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3 Stocks to Buy and Hold: The Long-Term Play for Your Portfolio
The Motley Foolยท 2025-11-03 08:05
Core Insights - The article highlights three stocks that are recommended for long-term investment, emphasizing the importance of holding stocks through market fluctuations to benefit from overall market trends. Costco - Costco's business model remains resilient due to its profitable membership structure, aggressive cost leadership, and ability to meet consumer demands during economic uncertainty [3][4]. - The company enjoys a high membership renewal rate exceeding 90%, providing a stable revenue stream that insulates it from retail sales fluctuations [3][4]. - In fiscal 2025, Costco reported total net sales of $269.9 billion, an 8.1% increase year-over-year, and net income of $8.1 billion, up from $7.37 billion the previous year [7]. Lululemon - Lululemon's stock has declined over 50% in the past year, facing challenges such as a slowdown in North America and rising competition in the athleisure market [8][9]. - Despite these challenges, Lululemon has a strong brand with pricing power and reported a 22% increase in international net revenue in the second quarter [9][10]. - The company plans to increase new styles from 23% to 35% of its assortment by spring 2026 to recapture customer interest, while continuing share repurchases to signal confidence in long-term value [11]. Shopify - Shopify provides a comprehensive platform for merchants to scale their brands, with features that help navigate trade regulations and support international sales [13]. - The company is shifting focus to larger enterprise clients to mitigate risks associated with small and medium-sized businesses, while integrating AI into its long-term strategy [14]. - In Q2, Shopify reported revenue of $2.68 billion, a 31% year-over-year increase, with international GMV in Europe growing 42% [17].