At times there are instances where investors get confused as to which stocks they should buy for the long-term and which stocks can be considered for swing trading. There are numerous publicly-traded companies in which investors can invest and then there is an option to invest in ETFs also. So, investors have all the reasons to get confused. Despite of the fact that the market is trading higher, there are some stocks which still hold strong value for the long-term.
Let us have a look at some stocks you can buy which have strong potential over the long-term.
Best Stocks to Buy for Long-term Appreciation
- Etsy, Inc.
- Pinterest, Inc.
- Block, Inc.
- Realty Income Corporation
- MercadoLibre, Inc.
- Shopify, Inc.
1. Etsy, Inc.
The company operates top-10 e-commerce marketplace operator in the U.S. as well as the U.K., with scalable operations in Germany, France, Australia, and Canada. In 2Q23, consolidated GMS was, more or less, flat at $3.0 billion, exhibiting a decline of 0.6% year-over-year and down 0.4% on the currency-neutral basis. Etsy marketplace GMS came in at $2.6 billion, down 0.7% year-over-year and down 0.4% on the currency-neutral basis.
Growth in active buyers paced up to 3% year-over-year increase in 2Q and touched the new all-time high of 91 million. The company has acquired 6 million new buyers, reactivated 21% more buyers than during the prior-year period, and was able to retain active buyers at levels above pre-pandemic rates on the trailing twelve-month basis.
Consolidated revenue of the company came in at $628.9 million, exhibiting 7.5% rise in comparison to 2Q22, with take rate of 20.9%.
For 3Q23, the company expects GMS of $2.95 billion to $3.10 billion and revenue in the range of $610 million – $645 million. It expects adjusted EBITDA margin of 27%-28%.
2. Pinterest, Inc.
Pinterest, Inc. is an online product and idea discovery platform, helping users in gathering ideas on everything from recipes to cooking to destinations, etc.
When the company announced its results for the quarter ended June 30, 2023 (2Q23), it saw revenue growth of 6% year-over-year to $708 million. Global Monthly Active Users (MAUs) of the company grew 8% year-over-year to 465 million, with strong momentum in consumers and advertisers while further accelerating its pace of innovation.
Furthermore, due to the company’s focus on cost efficiencies, it returned to adjusted EBITDA margin expansion in 2Q23. Results demonstrate that its strategy has been working and it continues to make right investments to create durable company for the long term.
The company expects 3Q revenue to increase in the high-single digits range year-over-year. It anticipates 3Q non-GAAP operating expenses to increase in the low-single digits range year-over-year.
3. Block, Inc.
The company offers payment services to merchants, along with other related services. The company has launched “Square Go”, which is a consumer booking app offering end-to-end booking experience so that customers can search, discover, and schedule with independent service providers in their area having high ratings.
In 2Q23, the company generated gross profit of $1.87 billion, up 27% year-over-year, with strong growth and profitability at scale. The company’s operating loss came in at $132 million and adjusted operating income was $25 million, for the adjusted operating income margin of 1%.
For FY23, the company projects adjusted EBITDA of ~ $1,500 million and adjusted operating income of $25 million.
4. Realty Income Corporation
The company owns ~11,100 properties and most of these properties are freestanding, single-tenant, triple-net-leased retail properties.
In 2Q23, the company’s net income available to common stockholders came in at $195.4 million, or $0.29 per share and normalized FFO was $688.3 million, or $1.02 per share. The company invested $3.1 billion in 710 properties and properties under development or expansion. Net debt to annualized pro-forma adjusted EBITDA came at 5.3x.
For FY23, the company expects net income per share of $1.20 – $1.28 and real estate depreciation and impairments per share of $2.90. Normalized FFO per share is expected $4.07 to $4.15 and same store rent growth has been projected over 1.25%.
5. MercadoLibre, Inc.
The company operates the largest e-commerce marketplace in Latin America, and connects the network of over 140 million active users and 1 million active sellers throughout its 18-country footprint.
Net revenues of the company came in at $3.4 billion, exhibiting 57.2% growth year-over-year on FX neutral basis, while income from operations was $558 million, with the 16.3% margin. Gross Merchandise Volume of the company was $10.5 billion, exhibiting 47.2% growth year-over-year on FX neutral basis.
Given its optimism regarding several growth opportunities, the company plans to use some headroom which has been created by the operating leverage to lean into certain areas of the business during 2H23.
6. Shopify Inc.
The company provides e-commerce platform primarily to small as well as mid-size businesses.
Business momentum of the company has supported the strong financial results. The company continues to expand its global merchant base and, at the same time, it continues to improve its ability to generate greater FCF. Gross Merchandise Volume of the company grew 17% to $55.0 billion, exhibiting increase of $8.2 billion over 2Q22, and up 18% on the constant currency basis. In 2Q, total revenue went up by 31% to $1.7 billion in comparison to the prior year, up 31% on constant currency basis.
Shopify Inc. has completed the sale of the majority of its former Shopify Logistics business to Flexport, which is the leading tech-driven global logistics platform.
For 3Q23, the company expects its revenue to grow at the low-twenties percentage rate on the year-over-year basis, translating into the year-over-year growth rate in the mid-twenties, if adjusted for the 300 – 400 basis points headwind due to the sale of logistics businesses.
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