5 Best Young Stocks to Buy and Hold for 20 Years

In this article, we discuss the 5 best young stocks to buy and hold for 20 years. If you want to read our detailed analysis of these stocks, go directly to the 10 Best Young Stocks to Buy and Hold for 20 Years.

5. Zendesk, Inc. (NYSE:ZEN)

Number of Hedge Fund Holders: 45
Total Value of Hedge Fund Holdings: $1.48 Billion

Ranking 5th in our list of 10 best young stocks to buy and hold for 20 years is Zendesk, Inc. (NYSE:ZEN). The California-based customer service software company was founded in 2007 and offers 30 languages to over 170,000 customers. In one of its latest acquisitions, the company purchased startup messaging platform Smooch. The acquisition allowed Zendesk, Inc. to create multiple conversational apps and web pages.

Zendesk, Inc. (NYSE:ZEN) posted its revenue of $298 million in the first quarter of 2021, a 26% increase year-over-year. The 52-week price range of Zendesk, Inc. (NYSE:ZEN) is $81.00-166.60. Shares of ZEN jumped 79% over the last twelve months. On April 23, Wolfe Research initiated Coverage on Zendesk, Inc. with an Outperform rating and announced a price target of $180.

There were 45 hedge funds that reported owning stakes in Zendesk, Inc. (NYSE:ZEN) at the end of the first quarter, down from 58 funds a quarter earlier. The total value of these stakes at the end of Q1 is $1.48 billion.

Wasatch Ultra Growth Fund mentioned Zendesk, Inc. (NYSE:ZEN) in its Q4 2020 investor letter:

“Zendesk, Inc. (ZEN) was also a top contributor. The company provides business software using the software-as-a-service (SaaS) model. Zendesk has experienced strong demand throughout the Covid19 pandemic from customers in e-commerce, as well as from other businesses with employees working from home. Additionally, demand from clients in the travel and hospitality industries has picked up as global economies have begun to reopen. Adjusted earnings per share rose 42% in the company’s most recent quarter on revenue growth of 24% compared to the same quarter a year ago. An improved sales outlook from Zendesk’s management also helped lift the stock.”