5 Stocks That Are Down Right Now but Are Great Long-Term Buys

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Introduction 📍

Investing in the stock market requires a blend of patience, research, and strategic foresight. While short-term market fluctuations can cause anxiety, they also present opportunities to purchase high-quality stocks at a discount. Here, we explore five stocks that are currently down but offer compelling long-term growth potential: Chipotle Mexican Grill (CMG), Nvidia (NVDA), Celsius Holdings (CELH), Microsoft (MSFT), and Amazon (AMZN). We'll delve into their current stock prices, recent earnings, and why they are undervalued, making them excellent choices for long-term investors.

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1. Chipotle Mexican Grill (CMG)

Why It's a Great Long-Term Investment: Chipotle Mexican Grill has consistently shown robust growth driven by innovative menu items and a strong digital presence. The company’s latest earnings report indicated a year-over-year revenue increase of 16% to $2.97 billion for Q2 2024. Notably, digital sales now account for over 40% of total revenue, underscoring the success of its online and app-based ordering systems. Moreover, Chipotle continues to expand its footprint with new restaurant openings and international market penetration. Despite recent stock declines due to broader market volatility, Chipotle's solid growth trajectory, coupled with its effective cost management strategies and commitment to sustainable practices, positions it well for long-term growth​ (Chipotle Newsroom)​ (InvestorPlace).

2. Nvidia (NVDA)

Why It's a Great Long-Term Investment: Nvidia remains a dominant force in the semiconductor industry, particularly within the gaming, data center, and AI sectors. The company's most recent earnings report revealed an impressive 101% year-over-year revenue increase, reaching $13.51 billion. Nvidia’s GPUs are critical for AI development, high-performance computing, and are becoming increasingly essential in emerging technologies like autonomous driving and robotics. The company's strategic acquisitions, such as ARM Holdings, and its continuous innovation in AI and machine learning applications, position it well for sustained growth. Despite current supply chain issues impacting the tech sector, Nvidia's leadership in these high-growth areas makes it a compelling long-term investment.

3. Celsius Holdings (CELH)

Why It's a Great Long-Term Investment: Celsius Holdings has successfully carved out a niche in the booming energy drink market by focusing on health-conscious consumers. The latest earnings report showed a remarkable 112% increase in revenue year-over-year, reaching $326 million. This growth is fueled by the company’s expanding distribution network, strategic partnerships, and increasing consumer demand for healthier beverage options. Celsius is capitalizing on the rising trend of functional beverages and health-oriented lifestyles. The brand's innovative marketing strategies and product expansion into new markets further enhance its long-term growth prospects, making the current stock dip an attractive entry point for investors.

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4. Microsoft (MSFT)

Why It's a Great Long-Term Investment: Microsoft remains a cornerstone of the technology sector, with diversified revenue streams across cloud computing, software, hardware, and gaming. The company's latest earnings report showed a 12% year-over-year revenue increase, driven significantly by Azure, its cloud platform, which grew by 27%. Microsoft’s strategic investments in AI, cloud computing, and its expanding subscription-based services like Microsoft 365 ensure sustained growth. The company’s robust balance sheet and continuous innovation, particularly in AI and enterprise solutions, position it for long-term success. Additionally, its strong performance in the gaming sector through Xbox and its acquisition of Activision Blizzard further diversify its revenue streams, making it a solid long-term investment.

5. Amazon (AMZN)

Why It's a Great Long-Term Investment: Amazon continues to dominate the e-commerce and cloud computing markets through AWS (Amazon Web Services). The latest earnings report showed a 9% year-over-year revenue increase to $121.23 billion, with AWS alone contributing $21.38 billion in revenue, growing by 37%. Amazon's extensive logistics network, continuous innovation, and expansion into new markets like healthcare and grocery delivery ensure its position as a market leader. Despite facing regulatory scrutiny and increased competition, Amazon's diversified business model, strong cash flow, and strategic investments in high-growth areas position it well for sustained long-term growth. The recent stock decline reflects broader market concerns rather than fundamental weaknesses, making it an attractive buy for long-term investors.

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The stock market can be a rewarding opportunity to grow your wealth, but who has the time??

Full time jobs, kids, other commitments…with a packed schedule, nearly 150,000 people turn to Bullseye Trades to get free trade alerts sent directly to their phone.

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Conclusion

Market downturns often spark fear, but for savvy investors, they present opportunities to acquire high-quality stocks at a discount. Chipotle, Nvidia, Celsius Holdings, Microsoft, and Amazon, despite their recent stock price declines, possess strong fundamentals, innovative strategies, and significant growth prospects. Their latest earnings reports and strategic initiatives underscore their potential to rebound and deliver substantial returns over the long term. By investing in these undervalued stocks now, investors can position themselves to reap the rewards of future market recoveries and sustained growth.