Best stocks to invest in 2026 and hold forever

Long-term investing is all about identifying resilient businesses with strong fundamentals, enduring demand, and the ability to grow through market cycles. The best stocks to hold forever often share traits like consistent earnings, industry leadership, and a proven track record of rewarding shareholders.

McKesson delivers pharmaceuticals and medical products to thousands of locations, supporting both independent healthcare providers and large-scale institutions with advanced data analytics and supply chain solutions. Cencora leverages data-driven insights and advanced logistics to enhance supply chain efficiency and improve patient outcomes through comprehensive pharmaceutical distribution services. Comfort Systems USA provides mechanical contracting services specializing in HVAC, plumbing, and electrical systems for commercial and industrial clients nationwide.

These stocks span sectors such as industrials, technology, and manufacturing – yet all share a long-term value creation mindset. In 2026, these companies continue to demonstrate they can perform through economic cycles and deliver shareholder value.

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Before we dive into each company, let`s take a look at how your investment would have performed if you had invested in stocks mentioned in this article.

Now, let`s take a closer look at each of the companies:

  • McKesson (NYSE:MCK)

    McKesson Corporation is a leading healthcare distribution and services company specializing in pharmaceutical supply chain management, medical supplies, and healthcare technology solutions. Founded in 1833 and headquartered in Irving, Texas, McKesson has grown into one of the largest healthcare companies in the United States, playing a critical role in ensuring the efficient delivery of medicines and medical products. The company serves hospitals, pharmacies, and healthcare providers, helping to streamline operations and improve patient outcomes.

    With an extensive global distribution network, McKesson delivers pharmaceuticals and medical products to thousands of locations, supporting both independent healthcare providers and large-scale institutions. The company is also a key player in healthcare technology, offering advanced data analytics, automation, and supply chain solutions that enhance efficiency and reduce costs. By continuously innovating and expanding its reach, McKesson remains a vital force in the healthcare industry, ensuring access to essential medicines and improving overall healthcare delivery.

    McKesson financial statements

    Analysts recommendation: 1.65

    Financial Health

    • Return on assets (ROA): 4.78%
    • Return on equity (ROE): N/A
    • Return on investment (ROI): 66.9%

    Profitability

    • Gross margin: 3.44%
    • Operating margin: 1.37%
    • Net profit margin: 1.04%

    Growth

    • EPS (past 5 years): 39.07%
    • EPS (current): 31.99
    • EPS estimate (next quarter): 9.16
    • EPS growth (this year): 377%
    • EPS growth (next year): 12.63%
    • EPS growth (next 5 years): 14.67%
    • EPS growth (quarter-over-quarter): 378.72%
    • Sales growth (past 5 years): 9.22%
    • Sales growth (quarter-over-quarter): 10.1%

    💡 Why invest in McKesson?

    McKesson`s robust profile makes it a tempting pick for investors seeking exposure to the ever-evolving healthcare sector globally across multiple markets effectively:

    • Healthcare Distribution Leader: McKesson boasts a leading position in pharmaceutical distribution across North America, delivering a third of all drugs used in the region with predictable revenue streams and growth potential.
    • Diversified Service Offerings: Recognizing the changing healthcare landscape, McKesson expands beyond traditional drug distribution into medical-surgical supplies, laboratory equipment, and healthcare IT solutions for strategic growth.
    • Digital Technology Integration: McKesson embraces digital transformation, offering advanced IT solutions that help healthcare providers streamline operations, improve efficiency, and enhance patient care throughout the ecosystem.
    • Broad Geographic Reach: With operations spanning North America and Europe, McKesson caters to a diverse customer base and benefits from significant growth opportunities across various regional healthcare markets.

