Stock market investing offers wealth-building opportunities for those with a long-term investing time horizon. However, high rewards entail high risks, especially for those seeking quick gains. Aggressive tactics may lead to significant losses. The best approach may be having a longer-term time outlook with most holdings. This strategy can maximize potential upside and minimize risk over time.
Building a sizable portfolio is one matter. But building one’s growth holdings carefully and in sectors with continued momentum long-term is the key. The three stocks on this list are ones I’d put in the safer, yet higher-growth category.
Let’s dive into specifics of these stocks that are worth considering for the next 10 years, and catalysts that could take them higher.
Eli Lilly (LLY)
Eli Lilly (NYSE:LLY) is best-known for its suite of weight-loss drugs and its pipeline in this space. However, the company’s recently-announced positive results from phase 3 trials of insulin efsitora alfa (efsitora) for type 2 diabetes is another key catalyst to watch.
Efsitora demonstrated non-inferior A1C reduction to daily basal insulins, offering weekly blood sugar control and reduced treatment burden. Notably, a number of high-profile medical experts have highlighted its potential for improved adherence.
QWINT-2 compared safety and efficacy of weekly efsitora versus daily insulin degludec over 52 weeks in insulin-naïve type 2 diabetes patients. Efsitora proved non-inferior in A1C reduction, with participants spending more time in target glucose range without additional hypoglycemia.
Thus, the pharmaceutical company marches toward dividend aristocrat status, boasting 10 consecutive dividend hikes and a 27% forward payout ratio. Eli Lilly is seeing revenue growth continue acceleration post-pandemic. Furthermore, weight-loss drug Zepbound’s robust sales is leading the charge in this regard.
For those bullish on the weight-loss category and looking for a biotechnology giant to buy and hold long-term, Eli Lilly is the top pick.
Meta Platforms (META)
Last year certainly provided a wild ride for investors in tech company Meta Platforms (NASDAQ:META). The stock trended mostly higher. And, it continues to trade near all-time highs as we approach the midpoint of 2024. Much of this is due to the company’s focus on increasing its efficiency, while investing heavily into the artificial intelligence (AI) trend.
Also, Meta Platforms achieved a trillion-dollar market cap in January. This pinnacle elevated the stock to be a core portfolio holding of many passive index fund holders. During the company’s recent earnings call, Meta Platforms outlined plans of massive investment in its long-term AI vision. The move will pivot the company among the AI leaders. Also, it’s one in which growth investors continue to flock.
Meta Platforms looks to utilize generative AI to enhance its social media offerings, a key move following its rebranding. The generative AI called Llama powers various applications. Concurrently, META focuses on engaging developers to expand AI tools, expecting increased engagement and monetization.
Chief Executive Officer (CEO) Mark Zuckerberg’s forward-thinking led Meta Platforms to trillion-dollar status within two decades. Yet, investor skepticism looms over the company’s metaverse endeavors. Reality Labs’ $2 billion revenue in 12 months doesn’t offset Meta’s consistent massive losses. Zuckerberg aims for one billion metaverse users, but faces challenges. Nevertheless, META stock remains one of the best long-term picks in the tech sector.
Joby Aviation (JOBY)
Electric Vertical Takeoff and Landing (eVTOL) producer Joby Aviation (NYSE:JOBY) is another more speculative name many investors are watching closely. The company’s air taxi offerings could present the future of transportation. And while momentum has died down in this space, there are some notable developments as investors await final Federal Aviation Administration (FAA) approval.
Recently, Joby Aviation completed its pre-prod prototype for a flight test program, a significant milestone for electric air-taxi development. The company is now advancing to the next phase of flight testing with its production prototype aircraft. Joby’s pre-production aircraft logged over 1,500 flights, covering 33,000 miles. This includes landmark flights in New York City.
In 2021, the company achieved a 154.6-mile flight on a single charge, featuring eVTOL. Then, in 2022, it partnered with NASA for its quiet and acoustic feature in its aircraft. Last year, JOBY shocked the market as it announced an expansion of flight programs, including piloted flights. Additionally, it trained four U.S. Air Force pilots to operate eVTOL aircraft.
For those bullish on the future of the flying car space, this is a top stock to keep on the radar right now.
On the date of publication, Chris MacDonald did not have (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.
