Own these growth stocks for the next 10 years: The pros | Wilnesh News
Growth stocks have been volatile, and technology stocks have experienced wild swings in recent weeks. The S&P 500 and Nasdaq jumped to their best trading days since February on Wednesday as technology stocks sold off, after both indexes fell to their lowest levels since 2022. The Federal Reserve kept interest rates unchanged on Wednesday and said it could cut rates at its next meeting as soon as September, giving a boost to stocks. Overall, growth stocks are up this year, despite falling slightly recently. The large-cap Vanguard Russell 1000 Growth ETF is up about 18% this year. The Vanguard Small-Cap Growth ETF rose about 8%. Which such stocks can investors buy and hold over the next 10 years? CNBC Pro asked fund managers and other investors focused on growth stocks for some thoughts. Greg Halter, director of research at Carnegie Investment Counsel, identifies five stocks in Waste Management and Republic Services Group that are poised for long-term growth. Two of them are waste companies Waste Management and Republic Services Group. “As the saying goes, trash must be collected,” he said, adding that both companies had scale and were gaining customers along existing routes. “Customers are willing to pay a price to have their trash collected, and historically they’ve been willing to pay a higher and higher price every year to have their trash hauled away,” Halter said. Both companies are entering the future, he said. waste-to-energy companies and increase efforts in this area. “Driven by increased energy demand from data centers and artificial intelligence, (waste-to-energy) efforts could pay dividends over the next decade,” he said. He said that while the share prices of both stocks have increased over the past few years, Strong mid-year gains made their P/E ratios “look expanded,” but their prices have fallen recently. Both names are suitable for a 10-year holding period, he said. TransDigm and Heico Halter said TransDigm and Heico, which provide replacement parts for aircraft, have proven over the years that they can “create value for shareholders.” According to him, many of the parts were purchased separately by the two companies. “(This means) if you need new seat belts or toilet door handles, you need to get them from someone like TDG or HEI,” he said. According to him, the business has two parts: original equipment and aftermarket. The aftermarket is the market for replacement parts that are not manufactured by the original equipment manufacturer. Halter said the original equipment part of the business is “smaller” and lasts 35 to 40 years, while aftermarket equipment lasts about 50 years and is a “much larger” revenue opportunity. “With the average age of the commercial aircraft fleet now over 14 years old, the combination of original equipment and aftermarket products delivers stable long-term revenue growth,” he said. Another benefit for investors, he said. , has issued 10 large one-time dividends in the past 15 years. Casey’s convenience store chain Casey’s Grocery Stores isn’t cheap right now, but it’s a stock worth investors’ attention, Halter said. He said Casey’s is a “quality growth” company because of its better pricing, brand, substantial free cash flow and a growth runway with “operational excellence.” He added that the shares have proven over the years that they can deliver value to shareholders. Annovis Bio Vahan Janjigian, chief investment officer at Greenwich Wealth Management, likes biotech stock Annovis Bio, but he has a big caveat. The company is currently working on treatments for Alzheimer’s and Parkinson’s diseases, and everything depends on the results of the trials and whether the drugs will be approved by the U.S. Food and Drug Administration, he said. “This is a highly speculative stock with a binary outcome. If their drug is approved, the stock will do very well. If the drug is not approved, the company could go out of business,” he said. He added that the company did not earn any revenue and only incurred expenses. “I think it’s worth risking a small portion of your entire portfolio; but this is not a stock that can be evaluated using standard techniques,” he said. He said results from Parkinson’s drug trials have been mixed, but the stock has risen strongly on the drug’s promise alone. “The drug wasn’t as effective as expected in treating Parkinson’s disease, but patients showed significant improvements in cognitive function,” Janjigian said. “That means a separate Alzheimer’s trial has a good chance of success.” “