    🐌 Key considerations before investing in McKesson

    Before investing in MCK, consider these headwinds that could impact future performance and investment returns effectively across multiple regions globally:

    • Healthcare Regulatory Complexity: Evolving regulations surrounding drug pricing, healthcare reform, and data privacy can impact McKesson`s operations and necessitate costly compliance measures requiring continuous adaptation strategies.
    • Ongoing Legal Challenges: McKesson has faced legal challenges regarding its role in the opioid epidemic, generating negative publicity and potential reputation impact requiring careful monitoring and strategic responses.
    • Regional Competitor Pressure: Smaller regional players and online pharmacies are vying for market share, challenging McKesson`s dominant position through innovation and competitive pricing strategies requiring vigilance.
    • Industry Dependency Risk: McKesson`s profitability is heavily reliant on the success of pharmaceutical companies and healthcare providers, creating exposure to broader healthcare sector performance and market dynamics.

    Final thoughts on McKesson

    McKesson Corporation`s leadership in pharmaceutical distribution, diverse service offerings, and technology integration create compelling opportunities for long-term investors seeking exposure to the essential healthcare supply chain sector. However, the evolving regulatory landscape, legal challenges, rising competition, and reliance on other industry players warrant careful consideration of both opportunities and risks. Like a vital artery in the healthcare system, McKesson`s distribution network remains essential to delivering medicines and medical products, positioning it strategically despite ongoing industry challenges and competitive pressures.

  • Cencora (NYSE:COR)

    Cencora is a global pharmaceutical services company that specializes in drug distribution, consulting, and supply chain solutions for healthcare providers and manufacturers. Founded in 2001 as AmerisourceBergen through the merger of AmeriSource Health and Bergen Brunswig, the company rebranded to Cencora to reflect its evolving global presence. Headquartered in Conshohocken, Pennsylvania, Cencora has become one of the largest pharmaceutical distributors in the world, playing a crucial role in ensuring access to essential medications.

    The company provides a wide range of services, including specialty drug distribution, pharmacy management, and consulting solutions for biotech and pharmaceutical firms. With a strong focus on innovation, Cencora leverages data-driven insights and advanced logistics to enhance supply chain efficiency and improve patient outcomes. By working closely with healthcare providers, manufacturers, and pharmacies, Cencora continues to strengthen its position as a critical partner in the global healthcare ecosystem.

    Cencora financial statements

    Analysts recommendation: 1.8

    Financial Health

    • Return on assets (ROA): 3.26%
    • Return on equity (ROE): 123.75%
    • Return on investment (ROI): 14.85%

    Profitability

    • Gross margin: 3.51%
    • Operating margin: 1.14%
    • Net profit margin: 0.48%

    Growth

    • EPS (past 5 years): N/A
    • EPS (current): 7.95
    • EPS estimate (next quarter): 4.04
    • EPS growth (this year): 10.12%
    • EPS growth (next year): 10.75%
    • EPS growth (next 5 years): 10.44%
    • EPS growth (quarter-over-quarter): -10345.61%
    • Sales growth (past 5 years): 11.09%
    • Sales growth (quarter-over-quarter): 5.9%

    💡 Why invest in Cencora?

    Cencora`s robust profile presents a compelling case for investors seeking exposure to the evolving healthcare distribution sector:

    • Pharmaceutical Distribution Powerhouse: Cencora boasts a commanding presence in the US pharmaceutical distribution landscape, serving a vast network of healthcare providers and pharmacies with consistent volume and predictable revenue streams.
    • Value-Added Service Expansion: Recognizing the shifting healthcare landscape, Cencora diversifies its offerings with clinical trial logistics, specialty drug distribution, and data analytics solutions for strategic growth.
    • International Distribution Network: With operations spanning continents, Cencora taps into diverse healthcare needs and unlocks international growth potential through access to emerging markets with burgeoning healthcare demands.
    • Technology Innovation Leader: From automation in warehouses to AI-powered data analysis, Cencora invests heavily in R&D to improve efficiency and personalize healthcare delivery in a tech-driven healthcare landscape.

