While going on a spending spree with your tax refund might seem tempting, a better approach with your windfall may be to invest in long-term stocks to buy. For one thing, that refund isn’t really that. Instead, it’s the amount you overpaid in taxes. Thus, it amounts to an interest-free loan that you gave Uncle Sam so don’t get too happy about it.

Second, the average tax “refund” amounted to $3,176 in 2022. While many families could see smaller checks this year, we’re still talking a big chunk of cash. Naturally, you don’t want to blow it all on frivolous purchases that you’ll regret later. Rather, it’s better to consider an accretive approach, particularly long-term stocks to buy that can give you back your refund and then some.

Finally, if buy something stupid with your refund, the money and any associated benefits evaporate. On the other hand, if certain long-term stocks to buy don’t work out, you may use the losses to your advantage, so as to offset capital gains. With that in mind, below are some enticing market ideas to consider.

IBM (IBM)

For many years, IBM (NYSE:IBM) struggled as other technology firms stole its thunder. Dragged down by legacy businesses, “Big Blue” just couldn’t keep pace with younger, nimbler competitors. However, management got its act together and now, a “new” Blue is in town.

Don’t believe me? While the tech-centric Nasdaq Composite index dropped nearly 17% of market value in the trailing year, IBM managed to poke its head just above parity. It’s not an impressive performance by itself but it’s a lot better than 17% down. Plus, unlike other tech firms that absorbed double-digit percentage losses in 2022, IBM pays a dividend.

Indeed, its forward yield stands at 4.93%, which ranks well above the tech sector’s average yield of 1.37%. Additionally, the company’s payout ratio is 65.45%, which while not small still represents a manageable figure. As well, IBM commands 29 years of consecutive dividend increases, making it one of the best long-term stocks to buy. Admittedly, Wall Street’s consensus assessment for IBM is a hold. However, the average price target of $143.56 implies upside potential of over 7%.

Exxon Mobil (XOM)

Given all the political dynamism associated with clean energy infrastructures, Exxon Mobil (NYSE:XOM) might not seem a bright idea for long-term stocks to buy. However, as President Joe Biden stated, we’re going to need oil for the next 10 years. If the leader of the Democrats believes in big oil, perhaps you should too.

Indeed, my first reaction was that we’re going to need hydrocarbons for much longer than 10 years. Sure enough, other much more esteemed individuals stated the same thing. Therefore, as intolerable as XOM might seem to some investors going all-in on green energy, it’s one of the long-term stocks to buy.

If it makes anyone feel any better, while XOM wouldn’t be considered cheap, it’s fiscally robust. Right now, both its long-term revenue trend and trailing-year profitability metrics rate above sector median stats. Additionally, Exxon Mobil enjoys a strong balance sheet. Finally, Wall Street analysts peg XOM as a consensus moderate buy. Further, their average price target stands at $125.28, implying upside potential of almost 10%.

Intuit (INTU)

You just got done doing your taxes and getting your so-called refund. Why then should you invest in Intuit (NASDAQ:INTU), the popular tax and accounting software provider? Mainly, Intuit helps doing taxes a less onerous and painful process. Therefore, you can feel good knowing that your money supports a noble cause. More importantly, though, Intuit enjoys an underappreciated catalyst: the gig economy.

Everyone loves talking about the gig economy because of its lucrative potential. One research firm believes it will command a valuation of $873 billion by 2028. It very well might but here’s the thing: what really distinguishes employees from independent contractors (gig workers) is the tax-filing requirements.

Long story short, gig workers essentially operate as businesses; that is, people are in business for themselves. Therefore, the taxes are appropriately complex. For first time gig workers, Intuit’s tax programs may be a lifesaver. Currently, Wall Street analysts peg INTU as a consensus strong buy. Also, their average price target stands at $492.33, implying over 17% upside potential. Therefore, it’s a great idea for long-term stocks to buy.

Consolidated Water (CWCO)

By most measures, Consolidated Water (NASDAQ:CWCO) represents a boring example of long-term stocks to buy. Per its website, Consolidated is an international water solutions company, supplying potable water, treating water for reuse, and manufacturing and providing water-related products and services. To be fair, it’s boilerplate stuff.

However, where Consolidated gets interesting is in desalination. On one of its webpages, the company “designs, builds, operates, and in some cases finances seawater reverse osmosis (SWRO) desalination plants and water distribution systems in several Caribbean countries, where the supply of drinking water is scarce and the use of SWRO is economically feasible.”

Here’s the deal – water scarcity represents a brewing global crisis. Over the long run, desalination stands poised to deliver incredible solutions. Also, advancements in renewable energy infrastructures or even nuclear could make desalination even more feasible. Presently, one analyst covers CWCO with a buy rating and a price target implying upside of 35%. For speculators, it’s well worth consideration for long-term stocks to buy.

Kelly Services (KELYA)

One of the discombobulating circumstances associated with the post-pandemic new normal centers on how quickly circumstances may change. Earlier, it seemed as if employers were begging for job applicants, throwing in concessions wherever possible. These days, however, mass layoffs appear to be a central theme, particularly for the tech industry.

Fortunately, that’s where Kelly Services (NASDAQ:KELYA) might bring some hope to the table. As a staffing agency, its phone lines are probably busy at the moment. And they could get busier still. That’s because Kelly doesn’t just specialize in one particular niche, like finance and accounting. Rather, the company features connections with a broad range of industries.

What I’m getting at is that beggars can’t be choosers. Once the bills start piling up, people may lose their pride and pick up a warehousing shift. Thus, KELYA makes for an intriguing (albeit cynical) candidate for long-term stocks to buy. Finally, covering analysts peg KELYA as a consensus moderate buy. As well, their average price target stands at $24.50, implying upside potential of over 36%.

Rover (ROVR)

Americans love their pets – perhaps a bit too much. Still, the numbers won’t be denied. In 2021, the American Pet Products Association revealed that total pet industry sales hit $123.6 billion. Personally, I’d bet an even stronger result for 2022. And that bodes well for Rover (NASDAQ:ROVR), a platform that connects dog owners with independent canine service providers.

Now, during the worst of the coronavirus pandemic, most white-collar workers operated remotely. However, more than a few high-profile enterprises began recalling their employees. Suddenly, pet owners no longer can care for their furry friends. Therefore, to keep their four-legged family members occupied, a professional dog care specialist may be necessary. In my view, then, ROVR represents an enticing name among long-term stocks to buy.

Despite its volatility risks, Wall Street analysts peg ROVR as a consensus moderate buy. Also, their average price target stands at $5.58, implying upside potential of almost 41%.

COMPASS Pathways (CMPS)

If you’re feeling that something isn’t quite right in the U.S., you’re not alone. According to a survey which CNN conducted in partnership with the Kaiser Family Foundation, an overwhelming majority of Americans believe the country is experiencing a mental health crisis. I’m not going to dive too deeply into the topic but many of the individual stories are heart wrenching.

However, COMPASS Pathways (NASDAQ:CMPS) offers an innovative solution. Leveraging psilocybin therapy, Compass aims to help patients suffering from treatment-resistant depression. Of course, the company attracts some misunderstandings as psilocybin represents a naturally occurring psychedelic. Still, clinical evidence suggests that the approach carries much potential, though additional research must be undertaken.

Inherently, CMPS is a high-risk, high-reward venture among long-term stocks to buy. Still, if you decide to go ahead, you’ll be glad to know that Wall Street stands behind you. Currently, CMPS carries a strong buy consensus view. As well, analysts believe shares will hit $56, implying nearly 500% upside potential.

On the date of publication, Josh Enomoto 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.