As an investor who has dabbled with high-stakes assets like cryptocurrencies or options trading, I know there’s a certain peace of mind that comes with long-term stocks compared to extreme speculation.
I recently disclosed my intense involvement in trading Biomea Fusion (NASDAQ:BMEA) options. The roller coaster ride in the derivatives market tested my emotions, making me realize the value of stability in long-term investments. With long-term stocks, you don’t agonize over every blip and dip, providing a sense of calm and confidence that is absent in speculative trading.
Investing in long-term stocks doesn’t have to be a nail-biting experience. Here are three long-term stocks to buy, backed by compelling fundamentals and promising growth prospects.
UnitedHealth (UNH)
As a healthcare stalwart focused on insurance and other key services, UnitedHealth (NYSE:UNH) is positioned for sustained growth. The company’s relevance is underpinned by the growing need for healthcare services, driven by demographic shifts and ongoing healthcare reforms. The aging population bodes well for UnitedHealth, as elders increasingly require care, a trend that is expected to continue into the future.
Hedge funds have demonstrated their confidence in UNH by increasing their exposure to the stock, signaling a strong underlying sentiment. Analysts also view UNH favorably, rating it as a consensus strong buy with a $593.13 price target, implying over 14% upside potential.
Western Digital (WDC)
Western Digital (NASDAQ:WDC) is a prominent player in the computer drive manufacturing and data storage industry, with a solid track record of growth. The company’s decision to split into two independent public enterprises presents exciting opportunities for future applications, driving optimism among investors.
Furthermore, Western Digital’s focus on enterprise-level solid-state drives and its investments in cutting-edge memory chips align with the expanding data and memory needs in the era of artificial intelligence. Hedge funds’ strong positive sentiment towards WDC, coupled with analysts’ moderate buy rating and a $66.76 price target, position it as an attractive long-term stock.
Occidental Petroleum (OXY)
Occidental Petroleum (NYSE:OXY) is a leading player in the energy sector, navigating the dynamics of the global energy landscape. The company continues to position itself for long-term success by strategically adapting to evolving industry trends and driving innovation.
With a focus on sustainable energy solutions and a commitment to long-term growth, Occidental Petroleum offers investors a compelling opportunity to anchor their portfolios with a stock that is poised for resilience and value creation.
Occidental Petroleum Sees Strong Interest from Top Investors
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At first glance, selecting Occidental Petroleum (NYSE: OXY) as one of the long-term stocks to buy might seem counterintuitive. In this era of electric vehicles and renewable energy, focusing on a hydrocarbon specialist appears unconventional. However, despite the hype surrounding renewables, the world continues to be heavily reliant on oil. This reliance is largely due to the superior energy density of fossil fuels, a simple scientific fact.
It’s evident that the world is not about to wean off oil anytime soon. If renewable energy sources were the definitive future, why would institutions like the U.S. Energy Information Administration be concerned about the potential depletion of oil reserves? It’s time to read between the lines, as elementary school students used to say, and grasp the unsaid implications.
Reading between the lines is precisely what top investors are doing. Hedge funds have significantly increased their exposure to OXY since Q4 2021, signaling a growing confidence in the company. Additionally, insider sentiment is positive, with Warren Buffett’s Berkshire Hathaway (NYSE: BRK-B) recently acquiring shares, painting a picture of institutional optimism.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.