    🐌 Key considerations before investing in Cencora

    Like navigating complex market conditions, 34 faces headwinds requiring careful consideration from investors carefully:

    • Stock Valuation Levels: Like many established healthcare companies, COR`s stock currently sits near multi-year highs, which might limit immediate gains requiring a cautious approach with a patient long-term perspective.
    • Pharmaceutical Regulatory Environment: Evolving healthcare regulations and reimbursement challenges can impact Cencora`s profitability and operational efficiency, requiring close monitoring of regulatory changes and their potential impacts.
    • Distribution Market Competition: The healthcare sector is a competitive battleground with diverse providers vying for attention, requiring Cencora to constantly innovate and refine its offerings to maintain its competitive edge.
    • Macroeconomic Cycle Vulnerability: Healthcare spending can be impacted by economic downturns, potentially hitting Cencora`s business volume and profitability while requiring monitoring of broader economic trends and potential fluctuations.

    Final thoughts on Cencora

    Cencora`s distribution dominance, value-added services, global expansion, and technology innovation create compelling opportunities for long-term investors seeking exposure to the essential pharmaceutical distribution sector. However, near-peak valuation levels, regulatory uncertainties, intense market competition, and economic cycle sensitivity warrant careful consideration of both growth potential and inherent risks. Like a vital circulatory system delivering life-saving medications throughout the healthcare ecosystem, Cencora`s strategic positioning and operational excellence make it a critical infrastructure player despite ongoing industry challenges and competitive pressures.

  • Natural Resource Partners (NYSE:NRP)

    Natural Resource Partners LP is a diversified natural resources company that specializes in the ownership and management of mineral rights and infrastructure assets worldwide. Founded in 2002 and headquartered in Houston, Texas, the company primarily focuses on leasing its properties for coal, aggregates, and other mineral extraction activities. Natural Resource Partners generates revenue through royalty-based agreements with a vast portfolio spanning multiple US states.

    The company`s core business operations center around managing mineral reserves including coal, industrial minerals, and oil and gas assets, while also investing in transportation and infrastructure projects. Natural Resource Partners partners with industry operators to provide essential access to critical resources while minimizing environmental impact through sustainable practices. With a focus on long-term asset management and strategic diversification, the company continues supporting energy, construction, and industrial markets.

    Natural Resource Partners financial statements

    Analysts recommendation: 3

    Financial Health

    • Return on assets (ROA): 12.22%
    • Return on equity (ROE): 26.26%
    • Return on investment (ROI): 22.15%

    Profitability

    • Gross margin: 87.09%
    • Operating margin: 66.45%
    • Net profit margin: 66.38%

    Growth

    • EPS (past 5 years): N/A
    • EPS (current): 10.9
    • EPS estimate (next quarter): N/A
    • EPS growth (this year): 14%
    • EPS growth (next year): N/A
    • EPS growth (next 5 years): N/A
    • EPS growth (quarter-over-quarter): 13.75%
    • Sales growth (past 5 years): 3.1%
    • Sales growth (quarter-over-quarter): -1.5%

    💡 Why invest in Natural Resource Partners?

    NRP`s compelling profile makes it a tempting pick for investors seeking exposure to the dynamic natural resource sector:

    • Diversified Asset Portfolio: NRP boasts a diverse portfolio of mineral assets across the US including coal, industrial minerals, and aggregates, providing diversification that mitigates risk and caters to diverse industry needs.
    • Carbon Capture Ventures: Recognizing the evolving resource landscape, NRP ventures into carbon capture and sequestration activities, offering climate change mitigation solutions and positioning for sustainable growth opportunities.
    • MLP Income Distribution: As a master limited partnership (MLP), NRP prioritizes distributing significant cash flow to investors, offering attractive regular income potential for income-seeking investment portfolios.
    • Experienced Management Team: NRP`s leadership team boasts extensive experience in the natural resource sector, providing valuable insights and strategic expertise for navigating complex industry dynamics and market challenges.

