Saving for retirement is a crucial goal for most investors, and one of the most effective means of doing so is the stock market. Here are three stocks with stable long-term growth.
Saving for retirement is a crucial goal for most investors, and one of the most effective means of doing so is the stock market. The S&P 500, an index comprising the 500 largest publicly traded companies in the United States, has historically returned an average of 9% per year, including dividends. The “compounding” effect makes it clear that the longer you invest, the greater the benefit. This principle is one of the reasons why Warren Buffett, at over 90 years old, is among the richest people in the world.
But where to find technological actions that can facilitate the achievement of this pension goal? The answer may lie in companies that are able to deliver stable, long-term growth in their financial results.
Here are three companies that seem to fit this description perfectly.
1) MercadoLibre
MercadoLibre (MELI) is the leading e-commerce marketplace in Latin America and represents an investment that stands out in every evaluation criterion. Since going public in 2007, the company has seen an impressive 4,400% increase in its stock value. Despite the challenges many e-commerce businesses have faced due to the pandemic, MercadoLibre continued to grow, increasing revenue by 57% to $3.4 billion. Additionally, the company increased its operating margin to 16%, thanks to high-margin sectors such as advertising. The third-party market and the growing presence of such businesses should help further improve profit margins.
MercadoLibre enjoys a tremendous growth opportunity as it expands its presence across Latin America and takes advantage of an expanding middle class. Its ability to diversify its businesses, including digital payments and logistics, demonstrates the management team’s determination to secure a promising future. All of this should reassure investors about the prospect of superior long-term returns.
2) The Trade Desk
The evolution of digital advertising from an emerging market to a giant one has been driven in part by advertising-based streaming and connected TV. In this context, few companies are as well positioned as The Trade Desk (TTD), the leading demand-side platform in digital advertising. This company provides a self-service cloud-based platform that helps brands and advertising agencies manage their campaigns.
The Trade Desk is another example of exceptional growth in the tech sector, with a 2,500% increase since going public in 2016. The company has reported revenue growth of at least 20% in every quarter except Q2 2020, demonstrating impressive consistency. Unlike many growth companies, The Trade Desk is also profitable, with a 30% profit margin in its latest quarter.
The Trade Desk is well positioned to continue growing thanks to its Unified ID 2.0 protocol, which is gaining support as a leading alternative to third-party cookies. Its high customer loyalty, with retention above 95% for the past nine years, underlines customer satisfaction and the opportunity for growth in an expanding market.
3) ServiceNow
ServiceNow (NOW) is another technology company that has proven capable of outperforming the market over the long term, up 1,440% since going public in 2012. Unlike many cloud companies, ServiceNow has continued to post solid results despite slowing technology investment.
The company offers a wide range of IT services, helping companies manage their technology stack and manage support requests. ServiceNow is also taking advantage of the opportunities offered by generative artificial intelligence (AI), launching new solutions such as text-to-code and tools to accelerate workflows. Additionally, it has established partnerships with companies like Nvidia and Accenture to leverage generative AI across multiple industries.
ServiceNow continues to see solid revenue growth, up 25% in the second quarter. The company now boasts 1,724 customers with annual contracts exceeding $1 million, demonstrating its success among large enterprises. ServiceNow is also profitable, with a 25% profit margin in the latest quarter.
Looking ahead, ServiceNow appears well-positioned to capitalize on new opportunities in generative AI and growing cloud spending, offering investors the prospect of long-term growth.
Original article published on Money.it Italy 2023-09-26 09:30:00. Original title: Tre titoli da comprare per una pensione sicura
