Picking stocks for the long-term is a rewarding and wining proposition. The key in that statement is long-term. Consider this: Holding a stock that earns you a 6% return for 10 years will make you richer than a holding a stock that earns 50% for just one year.

Investing for the long term gives your money time to compound, something not available to those buying and selling stocks frequently. For those already convinced of the value of long-term investing, here are two growth stocks that look like winners. 

A group of people on exercise bikes.

Image source: Getty Images.

1. Peloton Interactive

Peloton Interactive (PTON 0.96%), the manufacturer and seller of connected exercise equipment has doubled revenue in each of the last four years. Peloton's customers have been so enthusiastic about its products that it has been a challenge for the company to make enough of them.

Peloton made two decisions to alleviate the problem in the long run: First, the company acquired exercise equipment manufacturer Precor for $420 million, and it started building its own manufacturing facilities. Peloton will gain the added capacity of Precor this year. Meanwhile, the new facility, called Peloton Output Park, will begin producing machines in the calendar year 2023.

The additions will help ensure Peloton stay on course for its plans to enter one or two new international markets per year, which otherwise would've been a challenging endeavor given the kind of customer enthusiasm the company has received so far in existing markets. Nevertheless, too much customer demand is a good problem to have and one of the easier ones to solve. 

Peloton is not yet profitable annually as it spends to build capacity, add new products, and expand internationally. However, the early success of its products and popularity among consumers makes it look like a long-term winner.  

2. DraftKings

DraftKings (DKNG 1.49%) is a well-known company among sports fans but might be little known outside of that group. The company offers daily fantasy sports wagering, online sports betting, and iGaming. In the latter two, the company boasts market shares of 30% and 19%, respectively.

Gambling companies like DraftKings come with a high degree of regulatory risk. The company must get permission to operate in each state individually. To that end, momentum is going in the right direction. Between Aug. 6 and Sept. 9, DraftKings has expanded into two more states for a total of 14 in mobile sports betting.

The prospect of expanding betting looks like a win-win for states and DraftKings. Pacts between the two include a case-by-case tax paid to the state as a percentage of DraftKings' revenue. States get to supplement the budget by raising taxes on constituents indirectly. DraftKings benefits by gaining market access and, to a degree, market share protection because states often issue a limited number of licenses to operate.  

DraftKings is also not yet profitable annually. With each new state added to its portfolio, DraftKings needs to spend to promote its services. There's significant potential as management has highlighted its long-term adjusted earnings before interest, taxes, depreciation, and amortization, or EBITDA, target of $1.7 billion annually at maturity. DraftKings is currently trading at an enterprise value of $24 billion.