The stock market has been a generous vehicle for building investor wealth through the years even though ups and downs are inevitable. If you stay invested in the stock market for decades, gradually and regularly building out a diverse portfolio, you will likely encounter your share of bull as well as bear markets.
However, if you have positions in great businesses primed to stand the test of time in your portfolio, you can benefit from both the peaks and valleys of the market. Investors never know when the best or worst days in the market will be. Investing consistently in businesses you know, understand, and that align with your overall financial objectives can help you build a profitable, high-performing portfolio with time.
If you're looking for two magnificent growth stocks to buy and hold for years and have $1,000 ready to put to work in the market, here are two names to consider investing part or all of that amount in right now.
Image source: Getty Images.
1. Vertex Pharmaceuticals
Vertex Pharmaceuticals (VRTX +3.08%) has been known for years for its very lucrative cystic fibrosis drug franchise. As the only company with medications that are approved to treat the underlying cause of cystic fibrosis, the company has built an impressive track record of profitability and revenue growth over time.
However, the past year has marked the beginning of a new era for the business as Vertex has expanded into other areas of the rare-disease drug market with a series of impressive drug launches. This includes Journavx, which was just approved by the U.S. Food and Drug Administration (FDA) in January. The drug is currently approved to treat moderate-to-severe acute pain in adults, but it's also being studied for additional indications, including for the treatment of patients with diabetic peripheral neuropathy, a condition that affects roughly half of all patients with diabetes.
Journavx's approval was notable for a few reasons. For starters, it's the first in a new class of medications for acute pain approved by the FDA in over two decades. Second, Journavx doesn't carry the same risks of misuse and addiction because it targets and blocks specific sodium channels on peripheral nerves to reduce pain signals before they reach the brain, unlike opioids, which act on the central nervous system.
The drug has an estimated total addressable market in the billions, with some analysts projecting peak annual sales at around $3.4 billion.
NASDAQ: VRTX
Key Data Points
Alyftrek is another recent approval for Vertex. A triple combination cystic fibrosis therapy, it's the fifth drug that has been approved to treat the underlying genetic causes of the condition. Trial data suggests Alyftrek may lead to even greater reductions in sweat chloride levels (a key diagnostic marker for CF patients), while also providing a new treatment option to both untapped cohorts of CF patients and patients who previously stopped taking one of Vertex's therapies.
A few late-stage drug candidates for investors to watch are Vertex's inaxaplin, a potential first-in-class treatment for APOL1-mediated kidney disease, and povetacicept, currently in phase 3 clinical trials to treat the underlying causes of a rare kidney condition known as IgA nephropathy. Investors should also keep abreast of developments with zimislecel, a stem cell therapy being studied for type 1 diabetes patients. Vertex is targeting potential regulatory filings for both inaxaplin and zimislecel in 2026.
Vertex's first-quarter results were slightly underwhelming due to some short-term factors, including an expected revenue decline in Russia where the company said it is experiencing a violation of its intellectual property rights. However, U.S. revenue rose 9% in the quarter. This follows the full-year 2024 during which the company brought in revenue of $11 billion, a 12% increase from 2023. Vertex looks like a compelling healthcare stock to buy and hold for the long run.
2. Lululemon
Lululemon Athletica (LULU 0.82%) has had a tough time recently if you only look at the stock. The last few years have presented a range of challenges for companies with direct exposure to discretionary consumer spending. The athleisure market and Lululemon's loyal customer base have shown resilience, but the macroenvironment has made some consumers pull back on non-essential expenditures.
The recent tariff environment and uncertainty that continue against that backdrop have made it difficult for even the most well-positioned of companies to remain agile from a supply chain perspective.
Don't get me wrong. I think Lululemon is still in a strong position to grow over the next five to 10 years and bring favorable returns for investors in the process. However, it's important to understand that some of the external challenges that the company and others in its industry are facing, particularly in relation to tariffs, will take time to work through.
For example, in Lululemon's recent earnings report, the company actually beat analyst expectations on both the top and bottom lines but was forced to slash its profit forecast due to tariff impacts. Lululemon manufactures its products in several countries across Asia, but key manufacturing countries include Vietnam, Cambodia, Sri Lanka, and China.
NASDAQ: LULU
Key Data Points
Tariff-related headwinds are hardly exclusive to Lululemon. Company leaders across consumer product-facing industries have been signaling downgrades to earnings and margin impacts due to these headwinds. Investors will need to incorporate this new tariff reality into their overall investment thesis and risk analysis for businesses like Lululemon. The company is planning to implement modest price increases for some of its products starting later this year to help mitigate some of the impact of tariffs.
Even as revenue growth has slowed for the business from a few years ago, this is still a company that is making significant headway in international markets and reporting solid financials overall. In Q1 2025, Lululemon's net revenue increased 7% year over year to $2.4 billion. That growth was driven by a 3% increase in Americas revenue (its most mature market) but a 21% increase in Mainland China revenue and a 16% increase in its revenue in the Rest of the World segment.
The company also delivered a 60 basis-point increase in its gross margin, delivering a gross profit of $1.4 billion for the quarter, up 8% from one year ago. Its net income for the three-month period was down slightly from one year ago but totaled $315 million.
With shares trading down roughly 40% from the beginning of the year, now could be a compelling moment to buy into a quality stock at a bargain-basement price, provided investors are patient enough and have the sufficient long-term horizon to ride out near-term volatility.
