In this article, we will be taking a look at the 5 best long-term stocks to buy now. To see some more stocks in this list, click 10 Best Long-Term Stocks to Buy Now.
5. Agnico Eagle Mines Limited (NYSE:AEM)
Number of Hedge Fund Holders: 38
Share price as of August 8: $43.46
Agnico Eagle Mines Limited (NYSE:AEM) is a materials company that explores and produces mineral properties in Canada, Mexico, and Finland. The company operates through its Northern Business and Southern Business segments. The company merged with Kirkland Lake Gold this February.
In August, National Bank’s Mike Parkin reiterated an Outperform rating on Agnico Eagle Mines Limited (NYSE:AEM) shares, alongside placing a $57.5 price target on the stock.
Agnico Eagle Mines Limited (NYSE:AEM) is currently the third-largest gold producer in the world, the largest of its kind in Canada, and a reliable long-term stock pick due to several factors. 2022 production expectations include 3.2 million to 3.4 million ounces from a mineral reserve base. Agnico Eagle Mines Limited (NYSE:AEM) also expects $900 million in synergies over the next five years, a figure that will rise to $2 billion in the next 10 years.
Out of 912 hedge funds, 38 funds were long Agnico Eagle Mines Limited (NYSE:AEM) in the first quarter. Their total stake value was $1.6 billion.
4. KKR & Co. Inc. (NYSE:KKR)
Number of Hedge Fund Holders: 54
Share price as of August 8: $52.42
KKR & Co. Inc. (NYSE:KKR) is a real estate investment firm specializing in direct and fund of fund investments. The company focuses on acquisitions, leveraged buyouts, management buyouts, credit special situations, and growth equity, among much more.
A Buy rating was reiterated on KKR & Co. Inc. (NYSE:KKR) shares this July by Brian Bedell at Deutsche Bank. Bedell also placed a $66 price target on the stock.
In the second quarter, KKR & Co. Inc. (NYSE:KKR) had an EPS of $0.9, in line with estimates. The company’s $1.8 billion revenue was up 178.4% year over year. S&P Global Market Intelligence data shows that the company’s revenue will grow from $3.1 billion last year to $12.3 billion in 2026, representing a CAGR of 31.5%. Over the last five years, KKR & Co. Inc.’s (NYSE:KKR) annualized total return was 22.7%, significantly higher than the 10% return for the US market as a whole.
There were 54 hedge funds long KKR & Co. Inc. (NYSE:KKR) in the first quarter, and 55 hedge funds long the stock in the previous quarter. Their total stake values were $4.04 billion and $5.5 billion respectively.
Diamond Hill Capital, an investment management firm, mentioned KKR & Co. Inc. (NYSE:KKR) in its first quarter 2022 investor letter. Here’s what they said:
With KKR, investors seemed concerned about the elevated valuations and leverage in private markets, especially during times of equity market volatility. In addition, while KKR’s recent quarterly results were solid, the company’s assets under management (AUM) growth was modest, and earnings were partially driven by the one-time sale of Origis Energy. In our view, the current share price implies flat AUM growth going forward, which we believe is too pessimistic. We continue to believe KKR is well-positioned to benefit from institutional investors increasing allocations to private markets and concentrating capital with managers who have strong brands and performance.”
3. Shopify Inc. (NYSE:SHOP)
Number of Hedge Fund Holders: 72
Share price as of August 8: $40.81
Shopify Inc. (NYSE:SHOP) is a commerce company providing a platform enabling merchants to display, manage, market, and sell products through a range of channels. The company operates in Canada, the US, Europe, the Middle East, Africa, the Asia Pacific, and Latin America.
RBC Capital currently holds an Outperform rating on Shopify Inc. (NYSE:SHOP) shares, placed by analyst Paul Treiber this July. Treiber also placed a $60 price target on the stock.
As of this August, Shopify Inc.’s (NYSE:SHOP) three-year sales growth CAGR stood at 53%. The stock also broke to a three-month high on August 3, rising 9.6% after a Meta Platforms announcement that Facebook Live Shopping will be gone by October 1, a development that may lead stocks like Shopify Inc. (NYSE:SHOP) to perform exceptionally in the long-term. In July, analyst Andrew Bauch at SMBC Nikko also commented that he views Shopify Inc. (NYSE:SHOP) as a premium long-term asset.
Shopify Inc. (NYSE:SHOP) had 72 hedge funds long its stock in the first quarter. Their total stake value was $5.8 billion.
Rowan Street Capital LLC, an investment management firm, mentioned Shopify Inc. (NYSE:SHOP) in its second quarter 2022 investor letter. Here’s what they said:
“Tobias Lutke, Shopify (NYSE:SHOP) Founder and CEO
When Tobias Lütke opened an online snowboarding store in 2004, he realized how painfully cumbersome e-commerce software was. So he decided to create Shopify – a platform that made it easy for anyone to open up an online store.
Tobi has built Shopify into one of the most popular e-commerce platforms in the world, with $175 billion in GMV (Gross Merchandise Value) and $4.6 billion in revenues in 2021. SHOP went public in 2015, when revenues were just lightly above $200 million, and the stock is up 1,233% since its IPO. Shopify stock peaked in November 2021 (traded at astronomical 47x sales), which coincided with peak enthusiasm for the tech-driven, “stay-home” stocks. Since then, the stock is down almost 80% and is currently trading at just 6x 2023E sales. We believe that Mr. Market is offering us an exceptional value, at current price levels, for an exceptional company led by a very talented, visionary founder/CEO.”
2. Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 78
Share price as of August 8: $62.46
Micron Technology, Inc. (NASDAQ:MU) is a semiconductor company that designs, manufactures, and sells memory and storage products worldwide. The company is based in Boise, Idaho.
Tristan Gerra at Baird holds an Outperform rating on Micron Technology, Inc. (NASDAQ:MU) shares as of this July.
The Biden administration’s inclination to limit the influence of Chinese chip makers has resulted in stocks like Micron Technology, Inc. (NASDAQ:MU) gaining this August. The company, in its May 2022 presentation, also noted that it expects 42% of its 2025 revenue to come from its data center and graphics division, which may limit any losses from its consumer business division. A majority of the analysts covering Micron Technology, Inc. (NASDAQ:MU) held an average price target of $97.5 on the stock as of this June, which signifies the stock’s ability to perform well in the long-term.
Our hedge fund data for the first quarter shows 78 hedge funds long Micron Technology, Inc. (NASDAQ:MU), compared to 83 hedge funds in the previous quarter. Their total stake values were $3.4 billion and $5.5 billion respectively.
1. Block, Inc. (NYSE:SQ)
Number of Hedge Fund Holders: 84
Share price as of August 8: $87.73
Block, Inc. (NYSE:SQ) is an information technology company that creates tools enabling sellers to accept card payments and provides reporting and analytics alongside next-day settlement. The company is based in San Francisco, California.
In August, an Overweight rating was placed on shares of Block, Inc. (NYSE:SQ) by Ramsey El-Assal at Barclays. The analyst also placed a $130 price target on the stock.
Block, Inc. (NYSE:SQ) had an EPS of $0.2, beating estimates by $0.02, in the second quarter of 2022. The company’s revenue was $4.4 billion, also beating estimates by $69.5 million. As of this August, its three-year sales growth CAGR was 65%, and the stock has been rising this August after its after-hours dip due to positive investor sentiment based on the stock’s projected upside. These factors demonstrate Block, Inc.’s (NYSE:SQ) ability to remain a reliable investment in the long-term
Block, Inc. (NYSE:SQ) had 84 hedge funds long its stock in the first quarter of 2022. Their total stake value was $6.2 billion.
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