雅虎香港財經 7 Long-Term Stocks to Buy and Hold Until 2023
While stocks are still in bear market mode, and may have yet to reach a bottom, now is a great time to consider long-term stocks to buy and hold. As uncertainty continues to run high, plenty of high-quality stocks continue to be “on sale.”
Snapping them up today could prove to be a profitable move in two ways. Once the bull market returns, these stocks are positioned to make a strong move higher. Although it’s nearly impossible to call when exactly the market will officially “bottom out” and the tides will turn, it may arrive sooner than you think.
As you may know, the stock market is forward-looking; it prices in good news and bad news at the onset. That means stocks will likely begin to make a comeback when economic conditions begin to improve. More and more institutional investors are anticipating stocks to rebound starting next year.
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Ahead of a possible 2023 stock market recovery, add these long-term to buy and hold to your portfolio. All but one earns an A in Portfolio Grader.
Atkore’s | $88.66 | |
Dillard’s | $314.32 | |
Devon Energy | $69.80 | |
Enphase Energy | $242.29 | |
Marathon Oil | $27.14 | |
ON Semiconductor | $8.75 | |
Occidental Petroleum | $67.36 |
Atkore (ATKR)
Source: Sinn P. Photography / Shutterstock.com
Electrical infrastructure supplier Atkore’s (NYSE:ATKR) shares have made a strong move higher in recent weeks. Since the end of September, the stock has zoomed from around $70 to prices approaching $90 per share.
Even so, ATKR stock is still down nearly 20% year-to-date. Pessimism about a likely economic slowdown has led to investors giving this company a discounted valuation (4 times 2022 earnings). Current sentiment is that Atkore’s earnings, which were up 53% last quarter will take a big dive in a downturn.
But even when accounting for a 2023 earnings decline, ATKR is cheap. Based on 2023 forecasts, which call for earnings per share (or EPS) to drop around 36%, shares still have a super-low forward price-to-earnings (or P/E) ratio of 6.2. Once uncertainty clears up, this stock, which earns a B in Portfolio Grader, may be in for a massive re-rating.
Dillard’s (DDS)
Source: JHVEPhoto/ShutterStock.com
In contrast to other retailer stocks, Dillard’s (NYSE:DDS) remains in the green for 2022, up around 26%. This is even more impressive if you remember the epic run this department store operator went on during the 2021 pandemic recovery.
With around 18.7% of its outstanding float sold short, the “smart money” continues to bet against DDS stock. However, two factors may enable this DDS (which earns an A in Portfolio Grader) to surge rather than sink from here.
First, trading for only 7.75 times estimated earnings for this fiscal year (ending January 2023), the market has already priced in the prospect of an earnings drop next fiscal year.
Given its strong beat in its last quarterly earnings report (EPS of $9.30, versus $2.88 consensus estimates), current earnings forecasts may be too conservative. Second, Dillards’ share repurchase program could also continue to give the stock a lift.
Devon Energy (DVN)
Source: T. Schneider / Shutterstock.com
In September, it may have seemed as if oil prices were set to move lower, yet surging again on news of an OPEC+ production cut, it’s now very likely high energy prices are here to stay. That’s good news for investors in energy stocks, such as Devon Energy (NYSE:DVN), which earns an A in Portfolio Grader.
Up around 73% over the past twelve months, if you already own DVN stock, you may be itching to take the money and run. However, given that high energy prices will enable this oil and gas exploration and production company to continue reporting strong earnings, the better move here may be to let it ride.
High earnings will enable Devon to pursue many avenues to further increase shareholder value. These include not only return-of-capital efforts such as share repurchases and dividends but bolt-on acquisitions (like its recent purchase of Validus Energy) as well.
Enphase Energy (ENPH)
Source: IgorGolovniov / Shutterstock.com
Enphase Energy (NASDAQ:ENPH) may be the polar opposite of Devon Energy. However, like Devon, this is another stock that earns an A in Portfolio Grader, that is up big in the past year, and has further room to run over the next twelve months.
At first, you may be doubtful about additional runway for ENPH stock. In fact, you may think shares in this provider of solar energy inverters and battery storage products are ripe for a correction.
Not so fast. Secular trends are still very favorable for Enphase. Europe’s energy crisis is accelerating the transition to renewable energy sources like solar. The usage of zero-carbon energy is rising fast in the U.S. as well. The company may remain in high-growth mode during a downturn, which could enable ENPH to keep charging higher.
Marathon Oil (MRO)
Source: Jonathan Weiss/shutterstock.com
Marathon Oil (NYSE:MRO) is another winning stock that could keep on winning, making it one of the best long-term stocks to buy and hold until at least next year.
The massive spike in energy prices has been the main driver of this oil exploration stock’s big move higher (67.6%) over the past year.
However, the company’s share repurchase program has also played a role in the extended MRO stock rally. Management remains committed to buying back shares. That’s good news for investors, as buying back shares brings down Marathon’s share count, which helps to increase earnings on a per-share basis.
Along with buybacks giving shares a steady lift, MRO stock (which earns an A in Portfolio Grader), which trades for only 5.6 times earnings, could get re-rated. If oil prices remain high, or climb again, there will be greater confidence that Marathon’s earnings will remain high.
ON Semiconductor (ON)
Source: Shutterstock
For long an under-the-radar chip stock, ON Semiconductor (NASDAQ:ON) has received greater attention in recent months. This, however, hasn’t prevented shares from delivering a mixed performance.
ON stock moved higher during the summer, thanks to both its addition to the S&P 500, as well as due to the passage of the CHIPS Act by the U.S. Congress. Unfortunately, concerns about a pending recession have outweighed the positives, pushing shares lower.
Yet this pullback may be an overreaction. A near-term severe dry-up in demand may not happen as automotive chip demand continues to outstrip supply. The subsidies provided by the CHIPS Act will help give the chip industry a boost, this company included. These factors point to ON stock (which earns an A in Portfolio Grader) getting out of its present slump.
Occidental Petroleum (OXY)
Source: Pavel Kapysh / Shutterstock.com
With Warren Buffett still increasing his firm’s position in Occidental Petroleum (NYSE:OXY), this energy company continues to stay in the headlines. Yet the bull case for this stock isn’t just based on the fact that “Buffett’s buying it.”
Like DVN and MRO, OXY stock is another oil and gas play trading at a heavily-discounted valuation, due to doubts that oil prices will remain at relatively higher prices. However, these doubts continue to clear up. There’s still no end in sight for the Russia/Ukraine conflict.
Add in OPEC’s latest moves, limited supply will likely outweigh a possible drop in global demand caused by a recession. Favorable oil and gas trends, along with the positive impact of Berkshire Hathaway (NYSE:BRK.A,NYSE:BRK.B) continuing to increase its position, could keep OXY stock (which earns an A in Portfolio Grader) on an upwards trajectory.
On the date of publication, Louis Navellier had a long position in ATKR, DDS, DVN, ENPH, MRO, ON and OXY. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article. InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
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