There are lots and lots of investors who are focused on the short run. Essentially, they are betting that they will be able to choose the right stock, see its stock price rise, and then sell it before moving on to the next one. The problem is that this comes with an enormous amount of risk. Never mind the time and effort needed to look into potential investment choices on a constant basis. Instead, a better approach might be buying and holding on to stocks with long-term potential, which can be particularly profitable because this should reduce the impact of short-term fluctuations in stock prices. Something that can be very important for those who like their rates of return to be sure and steady. According to Kiplinger, here are five stocks that could see enormous growth in the next decade:
1. Acuity Brands (AYI)
Acuity Brands specializes in lighting and building management solutions. This might not sound particularly amazing, but it is important to note three things. First, there is a huge interest in more efficient lighting that is expected to continue into the future, which is pretty relevant when Acuity Brands makes LED lights. Second, smart building technologies are expected to see more widespread use as well, meaning that one of the corporation’s other markets is expected to prosper as well. Third, it is clear that Acuity Brands recognizes the existence of these trends, seeing as how it has been making purchases to strength its position in both of the markets.
2. Adobe Systems (ADBE)
Recently, Adobe Systems made the choice to start moving its customers over to a subscription-based model. Something that could provide it with a much more reliable stream of revenues over time than what its current model can produce. There are those who might be concerned about Adobe Systems mismanaging such a transition, but it has an important strength in that its products are very popular for creators in various fields such as media, marketing, and others, not least because there isn’t a great deal of competition for them. Moreover, Adobe Systems has also been taking steps to get involved in web analytics as well as digital marketing services, which could see it broadening its sources of revenue.
3. First Republic Bank (FRC)
In 2010, Bank of America spun out what would become First Republic Bank. Nowadays, First Republic Bank has become a popular choice for wealthier individuals because of its pleasing interest rates on its mortgages, thus enabling it to sell further products and services to the same. Since wealthier individuals are less risky customers, this means that First Republic Bank is less risky than a lot of its counterparts as well. It has already seen considerable growth, but it possesses the potential for even more because it is still concentrated in New York City, Los Angeles, and Silicon Valley.
4. Idexx (IDXX)
Idexx is interesting in that it specializes in tools for animal diagnostics as well as other instruments for veterinary hospitals. Moreover, it is pretty innovative in this regard, meaning that its selection of products is broadening on a regular basis. Combined with the fact that the United States is seeing a 9 percent increase in spending on veterinary care on an annual basis, it shouldn’t be too difficult to see why Idexx is in an excellent position to capitalize upon this particular trend.
5. Panera Bread (PNRA)
Panera Bread boasts more than 2,000 locations. Something that should serve as plenty of proof that it possesses a successful formula. However, there are two reasons to believe that Panera Bread could continue to see its numbers improve in the time to come. One, Panera Bread locations are concentrated on the East Coast and in the Midwest, meaning that there are still familiar markets that remain relatively untapped by the restaurant chain. Two, Panera Bread has been putting serious effort into improving its sales at its locations as well as coming up with new ways to get its products to interested individuals, which have resulted in initiatives such as mobile ordering, in-cafe kiosks, delivery services, and packaged goods that can be found at supermarkets. As such, it is reasonable to suspect that Panera Bread will continue to expand in the near future, which promises good things for its shareholders.