It might sound obvious, but when looking for stocks for long-term wealth in 2030 and beyond, the goal should be to find stocks poised to trade significantly higher. However, successfully capitalizing on gains over such an extended period is not obvious or simple. Certain stocks for long-term wealth can indeed be well-positioned for growth. One of the best-positioned types of investment is blue-chip companies with established track records of consistently delivering solid returns.
Of course, when considering stocks for long-term investing, much can change between now and many years ahead. This includes unforeseen events and some predictable occurrences. For instance, recessions happen every 7-8 years on average. Given the last downturn resulting from the 2020 pandemic, the probability of another recession before 2030 is likely. This risk factor warrants consideration when identifying stocks for the next six years.
Although volatility has impacted markets since the start of the decade, it may be entering a sustained uptrend. The pandemic is behind us, and the Fed is expected to start normalizing interest rates this year. Other notable developments by 2030 include conclusions around Artificial Intelligence (AI) and changes in the White House leadership.
To maximize accumulation through 2030 and beyond, blue-chip stocks for long-term wealth with proven records of delivering solid results may be a good candidate. These companies have traditionally cut through periods of uncertainty to reward long-term investors.
Below, three stocks for long-term wealth for 2030 and beyond are examined:
Visa (V)
As the number one payment processing company globally, Visa (NYSE:V) presents a strong candidate in a list of stocks for long-term growth. As a cyclical company, Visa roars ahead alongside the economic expansion. When the economy and inflation are positively trending, consumers and businesses increase spending, and Visa benefits from increasing transactions. Periods of economic prosperity continuously benefit Visa’s financial performance.
Both Visa and its competitor, MasterCard (NYSE:MA), are well-positioned as stocks for long-term growth. However, Visa’s larger size warrants its inclusion as a better long-term play. Additionally, Visa does not engage in consumer lending like banks, allowing a swifter rebound from economic downturns than lending institutions.
Consensus overwhelmingly recommends buying Visa, with analyst target price signaling over 15% upside to $303,84 per share over the near term.
Lennar (LEN)
Lennar (NYSE:LEN) presents another strong candidate in a list of stocks for long-term growth as it takes advantage of America’s housing shortage. With over 6.5 million homes needed to be built to meet demand, the U.S. faces a serious deficit that has grown for over a decade. This points to robust long-term demand for housing industry players like Lennar.
While high interest rates may cause short-term pain, Fed actions are expected to normalize rates relative to historical trends. Additionally, Lennar is well-positioned to grow as one of the stocks for long-term growth because it operates in Florida, one of America’s fastest-growing states.
Currently trading at a reasonable price-to-earnings (P/E) ratio of 11.2x, analysts forecast a near-term target price of $180,35, 15% above its current price. Lennar shows potential to supercharge investor wealth given entrenched housing needs and a favorable outlook emerging from interest rate reductions.
Microsoft (MSFT)
The software giant narrowly beats out Apple (NASDAQ:APPL) as one of the stocks for long-term wealth with staying power. Unlike the iPhone maker, Microsoft (NASDAQ:MSFT) has invested strongly in AI. In addition, Microsoft has several revenue sources to weather potential downturns from the exacerbated growth in AI. This provides the best of both worlds: The ability to benefit from AI but a solid foundation. Although Microsoft is best known for Windows, business software now drives more sales. Its cloud computing also delivers substantial, steadily growing revenue independent of AI.
MSFT is widely recommended by analysts as one of the stocks for long-term gains. However, its potential isn’t as high, given recent exponential gains. Nevertheless, MSFT had already seen substantial share price growth long before AI emerged. As such, Microsoft offers durable wealth growth from an industry leader diversified across sectors and trends, making it a stable candidate in a list of stocks for long-term growth for 2030 and likely beyond.
On the date of publication, Stavros Tousios 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.
