2 Remarkable Growth Stocks to Buy Now and Hold for the Next Decade
Well-chosen growth stocks can create fortunes for patient shareholders. Here are two companies with particularly impressive expansion potential. Consider buying their shares today, and you could position yourself to profit handsomely in the years ahead.
Growth stock to buy No. 1: Archer Aviation
Your next ride to the airport might be on a flying taxi. Archer Aviation (NYSE: ACHR) wants to make this sci-fi-like vision a reality -- and it's farther along than you might imagine.
Archer's Midnight electric vertical take-off and landing (eVTOL) vehicle features advanced tilt-propeller technology. That means it can lift off like a helicopter and fly like an airplane. It's called Midnight, and its all-electric design is quiet and creates no operating emissions, which makes it a more sustainable form of transportation than jet-fuel-powered aircraft.
Traveling at speeds of up to 150 miles per hour, Midnight can replace 50-mile commutes by car that take more than an hour in traffic with air-taxi flights that take only 15-20 minutes.
The time, convenience, and environmental benefits provided by eVTOL aircraft are expected to bring about a boom in high-speed urban travel. The urban air mobility market, in turn, will grow to a stunning $1 trillion by 2040, according to Morgan Stanley.
With so much growth to come, transportation industry leaders are leaping at the chance to partner with Archer. Boeing, United Airlines, Stellantis, and other notable backers have invested a total of over $1 billion in the eVTOL pioneer.
Moreover, Stellantis is helping Archer ramp up its manufacturing capabilities. At the same time, United Airlines is working with Archer to launch commercial air taxi routes in the U.S. United has also placed an order for up to $1.5 billion worth of the EV-maker's vehicles.
With these partnerships in place, Archer plans to launch electric air-taxi services by late 2025. The EV upstart's revenue could grow quickly in subsequent years as it scales its operations in the U.S. and international markets like the United Arab Emirates.
Yet despite these tantalizing growth prospects, Archer's stock is currently on sale. With its previously high-flying shares now off about 55% from their 52-week highs, Archer's market capitalization currently checks in squarely in small-cap territory at about $1 billion. Invest today, and you could enjoy multibagger returns if this flying-EV leader can jump-start an eventual trillion-dollar air-mobility industry in the coming years.
Growth stock to buy No. 2: CrowdStrike
Cybersecurity is another huge growth market. Grand View Research estimates that the market for digital defenses will grow by more than 12% annually to over $500 billion by 2023. CrowdStrike (NASDAQ: CRWD) is a leader in this booming industry and well-situated to continue to reward its shareholders.
CrowdStrike's bread and butter is endpoint security. It's the best in the business at protecting devices like smartphones, laptops, and Internet of Things (IoT) systems. The cloud sentinel is thus a key beneficiary of several major trends, including the rise of remote workforces and the shift toward edge computing.
The ever-growing mountains of data that flow through CrowdStrike's Falcon platform provide it with a powerful competitive edge. Its machine-learning technology becomes more intelligent each day as it scans over 2 trillion cyber events from around the world. And when CrowdStrike's cutting-edge artificial intelligence (AI) identifies a new danger, it upgrades its safeguards in real time.
These advantages are apparent in CrowdStrike's financial results. Revenue leaped 33% year over year to $921 million in the quarter ended April 30. Free cash flow rose by an even more impressive 42% to $322 million.
Partnerships with cloud computing giants should help to fuel CrowdStrike's expansion. On May 7, Microsoft agreed to use CrowdStrike's AI-powered threat-hunting services to bolster its Defender cybersecurity platform. Days later, CrowdStrike announced a strategic partnership with Alphabet. Google Cloud will deploy the cyber guardian's endpoint security and identity threat-detection technology to prevent breaches.
These collaborations should enable CrowdStrike to progress toward its goal of generating over $10 billion in annual recurring revenue, up from roughly $3.7 billion today. Yet that target will likely prove conservative. CrowdStrike sees its total market opportunity expanding to a whopping $225 billion by 2028.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, CrowdStrike, and Microsoft. The Motley Fool recommends Stellantis and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
2 Remarkable Growth Stocks to Buy Now and Hold for the Next Decade was originally published by The Motley Fool