Invest in Two Unshakeable Growth Stocks: A Sustainable Strategy for the Next Decade
In 2024, the stock market displayed resilience, surpassing expectations amidst lingering economic concerns and geopolitical tensions. The bull run continued its course, albeit with investors uncertain about 2025's prospects. Regardless, it's a wise decision to invest in stocks, considering robust companies will endure and thrive in the long run.
With this long-term mindset in mind, two outstanding stocks for investment beyond 2025 are Alphabet (GOOG, -0.63%) and Veeva Systems (VEEV, -0.54%).
1. Alphabet
Alphabet has experienced a 25% gain this year, barely trailing the S&P 500. Remarkably, the company is contending with significant antitrust litigation and a recent loss in a substantial case. The U.S. Department of Justice now seeks to force the sale of Alphabet's renowned Chrome browser. Such a decision could greatly impact the company's operations.
However, the impending battle between Alphabet and the DOJ isn't without consequences. Despite the challenges, Alphabet's performance remains strong.
The company's core advertising business is among the industry's best, and Alphabet possesses several high-growth sectors, such as video streaming and cloud computing. During the third quarter, Alphabet's revenue skyrocketed by 15% year over year to $88.3 billion. Earnings per share (EPS) also saw an impressive increase of 37% year over year, reaching $2.12.
Alphabet has harnessed AI to further develop its search engine and optimize YouTube's recommendation algorithm. Google Cloud provides numerous AI-related services, while AI integration across various company offerings aids in cost reduction.
In summary, Alphabet's AI initiatives have successfully driven revenue growth and reduced operational costs. This is a boon for any business seeking long-term success, with Alphabet uniquely positioned to derive benefits from AI and cloud computing for years, thanks to its competitive edge.
Google boasts an impressive network effect. More searches allow the company to collect more data, leading to improved search results and increased user engagement. The cycle of better results and increased usage continues, further contributing to Alphabet's longevity. YouTube enjoys a similar dynamic, with an extended growth runway, as it ranks among the industry's leading platforms.
Essentially, Alphabet's enduring strength derives from its impressive financial performance, competitive advantage, numerous growth opportunities, and innovative capabilities – not to forget the company's self-driving car initiative.
Although the DOJ's attempt to fragment Alphabet is concerning, the legal proceedings may drag on for years, with no assurance of a favorable verdict. Regardless, a successful and financially robust entity as Alphabet will undoubtedly devise strategies to circumvent adversity.
Thus, Alphabet remains a superior investment choice, even beyond 2025.
2. Veeva Systems
Veeva Systems caters exclusively to companies in the life sciences sector, distinguishing it from many other cloud providers. This specialized focus allows Veeva Systems to establish a unique niche.
Veeva Systems has attracted some of the industry's heavyweights, such as Eli Lilly and Novo Nordisk. Despite a slowdown in cloud computing several years ago, its financial performance has since recovered.
In the third quarter of its 2025 fiscal year, Veeva Systems boasted a 13% revenue increase year over year, reaching $699.2 million. The adjusted EPS surged virtually 31% year over year, reaching $1.75.
Veeva Systems' growth prospects remain attractive. The company benefits from switching costs that often apply to cloud providers. However, for many of its clients in the life sciences sector, there is more at stake than brief disruptions, given the stringent regulatory requirements they face while migrating to competitors' offerings.
Furthermore, Veeva Systems estimates a potential total addressable market of $20 billion, having captured only 14% of that opportunity. Doubling its market share within the following five years would allow Veeva Systems to maintain a steady growth trajectory, potentially translating into strong returns for investors.
- In terms of finance and investing, considering Alphabet's resilience and strong performance, despite the ongoing legal challenges, it could be a wise decision for investors to allocate money towards its stocks, as its potential for long-term success remains high due to its competitive edge in AI, cloud computing, and robust financials.
- Regarding investing, Veeva Systems' focus on the life sciences sector and its unique niche, coupled with its stable financial performance and growth prospects, makes it an attractive option for investors looking for potential returns, given its significant untapped market and the high switching costs for its clients in the industry.
