9 No-Brainer Long-Term Stocks to Buy if You Have Money to Invest
With the equities sector possibly on the verge of a downtrend, now is a good time to consider no-brainer long-term stocks to buy. As you probably heard, Federal Reserve chair Jerome Powell had less-than-exciting news to deliver to investors. Essentially, the Fed recognizes the enormous challenges which rising inflation caused. Therefore, the central bank remains committed to doing what it can to tackle historically high consumer prices.
In other words, the framework of rising benchmark interest rates will likely continue until inflation comes under control. Unfortunately, that bodes poorly for growth-focused equities, which depend on robust entrepreneurial sentiment. However, rising borrowing costs quell such desires. Nevertheless, forward-looking investors may want to consider long-term stocks to buy. At some point, these challenges will fade, presenting potential discounted opportunities today.
For the purposes of this list of long-term stocks to buy, I’ve divided the nine securities into three equal-weighted parts. The first segment features generally conservative ideas, followed by riskier narratives. The final segment showcases speculative ideas. These last three stocks are most appropriate for risk-tolerant contrarians that don’t mind rolling the dice.
IBM (IBM)
A legacy giant, several analysts in the past have pegged IBM (NYSE:IBM) as one of the long-term stocks to buy. Unfortunately, they’ve been frustrated with IBM’s years-long consolidation pattern. Over the trailing five years, for instance, IBM has returned a loss of 5.3% through the Aug. 26 session. That’s hardly riveting stuff. Still, “Big Blue” might be turning a big corner.
Recently, IBM delivered solid results for its second quarter of 2022 earnings report. Its earnings of $2.31 a share beat the consensus target of $2.27. Further, the company posted revenue of $15.54 billion, also beating the consensus expectation of $15.18 billion.
To be fair, management trimmed its full-year forecasts. However, contrarians shouldn’t lose track of the forest for the trees. What IBM’s Q2 results signify across a broader canvas is that it’s finally leveraging its tools to become an effective hybrid-cloud services provider.
Huntington Ingalls (HII)
When the topic of no-brainer long-term stocks to buy comes up, my mind immediately goes to geopolitical dynamics. As you likely know, recently House Speaker Nancy Pelosi caused quite a stir when she visited Taiwan. China considers the breakaway island as part of its territory, representing a longstanding dispute with the U.S. and the west.
Further, the Washington Post revealed that just recently, U.S. warships passed through the Taiwan Strait. This was the first such excursion since Pelosi’s visit to Taiwan. What’s interesting about this latest geopolitical twist is that both Republicans and Democrats agree on something: China represents a threat to the U.S. and democracy in general.
Therefore, I only see one direction for Huntington Ingalls (NYSE:HII) in the years ahead: Up. As the largest supplier of U.S. Navy surface combatants, Huntington is going to enjoy a very relevant profile. You can easily chalk up HII as one of the long-term stocks to buy.
ASML (ASML)
When the Covid-19 pandemic initially upturned the global economy, one of the biggest concerns focused on semiconductor supply chains. Indeed, a major catalyst for the wild pricing dynamics in the retail auto market stemmed from semiconductor shortages. With computer chips integrating into everything these days, an impact to supplies and production creates absolute havoc.
Because of this reality, investors should consider ASML (NASDAQ:ASML) as one of the no-brainer long-term stocks to buy. CNBC provided perhaps the best explanation for the bullish thesis. ASML is the only company in the world designing machines geared for extreme ultraviolet (EUV) lithography.
By facilitating the printing of unique designs onto silicon wafers, ASML presents a critically important component of global chip production. As an added bonus, Gurufocus considers ASML to be “modestly undervalued.”
Sociedad Quimica y Minera (SQM)
In recent years, the race to lead the electric vehicle (EV) market has started to heat up. However, investors face tough challenges in this segment. Back during the advent of the combustion car market, consumers had myriad choices such as Tucker and American Motor Company. However, many of these early brands would eventually die off.
It’s more than possible that the EV sector will experience the same competitiveness and eventual consolidation into a few players. But which ones will survive and which ones will flop? It’s really anyone’s guess. And that’s why I peg Sociedad Quimica y Minera (NYSE:SQM) as one of the long-term stocks to buy.
As a lithium miner, SQM essentially bought itself a ticket to perhaps permanent relevance. While I can’t say for certain which EV brand will stand the test of time, lithium will likely be a hotly demanded commodity.
