Got $5,000? Buy and Hold These 3 Market-Beating Stocks

There are few better ways to build long-term wealth for average folks than investing in the stock market. Yet a recent Motley Fool research report found that only about 58% of Americans own stock, and the top 1% of Americans by wealth own more than half of all stocks.

Here's hoping that you're among the 58% -- and if you're not, that you can accumulate some dollars soon for long-term investing. Here are three impressive companies to consider when you're seeking stocks for your portfolio.

1. PayPal

PayPal (PYPL 0.64%) is a fintech powerhouse, with a market value recently topping $80 billion. But that's down nearly 40% from its 52-week high, making the stock a rather attractive opportunity if you believe in its long-term potential. There's more to PayPal than meets the eye, as it also encompasses Venmo, Zettle, Xoom, Hyperwallet, Honey, and Paidy, among other businesses.

In its recent fourth-quarter report, PayPal posted revenue growth of 10% year over year for 2022 (on a currency-neutral basis), and total payment volume up 13%. Free cash flow advanced 4% to $5.1 billion, and the company boasted 435 million active accounts, including some 35 million active merchant accounts.

The news isn't unilaterally good, though. PayPal has struggled in the past year, its long-term partnership with eBay has ended, and its CEO has just announced he's stepping down. PayPal's growth seems to be slowing, but it's still growing -- and it's much more attractively valued than many other fintech enterprises. Its recent price-to-sales ratio, for example, was 3.2, well below its five-year average of 8.5. And its forward-looking P/E ratio was just 15.7, well below the five-year average of 36.

2. Blackstone

You may not know the name Blackstone (BX -0.43%), but it's the world's largest alternative asset manager. Recently, it had close to a trillion dollars in assets under management (AUM). The company describes its alternative investments as "private equity, real estate, public debt and equity, infrastructure, life sciences, growth equity, opportunistic, non-investment grade credit, real assets and secondary funds, all on a global basis."

The company recently delivered a solid fourth-quarter earnings report, with CEO Stephen A. Schwarzman noting that "Despite one of the most challenging market backdrops in history," the company received $226 billion of inflows for the year, including $43 billion in the fourth quarter, growing its AUM by 11%. (Last year it jumped by 42%.) He added, "We now have a record $187 billion of dry powder capital to take advantage of compelling investment opportunities in a dislocated environment."

The company sees much room for growth, claiming 10% of a $10 trillion industry. Investors buying in these days can also look forward to hefty dividend payments, with the stock recently yielding nearly 4.7%.

Blackstone's stock had some big falls in the past year, but has rallied recently, rising nearly 30% in in January. That hasn't made the stock unattractive, though -- it still appears far from overvalued, with a recent forward-looking price-to-earnings (P/E) ratio of 19, roughly on par with its five-year average.

3. Medtronic

Medtronic (MDT -1.12%) is a giant in the medical equipment arena, with a recent market value topping $112 billion and a dividend that recently yielded a solid 3.2%. It has increased that payout for 45 consecutive years, most recently by 7%. The company boasts close to 13,000 scientists and engineers, nearly 50,000 active patent matters, and a $2.7 billion research and development spend last year. Its offerings address more than 70 different health conditions.

The stock was recently down nearly 26% from its 52-week high in part due to supply chain issues and also to the ongoing pandemic, as many people postpone procedures that they otherwise might have undergone. Those are not likely to be permanent headwinds, though. In its second quarter, Medtronic posted a revenue drop of 3% due to a slower-than-expected recovery in procedures and supply chain issues, but it showed strength in product lines such as transcatheter aortic valves, cardiac pacing, and diabetes.

Medtronic may not be a rapid grower, but it's an established grower over the long run.

These are just three of many solid companies out there. Remember, too, that if you don't have the time or energy to study and invest in individual stocks, you can simply opt for low-fee broad-market index funds. They are terrific long-term growers, too.