor. Copying his trades isn’t a bad idea in the long run. I believe that his investments are primed to grow exponentially through this decade.
Even after Buffett is no longer at the helm, Berkshire is well-positioned for continued success. His discipline of only investing in companies with durable competitive advantages and proven, shareholder-friendly management has created a portfolio of high-quality businesses. Berkshire also has a rock-solid balance sheet, with over $167 billion in cash to deploy into new opportunities. While impossible to replicate, Buffett’s principles provide a long-term investing blueprint.
And, of course, even if Warren Buffett is no longer with us in 2030, he has left behind a very good team of investors that can continue his legacy. BRK stock is up 27% in the past year. It may take a breather if the market cools down, but this is a very surefire long-term bet among stocks to buy for growth.
Eaton (ETN)
Eaton (NYSE:ETN) is a stock that has been going parabolic over the past few months. It is up 65% this year, and I believe it has room to go up even higher. In fact, Eaton is outperforming even some AI and tech companies. Not many people would have expected Eaton to deliver such gains just a few years ago, but it is important to note that the infrastructure bills worth $3 trillion in total have been boosting many companies like Eaton, and they could surge even higher.
The infrastructure spending focused on modernizing America’s aging electrical grid, expanding renewable energy capabilities, and building EV charging networks. Eaton produces critical electrical components needed to support these initiatives. Its power management technologies will be in high demand throughout this decade as infrastructure upgrades continue. Eaton also serves key secular growth markets like data centers.
The infrastructure tailwinds are already apparent in Eaton’s recent results. It beat Wall Street estimates in Q4, with revenue growing double digits at 11% and net income reaching $9.5 billion, up 31% year-over-year. It also pays a 1.27% dividend to sweeten the deal. Analysts now expect solid double-digit EPS growth and accelerating revenue growth through 2030 as infrastructure investment catalyzes demand for Eaton’s offerings.
Lennar (LEN)
Lennar (NYSE:LEN) is a homebuilding company that many piled into a few months ago, before the homebuilder boom was overshadowed by the AI rally. LEN stock is up 65% in the past year. I believe these gains are likely to take a short-term breather, but I am heavily bullish on finding stocks to buy for growth in the home-building sector.
Housing demand remains extremely robust, evidenced by Lennar’s 32% order growth last quarter. Lennar is strategically positioned in high-growth regions like Florida and Texas. Millennials are forming households and driving demand for starter homes. Remote work flexibility has also unlocked new demand as people relocate. Supply chain issues may cause short-term headwinds, but the housing shortage will persist over the long run.
Homes are very much in demand, and building houses is a very profitable business. Lennar is based in Florida, one of the fastest-growing U.S. states. It has become an attractive place to relocate and settle to, and that growth is expected to continue this decade as more and more people move from California and the Rust Belt into the South. Plus, the previously-mentioned infrastructure tailwinds along with the naturally high demand for housing worldwide should keep the party going for Lennar. I definitely don’t expect it to continue the current trajectory, of course. However, I think that it can deliver market-beating gains this decade. Revenues of homebuilding in the segment totaled $10.5 billion in Q4 2023, up 7.9% from the prior year quarter. Under the Homebuilding umbrella, home sales contributed $10.4 billion to total revenues, up 8.2% from a year ago.
Mastercard (MA)
Mastercard (NYSE:MA) is in a duopoly business with Visa (NYSE:V), and I think both are strong buys. Both companies have delivered stable and consistent gains. Their margins are some of the highest, and I believe there is nothing that truly threatens the moats here. If the economy grows and transaction values grow, so will these companies.
The shift to electronic payments is a secular trend that has decades of runway left. Mastercard processed over $9 trillion in payment volume last year. Cash still dominates in developing markets, so there is ample room for further penetration.
These companies have also benefited from higher interest rates and more borrowing among lower-income folks in recent years. Even if rates go down, higher volume will keep the cash flowing into these businesses. Both the top and bottom lines here are growing at double-digit figures annually. I expect that pace to continue over the long run given the vast untapped potential in electronic payments.
Itochu (ITOCF)
Itochu (OTCMKTS:ITOCF) is a diversified Japanese company. This company has a stake in almost every sector you can think of. Its main business is trading domestically and internationally through imports and exports and investing in businesses around the world. The company has delivered very consistent growth over the past few years. The stock is up 38% over the past year, and it will naturally move up along with the economy due to its diversified stake in many blue-chip businesses and industries. I would say Itochu is the Japanese equivalent of Berkshire Hathaway.
Itochu provides exposure to structural growth trends like electric vehicles through its stake in Isuzu. It also owns FamilyMart. The diversified conglomerate model provides stability across market cycles, while also allowing Itochu to capitalize on emerging opportunities. For instance, it is in talks to acquire Bigmotor and expand its automotive investments.
Buy the stock and come back ten years later, and you will find your money has compounded with the market in safe hands. This is an ideal option among stocks to buy for growth.
Jacobs Solutions (J)
Jacobs Solutions (NYSE:J) is an engineering firm seeing a surge in business amid infrastructure companies. The previously-mentioned $3 trillion infrastructure bill has energized infrastructure firms including Jacobs. With the stock up 15% year-to-date already, further upside remains as its turnaround continues gaining momentum.
Top-line growth is approaching double-digits, while Q4 net margins expanded 15.7% year-over-year. Jacobs clobbered Wall Street’s Q4 EPS estimates by 30% and revenue projections by 4%.
You’re paying a reasonable 18x forward earnings and 1x sales for Jacobs’ prospects of steady double-digit earnings and revenue growth annually over the next decade. The spin-off of its lower-margin government services segment is also underway, soon creating a more streamlined, profitable pure-play engineering firm.
On the date of publication, Omor Ibne Ehsan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
