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20 of the best performing long-term stocks

Here are 20 international stocks to consider as long-term buy-and-hold investments. In this article, we compile a list of the 10 best-performing global stocks over the past five years, as well as the 10 best stocks forecasted for strong earnings growth over the next five years.

These companies are not only projected to grow over the next year or two but are stocks to watch over the next half-decade. We also look at ETFs to consider for potential long-term growth based on long term performance. And, finally, we cover some pointers for long-term investing to make the most of your investments.

10 of the best performing long term stocks to watch

These are 10 of the best-performing stocks over the past five years, with at least 500,000 shares in daily traded average volume. The following financial data and range of analysts’ predictions are taken from Yahoo Finance and is up to date as of October 2021.

1. Enphase Energy [ENPH]

Enphase Energy has capitalised on the growing solar energy industry by providing technology to manage energy generation and storage. The company became profitable in 2019, but then earnings per share (EPS) fell in 2020. Going forward, analysts expect 41.9% growth per year for the next five years. The five-year price range, low to high, on the stock is between $0.72 and $229.04, during which time it has risen 12,592%.

2. Digital Turbine [APPS]

Digital Turbine is a mobile and media communications company that helps monetise content through advertising. The stock traded significantly below $10 in 2020 but then surged, moving above $100 in early 2021. The stock has a five-year gain of 1,076% as of October 2021. After losing money for years, the company turned a profit in 2020, helping to fuel the stock’s rise. Analysts also expect 50% average growth in EPS per year for the next five years. The five-year price range is $0.56 to $102.56.

3. Celsius Holdings [CELH]

Celsius makes calorie-burning and energy beverages. The stock traded around $5 before exploding higher in 2020. The company had turned profitable in the fiscal year 2019, with an EPS of $0.16, which fell to $0.11 in 2020. The stock price is on track to hit the $100 mark based on future growth prospects. Analysts’ EPS expectations are a lofty average of 73.3% per year over the next five years. The five-year price range is $1.83 to $101.50, during which time it has gained 4,507%.

4. Shopify [SHOP]

Shopify is an online shopping platform that websites can use to sell their products. The stock started seeing big gains in 2019 and 2020, when the company finally broke into profitability after years of losses. In 2020, Shopify made $2.59 per share, and in 2021, it is expecting to increase that significantly due to the pandemic. Over the next five years, analysts expect about 30% growth per year for the company. The five-year price range for the stock is $37.74 to $1,650, during which time it has risen 2,911%.

5. Trade Desk [TTD]

Trade Desk is an advertising platform company that saw its stock price take off when it became apparent that it was going to turn profitable. The company turned a profit in 2017 and has increased earnings since. Its growth potential is discussed in the below section, as it is also one of the top stocks forecasted to do well going forward. The stock’s five-year range is $2.20 to $97.28, during which time it has risen 2,625%.

6. Score Media and Gaming [SCR]

Score Media and Gaming provides sports betting products but also has a media app that provides sports fans with scores and updates. The stock is up 1,915% over the past five years, as of early October 2021, with a price range of $0.93 to a high of $45. Much of the increase is likely due to speculation that the company will eventually be able to take bets in more locations. The company hasn’t had a profitable year, and losses increased in 2020. Analysts don’t actively cover the stock. It is in talks to be acquired by Penn National Gaming.

7. Square [SQ]

Square provides payment services for merchants, including portable adapters that can easily connect to a smartphone. The company decreased its losses between 2015 and 2018 to turn a profit in 2019. Analysts are expecting an average EPS growth of 54.41% per year over the next five years. Much of the stock’s rally came in 2017 and the first half of 2018, when the company was reducing losses. Another strong run came following its 2020 lows based on expectations of future growth. The five-year price range of the stock is $10.88 to $289.23, during which time it has gained 1,918%.

8. Apollo Medical Holdings [AMEH]

Apollo Medical is up 2,227% over the past five years, as of early October 2021. The stock’s ascent has typically occurred in quick spikes followed by sideways periods. The company operates in the medical field focused on patient care. Its sales have steadily risen since 2014, and earnings have been increasing each year since 2018. The stock saw a strong rally in 2021 after a sturdy EPS jump that year. Earnings are expected to rise into 2022. The five-year price range of the stock is $1.41 to $114.55.

9. Tesla [TSLA]

The electric vehicle company’s stock has risen 1,772% in the past five years, during which time its price has ranged from $35.40 to $900.40. This is largely due to future growth speculation since the company only had its first profitable year in 2020. Analysts agree on future growth and project the company will grow EPS by an average of 51.8% per year over the next five years.

