Friday Dec 09, 2022

7 Stocks to Buy and Hold Forever – InvestorPlace

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With many good stocks beaten down due to unwarranted worries about the Federal Reserve, now is an excellent time to identify stocks to buy and hold for many years.

Importantly, Fed Chair Jerome Powell recently indicated that the central bank expects to only raise its key interest rate to about 3.5% at most this year.

Since the Fed’s benchmark rate after its July meeting is 2.25%-2.5%, that means it has only roughly one percentage point of hikes left this year. Many analysts previously thought that the Fed would close out the year with a target rate of around 4%-4.5%.

Now that the market realizes that the Fed is not really as hawkish on inflation as the bears thought, many stocks are likely to jump going forward. Consequently, I believe that August is a good time to buy and hold stocks.

BBY Best Buy $76.38
JKS JinkoSolar $60.87
EVGO EVgo $9.35
ARVL Arrival $1.66
GS Goldman Sachs $334.67
PLUG Plug Power $25.19
LIT Global X Lithium & Battery ETF $75.93

Stocks to Buy and Hold: Best Buy (BBY)

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Best Buy (NYSE:BBY) has a few attributes that make it a great pick for many decades to come. First of all, the company is the only widely known retailer that focuses primarily on consumer electronics. And the chain has become famous for the expertise of its salespeople. In an era in which many consumer electronics products are quite complicated and there are a multitude of choices, that reputation is quite valuable. That important competitive advantage should continue indefinitely.

Best Buy’s U.S. comparable sales sank 8.7% in the first quarter of 2022. But, as the firm’s CEO noted, the retailer is facing tough comparisons, as well as consumers’ pent-up demand for experiences. Of course, the latter trend has recently hurt most retailers.

Still, I expect the demand for experiences to dissipate later this year, boosting the financial results of many retailers, including Best Buy.

And with its 4.6% dividend yield, the stock is paying investors to wait for the latter reversal. Also importantly, the forward price-earnings ratio of BBY stock is now a very attractive 8.9.

JinkoSolar (JKS)

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One of the world’s leading solar module makers, JinkoSolar (NASDAQ:JKS) is benefiting from extremely strong demand for solar energy in Europe and China. Given the rock-solid commitment of both the European Union and Beijing to solar and Jinko’s advanced solar technology, the company should generate very strong profits for many decades.

During the company’s last earnings call, it stated that its powerful business in Europe would offset any challenges that it would encounter in the U.S. (And after President Joe Biden waived the tariffs on solar products from multiple Southeastern Asian countries, JinkoSolar’s problems in the …….

Source: https://investorplace.com/stocks-to-buy-and-hold/

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