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When it comes to investing in growth stocks, a long-term mindset can be a lucrative advantage. By looking further into the future, you can position your portfolio for building fortunes. Here are two companies with excellent long-term expansion prospects that could make you richer in the years to come.
Growth Stocks to Buy #1: Eli Lilly
Millions of people around the world want to look and feel better. Eli Lilly‘S (NYSE: LLY) The new blockbuster weight loss drug helps people do that and more, while delivering big profits to investors.
Zepbound, the healthcare giant’s weight management treatment for adults, could be a game changer for the nearly 70% of American adults who are obese or overweight. These weight-related conditions put people at greater risk for diseases such as diabetes, heart disease and stroke.
Zepbound makes it easier to eat less food by curbing hunger. A 72-week clinical trial found that people taking the highest dose of the drug lost an average of 48 pounds. Tirzepatide, the active ingredient in Zepbound, has also been shown to improve cholesterol, blood pressure and blood sugar levels in adults.
With so many potential benefits, Zepbound sales will soar. Goldman Sachs predicts that Eli Lilly will capture the lion’s share of the obesity drug market, which could reach $130 billion by 2030. In turn, analysts expect Eli Lilly to grow its earnings per share by as much as 63% per year over the next five years.
Growth stocks to buy No. 2: Tesla
Tesla (NASDAQ: TSLA) is another top company with leading positions in booming markets. The electric vehicle (EV) leader also has intriguing expansion potential in the field of artificial intelligence (AI) and robotics.
According to research firm MarketsandMarkets, the EV industry will reach $950 billion by the end of the decade, up from about $388 billion in 2023. Tesla clearly has a long way to go for growth in its core EV segment.
Tesla is also leading the race for autonomous vehicles. Groundbreaking AI powers rapidly improving self-driving technology. With millions of vehicles on the road, the EV pioneer has a powerful data collection advantage over its competitors Alphabet‘s Waymo. Tesla’s Autopilot software is thus in a strong position to achieve full self-driving capabilities before its competitors.
CEO Elon Musk wants to use this technology to build a fleet of robotaxis. Tesla is developing a new autonomous vehicle called Cybercab as part of its ambitious plan to revolutionize the ride-hailing industry. Cathie Wood’s Ark Invest estimates that Tesla’s self-driving car initiative could generate sales of more than $600 billion by 2029 – and boost its stock price tenfold by then to $2,600 per share.
Incredibly, Tesla may have an even more powerful growth engine in AI-powered robots. The tech titan is building a sci-fi-esque humanoid robot called Optimus. Tesla’s bot aims to increase productivity and reduce labor shortages in factories and other environments by taking on tasks that are dangerous or monotonous for humans. Musk sees a huge range of possible use cases for the company’s robots. So much so that he estimates Tesla’s long-term profit prospects at a staggering level $1 trillion.
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Suzanne Frey, a director at Alphabet, is a member of The Motley Fool’s board of directors. Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool holds positions in and recommends Alphabet, Goldman Sachs Group and Tesla. The Motley Fool has one disclosure policy.
2 unstoppable growth stocks to buy and hold for the next decade was originally published by The Motley Fool