You don't have to look at top tech stocks to find good investments to buy and hold. There are many good stocks you can buy for less than $100 that are beating the market today and can continue to do so for years to come. The businesses listed below have strong fundamentals, and with some promising growth opportunities, it may still not be too late to invest in them.
AstraZeneca (NASDAQ: AZN), Chewy (NYSE: CHWY), and Chipotle Mexican Grill (NYSE: CMG) are all doing exceptionally well this year, and here's why they can be solid investments to hang on to in the long run.
1. AstraZeneca
Shares of healthcare company AstraZeneca are up 30% this year and trading around $88, but based on analyst projections, the stock is valued at a forward price-to-earnings multiple of just 22. The company has some aggressive and lofty growth projections, which make it an appealing investment to buy and hold.
AstraZeneca has nearly 200 projects in its pipeline, and with a focus on many therapeutic areas, including oncology, cardiovascular, respiratory, rare diseases, and others, it possesses no shortage of growth opportunities. Through the first half of this year, its sales have increased by 15% to $25.6 billion, and reported earnings per share rose by 13% to $2.65. By the end of the decade, the company expects its top line to reach $80 billion, which would be a 75% increase from the $46 billion it reported this past year.
As a top healthcare company and a business focused on growing, AstraZeneca stock looks to be in an excellent position to continue outperforming the markets for the foreseeable future.
2. Chewy
Online pet food retailer Chewy is another stock having a good year. The stock is around $29, and its year-to-date gains of 21% are a few points better than the S&P 500's returns of 18%. With a growing business and improved margins, the company looks to be in good financial shape.
In its most recent quarterly earnings report, for the quarter ending on July 28, Chewy's net sales totaled $2.9 billion and rose by around 3% year over year. And it reported an operating profit of $32.1 million, a big improvement from the $16.7 million loss it incurred in the prior-year period.
Pet spending has continued to climb over the years, along with population growth and the number of households owning pets. Analysts at Grand View Research project that the global pet food market will grow at a compounded annual growth rate of 4.4% until the end of the decade, making this a good industry to rely on for stable and consistent growth.
Now, with Chewy's business model looking stronger and potentially profitable on a more consistent basis, it could make for a good stock to buy and hold.
3. Chipotle Mexican Grill
One of the best restaurant stocks to own is Chipotle Mexican Grill. The business is associated with strong growth, and for good reason. It has been able to grow its operations without having to rely heavily on price increases. It's also expanding its footprint to reach more markets, as there's still plenty of potential for the company to grow its top and bottom lines in the future.
Its comparable store growth rate was more than 11% for the quarter ending in June, during which the company also opened 52 new locations. For the full year, Chipotle is expecting its comparable sales growth rate to be in the mid- to high-single digits. While that's a bit of a slowdown from the current rate, it would still be an impressive performance amid inflation, especially with the bulk of its growth coming from an increase in transactions rather than a big increase in prices.
Chipotle's stock has been struggling of late as news of its CEO leaving for Starbucks made investors a bit worried about the company's future. However, shares are still up around 23% this year, closing at just over $56 last week.
And with Chief Operating Officer Scott Boatwright taking over, it may not necessarily lead to a drastic change in Chipotle's overall vision and growth strategy. At more than 50 times its estimated future profits, Chipotle's stock is still trading at a premium, but for such a tremendous growth stock, it may be a justifiable premium to pay, especially if you're willing to hang on for the long haul.
Should you invest $1,000 in AstraZeneca Plc right now?
Before you buy stock in AstraZeneca Plc, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and AstraZeneca Plc wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $650,810!*
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. TheStock Advisorservice has more than quadrupled the return of S&P 500 since 2002*.
*Stock Advisor returns as of September 3, 2024
David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chewy, Chipotle Mexican Grill, and Starbucks. The Motley Fool recommends AstraZeneca Plc and recommends the following options: short September 2024 $52 puts on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.
