5 Monster Stocks — Such as Ford — to Hold for the Next 10 Years
As I write this, the stock market, as measured by the S&P 500 index of 500 of America’s biggest companies, is down about 10%. That qualifies as a correction — a drop of between 10% and 20%.
Some fear a recession is around the corner, and some may want to increase their cash position in their portfolio, but many long-term investors may be looking for attractively priced “monster stocks” — stocks with great performance records and/or great growth potential. Here are five to consider.
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1. SoFi Technologies
SoFi Technologies (SOFI 4.39%) has been on a tear, more than quintupling its revenue since 2019. It’s a fintech business, targeting millennials and other youngish consumers, in part due to its earlier years when it specialized in helping them with student loans. Now, though, it’s a bank that’s aiming to be a one-stop shop to its more than 10 million members, offering not only banking, but also investing and insurance services, among other things.
A Motley Fool Research report found that around three-quarters of banking customers are likely to switch banks if they find something they like better. SoFi has been following a similar playbook — it is working to keep and grow its membership — and it’s succeeding. It recently cut a deal to expand its funding for personal loans by $2 billion, aiming to meet customer demand.
SoFi could be a monster stock in the years to come, but especially if a recession doesn’t happen anytime soon, as that can hurt banks. If you are worried about a recession, perhaps just add SoFi to your watch list for now — or wait for an even lower price.
2. Realty Income
Realty Income (O -0.80%) is a monster stock in the dividend realm. It’s a real estate investment trust (REIT) — a company that owns many real estate properties, charging its tenants rent. REITs are required to pay out at least 90% of their taxable earnings as dividends, and Realty Income’s dividend yield was recently a fat 5.6%. Better still, it pays its dividends out monthly instead of quarterly.
It’s also not likely to reduce or suspend its payout, as it’s increased its dividend for 110 quarters in a row. As of the end of 2024, the company’s portfolio featured more than 15,600 properties in all 50 U.S. states and parts of Europe. Its 1,500-plus tenants include companies such as 7-Eleven, Dollar General, Walgreens, and Dollar Tree, along with Whole Foods, Lowe’s, and Chipotle Mexican Grill.
Realty Income’s stock looks reasonably valued at recent levels, with a recent forward-looking price-to-earnings (P/E) ratio of 44, a bit above its five-year average of 41. Management has recently projected a slowdown in 2025, so its payout may not grow much in the near term, but it still seems to be a solid long-term buy.
3. Meta Platforms
Meta Platforms (META 4.06%) is most known for its Facebook social media platform, but it also includes Instagram, Messenger, Threads, and WhatsApp. On average, 3.35 billion people use at least one of Meta’s services daily. That’s powerful when a company is looking to monetize its customers, such as by cross-selling. In addition, Meta Platforms is investing in artificial intelligence (AI) in a big way.
The current threat of tariffs has many people worried about many companies’ futures, but some see Meta Platforms being among the less affected businesses. Still, Wall Street expects a slowdown for the company in 2025. The company’s revenue jumped 21% year over year in its fourth quarter, so a slowdown may still leave it growing. Meanwhile, its recent forward P/E ratio of 20 is a bit below the five-year average of 21.
4. Shopify
Shopify (SHOP 6.15%) isn’t a household name, but it’s often present behind the scenes when you’re buying something online. Its platform helps e-commerce businesses get up and running and helps them grow. (In fact, it’s the second-largest retail e-commerce company, with a recent market value of $108 billion.) The company has been growing briskly, too, with fourth-quarter revenue up 31% year over year and full-year revenue up 26%. Better still, much of its revenue is recurring, which is an investor-pleasing characteristic.
If you’re bullish on the future for e-commerce, give Shopify some consideration. Its recent forward P/E of 39 is not exactly low, but it’s well below its five-year average of 118, suggesting that it’s undervalued. (It also suggests that the stock has been richly valued in the recent past.)
5. Ford Motor Company
Then there’s Ford Motor Company (F 1.40%), which you might not think of as a monster stock, but according to some measures, it’s monstrously undervalued, with a recent price-to-sales ratio of just 0.2, well below its five-year average of 0.29.
It has plusses and minuses. A big plus is its recent dividend yield — a fat 7.8%. A big minus is the potential havoc caused by tariffs. That is a worry, but automakers may end up with an exemption or reduction in tariffs, and some see Ford as better positioned to deal with them, as it builds the lion’s share of its automobiles domestically.
If I were to buy Ford now, it would be for the big dividend, but I’d keep an eye on it, in case selling suddenly seemed prudent.
Give any or all of these stocks some consideration and dig deeper into any that interest you.
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Selena Maranjian has positions in Meta Platforms, Realty Income, Shopify, and SoFi Technologies. The Motley Fool has positions in and recommends Chipotle Mexican Grill, Meta Platforms, Realty Income, and Shopify. The Motley Fool recommends Lowe’s Companies and recommends the following options: short June 2025 $55 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.