3 Monster Stocks to Hold for the Next 3 Years

Core Viewpoint - The article highlights three favorite stocks in the energy, consumer products, and technology sectors, emphasizing their strong growth potential and attractive valuations, which can enhance portfolio diversity [1][2]. Energy Sector - Energy Transfer owns one of the largest integrated midstream systems in the U.S., involved in transporting, storing, processing, and upgrading hydrocarbons [3]. - The company benefits from low natural gas prices in the Permian Basin, which were often below $0 in 2024, allowing it to capitalize on energy arbitrage opportunities [4]. - Energy Transfer has announced a $2.7 billion natural gas takeaway project from the Permian to support power plant and data center growth in Texas [5]. - The company trades at an enterprise value-to-EBITDA multiple of 8.4 times, significantly lower than the historical average of 13.7 times for master limited partners [6]. - Energy Transfer offers a forward yield of 6.6% and expects to grow its distribution by 3% to 5% [7]. Consumer Products Sector - E.l.f Beauty is recognized as a leading growth story in the consumer space, leveraging influencer marketing and replicating popular products to gain market share [8]. - The company has become the No. 1 mass cosmetic brand in several international markets, indicating significant growth potential [9]. - E.l.f Beauty is expanding into adjacent categories, including skincare, fragrance, and hair care, which presents further growth opportunities [10]. - The company reported a 40% sales growth last quarter, with a forward P/E of 28.5 and a PEG ratio of 0.5, indicating it is undervalued for a growth stock [11]. Technology Sector - Alphabet is a dominant player in the search market with Google and has a significant presence in video streaming through YouTube, complemented by a robust adtech business [12]. - The adtech segment is expected to help monetize AI opportunities, with potential new ad formats for the 80% of search queries currently not monetized [13]. - Google Cloud is the third-largest cloud provider, experiencing a revenue growth of 35% last quarter, with operating income increasing from $266 million to $1.95 billion [14]. - Alphabet is also involved in emerging technologies such as quantum computing and autonomous driving, with its Waymo unit leading in paid autonomous taxi rides [15]. - The company trades at a forward P/E of 18.5 times, making it an attractive investment in the tech sector [15].