Finding the safest long-term stocks to invest in can be a daunting task. With so many options out there, it’s hard to know where to start. However, there are a few things you can look for when searching for the safest long-term stocks to invest in.
First, consider the financial stability of the company. Is it profitable and growing? Does it have a strong balance sheet? These are all important factors to consider.
Second, take a look at the company’s competitive advantage. What does it do better than its competitors? This will help you to assess its long-term prospects.
Finally, don’t forget to diversify your portfolio. Investing in a variety of stocks will help to reduce your overall risk. By following these tips, you’ll be on your way to finding the safest long-term stocks to invest in.
Check out these three companies if you’re looking for the safest long-term stocks to invest in. All three enterprises benefit from forward-thinking management and a wide moat.
|Floor & Decor
|Warner Bros. Discovery
The wireless carrier T-Mobile (NASDAQ:TMUS) has been surpassing estimates for new subscribers this year, helped by its cut-rate plans. High-interest rates and a slowing economy have negatively impacted tech companies with higher valuations. However, TMUS is an exception to the rule. It is experiencing increased prepaid customers due to its cheaper options.
T-Mobile has a robust 5G network, which covers 300 million people. In addition, T-Mobile offers a wide range of other services, such as TV and home internet. T-Mobile is a great option for investors looking for a high-growth stock with a proven track record.
T-Mobile has long been among the best growth stocks. The company has a history of strong performance, consistently delivering double-digit percentage revenue and earnings growth. It has also been an aggressive acquirer, purchasing Sprint in April 2020.
T-Mobile is second in the U.S. only to Verizon (NYSE:VZ). The company is well positioned to continue its strong performance in the years ahead. it also made a lot of advanced moves to establish its 5G network and acquire Sprint. T-Mobile is now seeing benefits on the revenue and cost side due to this merger.
Overall, T-Mobile is an excellent long-term investment. The company has performed well, growing its customer base and delivering strong financial results. It is also a very shareholder-friendly company.
Floor & Decor (FND)
Home improvement stores saw a surge in business during the pandemic as people stocked up on supplies. For example, Home Depot (NYSE:HD) recorded revenues of $151.2 billion in 2021, an increase of 14.4% versus 2020. The home improvement trend will continue even after the pandemic, as people have seen the benefits of improving their living space.
Floor & Decor (NYSE:FND) is a home improvement retailer specializing in flooring and decor. The company sells various flooring products, including tile, hardwood, laminate and stone. It also offers a wide range of home decor products. The company has 174 stores across 34 states, with plans to expand to 500 locations in the coming decade.
Its recent results show big-box flooring warehouses are not going anywhere. Floor & Decor Holdings reported $81.83 million in earnings for the second quarter — a 15% increase from the preceding quarter. In addition, total sales for the company reached $1.09 billion, up from $860 million in Q2 2021. Sales are up by 27%.
Thanks to its vertically integrated business model, Floor & Decor can offer high-quality products at competitive prices. It has a proven track record of generating healthy profits and cash flow. For these reasons, I believe that Floor & Decor Holdings is a great investment for anyone looking to profit from the booming home improvement industry.
Warner Bros. Discovery (WBD)
Warner Bros. Discovery (NASDAQ:WBD) completed the spinoff from AT&T in April. Since then, the stock has not been doing well. You can blame rising interest rates, rampant inflation, and Netflix (NASDAQ:NFLX) losing subscribers for this predicament. The messy integration did not help matters.
Investors are waiting to see if the company can turn things around. Since becoming CEO, David Zaslav has been looking to repair and restore WBD’s image.
By the end of August, the entertainment conglomerate expects to reduce its debt load by $6 billion. With $50 billion in debt, Warner Bros. Discovery must be able to manage the money coming in and eventually pare down debt.
Recent actions are a clear indication it is pursuing this strategy. CNN’s streaming service was terminated soon after its release because it could not gather massive viewership. And Zaslav pulled the plug on the DC superhero film Batgirl to reportedly use it as a tax write-down instead.
Investors often consider safe stocks to be only those companies with a storied past or those that are regular dividend payers. But when investing for the long term, it is important to make sure you have your thinking cap on and invest in companies with excellent management and a clear vision.
Warner Bros. Discovery is an attractive investment considering the recent developments. Due to the broader selloff, it’s also trading at a very attractive valuation, making it a compelling buy.
On the publication date, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.