3 Stocks Set To Outperform Over The Long Term

The bull market seems to keep chugging along with no end in sight. Sure there are days when fear enters the market due to a potential trade war or economic crisis in another country, but every time the stock market comes back.

Because the higher valuations of many stocks, it is getting hard to find good buys. Value investors are struggling to find new holdings and some are parking their money in cash waiting for the next drop to they can buy shares on sale.

But even with high valuations, there are stocks out there that are set to outperform over the long term. These stocks have solid business models and are executing them precisely. As a result, they are stocks you should be buying now as their prices are only going to continue to rise.

What are these stocks that are set to outperform over the long term? Keep reading to find out!

3 Stocks Set To Outperform Over The Long Term

#1. Amazon

Amazon (NASDAQ: AMZN) seems poised to be the next company to have a market cap of $1 trillion dollars. And for good reason. They are a behemoth in the online world, have just entered into the grocery business, and now are exploring the prescription drug field.

While I don’t expect major impacts to the bottom line from Whole Foods or their flirting with prescription drugs any time soon, the future is bright for Amazon and here is why.

They are patient and they have the resources to take their time. They are learning as they go with Whole Foods and figuring out what works and what doesn’t. Once they have this formula nailed down, they will explode this area of the business.

The same is true for prescription drugs. They will take their time and make it right.

And when they have these three segments firing on all cylinders, look out. And if they add more business lines during this time, they only have more to gain.

#2. Walmart

Walmart (NYSE: WMT ) may be playing second fiddle to Amazon, but don’t forget about this retailer. Even if Amazon kills off many other retail companies, Walmart isn’t going anywhere.

They have poured millions into acquiring online shops and revamping their own online presence to better compete with Amazon and right now it looks like it is paying off.

Will they overtake Amazon? I doubt it. But they are going to be a dominant player nonetheless.

Add into this the demise of Babies R Us and Walmart has a great opportunity to land more business from parents. Walmart knows this and is redesigning their baby department and adding more items and services.

And with Walmart being the place for low prices, even if the economy tumbles, people will continue to shop at Walmart. As a result, this stock is one that is set to outperform over the long term.

#3. Ford

The inclusion of Ford (NYSE: F) is debatable, but I think that their long-term prospects are incredible if they can pull it off. The company announced it is discontinuing car manufacturing going forward and will only produce SUVs and smaller SUV type vehicles.

The exception to this is the Mustang, an American classic. Why this move for Ford? Consumers are mostly interested in SUVs and the company isn’t making much money from traditional cars.

With Ford making SUVs that are popular in terms of safety, affordability, fun to drive and comfortable, people are buying the Ford brand. If they can continue this with the new SUVs they plan on producing, the company has a solid future.

The potential setbacks? One is a change in car buyers tastes. If consumers start to favor sedans again, Ford is in trouble. But I don’t think this is an issue. Even when gas prices rose, the rush to buy more fuel-efficient cars was short lived.

The other setback is poor design quality of the new vehicles. If they aren’t up to the level consumers want, Ford could take a major hit.

Final Thoughts

There are 3 stocks that are set to outperform over the long term. As I mentioned earlier, these stocks have the business model for the future and will execute on that model. The result is higher revenues and a higher stock price.

I am all in on these stocks and feel that they are worthy of your consideration as well.

This author has no positions in any stock mentioned and does not plan to open any positions in any stocks mentioned for at least 72 hours after publication of this article.

Disclaimer: Modest ...

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