    🐌 Key considerations before investing in Natural Resource Partners

    However, investors should carefully consider the challenges facing 60 in its competitive market landscape systematically:

    • Commodity Price Volatility: NRP`s profitability is heavily reliant on fluctuating prices of commodities like coal and industrial minerals, creating dependence that can lead to significant swings in stock price and revenue.
    • Regulatory Compliance Challenges: Evolving regulations surrounding environmental impact, mining practices, and carbon capture technologies can significantly impact NRP`s operations and necessitate costly compliance measures.
    • Resource Depletion Risks: The finite nature of natural resources raises concerns about long-term sustainability of NRP`s business model, requiring continuous monitoring of industry trends and exploration development activities.
    • Natural Resource Competition: Established mining companies and new entrants are vying for market share and challenging NRP`s position, requiring continuous innovation and strategic positioning to maintain competitive advantages.

    Final thoughts on Natural Resource Partners

    Natural Resource Partners LP`s diverse asset portfolio, carbon capture focus, and income distribution potential create compelling opportunities for investors seeking natural resource exposure with regular income generation. However, commodity price volatility, evolving regulations, resource depletion concerns, and competitive pressures warrant careful evaluation of cyclical resource market risks. Like skilled resource managers who balance extraction efficiency with environmental stewardship, Natural Resource Partners leverages its diversified mineral assets to generate sustainable cash flows while navigating the complex dynamics of natural resource markets.

  • Comfort Systems USA (NYSE:FIX)

    Comfort Systems USA is a leading provider of mechanical contracting services, specializing in heating, ventilation, air conditioning (HVAC), plumbing, and electrical systems for commercial and industrial clients. Founded in 1997 and headquartered in Houston, Texas, the company has grown into a nationwide network of subsidiaries that deliver integrated building solutions. With operations spanning multiple states, Comfort Systems USA serves industries such as healthcare, education, manufacturing, and data centers.

    The company`s core business focuses on designing, installing, maintaining, and upgrading energy-efficient mechanical systems that enhance building performance. Comfort Systems USA provides customized solutions for both new construction and retrofit projects, helping clients reduce operational costs and improve sustainability. By leveraging advanced technology and a skilled workforce, the company continues to be a trusted partner for businesses seeking reliable and efficient mechanical services.

    Comfort Systems USA financial statements

    Analysts recommendation: 1.5

    Financial Health

    • Return on assets (ROA): 16.44%
    • Return on equity (ROE): 43.84%
    • Return on investment (ROI): 31.94%

    Profitability

    • Gross margin: 22.78%
    • Operating margin: 13.36%
    • Net profit margin: 10.06%

    Growth

    • EPS (past 5 years): 36.52%
    • EPS (current): 23.61
    • EPS estimate (next quarter): 6.73
    • EPS growth (this year): 79.75%
    • EPS growth (next year): 17.31%
    • EPS growth (next 5 years): 34.13%
    • EPS growth (quarter-over-quarter): 101.62%
    • Sales growth (past 5 years): 21.86%
    • Sales growth (quarter-over-quarter): 35.24%

    💡 Why invest in Comfort Systems USA?

    Comfort Systems USA demonstrates compelling strengths in mechanical contracting with very strong nationwide reach:

    • Nationwide Geographic Presence: Comfort Systems boasts a vast network of over 170 locations across the US, offering diverse services to a wide range of clients and positioning the company for growth opportunities in various markets.
    • Comprehensive Mechanical Solutions: Recognizing diverse construction needs, Comfort Systems expands beyond traditional HVAC systems into plumbing, electrical work, fire protection, and modular construction solutions for strategic growth.
    • Deep Industry Expertise: With over 45 operating companies and skilled professionals, Comfort Systems brings extensive experience and expertise to every project, fostering strong client relationships and repeat business.
    • Advanced Technology Solutions: Comfort Systems embraces innovative technologies and building automation solutions, offering energy-efficient systems and enhanced building performance that resonates with environmentally conscious clients.

