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Investing is a long-term game and choosing the right stocks to buy and hold for multiple years is not easy. But when investors choose wisely, they can be rewarded with a stock that turns into a compounding machine and grows money at a staggering rate. Consider that $1,000 invested in Alphabet’s (NASDAQ:GOOG/NASDAQ:GOOGL) 2004 initial public offering (IPO) would be worth $1.2 million today, and you can see the benefits of picking stocks of companies that are well-managed, have strong earnings, and are growth machines. While not every stock is going to be as successful as Alphabet and many picks may not pan out all, having a few winners can really help to supercharge a portfolio. And while the market remains rocky, there are still some strong stocks to buy for the long haul. Here are seven hot stocks to turn $1,000 into $10,000 by 2030.
|WBD||Warner Bros. Discovery||$14.20|
First Solar (FSLR)
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As its name implies, First Solar (NASDAQ:FSLR) is an American manufacturer of solar panels. And it is a leader in its industry. Consequently, the company and its stock are riding the wave that is building behind the transition to renewable energy in America.
FSLR stock has gained 40% so far this year, has risen 165% over the last 12 months, and is up nearly 200% over the past five years. That kind of consistent growth and outperformance is certain to help turn $1,000 of FSLR’s shares into $10,000 by 2030.
FSLR stock recently got a boost after analysts at UBS lifted their rating on the security to “buy” from “neutral” and raised their price target on the shares to $250 from $140 previously. UBS analyst Jon Windham said First Solar is well-positioned to benefit from the Biden administration’s Inflation Reduction Act, which provides tax credits that cover 30% of the cost of installing solar panels.
The company also impressed investors with its latest earnings that showed its net sales rose 10% year-over-year while its net loss declined 85%.
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Electric vehicle maker Tesla (NASDAQ:TSLA) is another company that is helping with America’s energy transition. And while TSLA stock suffered a punishing decline last fall in the months immediately after CEO Elon Musk took control of Twitter, its share price is once again proving to be resilient. So far this year, Tesla’s share price is up 56% and it has managed to recover much of the ground that it lost between Halloween and Christmas last year.
TSLA stock has been a great compounder for shareholders. In the past five years, the share price has increased 883%. Investors will be hard pressed to find other stocks with that kind of growth since 2018.
While Tesla CEO Elon Musk remains a polarizing figure and Tesla’s stock continues to suffer through volatile periods, it continues to have an overwhelming, upward trajectory.
The stock is also one of the most widely held tech securities, and the company continues to dominate the electric vehicle sector despite rising competition in the space.
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It’s tax season, and that should enable Intuit (NASDAQ:INTU), the software company behind the popular TurboTax tax preparation application, to deliver great financial results this quarter. The company also markets personal finance app Mint, small business accounting program QuickBooks, and credit monitoring service Credit Karma. Taken together, these products have proven to be extremely popular with both businesses and consumers. This helps to explain why INTU stock has risen 148% over the past five years.
The company has continued to consistently report better-than-expected earnings. Most recently, the company announced that its long-time Chief Financial Officer, Michelle Clatterbuck, is retiring this July after a 20-year career at Intuit. She will be succeeded by Sandeep Singh Aujla, who has been at Intuit for seven years in several different financial roles.
Aujla’s promotion will provide much-needed continuity to the company. While Intuit’s stock has pulled back 11% in the last 12 months with the broader tech sector, INTU stock has grown more than 600% in the ten years since 2013.
If you believe, as many people do, that artificial intelligence is the next frontier in tech, than you should take a bullish position in Nvidia (NASDAQ:NVDA). The company makes some of the most advanced microchips and semiconductors in the world, and the most advanced supercomputers and AI applications, including ChatGPT, use its chips.
At a developer conference held on March 21, Nvidia CEO Jensen Huang made it clear that the company is increasingly focused on AI and helping to bring the technology to the masses.
Nvidia unveiled a new DGX Cloud service that promises to provide its enterprise customers with the supercomputing capabilities needed to develop and train their own generative AI models that will be similar to ChatGPT.
The notion that Nvidia is a key player in the AI space has helped propel the company’s stock 92% higher so far in 2023. NVDA stock has more than doubled in the last six months alone.
Warner Bros. Discovery (WBD)
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The streaming industry is growing, maturing and diversifying. And one of the companies best positioned to come out a long-term winner in the sector is Warner Bros. Discovery (NASDAQ:WBD). The strength of Warner Bros. Discovery comes from its roster of assets and brands, which include DC Comics, Home Box Office (HBO), CNN, Turner Broadcasting, the Food Network and Cooking Channel, and the streaming platforms HBO Max and Discovery+.
While Warner Bros. Discovery is still a relatively new company that was formed only last year after WarnerMedia was spun off by AT&T (NYSE:T) and then merged with the Discovery Network, investors are warming to the stock and its future growth prospects.
After a bumpy reception last year, WBD stock has gained 50% in 2023. The stock has been moving higher in recent weeks following several upgrades by analysts, who cited the company’s strong position among streaming companies.
Eli Lilly (LLY)
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Pharmaceutical company Eli Lilly (NYSE:LLY) has a potentially huge catalyst for its stock looming on the horizon in the form of a medication that treats obesity. The weight-loss drug, called “Tirzepatide,” is in the final stages of approval with the Food and Drug Administration (FDA), and some analysts are saying it could be the biggest blockbuster prescription drug ever.
Eli Lilly is wasting no time in preparing for the obesity medication’s approval, expanding existing facilities so that it can manufacture and quickly get Tirzepatide to market.
However, even if Tirzepatide runs into problems with the FDA, Eli Lilly still has a reliable stable of other blockbuster drugs that continue to drive its earnings and share price higher. These include antipsychotic medication Zyprexa, and diabetes treatment Trulicity.
The sales of these medications have helped propel LLY stock 17% higher over the last 12 months and 343% higher in the past five years. Getting in on Eli Lilly’s stock before the weight loss drug comes to market could be a genius move.
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Consumer tech giant Apple (NASDAQ:AAPL) is not just a growth stock, but it is also a safe haven that investors turn to in times of uncertainty. After a few regional banks failed in the U.S., AAPL stock nonetheless gained more than 5%. The stock now accounts for 7% of the weighting of the benchmark S&P 500 index, more than any other U.S. stock, according to a report in The Wall Street Journal. While Apple’s share price has largely traded sideways over the past six months due to choppy markets, it remains a juggernaut and long-term powerhouse.
In the past five years, AAPL stock has gained nearly 300%. Over a decade, the share price is up 950%. And, Apple buys back more of its own stock than any other publicly traded company.
Throw in several stock splits and a quarterly dividend payment of 23 cents a share and Apple’s stock is a compounding machine. As for its business, Apple continues to grow and diversify into new areas ranging from streaming to buy now, pay later.
Plus, some analysts are still calling for an iPhone sales supercycle as people upgrade to 5G wireless technology.
On the date of publication, Joel Baglole held long positions in GOOGL, NVDA, LLY and AAPL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.