One of the most important decisions an investor can make is to choose the right stocks and keep them on the path to building wealth over the years. Understanding how to make these picks is paramount to financial sovereignty and success in the long run, which is why today’s list is so important to keep in mind moving forward.
These companies would surprise most investors if they were not around a decade from now, as they have been ingrained into the way most consumers go about their everyday spending and activities. While change will always come, brands have more staying power, especially as they build customer loyalty through value add, quality delivery, and more.
A few stocks fit these descriptions today, names like Ulta Beauty Inc. (NASDAQ: ULTA) in the retail sector, ASML Holding (NASDAQ: ASML) as a pivotal player in the semiconductor branch of the technology sector, and even Alphabet Inc. (NASDAQ: GOOGL) coming in as one of the most entrenched digital economy names in the world. Here are some of the factors that make them a potential buy and keep for the next decade.
Loyalty for Ulta’s Brand Will Stick Around
[content-module:CompanyOverview|NASDAQ:ULTA]According to the company’s financial reports, Ulta derives over 90% of its revenue from its membership program, meaning that customers are not only happy with the brand’s service and value delivery but also willing to lock themselves in an indirect loyalty contract of only buying skincare and makeup products from Ulta.
This “ownership” in the market allows Ulta to do a few things. First, management can leverage this market presence into a higher gross margin of 38.8%, which is leading across the retail industry as the company understands that loyalty in its industry translates to pricing power and good relationships with suppliers.
The second benefit is being able to more accurately predict future revenue, and this stability lets management not only retain but reinvest most of this capital in an efficient way, ending up in further growth and compounding for the company. Measuring this through a 27% return on invested capital (ROIC) gives investors a fast track to compound their wealth over the years through this return gauge.
Considering that the stock now trades at 66% of its 52-week high, it makes sense for some institutional buyers to come in and take advantage of the value proposition being made by Ulta’s business setup, such as those from Deutsche Bank with a 1.4% boost in the stock as of February 2025 to bring them up to a stake worth of $285.1 million today.
Wall Street Analysts Bullish on ASML’s Future Growth Potential
[content-module:CompanyOverview|NASDAQ:ASML]ASML holds one of the biggest monopolies in the semiconductor industry, yet most investors have no idea of how this company really operates today. This is the company that produces the only extreme ultraviolet (EUV) lithography machines that enable the production of today’s most advanced chips.
Most of the market thinks that NVIDIA Co. (NASDAQ: NVDA) is the most important piece of this puzzle, but in reality, there couldn’t be an NVIDIA without ASML’s machines, and likewise, there wouldn’t be Apple Inc. (NASDAQ: AAPL) and other key players in the technology space.
The fact that the stock now trades at 65% of its 52-week high makes it a potential buy and keep for the coming decades, as such an important name in the global economy should never be trading that low in the first place. This is an opportunity being reiterated by Wall Street analysts today, as it is an easy win to boost reputations for being right.
Those from JPMorgan Chase & Co. decided to reiterate their Overweight rating on ASML stock as of January 2025, this time keeping a valuation of up to $1,100 per share on the company as well. Compared to today’s low price, this valuation would call for not only a new 52-week high in the stock but also an implied rally of as much as 50.6% from today.
Google’s Market Dominance: A Decade-Long Winning Stock
[content-module:CompanyOverview|NASDAQ:GOOGL]Whether it is maps and navigation, internet searches, online streaming, or even digital advertising, Google is there to provide it all for consumers worldwide. This level of entrenchment in the everyday aspects of life across the economy has made Google one of the stocks to hold over the past decade.
Speaking on numbers, this level of scale and penetration in the marketplace allows Google to retain up to 58.2% of each revenue dollar that comes into the business.
Like Ulta, management is able to reinvest most of this massive capital retainment and achieve up to 26.8% in ROIC to allow investors to compound their purchases in Google stock over the years. Investors have a chance to tap their portfolios into this theme at only 79% of the company’s 52-week high, a fantastic entry point into this leader.
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