It’s rather difficult for retail investors to make money with short-term trades for several reasons. First of all, the Street frequently causes stocks to suddenly and unexpectedly rise or fall, ruining “momentum trades.” Unanticipated world events can also impact short-term trades. For example, many traders recently shorted oil stocks which fell for several weeks in a row. However, oil companies stopped transporting petroleum through the Red Sea due to terrorist attacks on ships. This caused oil stocks to pick up momentum again. Overall, long-term stocks tend to be a safer bet.
It’s relatively easy for long-term investors to make significant amounts of money because the Street often underestimates powerful, long-term trends. One example of that is artificial intelligence. Before 2023, many investors saw the power of AI and bought stock in it, which rewarded them handsomely this year.
With all of that said, here are three great long-term stocks to buy.
Aurora Innovation (AUR)
Aurora Innovation (NASDAQ:AUR) recently launched a commercially ready driverless truck route between Dallas and Houston and unveiled terminals for autonomous trucks. The move has caught the attention of the Street, as the firm’s shares went up 145% since that day.
Aurora’s driverless software has been tested by major companies, including FedEx (NYSE:FDX) and Uber (NYSE:UBER) Freight, for months.
Aurora’s commercial operations are expected to launch in late 2024, making it a great option in long-term stocks.
GE Healthcare (GEHC)
GE Healthcare (NASDAQ:GEHC) is well-positioned to benefit from multiple, strong trends over the longer term, including its increased utilization of AI and the rapid aging of the U.S.
On the AI front, the company is, for example, creating “AI-assisted ultrasound technology” and incorporating iCAD’s AI-powered breast cancer detection system into its “MyBreastAI Suite for the detection of breast cancer.”
AI will make GEHC’s products more effective and less labor intensive, enabling it to charge signficantly more for them,
Meanwhile, as I pointed out in another column, ” in 2040,… 80 million Americans are expected to be 65 and older,” up from 55.8 million in 2020. Since older individuals tend to require medical devices more than younger people, GEHC should get a big boost from the rapid growth of America’s elderly population.
GEHC has an attractive forward price-earnings ratio of 17.5.
Palo Alto (PANW)
One of the world’s premier cybersecurity companies, Palo Alto (NASDAQ:PANW) will benefit from the continued proliferation of expensive cyberattacks.
This year alone, MGM Resorts (NYSE:MGM), Caesar’s Entertainment (NASDAQ:CZR) and VF Corp (NYSE:VFC) have experienced cyberattacks.
These attacks will become more frequent and consequential as more devices become connected to the internet and AI usage increases.
Of 46 Wall Street analysts surveyed recently by Seeking Alpha, 38 of them see PANW as a great option in long-term stocks, as they have a “buy” or a “strong buy” rating on the shares.
On the date of publication, Larry Ramer held long positions in AUR, ICAD and MGM. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