10. Crocs [CROX]

The casual footwear maker is famous for its massive share rally in 2007, when it eclipsed a high of $70 before crashing to below $1 within a year. The stock has bounced back since, with a 1,600% rise over the past five years, during which time it has traded between $5.93 and $163.18. The company’s earnings jumped meaningfully in 2019 and 2020 during the pandemic when its shoes came back into fashion, which helped to fuel a rally. Earnings are also expected to significantly increase into 2022. Forecasts are more modest after that, with projections of average 10% growth per year, over the next five years.


Past performance is not a reliable indicator of future results.

10 stocks based on forecasted forward earnings

These are the top 10 stocks based on forecasted forward earnings for the next five years, with more than 500,000 shares in daily traded average volume. The following financial data and range of analysts’ predictions are taken from Yahoo Finance and is up to date as of October 2021. It’s always worth keeping in mind that forecasts are not a reliable indicator of future performance and this is always subject to change.

1. Etsy [ETSY]

Analysts predict that Etsy will grow earnings by an average of 52.8% per year over the next five years. The online retailer for hand-made goods turned profitable in 2016 and grew its EPS by circa 300% by 2020. Sales have also been on a steady rise since 2015. Because of its growth potential, the stock has historically traded at a price/earnings (P/E) ratio above 40. This typically attracts growth investing.

2. Altice USA [ATUS]

Altice USA is a cable and broadcasting company that has a five-year EPS yearly growth estimate of 43.9%. The company was spun off from Altice Europe in 2018. Earnings and sales have steadily increased in 2021. EPS jumped from $0.03 in 2018 to $0.75 in 2020. Earnings are expected to climb above $2 per year by fiscal year end 2021 and into 2022.

3. Netflix [NFLX]

Netflix is a media and entertainment giant that has experienced significant growth as one of the biggest steaming platforms in the world, with a dominant market share. In 2012, EPS was $0.04. By 2020, EPS was $6.08 – a 15,100% increase. The stock increased by roughly 5,139% over the same period. The company is still expected to grow EPS by 43% per year over the next five years.

4. Charter Communications [CHTR]

Charter Communications is a large cable company that merged with Time Warner Cable in 2016, providing cable services to 41 states in the US. Sales have increased every year since 2012. Yearly earnings have been more erratic but have still seen strong growth over the period. Analysts expect that growth to continue, with EPS increasing by approximately 36.7% per year, over the next five years.

5. Amazon [AMZN]

The online retail giant has become one of the largest companies in the world based on its exceptional growth. A significant portion of the company’s revenue comes from its e-commerce business. But they are also involved in other areas, such as web services, cloud computing, storage, databases, and credit cards. In 2014, Amazon had a losing year, but since then hasn’t looked back, bringing EPS to above $40 in 2020. Analysts predict the company will grow earnings by 35.8% per year, over the next five years, an incredible feat for an already massive company.

6. AngloGold Ashanti [AU]

The sole commodity stock on the list, AngloGold Ashanti, is a large gold and silver miner. The company derives most of its revenue from mining operations in Africa but also from mines in Australia and South America. Since 2017 (and sporadically before that), the company has been entrenched in steady EPS and revenue growth. Analysts expect EPS growth of 34.9% per year over the next five years. AngloGold has paid a dividend every year for more than a decade.

7. LKQ Corporation [LKQ]

LKQ Corporation runs auto salvage operations and produces after-market car parts. The company has a nearly flawless record of increasing sales and EPS each year, going back a decade. If analysts are correct in their assessment, LKQ may have even bigger growth ahead. EPS is expected to grow by 33.5% per year over the next five years. That would outpace the growth they have seen in most recent years.

8. Qualcomm [QCOM]

Qualcomm produces wireless technology and chips for phones and is a leader in 5G technology. Historically, the company’s earnings have not had a steady growth pattern. Analysts anticipate that will change. They are predicting 32.2% yearly growth in EPS over the next five years. In 2020, the company’s earnings jumped to $4.52, up from $3.59 in the year prior. This continued in 2021, with its earnings in an uptrend. The company pays a dividend and has steadily increased it from $0.54 in 2007 to $2.57 in 2020.

9. Trade Desk [TTD]

Trade Desk is a cloud-based platform for ad buyers to create and manage their advertisements. The company turned profitable in 2017 and has seen steady and strong growth since in both sales and EPS. That trend is expected to continue with growth estimates of 32% in yearly EPS, over the next five years.