    🐌 Key considerations before investing in Comfort Systems USA

    Comfort Systems faces significant construction cyclicality, very intense competition, and significant labor challenges:

    • Stock Valuation Volatility: Like many construction companies, CSV`s stock can be volatile reflecting expectations of future construction spending, economic conditions, and market sentiment requiring patient long-term perspectives.
    • Construction Market Competition: Smaller regional players and larger construction firms are vying for market share, challenging Comfort Systems` dominant position and requiring continuous innovation to maintain its competitive edge.
    • Construction Cycle Dependency: The cyclical nature of the construction industry can impact Comfort Systems` revenue streams, with economic downturns leading to project delays or cancellations requiring economic trend monitoring.
    • Skilled Labor Shortages: Finding and retaining skilled workers in the construction industry can be challenging, impacting project timelines and costs while requiring effective recruitment and retention strategies for success.

    Final thoughts on Comfort Systems USA

    Comfort Systems USA`s nationwide geographic presence, diversified service portfolio, and advanced technology solutions create compelling opportunities for investors seeking exposure to the essential mechanical contracting sector. However, the company`s stock valuation volatility, intensifying market competition, and construction cycle dependency require careful evaluation of the complex dynamics in building services markets. Like a skilled HVAC engineer who designs systems that maintain perfect climate control while adapting to changing conditions, Comfort Systems combines technical expertise with strategic diversification to create sustainable value for shareholders in the evolving construction services landscape.

  • Mueller Industries (NYSE:MLI)

    Mueller Industries, Inc. is a leading manufacturer and distributor of copper, brass, aluminum, and plastic products, headquartered in Collierville, Tennessee. Founded in 1917, the company has over a century of experience in providing high-quality industrial products to diverse markets. Mueller Industries operates manufacturing and distribution facilities across North America, Europe, and Asia, serving plumbing, HVAC, refrigeration, and automotive sectors.

    Mueller Industries specializes in producing tubes, fittings, valves, and other components for fluid flow systems. The company serves diverse industries with durable and reliable solutions for critical infrastructure applications. Mueller Industries maintains strong commitments to innovation while supporting global infrastructure development and industrial applications worldwide.

    Mueller Industries financial statements

    Analysts recommendation: 1

    Financial Health

    • Return on assets (ROA): 16.2%
    • Return on equity (ROE): 26.14%
    • Return on investment (ROI): 24.24%

    Profitability

    • Gross margin: 29.47%
    • Operating margin: 24.36%
    • Net profit margin: 18.1%

    Growth

    • EPS (past 5 years): 42.73%
    • EPS (current): 6.69
    • EPS estimate (next quarter): 1.67
    • EPS growth (this year): 27%
    • EPS growth (next year): 7.69%
    • EPS growth (next 5 years): N/A
    • EPS growth (quarter-over-quarter): 26.54%
    • Sales growth (past 5 years): 9.17%
    • Sales growth (quarter-over-quarter): 8%

    💡 Why invest in Mueller Industries?

    Mueller Industries manufactures critical plumbing and HVAC system components for residential construction markets globally:

    • Industrial Manufacturing Titan: Mueller boasts a century-long legacy with leading positions in copper and brass manufacturing, translating to consistent contracts and predictable revenue streams for future growth.
    • Beyond the Pipe: Mueller expands beyond traditional copper and brass into aluminum, steel, and plastic components, plus valves and instrumentation for strategic diversification and growth opportunities.
    • Global Flow Operations: With operations spanning North America, Europe, Asia, and the Middle East, Mueller serves diverse industrial needs worldwide and accesses emerging markets with growing infrastructure demands.
    • Quality Service Symphony: Mueller thrives on its commitment to high-quality products and strong customer relationships, fostering brand loyalty and driving repeat business through superior service delivery.

