With a volatile stock market, tariff-related uncertainty, and geopolitical tensions, it's a sure bet that investors will be able to find otherwise quality stocks trading at a discount due to broader-market issues or perhaps company-specific problems (or both). Two such stocks to consider right now are SoFi Technologies (SOFI 4.48%) and Amazon (AMZN 1.52%). Both stocks have declined this year, but they could still deliver superior returns over the next 10 years.
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1. SoFi Technologies
SoFi Technologies' shares are down by 33% this year. Though the company's latest quarterly update was fairly strong, there are serious valuation concerns with SoFi, especially considering its less-than-ideal guidance. The fintech specialist is trading at 30 times forward earnings, well above the average of 15 for financial stocks. However, looking at the next decade, SoFi's prospects seem attractive, even while it trades at a steep premium. SoFi is quickly establishing itself as a leading online bank.
The company's status as an online-only financial institution -- which allows it to save on overhead costs and pass those savings on to its customers -- and an interactive, easy-to-use app make it attractive, particularly among younger generations. SoFi isn't slowing down. The company has continued to expand its service offerings, with some of its latest additions including crypto trading and international money transfers.
NASDAQ: SOFI
Key Data Points
SoFi's efforts are being rewarded with a growing member base and strong revenue and earnings. There is plenty more growth fuel ahead for the company, including in cross-selling additional products to existing members (it averages just 1.5 products per customer), and attracting new members over the next decade as more young people enter the workforce.
SoFi will likely be a somewhat volatile stock, given its valuation. However, the company's strong revenue growth somewhat justifies its premium. The stock could perform well through 2036 (and beyond), provided it can capitalize on the lucrative opportunities ahead.
2. Amazon
Amazon's fourth-quarter results were also fairly strong, but the market is worried about the company's massive capital expenditure plan for 2026. However, the company has proven several times in the past, including a few years ago, that it can cut spending if necessary, if the ROI isn't what it expected. Since posting a rare net loss in 2022, Amazon has recovered.
Further, some of the company's ongoing efforts will help it reduce expenses over the long run. Amazon is increasingly relying on industrial robots in its warehouses and is replacing many of its human workers, which will help reduce costs.
NASDAQ: AMZN
Key Data Points
Meanwhile, the company still has attractive growth opportunities. Amazon remains the leader in cloud computing, and sales growth in that segment has accelerated over the past two quarters. Amazon's artificial intelligence-related services are helping boost cloud revenue. The company's advertising business is also performing well and remains one of its fastest-growing segments.
Both of these business units should remain key growth drivers over the next decade, and in the meantime, Amazon is slowly ramping up new opportunities, including its healthcare ventures. In my view, the company's long-term outlook remains strong, despite an 8% decline this year.