10. Align Tech [ALGN]

Align Tech is a dentistry company that manufacturers Invisalign braces. The company sells through orthodontists, dentists and via direct marketing to consumers. The company has seen incredible growth over the past decade. In 2012, EPS was $0.71 and, in 2019, it was $5.53. By fiscal year-end 2021, EPS is anticipated to be nearly $11. Going forward, EPS is expected to grow at an average rate of 31.8% per year over the next five years.


Forecasts are not a reliable indicator of future performance and this is subject to change.

Long-term ETFs for growth based on long-term performance

1. Invesco QQQ Trust [QQQ]

This popular technology ETF tracks the largest 100 stocks listed on the Nasdaq exchange. It has averaged 10.03% returns since inception and has gained 212% over the past five years, as of early October 2021. The fund provides exposure to companies, such as Apple, Microsoft, Nvidia, PayPal, Tesla and several other stocks mentioned in this article. As the technology sector grows and evolves, the ETF adapts along with it, only including the top 100 companies. The dividend yield is approximately 0.5%, and the expense ratio is 0.2%.

2. Vanguard Growth ETF [VUG]

The ETF focuses on holding stocks that are seeing sustained growth. The fund has risen by 174% over the past five years, as of early October 2021. The expense ratio is one of the lowest at 0.04%, and the dividend yield is approximately 0.57%.

3. ARK Innovation ETF [ARKK]

The ETF is run by Catherine Wood, CEO of Ark Invest, and focuses on holding companies that are innovative with large growth potential. The ETF has grown by 419% over the past five years, with most of its gains in 2020. Major holdings include Tesla, Roku, Teladoc Health and Square. The fund is actively managed and, therefore, doesn’t track a specific index. The expense ratio is 0.75%, and the dividend yield is negligible to nil.

4. SPDR S&P 600 Small Cap Growth ETF [SLYG]

This fund focuses on growth stocks of smaller companies, as opposed to the more well-known names that the other ETFs in this list are more likely to track. The expense ratio is 0.15%, and the dividend yield is roughly 0.56%. The fund has risen by 101% over the past five years, as of early October 2021.

5. SPDR S&P 500 ETF Trust [SPY]

For investors who want a broad basket of companies, the S&P 500 covers the largest 500 companies by market cap in the US. The fund is restructured to include only the top 500 at any given time. Over the past five years, the fund has climbed 119% as of early October 2021. It has an expense ratio of 0.09% and a dividend yield of 1.3%.


Past performance is not a reliable indicator of future results.

Five tips for long-term investing

The following tips will help to maximise your investment journey:

  • Don’t invest too heavily in a single stock. While picking the correct stock at the right time has the potential to produce large returns, there are also many stocks that don’t rise as expected. Investing too heavily in a stock that falls could result in large losses. Consider spreading out capital across several stocks and/or ETFs. Read more on how to invest in ETFs​.

  • Ride winners. Most of the stocks we have listed didn’t achieve their massive returns in a few months; they did it over years. If the stock is in an uptrend and the company is growing earnings, hold on until those things change.

  • Cut losers. No matter how good the narrative is, for a stock to rise, it must eventually start going up. If a stock doesn’t do what you expect it to within a reasonable amount of time based on your analysis, then look at putting money into something that is showing more promise, but remember the grass is always greener on the other side and there is no guarantee that your new position will be successful. You can always re-invest in that original company when it starts rising again.

  • Come up with a strategy and stick with it. Define how you will invest and write it down in a plan. The call to action includes how, why, and when you will buy, and how, why, and when you will sell. Not only does having a plan mean you can test how it performs on historical data (known as backtesting​​), it also reduces stress as you already know what you’ll do whether the stocks you own rise or fall.

  • Think about the future, not just the past. Just because a company has done well in the past doesn’t mean that it will continue to do this for the next five, 10, or 20 years. Many investors take large losses buying formerly high-flying stocks as they fall in the price. But the decline may be justified. Unless that company is growing and has significant catalysts that could trigger growth, focus on stocks that are growing as opposed to companies that flourished in the past but are now seeing declining earnings or sales.

FAQs

Long-term investing vs short-term trading: which is better?

There is much debate over the topic of investing vs trading​. Neither is better. Some people may prefer one over the other. Investing doesn’t take up as much time or energy as shorter-term trading. Therefore, it is feasible to do both.

Are all dividend stocks good for long-term investing?

No. While there are good companies with stable or increasing earnings that pay dividends, there are also shrinking companies that pay dividends. As a company shrinks, typically, its stock price falls, more than offsetting any gains made from dividends. Learn more about investing in dividend stocks​​​.


CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.

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