    🐌 Key considerations before investing in Mueller Industries

    Mueller faces significant economic sensitivity in housing and construction sector cycles worldwide significantly:

    • Stock Valuation Concerns: Like many industrial companies, MLI`s stock can be volatile, reflecting expectations of raw material prices, economic conditions, and market sentiment requiring patient investment approaches.
    • Manufacturing Market Competition: Regional manufacturers and global conglomerates vie for market share, challenging Mueller`s position and requiring strategic competitive responses to maintain market leadership and pricing power.
    • Economic Sensitivity Jitters: Global economic downturns can significantly impact industrial spending and infrastructure projects, potentially affecting Mueller`s sales and profitability across key market segments.
    • Commodity Price Rollercoaster: Fluctuations in copper, brass, and other metal prices can significantly impact Mueller`s profitability and project costs, requiring investors to monitor commodity markets and hedging strategies carefully.

    Final thoughts on Mueller Industries

    Mueller`s diverse product portfolio, global reach, and established brand reputation create compelling opportunities for investors seeking exposure to the dynamic industrial and manufacturing sectors. However, stock volatility, rising competition, economic sensitivity, and commodity price dependence warrant careful evaluation of cyclical industrial risks. Like skilled industrial engineers who design efficient flow systems, Mueller Industries leverages its century-long expertise to deliver essential components while navigating the complex dynamics of global manufacturing markets.

  • Sterling Infrastructure (NYSE:STRL)

    Sterling Infrastructure, Inc. is a leading construction and infrastructure services company headquartered in The Woodlands, Texas, United States. Originally founded in 1955 as Sterling Construction Company, the firm has grown into a diversified provider of infrastructure solutions across the United States. With decades of experience, Sterling specializes in delivering high-quality projects that support the nation`s critical infrastructure needs.

    The company`s core business focuses on civil construction, infrastructure development, and site development services. It serves a broad range of sectors, including transportation, e-commerce, renewable energy, and water infrastructure. Known for its commitment to innovation and sustainability, Sterling Infrastructure combines cutting-edge technology with operational excellence to deliver projects that enhance connectivity, commerce, and communities.

    Sterling Infrastructure financial statements

    Analysts recommendation: 1

    Financial Health

    • Return on assets (ROA): 13.77%
    • Return on equity (ROE): 35.73%
    • Return on investment (ROI): 22.98%

    Profitability

    • Gross margin: 22.19%
    • Operating margin: 16.14%
    • Net profit margin: 14.14%

    Growth

    • EPS (past 5 years): 41.23%
    • EPS (current): 10.2
    • EPS estimate (next quarter): 2.61
    • EPS growth (this year): 69.33%
    • EPS growth (next year): 16.28%
    • EPS growth (next 5 years): 34.15%
    • EPS growth (quarter-over-quarter): 50.71%
    • Sales growth (past 5 years): 13.44%
    • Sales growth (quarter-over-quarter): 16.05%

    💡 Why invest in Sterling Infrastructure?

    Sterling Infrastructure offers strong market leadership and highly diversified services in essential infrastructure:

    • Market Leadership Position: Sterling boasts a dominant market share in heavy civil construction, offering a proven track record and expertise in building critical infrastructure projects across multiple sectors nationwide.
    • Diversified Service Excellence: Their three segments cater to a wide range of infrastructure needs, mitigating risk by not relying solely on a single market while providing comprehensive construction solutions and services.
    • Sustainability Focus Commitment: Their commitment to environmentally friendly practices aligns with the growing focus on sustainable development within the construction industry, positioning them for future opportunities.
    • Growth Potential Opportunities: The continued need for infrastructure investment, particularly in transportation and data centers, positions Sterling for potential future growth in expanding market segments and opportunities.

    🐌 Key considerations before investing in Sterling Infrastructure

    Sterling Infrastructure faces public funding reliance, intense competitive pressures, and economic sensitivity:

    • Public Funding Reliance: Infrastructure projects often rely on government funding, subject to budgetary constraints and political cycles, creating uncertainty in project availability, timing, and overall revenue predictability.
    • Infrastructure Bidding Competition: Sterling faces competition from other established construction companies vying for projects, requiring continuous innovation and competitive pricing to maintain market share and profitability.
    • Extended Project Timelines: Large-scale infrastructure projects can take years to complete, impacting cash flow patterns and profitability timelines, creating challenges for financial planning and investor expectations.
    • Economic Sensitivity Risk: Economic slowdowns can lead to decreased infrastructure spending and project delays, impacting project opportunities and creating volatility in revenue streams and business performance.