Upwork (UPWK)
According to a Pew Research Center report, most people today would prefer working from home over going back to the office. It’s not surprising why. It’s not surprising why. Before the Covid-19 pandemic, workers were wasting more than two hours a day while on the clock.
Interestingly, mouse movers that help people pretend that they’re working are “red hot” with remote workers, according to TomsGuide. Coincidence? If you think so, I have a bridge to sell you.
Anyways, employers know what’s up and with recessionary pressures on the horizon, layoffs will likely commence. Therefore, if worker bees don’t want to stand out, they’ve got to suck it up and return to the office.
However, some will protest and join the burgeoning gig economy. If so, this dynamic plays into the hands of Upwork (NASDAQ:UPWK), an online marketplace for freelancers. Given workplace trends, UPWK stands as one of the long-term stocks to buy.
Sea Ltd (SE)
Before discussing why Singapore-based Sea Ltd (NYSE:SE) is one of the long-term stocks to buy, investors should recognize the risks. Since the start of the year, SE shares have hemorrhaged more than 71% of their market value. While it hasn’t quite given up all of its post-Covid-doldrums gains, it’s getting pretty close.
Another factor to consider is the fundamental risk. On paper, Sea may present itself as an extremely undervalued idea. However, Gurufocus warns that SE might be a value trap. While the company enjoyed 29% revenue growth in Q2 this year, it also expanded net losses from $434 million in Q2 2021 to $931 million in the most recent quarter.
Of course, with rising interest rates, investors don’t want to bet too heavily on unprofitable ventures.
With that out of the way, if you’re willing to absorb some volatility, SE could be intriguing as one of the long-term stocks to buy. Essentially, experts peg the Southeast Asian internet economy to reach a valuation of $1 trillion by 2030. Therefore, SE may be a discounted opportunity.
Universal Technical Institute (UTI)
Although the Biden administration’s student debt relief plan may represent a significant victory for the Democrats – and a less-than-thrilled talking point for Republicans – I think we’re losing sight of the bigger picture: College education is increasingly becoming expensive and therefore unattainable for the average household. Should prices continue to escalate, students and their families must rethink the cost-benefit profile.
Fortunately, intense competition for white-collar careers opens doors for a much easier time in blue-collar sectors. Sure, the work may be tougher, but you’ll be in high demand (compared to say a web designer). Here, Universal Technical Institute (NYSE:UTI) provides vocational training, specifically for the automotive and boating industries.
To be clear, UTI is risky. Since the start of the year, shares have slipped more than 12%. However, over time, I believe people will see the wisdom in going blue-collar as opposed to struggling in a dead-end white-collar career. Therefore, UTI is one of the long-term stocks to buy.
NuScale Power (SMR)
While it’s not something everyone wants to hear, nuclear power cannot be ignored. Scientifically, this energy source features incredible density. Moreover, per the Office of Nuclear Energy, “Nuclear has the highest capacity factor of any other energy source—producing reliable, carbon-free power more than 92% of the time in 2021.”
Of course, controversies impede the reputation of this viable sector. Certainly, the latest rumblings in the Ukraine crisis don’t bode well for this reputational cause. However, NuScale Power (NYSE:SMR) may help tilt the scales back in the nuclear industry’s favor. Unlike traditional powerplants, NuScale specializes in small modular reactors which impose fewer space requirements. As well, SMRs can be integrated across various regions.
In particular, this advanced tech can help revitalize intriguing but uneconomically viable innovations such as desalination. Therefore, NuScale offers relevance not only for energy security but also a role in potable water production.
Joby Aviation (JOBY)
When the Covid-19 crisis first capsized the U.S. economy, bustling metropolitan areas became veritable ghost towns. If a silver lining existed for the horrors of the time, it was that people can drive quickly across town. However, as society normalizes, traffic levels have started to creep back up to pre-pandemic levels.
Just in the state of California, traffic congestion costs residents a total of $28 billion a year. Add to that the aggravation of bumper-to-bumper traffic and the mental strain has millions wishing they could just fly above the muck. In a way, Joby Aviation (NYSE:JOBY) provides just that — so long as you’re rich.
Then again, who knows? At scale, electric urban air taxi services could potentially offer stress-free rides at relatively reasonable prices.
I’m not going to play games here. In the trailing year, JOBY has dropped 57% of market value. However, if you can withstand volatile trading, it could be one of the long-term stocks to buy.
On the date of publication, Josh Enomoto 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.