2 Smart Stocks to Buy and Hold for Years

A turbulent market doesn't need to be your enemy. On the contrary, right now could be an opportune moment to add cash to solid companies with strong business tailwinds that will be able to grow your investment many times over in the years ahead. 

Here are two such smart stocks to add to your list of buys right now. 

1. Airbnb

Airbnb (ABNB 1.17%) continues to go from strength to strength even as consumer spending habits remain unpredictable and worries about an economic maelstrom remain. However, when you're investing in a business for the long term, concerns about these two things don't play such a big part.

Airbnb's business, which already controls an estimated 20% of the vacation rental market and is increasingly catering to far more than traditional leisure travelers, remains ideally positioned to benefit from the changing ways that people find away-from-home lodging. 

People are still using Airbnb when they take a short trip, but a growing number of travelers are staying in Airbnb rentals for weeks or months at a time. If more people take advantage of policies allowing them to work from anywhere, this trend could keep growing.

In addition to ensuring that its platform keeps evolving to meet the changing needs of travelers, Airbnb also regularly releases updates to cater to its growing community of hosts. Recently, the company launched its "smart pricing" tool, which enables hosts to easily update pricing. It also introduced a tool to help people see how much they could make from renting on Airbnb.  

For investors looking for a steadily growing and profitable business -- the company reported net income of $1.2 billion and free cash flow of $960 million in the third quarter -- Airbnb looks like a wise place to invest some cash right now. Even with the stock up roughly 40% from the start of 2023, analysts are predicting the stock will keep rising this year -- with the most optimistic seeing an upside of more than 30% -- and I agree the stock is worth investing in.  

2. Intuitive Surgical 

Intuitive Surgical (ISRG -0.55%) is trailing the overall market when looking at year-to-date returns, but this resilient and profitable business has delivered a total return of nearly 100% over the trailing five-year period, compared to the S&P 500's 70%. Wall Street analysts currently peg the stock with a 12-month upside of anywhere from 15% to 30%.  

A notable reason for the stock's recent decline traces back to fluctuations in procedure volumes amid COVID-19 resurgences in the U.S., Europe, and most recently, Asia. While the impact of these events may linger into the next few quarters, Intuitive Surgical is still profitable and retains a competitive advantage in a lucrative market. The company reported revenue of $6.2 billion in 2022, up 9% from the prior year, as well as net income of $1.3 billion.  

The company controls about 80% of the surgical-robotics market, a space expected to hit about $18 billion globally before the end of the decade. Its flagship product, the da Vinci surgical system, is used in many types of minimally invasive procedures, including thoracic and cardiovascular surgeries. The company also sells a product for minimally invasive lung biopsies called the Ion system.

While sales and installations of its surgical systems are key to revenue and earnings growth, the largest chunk of Intuitive Surgical's top and bottom lines comes from the instruments and accessories that accompany these systems. These tools regularly need upgrades, replacement, and/or maintenance, giving Intuitive Surgical prolonged and recurring sources of revenue. Plus, the company offers a suite of software solutions and services for its surgical systems, from which it also generates a durable source of revenue.

In short, investors shouldn't be dissuaded from buying the stock due to fluctuations in procedure volume, which aren't tied to any issues with the business itself but are outside Intuitive Surgical's control. The company's leading market share, along with fact that demand for its products and services remains consistent, could draw investors looking to take a long-term buy-and-hold position in a top healthcare stock.