    Final thoughts on Sterling Infrastructure

    Sterling Infrastructure`s market leadership position, diversified service excellence, and sustainability focus create compelling opportunities for investors seeking exposure to the essential infrastructure sector. However, the company`s public funding reliance, competitive market pressure, and economic sensitivity require careful evaluation of the complex dynamics in infrastructure construction markets. Like a skilled engineer who builds bridges that connect communities while weathering economic storms, Sterling combines operational expertise with strategic diversification to create sustainable value for shareholders in the evolving construction landscape.

  • Dollarama (TO:DOL)

    Dollarama Inc. is a leading Canadian retailer specializing in low-cost, fixed-price merchandise across a wide range of consumer categories. Founded in 1992 and headquartered in Montreal, Quebec, the company has grown from a single store to a vast network of over 1,400 locations across Canada. Dollarama has established itself as a dominant force in the discount retail sector by offering a broad selection of everyday essentials, seasonal products, and household goods at affordable prices.

    Operating on a high-volume, low-cost model, Dollarama sources its products from both domestic and international suppliers to maintain competitive pricing. The company continues to expand its footprint and enhance its product offerings while implementing technology-driven efficiencies in inventory management and logistics. Through its commitment to value, convenience, and customer satisfaction, Dollarama remains one of Canada`s most recognizable and successful retail brands.

    Dollarama financial statements

    Analysts recommendation: N/A

    Financial Health

    • Return on assets (ROA): 15.65%
    • Return on equity (ROE): 102.25%
    • Return on investment (ROI): N/A

    Profitability

    • Gross margin: 45.69%
    • Operating margin: 22.98%
    • Net profit margin: 18.59%

    Growth

    • EPS (past 5 years): N/A
    • EPS (current): 4.71
    • EPS estimate (next quarter): N/A
    • EPS growth (this year): 19.4%
    • EPS growth (next year): N/A
    • EPS growth (next 5 years): N/A
    • EPS growth (quarter-over-quarter): N/A
    • Sales growth (past 5 years): N/A
    • Sales growth (quarter-over-quarter): 22.2%

    💡 Why invest in Dollarama?

    Several key factors make Dollarama an attractive prospect for investors seeking exposure to the discount retail market in Canada:

    • Dominant Market Leader: Dollarama boasts the largest market share in the Canadian dollar store segment, with a vast store network exceeding 1,400 locations and established brand recognition across all provinces.
    • Value-Conscious Consumer Focus: In an era of rising prices, Dollarama caters to the ever-present desire for affordability, attracting a broad customer base seeking everyday essentials at fixed low prices across all locations.
    • Diversified Product Selection: Their offerings go beyond the basics, providing a surprising variety of everyday essentials, seasonal items, and household goods across multiple categories at competitive price points.
    • Essential Needs Focus: Many Dollarama products cater to essential needs rather than discretionary purchases, offering some resilience during economic downturns when consumer spending on non-essentials typically declines.

    🐌 Key considerations before investing in Dollarama

    Like navigating complex market conditions, 104 faces headwinds requiring careful consideration from investors:

    • Limited Profit Margins: The low price point of their products translates to lower profit margins compared to traditional retailers, requiring high sales volumes and operational efficiency to maintain profitability across the network.
    • Supplier Cost Vulnerability: Dollarama relies heavily on maintaining relationships with suppliers and managing potential price fluctuations of raw materials, transportation costs, and currency exchange rates impacting product sourcing.
    • Discount Grocer Competition: The rise of discount grocery chains offering household essentials at competitive prices could pose a competitive threat, potentially eroding market share in key product categories and customer segments.
    • Canadian Market Concentration: Dollarama's current success is tied exclusively to the Canadian market, and international expansion might present new challenges including regulatory hurdles, cultural differences, and established competitors.

