Finding stocks you can buy and hold for years isn't always easy. The options are seemingly endless. And sometimes, a stock's valuation just doesn't pass muster upon a closer look at the long-term growth potential and durability of its business.
The great news is that even in turbulent market times such as these, there are still fantastic investing opportunities for buy-and-hold investors. To that end, if you have $1,000 to invest in stocks right now, here are three nearly unstoppable companies for you to consider.
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Salesforce.com
When it comes to investing your money into industries with tremendous long-term potential, few measure up to the business of customer relationship management (CRM) systems. This market is currently valued at about $58 billion and is on track to hit a global valuation of nearly $130 billion by 2028. And as the indomitable leader in the CRM software space with a nearly 20% market share as of last year, Salesforce.com (CRM +2.12%) is an incredibly smart investment to capitalize on this industry's lightning-fast growth trajectory.
Salesforce continues to deliver consistent gains and crush Wall Street revenue estimates. In its most recent quarter ended July 31, revenue increased 23% year over year to $6.3 billion. Its subscription and support segment climbed 22% year over year while non-subscription revenue jumped 37%.
The software-as-a-service stock has a long and impressive track record of growth. Looking back at the past five years through 2021, revenue increased 26%, 25%, 26%, 29%, and 24%, respectively.
Investors are certainly pleased. Shares of the company have popped around 21% since the beginning of the year. And over the past five years, the stock has gained more than 250%, well over twice that of the S&P 500.
As the company continues to expand its domination of the global CRM industry, long-term shareholders can keep snagging market-beating returns in kind.
Etsy
The global e-commerce industry is on track to hit a valuation surpassing $27 trillion by 2027. Since the pandemic began, Etsy (ETSY +2.92%) has garnered increasing attention from investors as a compelling play in this red-hot space. But its growth trajectory is not limited to the near term.
Its platform connects sellers of specialty, vintage, and custom goods with buyers from around the world, giving Etsy a different business model compared to that of many other well-known e-commerce platforms. And the company continues to build upon its considerable track record of successes, both before and during the pandemic, while expanding its family of brands.
It just closed two key acquisitions in July: global fashion resale platform Depop and Brazilian e-commerce platform Elo7. Etsy's decision to expand into the fashion resale market could pay serious dividends in the years to come. Depop is already a high-growth company with revenue and gross merchandise sales (GMS) that both jumped by about 100% in 2020.
A recent study by online consignment retailer ThredUp projects that the secondhand market will hit a $77 billion valuation by 2025. The Elo7 acquisition is another highly strategic move for Etsy, given that the site is one of the top 10 e-commerce platforms in Brazil, which is the biggest e-commerce market in Latin America.
In the first six months of 2021, Etsy's revenue increased year over year by 64% to $1.1 billion, helped by a GMS increase of 53%. Its net income also grew 122% compared to the first half of 2020. Active buyers and active sellers on the platform surged by 50% and 67%, respectively.
Shares have popped by more than 75% over the past year alone -- and over 20% year to date. But the stock has plenty of runway left as Etsy expands its platform and family of brands. Investors looking to tap into this growth potential should consider hitting the buy button now.
Intuitive Surgical
The medical robot industry is set to hit a global valuation of nearly $13 billion by 2025. Unbelievably, one company -- Intuitive Surgical (ISRG 2.21%) -- controls a nearly 80% share of this market.
Famous for its da Vinci robotic-assisted surgical system, the California-based company has had a strong history of growth with revenue increases of 19% in 2018 and 20% in 2019. In 2020, because of the pandemic, it saw a revenue decrease due to a decline in sales of da Vinci and a drop in procedures using the system. But the past few quarterly reports have shown a robust rebound from that drop in demand.
The healthcare company reported that worldwide da Vinci procedures surged 68% year over year in the second quarter of 2021. Management also said that it shipped 84% more of its da Vinci surgical systems out to customers than it did in the year-ago quarter and that its installed base of systems increased 10%.
As a result, Intuitive Surgical reported notable top- and bottom-line growth in the second quarter with revenue soaring 72% year over year to $1.5 billion and net income popping an incredible 660%.
Even though the company's balance sheet was impacted from delayed medical procedures earlier in the pandemic, shares have still appreciated by more than 40% over the past year alone.
Management recently announced a 3-for-1 stock split that's supposed to occur at the end of September. If shareholders approve the split, the stock will become easier to buy for smaller investors. But whether you buy the stock now or wait until after the split, Intuitive's strong competitive advantage within its industry as well as robust growth can fuel portfolio increases for years to come.
