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Start for freeAs we step into a new month on Wall Street, the search for stocks with substantial long-term potential is more relevant than ever. Travis Willam, through his channel 'Asymmetric Investing', sheds light on seven such stocks that he believes are poised for growth in the coming years. Each of these stocks, ranging from established giants to budding innovators, carries unique tailwinds that could propel them forward in the evolving market landscape. Let's dive into the essentials of each pick and why they might be worth your attention for long-term investment.
MGM Resorts: A Bet on Recovery and Growth
MGM Resorts has shown an impressive rebound in revenue and free cash flow, particularly in the US market post-pandemic. The significant recovery in Las Vegas, coupled with its under-10 price to free cash flow ratio, presents a valuable investment opportunity. Despite the slow recovery in Macau, the company's strategic stock buybacks and the development of a new resort in Japan by 2030 underscore its growth trajectory and shareholder value enhancement strategies.
Matterport: Pioneering Spatial Computing
Matterport, a company at the forefront of spatial computing, uses artificial intelligence to create digital twins of physical spaces, offering wide-ranging applications from real estate to construction. Despite the need for financial improvement, its low valuation compared to its technological potential and the push towards cash flow positivity by the end of 2024 makes Matterport a high-risk, high-reward investment.
Vanguard Utilities ETF: Powering the Future
The Vanguard Utilities ETF offers a diversified approach to investing in the utility sector, which is expected to see significant growth with the advent of artificial intelligence requiring massive power investments. This ETF provides a stable dividend yield and low-risk exposure to an industry set to expand with the AI boom.
On Holding: Accelerating in the Apparel and Footwear Market
On Holding, known for its innovative footwear, is rapidly expanding into apparel, boasting a 60.1% compound annual growth rate since 2019. With expectations of doubling revenue between 2023 and 2026 and high profitability margins, On Holding is well-positioned for long-term growth in the competitive apparel industry.
Alphabet: Leading with AI and Core Digital Services
Alphabet has demonstrated resilience and growth potential, particularly with its AI capabilities and core services like Google Search, YouTube, and Google Cloud. Despite facing challenges, Alphabet's strategic focus on AI and data centers, along with its robust business model, positions it as a solid long-term investment.
Coinbase: Capitalizing on the Crypto and Blockchain Revolution
Coinbase benefits from multiple tailwinds, including its role as a custodian for Bitcoin ETFs, interest in the USDC token, and the growing adoption of blockchain for financial transactions. Despite its higher valuation, Coinbase's strategic positioning in the cryptocurrency ecosystem presents a compelling growth story.
Airbnb: Redefining the Travel and Lodging Industry
Airbnb stands out for its ability to innovate and adapt, leveraging artificial intelligence to enhance user experiences. With a strong financial foundation and the potential to expand into new verticals, Airbnb represents a forward-looking company poised for long-term success in the travel industry.
Each of these stocks showcases a unique blend of current strengths and future potential. From technology and hospitality to utilities and cryptocurrency, these companies are set to navigate the challenges and opportunities of the evolving market landscape. As always, thorough research and consideration of your investment goals are crucial before making any investment decisions.
What are your thoughts on these picks? Which one aligns most closely with your investment strategy? Share your insights and let's discuss the future of investing in these promising sectors.
For more detailed analysis and insights, don't forget to subscribe to Asymmetric Investing on YouTube. Watch the original video here.
