Stocks to buy

It’s imperative to understand that not all of the best long-term stocks are typically high risk, high reward. They require investors to believe in their long-term potential to gain traction and cement their positioning in their respective sectors.

The reward for long-term stocks tends to be quite high. However, there’s no certainty that the thesis will pan out as advertised; therefore, it’s best to approach long-term stocks with cautious optimism.

The current market is remarkably frustrating for investors, and perhaps the best course of action is to dig up the best long-term stocks to buy for troubled times. The market has been on a downward trajectory since the start of the year, and it isn’t conducive for short-term plays at this time.

The benchmark interest rates will continue to rise until inflation rates are under control. Such as scenario bodes terribly for growth-focused stocks, which are typically dependent on the overall entrepreneurial sentiment.

OPI Office Properties Income $14.05
IBM IBM $118.81
UPWK Upwork $13.62
SE Sea Ltd $56.05
QS QuantumScape $8.41
NUE Nucor $106.99
JOBY Joby Aviation $4.33

Office Properties Income (OPI)

Office Properties Income (NASDAQ:OPI) is a leading office real-estate-investment-trust (REIT) that owns a portfolio of 172 office properties across the U.S.

These spatially-diversified properties are leased to high-rated tenants, the largest of which is the U.S. government.

Having the government as one of the top tenants gives it plenty of competitive advantages. First, they are unlikely to default on their obligations and perform sensitive work that cannot be performed in remote or hybrid working arrangements. Therefore, it provides stability of continuing cash flows which is crucial for OPI.

Moreover, leasing volume in its most recent quarter was up by double-digit margins with average terms of roughly 10 years. Also, overall occupancy levels stood at almost 90%, which dispels concerns regarding renewal risk.

IBM (IBM)

Source: shutterstock.com/LCV

Hardware giant IBM (NYSE:IBM) hasn’t been a sexy option for equity investors for a while now. The years-long consolidation pattern in its stock has been a put-off for investors. However, its recent results paint a positive picture for its future, making it one of the best long-term stocks to buy today.

Its second-quarter results saw earnings of $2.31, beating analyst targets of $2.27. Moreover, sales of $15.54 billion also came in ahead of consensus expectations of $15.18 billion. The results are in large part a result of its multi-year efforts to become an effective hybrid-cloud services provider.

Tech infrastructure sales during the quarter rose by 25%, excluding currency impact, and due to an 18% jump in its Z Systems hybrid and cloud computers sales.

In the first half of 2022, the firm reported strong free cash flows of $3.3 billion, compared to $2.6 billion in the same period last year. For the full year, it expects to make $10 billion in FCF, up from $6.5 billion last year.

Upwork (UPWK)

Source: Funstock / Shutterstock.com

Upwork (NASDAQ:UPWK) is one of the top freelancing and work-management marketplaces. The massive growth of the freelance market has helped the business generate double-digit revenue expansion over the past five years.

Moreover, the pandemic has significantly accelerated the trend towards remote working and freelancing, which bodes remarkably well for UPWK.

Upwork’s recent results have held up impressively, despite fears of a potential slowdown linked to Russia. It continues to add new features to its platforms, such as consultations, a client marketplace plan, and other extensors to expand its market share.

As we advance, the recessionary pressures will likely lead to layoffs and more people will join the gig economy. Also, the firm is looking at a massive $1.3 trillion market opportunity in gross services volume over the long term.

Sea Ltd (SE)

Source: Muh.Imron / Shutterstock.com

Sea Ltd (NYSE:SE) is one of the top Southeast Asian eCommerce and gaming giants. It was among a few eCommerce businesses that thrived during the pandemic, posting triple-digit top-line growth numbers. However, its growth rates have cooled off for its gaming and eCommerce segments which have investors fretting over its future.

Though its growth rates have normalized considerably, they are still up by double-digit margins in its most recent quarter. In cutting down its losses, the company looks to reduce its presence in Latin America, shut its operations in India and downsize its core Southeast Asian businesses.

These efforts will free up more resources to potentially invest in SeaMoney, its fintech arm that continues to grow at an extraordinary pace. The Southeast Asian eCommerce market will likely witness the fastest digital sales growth worldwide this year, which points to massive remaining upside potential.

QuantumScape (QS)

Source: InvestorPlace

QuantumScape (NYSE:QS)  is a company involved in researching and developing solid-state battery technology.

These batteries are expected to be far superior to the lithium-ion batteries currently in use, with greater energy density and charging times.

Moreover, it boasts agreements from some of the leading automotive giants already and is likely to gain massive traction if it can produce at a meaningful scale over the next few years. It remains a speculative bet, though, but perhaps significantly more attractive, considering it trades more than 63% down this year.

The firm’s massive patent and intellectual property portfolio give it a major edge over its competition. Moreover, it has nailed its objectives so far and is coming off its most successful year to date.

It successfully tested out 10-layer cells last year and is now testing out 24-layer cells. Though it has a long way to go, there’s no denying its moonshot potential.

Nucor (NUE)

Source: Postmodern Studio / Shutterstock

Last year was a superb year for the steel sector, and earnings for major companies soared during the pandemic. Nucor (NYSE:NUE) was one of the big names that benefitted immensely from the market tailwinds, reporting a massive $6.8 billion in earnings last year compared to $721.5 million in 2020.

The momentum carried into this year with booming steel demand due to the economic sanctions against Russia. Hence, NUE is in for another incredible showing this year.

However, the market is spooked by recession worries and a whole host of other macroeconomic factors. Hence, the stock trades at a hefty discount to its forward sales estimates.

Another incentive for long-term investors is that Nucor is one of the cleanest steelmakers worldwide, making it an appealing ESG investment. The comapny has grown its dividend payout for 49 straight years, further solidifying its bull case.

Joby Aviation (JOBY)

Source: T. Schneider / Shutterstock.com

Joby Aviation (NYSE:JOBY) aims to revolutionize the transport sector by commercializing flying taxis. Though they seemed like a stretch a few years ago, flying taxis could get commercialized within the next few years.

Joby is aptly called the “Uber of the Sky.” It acquired ride-hailing giant Uber’s Flying Taxi division called Uber Elevate a couple of years ago and has been building its partnerships with automotive titan Toyota. It plans to run its commercial operations by 2024.

Flying taxis are the need of the hour in some metropolitan cities. A study showed that 70% of the world’s population is expected to live in cities by 2050. Hence, JOBY stock might be an interesting long-term play for those that can stomach the volatility.

On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines

Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.

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