All three of these companies are buy and hold. They are long term investments for the next decade and here’s why:
*Tesla Motors (TSLA)*
The electric car market may have slipped off many investors’ radars during late 2014 and early 2015, when an oil supply glut pushed prices to their lowest levels in recent history. However, most analysts are steadfast that oil and gas will never again be as cheap as they were in the 1990s and before.
While unpleasant news for average drivers, an uncomfortably high price of oil is great news for forward-thinking investors looking to profit from the product best positioned to mitigate the insatiable thirst for foreign petroleum. The electric car is the future, and Tesla Motors Inc. (TSLA) has advanced this technology further than any of its competitors.
While its current offerings as of 2015 are *prohibitively expensive* for average consumers, the company is set to roll out its first mass-market electric car by 2017. By 2020, Tesla hopes to build over 500,000 electric cars per year in its state-of-the-art Gigafactory.
*Chipotle (CMG)*
Traditional fast food restaurants that serve greasy fare without a smile are finally seeing their reign come to an end. McDonald’s, for decades considered indomitable in the industry, is suffering slumping stock prices as of 2015, and the company is shutting locations by the dozen.
Several factors are driving the recent decline in traditional fast food. One is a tangible cultural shift toward healthier eating. An arguably even more important factor is people having more choices now, many of which serve higher-quality ingredients and provide friendlier service while being just as fast and cheap.
Chipotle Mexican Grill (CMG) maintains one of the best reputations among the relative newcomers in fast, casual dining. Lines routinely stretch out the door. Diners find the simple, straightforward menu a welcome change from competitors’ confusing and oft-changing selections. The food is known for being healthy and free of preservatives and GMOs.
While the company’s growth has been impressive, even during the Great Recession, its stock unexpectedly tumbled by 10% in mid-2015. Rather than viewing the decline as a harbinger of impending trouble, most investors feel it enables them to buy what remains an excellent long-term investment at a discount.
Year-over-year comparable restaurant sales continue to average over 10%, with no slowdown forecast for the foreseeable future.
*Under Armour (UA)*
Under Armour Inc. (UA) is another beneficiary of the United States’ cultural shift towards health consciousness. The popularity of working out is gaining rapidly, and everyone is joining the trend needs quality clothes to work out in. Under Armour boasts a pristine reputation among elite athletes, while its adrenaline-fueled marketing campaigns are among the best in the industry.
Amateur and even casual athletes want to wear what the best players in the game wear. Nike benefited immensely from this phenomenon when its Air Jordan basketball sneakers propelled the brand to unprecedented heights. As of 2015, Under Armour’s position is strikingly similar to Nike’s early days. Its gear is a staple in college and professional locker rooms, and fitness enthusiasts are taking notice.
Under Armour also has huge untapped international potential. The company is beginning to realize this. From the fourth quarter of 2013 to 2014, its international sales increased by over 120%.
Have a great week!
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