Don't let market volatility convince you otherwise: Investing in stocks remains one of the best ways to accumulate capital over long periods. It can be hard to remember that when equities are falling, and the market faces significant uncertainty due to macroeconomic factors -- precisely what we have experienced in 2025. However, no matter what is going on right now, buying shares in excellent companies will generate outsized returns in the next five, 10, or even 20 years. Companies that can last -- and thrive -- that long are rare, but let's consider two brilliant examples investors should strongly consider today: Eli Lilly (LLY 1.65%) and Shopify (SHOP 1.23%).
NYSE: LLY
Key Data Points
1. Eli Lilly
Drugs that help manage or cure severe illnesses are always in high demand, something that won't change anytime soon. Eli Lilly, a leading pharmaceutical company, develops and markets therapies across various areas, including immunology, oncology, and especially endocrine disorders like diabetes. Eli Lilly is also establishing itself as a top player in the fast-growing market for weight management medicines. The company's current lineup is helping drive impressive top-line growth for a drugmaker its size.
In 2024, Eli Lilly's revenue increased by 32% year over year to about $45 billion -- well above the average for its similarly sized peers. The company's guidance for 2025 implies top-line growth of 32% at the mid-point. Several of Eli Lilly's medicines should help drive excellent results well into the next decade. These include its diabetes drug Mounjaro, anti-obesity medicine Zepbound, Kisunla, which was approved just last year to treat Alzheimer's disease, Ebglyss, another newer product with an indication in eczema, and more.
Further, Eli Lilly's pipeline looks promising. It has several exciting anti-obesity and diabetes programs, a lineup of oncology candidates, and even a gene therapy for genetic deafness that has produced encouraging early results. Eli Lilly has thrived in the industry for years thanks to its innovative abilities. That's arguably the company's greatest asset since every single one of its medicines will eventually run out of patent protection and stop contributing to top-line growth.
Lastly, Eli Lilly is an excellent dividend growth stock. The company's forward yield of 0.7% isn't impressive (the S&P 500's average is 1.3%), but Eli Lilly has increased its payouts by 200% in the past decade. Investors who hold onto Eli Lilly's shares while reinvesting the dividend should see outsized returns.
NASDAQ: SHOP
Key Data Points
2. Shopify
Shopify is an e-commerce specialist. The company's platform helps small and medium-sized merchants quickly and efficiently set up online storefronts while providing nearly everything they need to be successful. Shopify can help handle inventory management and marketing, website analytics, payment processing, cross-channel selling, and more.
That's just what's built into the company's website -- it also has an app store with thousands of options that help merchants customize their stores. The company aims to be a one-stop shop for everything online merchants need. It has seen tremendous success. It holds a more than 10% share in the ruthlessly competitive U.S. e-commerce space in gross merchandise volume.
Shopify's financial results are also strong, and since it got rid of its low-margin logistics business, its profitability metrics have looked better. In 2024, Shopify's revenue of $8.9 billion jumped 26% compared to the previous fiscal year. It also reported a net income of $2 billion after barely being above the break-even point in 2023. Shopify's free cash flow margin has also been trending upward.
While we shouldn't make too much of a single year's performance, Shopify's recent progress looks promising, considering other aspects of its business. The company's platform benefits from high switching costs; merchants who have spent time and money building an online storefront with Shopify won't want to jump ship unless absolutely necessary. That grants Shopify a competitive advantage, and that's not to mention its app store's network effect.
Further, there is significant room to grow in e-commerce. Even in the U.S., one of the more penetrated e-commerce markets, online sales accounted for only 16.4% of total retail sales in the fourth quarter. Shopify wants to be a 100-year company. The long runway available in its industry, its competitive edge, and increased profitability are all good reasons to think the business has a bright future. The stock looks like an excellent buy-and-forget pick.
