Got $ 2,500? 2 best stocks to buy and hold for a lifetime

FFinding stocks that have what it takes to be the backbone of your long-term portfolio can seem like a big demand. And in the current market environment, with many top stocks trading at incredibly high valuations and fears of another looming market crash looming, investors are increasingly picky about where. where they put their hard earned money.

If you’re looking to add more high-quality stock to your cart this month, keep reading. Here are two smart buys with lots of upside potential to resell that can generate substantial long-term portfolio growth for investors.

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1. Teladoc

The global telemedicine field is already a multibillion-dollar market, and analysts believe the industry is just beginning to realize its long-term growth potential. According to a market analysis report from Grand View Research, the telehealth market is on track to achieve a compound annual growth rate of over 22% between this year and 2028.

Another Facts & Factors study attributes this rapid rate of growth to a range of stimuli, including “an increased rate of adoption of telehealth technology in radiology, cardiology and behavioral health” and ” the increasing rate of elective surgeries and the reduced cost of hospital visits for regular check-ups. “The study also cited population growth and an increased rate of patients with chronic illnesses as other driving factors for the expansion overview of the global telehealth industry.

And at the forefront of this lucrative industry, which was valued at just under $ 56 billion in 2020, is Teladoc (NYSE: TDOC). Although Teladoc shares have fallen since its hot streak at the start of the pandemic – the stock is down 25% since the start of the year – the company continues to report remarkable quarter-over-quarter revenue growth. In its latest quarterly report, management said the company’s revenue was up 151% from the first quarter of 2020. Meanwhile, visits to the platform were up 56% from the quarter of the previous year.

Teladoc has an exceptional track record of revenue growth. For example, in 2016, 2017, 2018 and 2019, the company reported respective revenue increases of 59%, 89%, 79% and 32%. The pandemic fueled skyrocketing demand for Teladoc’s platform and services, leading to a 98% increase in revenue in 2020 compared to the previous year.

The fall in the Teladoc share price in recent months should not discourage investors from jump on board – in fact, its long-term growth potential in the explosives industry it dominates, coupled with its strong financial position, are two good reasons to press the buy button on this growth stocks while it is still trading at a discount. As Warren Buffett says, “Whether we’re talking about socks or inventory, I like to buy quality merchandise when it’s marked down.”

2. Airbnb

The vacation rental market is another multi-billion dollar industry poised for massive growth in the years to come. Grand View Research reports that from a global valuation of over $ 87 billion in 2019, the space is poised to achieve a valuation of nearly $ 114 billion from 2027 – and this despite the impact of the coronavirus pandemic.

Since 2019, Airbnb (NASDAQ: ABNB) controlled about 20% of the vacation rental market in the United States. Since then, Airbnb’s market cap has shrunk to just over $ 80 billion, with stocks trading down about 5% year-to-date.

Does this mean long-term investors should avoid buying Airbnb shares? Absolutely not. It’s no secret that the travel industry has been incredibly hard hit by the pandemic. Over the past year, Airbnb’s revenue and profits have been significantly affected by these broader trends. While its first quarter report made it clear that the company’s recovery from pandemic headwinds is well underway, modest year-over-year revenue growth has prompted some investors to react negatively and sell stocks. , which drove up the share price. down almost 19% in May.

This first quarter report offered many encouraging signs. For example, while at first glance, the company’s 5% year-over-year revenue growth was not much to praise, management said the company generated more of income during the three-month period than during the first quarter. from 2019 or 2020. And where Airbnb had reported negative adjustments EBITDA from $ 334 million in the first quarter of 2020, this measure improved to reach $ 59 million in the first quarter of 2021.

While Airbnb shares haven’t made impressive headway in recent times, one could argue that the stock’s recent retraction was justified, as it is still trading at a relatively high valuation of around 24. times sales. That said, analysts believe the stock has high upside potential – nearly 70% at the time of writing – so Airbnb still has plenty of lead. If you are looking to invest in a stock with the potential for long-term, sustainable growth and a strong competitive advantage in a thriving industry, Airbnb is an obvious choice for the savvy investor.

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Rachel Warren has no position in any of the stocks mentioned. The Motley Fool owns shares and recommends Airbnb, Inc. and Teladoc Health. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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