Please ensure Javascript is enabled for purposes of website accessibility

Got $5,000? These 2 Unstoppable Stocks Are No-Brainer Buys

By David Jagielski – Oct 26, 2021 at 11:00AM

Key Points

  • Abbott has benefited from a surge in COVID-19 testing and business is also firing on all cylinders.
  • Palantir is growing at a rate of nearly 50% and continues adding to its customer base.
  • Both of these businesses still have more room to grow.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Both are great places to park your money for years.

If you have $5,000 that you can afford to invest, there are plenty of good options out there for you. But the safest approach is to invest in the long haul -- in businesses that have bright futures. 

Abbott Laboratories (ABT -0.41%) and Palantir Technologies (PLTR -6.45%) are two suitable options for long-term investors. Their businesses are growing at impressive rates today and they don't look to be slowing down anytime soon. 

Businessman with a chart looking at their computer.

Image source: Getty Images.

1. Abbott Laboratories

Healthcare giant Abbott Laboratories was a great buy before the pandemic and its business looks even better today. The company released its latest results on Oct. 20 and sales of $10.9 billion for the quarter ended Sept. 30 were up 23% over the same period last year. While diagnostics and COVID-19 test products were a big reason for the large spike in sales (that segment generated year-over-year growth of more than 48%), the company reported strong results across the board with its slowest-growing segment, nutrition, still up 10%.

The healthcare company is performing incredibly well and is on track to blow past last year's revenue of $34.6 billion as it already has sales of $31.6 billion through the first nine months of 2021. Plus, with multiple new products that the U.S. Food and Drug Administration has recently approved -- including Amplatzer Amulet for preventing blood clots -- Abbott is only adding to its portfolio.

On top of all that growth, Abbott is also a solid dividend stock, paying investors 1.5% annually -- slightly above the S&P 500 average of around 1.3%. Last year, the company boosted its dividend by a generous 25%. Given that its net earnings through the first three quarters of this year are more than double what they were a year ago, it wouldn't be surprising to see another solid rate hike before the end of the year. One more increase to the dividend would also make Abbott a Dividend King.

Whether you just want a safe dividend or a top business to invest in, Abbott Labs is a worthy investment to consider.

2. Palantir Technologies

Tech company Palantir doesn't pay a dividend, but investors likely won't mind given its attractive growth prospects. The company's analytics and data solutions utilize artificial intelligence to provide organizations with valuable decision-making information. And it has earned the trust of the government -- more than 60% of its revenue comes from a wide range of agencies and military customers such as the U.S. Army and the Centers for Disease Control and Prevention.

Commercial customers are also bullish on its software; for the second quarter ended June 30, U.S. commercial revenue grew 90% over the same period last year. And the number of commercial customers rose by 32%. All in all, through the first half of 2021, the company's revenue has totaled $717 million, which is a 49% increase from a year ago. Palantir expects that its business will grow by an annual rate of at least 30% through 2025.

The one knock on the business is that right now it isn't profitable. The company incurred losses of more than $1.2 billion over the trailing 12 months. However, that is skewed by the third quarter of last year when the company saw a net loss of $853 million, largely the result of $847 million in expenses due to stock-based compensation. In subsequent quarters, losses have been much smaller.

Investors will need to be patient with Palantir (especially if they're waiting for the company to turn a profit), but with the growth potential the stock possesses, this is another promising investment that long-term investors should consider adding to their portfolios.

David Jagielski has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Palantir Technologies Inc. The Motley Fool has a disclosure policy.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.