Do you have $2,000? 2 Hypergrowth Stocks to Buy in 2024 and Hold for At Least 10 Years

Finding stocks you can buy and hold for years takes time, patience, and research. You need to make sure that the company you choose is one in which you are willing to invest your cash and maintain your portfolio for at least a few years. It must also be a business you understand and believe in, and have a solid financial and growth story to support that assessment.

Every investor has short-term and long-term financial goals, as well as overall portfolio goals. The company you acquire should be consistent with the strategy you have set for your financial future. Not every stock can be a winner, but great companies can continue to deliver meaningful profits to investors over many years and even multiply their profits over time.

If you have $2,000 to invest in stocks right now, here are two fantastic businesses that fit the bill and that you can buy and hold for at least the next decade.

1. Join

tributary (CFLT 0.17%) It is a data management platform that allows real-time data streaming across a virtually endless variety of use cases. From data synchronization to inventory management to launching new products and services, Confluent’s fully managed data streaming service helps brands: walmart, BMW Group, Citigroup, ebayAnd many other companies now store and process data that provides actionable insights.

The streaming analytics market represents a vast and growing space in which Confluent plays a key role. According to some estimates, this sector could become a total market worth $50 billion by 2026. The business faces competition from across the sector, including some of the biggest names in technology, such as: Amazon and microsoftEach cloud platform is used.

However, Confluent is a much earlier growth stage company with a specific focus on data streaming, a narrower but rapidly growing niche market. Confluent’s business is centered around Apache Kafka, the leading open source distributed streaming platform created by the company’s founders, including CEO Jay Kreps.

The company is not yet profitable, but its sales are growing at an exceptional rate, as is its large corporate customer base. Confluent had total revenue of $777 million in 2023, a 33% increase from 2022. The majority of that revenue came from recurring subscriptions, which totaled $729 million. Subscription revenue in 2023 increased 36% compared to the previous year.

The remaining $349 million was attributable to Confluent Cloud revenue, with growth in that segment significantly outpacing the subscription business with a 65% year-over-year growth rate. Confluent also ended the year with 1,229 customers with annual revenue of $100,000 or more. This represents a 21% increase for this customer group compared to the previous year.

one wells fargo The analyst recently announced a 12-month price target for Confluent of $36 per share, which would represent about a 20% upside from the stock’s current trading price. No investment is without risk, and acquiring an unprofitable business in the early stages of its growth story requires a certain level of risk aptitude.

The fact remains that there is enormous scope to operate in the industry, there is a client pool that includes household names, and they rely on the platform to keep their operations running smoothly. Long-term investors will be happy to have bought some action over the next 5-10 years.

2. Lululemon

lululemon (Lulu -0.19%) It is a prime example of an ongoing success story at a time when many businesses exposed to discretionary spending are facing great challenges. The athleisure giant continues to go from strength to strength with its lineup of men’s and women’s clothing, footwear, and accessories.

The secrets to Lululemon’s success are diverse. The company was an early player in athleisure, a multibillion-dollar industry expected to reach a valuation of more than $5 billion by the start of the next decade. Despite new players entering the field, Lululemon has maintained a significant and dominant presence in the space.

There’s also the fact that Lululemon has built incredible brand authority and loyalty. For Lululemon, brand choice isn’t that important because athleisure is a lifestyle for many shoppers who often use Lululemon products for the variety it brings to their daily lives.

From running to running errands to going out for coffee, athleisure is a versatile clothing category, and that’s certainly true for many shoppers at Lululemon. The versatile nature of these products creates powerful incentives for buyers in all market environments, including those where consumers are spending more cautiously than in the past.

Additionally, the company has maintained a strong omnichannel presence for many years with a diverse collection of stores and location-specific e-commerce sites across the globe. Lululemon is generating strong sales growth and profits, has impressive cash reserves, and continues to add new stores to its existing brick-and-mortar stores.

For 2023, Lululemon reported net revenue of just under $10 billion, a 19% increase from all of 2022. Broken down by region, Americas net revenue increased 12% from the previous year, while International net revenue increased 54%. The company earned $1.6 billion in net income in 2023, a notable 81% increase over the previous year. As of the end of 2023, Lululemon opened 711 stores and opened 56 new direct stores last year alone.

Investors still seem concerned about where the trajectory of consumer spending will fall, at least in the near term. Despite its excellent financial position, the stock is down about 30% since the beginning of 2024. Lululemon is currently trading at a price-to-sales (P/S) ratio of around 5x, so now may be a time to consider acquiring some shares of the company at a steep discount.