2 Best Stocks to Buy in January and Hold Forever

The start of a new year may or may not signal the recovery of the broader stock market, but great businesses are staying largely above the fray even if share prices remain volatile. From healthcare to consumer goods, quality companies continuing to build upon a track record of growth that possess sticky business models and strong core financials can see share prices recover in the future. 

Investors who continued to buy into these businesses at lower-than-usual valuations could be positioned well for this recovery when it does occur. If you're going stock shopping in January, here are two unstoppable stocks to buy right now and hold for the long haul. 

1. DexCom

DexCom (DXCM -1.10%) is a diabetes care giant, known for its continuous glucose monitoring (CGM) devices. Both Type 1 and Type 2 diabetics use these devices to track blood sugar levels, observe blood sugar trends, and monitor for signs of spikes that could portend a hypoglycemic or hyperglycemic event. Currently, the company controls around 50% of the global CGM market. 

According to the World Health Organization, the global population of individuals with diabetes has risen significantly over the past few decades, from roughly 108 million in 1980 to 422 million in 2014. As of 2022, the Centers for Disease Control and Prevention estimated that roughly 130 million individuals have diabetes in the U.S. alone.  

Meanwhile, a 2019 survey found that only 38% of Type 1 diabetics in the U.S. used a CGM device, with most of these individuals falling in the 26 to 50 age group. In short, not only are there large portions of the existing diabetes population that are still not using CGM devices, but as the incidence of diabetes rises, DexCom has significant opportunity build upon its existing footprint and tap into a growing total addressable market.  

DexCom is in the process of executing the global launch of the latest generation of its CGM devices, the G7. The launch of this new-and-improved version of its flagship product -- which is 60% smaller than the prior generation with the fastest warm-up time on the market -- is expected to boost DexCom's revenue by as much as 20% in fiscal-year 2023 alone. The company also just released its unaudited preliminary results for full-year 2022 (the full version of which is due out on Feb. 9), reporting revenue of $2.9 billion, up 19% compared to 2021.  

An investment in this steadily growing and profitable healthcare stock (it reported net income of $101 million in the the third quarter of 2022) could reap generous portfolio returns in the years ahead as it expands its market share and builds on its existing track record.  

2. Starbucks 

Starbucks (SBUX 0.39%) is a name that needs no introduction. The chain of coffeehouses and roasteries is a favorite with consumers around the world. Even in the currently challenging macro environment, where consumer discretionary spending is broadly in flux, Starbucks is still marking business wins and has a solid foundation it can build upon to launch itself to future growth well after any recessionary storm has passed. 

In the company's fiscal 2022, which ended Oct. 2, it reported an 8% increase in global comparable-store sales, helped by a 12% increase in comparable-store sales in North America. While international sales declined by 24% compared to fiscal 2021, a large part of this was due to continued COVID-19-related closures in China. Outside of the U.S., China is the single-largest market in which Starbucks operates, with more than 6,000 stores open across the country.

Even so, Starbucks reported consolidated net revenue of $32 billion for fiscal 2022, a surge of 13% on a constant-currency basis from the prior year, with net earnings of $3.3 billion for the 12-month period.  

The company is currently in the process of building out its three-year financial growth strategy called the Reinvention plan, which was announced in September 2022. These initiatives include targeting global revenue growth of 10% to 12% annually between fiscal 2023 and fiscal 2025, and increasing its global store count by 7% annually in that forecast period. Management also noted in the announcement: 

In China, Starbucks expects outsized comparable store sales performance in fiscal 2023 and fiscal 2024, as the market laps the severe impact of COVID-related lockdowns, with growth normalizing in the new range of 4% to 6% in fiscal 2025, an increase from the prior range of 2% to 4%, reflecting an increased digital capability and confidence in the vast opportunity ahead in this key growth market.  

Discretionary spending may shift in the coming months, but the loyalty and rapport consumers have with the Starbucks brand and its products can continue to drive growth over the long term, rewarding the business and its shareholders as the company works toward these initiatives and continues to expand its global footprint.

For dividend investors, it's worth noting that Starbucks yields 2% based on current share prices. The stock has also has seen its dividend rise by roughly 400% over the trailing decade.