    Final thoughts on Dollarama

    Dollarama's dominant market position, focus on value, and diversified product offerings position it well for long-term growth in the Canadian discount retail sector. However, limited profit margins, supplier cost vulnerability, and market concentration require careful evaluation before investment. Thorough research on Dollarama's strategic initiatives and competitive positioning is crucial before adding them to your portfolio.

  • Kongsberg (OL:KOG)

    Kongsberg Gruppen is a premier Norwegian defense and technology company specializing in advanced weapon systems, military electronics, and defense solutions for NATO allies and international defense customers worldwide. Founded in 1814 and headquartered in Kongsberg, Norway, the company has evolved from a traditional defense contractor into a global leader in missile systems, remote weapon stations, and advanced military technologies. The company has demonstrated strong growth in defense contracts, particularly benefiting from increased European defense spending and NATO modernization programs following heightened geopolitical tensions.

    The company`s defense portfolio encompasses advanced missile systems including Naval Strike Missile (NSM) and Joint Strike Missile (JSM), remote weapon stations for military vehicles, air defense systems, and specialized defense electronics for military platforms. Kongsberg`s products are integral to critical defense capabilities including anti-ship warfare, air defense networks, and vehicle protection systems used by NATO forces and allied nations. With rising global defense expenditure and increasing demand for advanced military technologies, Kongsberg is strategically positioned to capitalize on European defense modernization programs and the growing need for sophisticated weapon systems.

    Kongsberg financial statements

    Analysts recommendation: N/A

    Financial Health

    • Return on assets (ROA): 6.85%
    • Return on equity (ROE): 36.74%
    • Return on investment (ROI): N/A

    Profitability

    • Gross margin: 59%
    • Operating margin: 15.2%
    • Net profit margin: 12.93%

    Growth

    • EPS (past 5 years): N/A
    • EPS (current): 8.01
    • EPS estimate (next quarter): N/A
    • EPS growth (this year): 25.3%
    • EPS growth (next year): N/A
    • EPS growth (next 5 years): N/A
    • EPS growth (quarter-over-quarter): N/A
    • Sales growth (past 5 years): N/A
    • Sales growth (quarter-over-quarter): 11.6%

    💡 Why invest in Kongsberg?

    Kongsberg demonstrates compelling strengths in Norwegian defense and extremely strong NATO defense integration:

    • NATO Defense Integration: Kongsberg`s missile systems and remote weapon stations are deeply integrated into NATO defense infrastructure, creating long-term revenue streams through procurement programs and strategic partnerships.
    • Norwegian Defense Leadership: The company holds dominant market positions in anti-ship missiles, vehicle protection systems, and defense electronics across European markets, providing substantial competitive advantages.
    • Defense Spending Tailwinds: Kongsberg benefits from NATO`s commitment to increase defense spending to 2% of GDP and widespread military modernization programs across European allied nations driven by tensions.
    • Cutting-Edge Defense Tech: The company`s expertise in precision strike capabilities, autonomous systems, and integrated defense solutions creates significant technological advantages and premium pricing power.

    🐌 Key considerations before investing in Kongsberg

    Kongsberg faces defense budget volatility, strict export controls, and very intense competition market pressures:

    • Defense Budget Volatility: Heavy reliance on European defense spending makes the company vulnerable to budget cuts, political changes, and shifts in military priorities that could impact contract values and growth.
    • Export Control Restrictions: As a defense contractor, Kongsberg faces strict export controls, arms transfer regulations, and potential sanctions that can limit international sales opportunities and create compliance challenges.
    • Project Management Challenges: Complex military development programs and large-scale defense contracts face potential delays, cost overruns, and technical challenges that could impact profitability and ministry relationships.
    • Global Defense Competition: Kongsberg faces intense competition from established defense contractors like Raytheon, MBDA, and Lockheed Martin, which have superior resources, global reach, and established relationships.

    Final thoughts on Kongsberg

    Kongsberg`s leadership in European defense systems, strategic integration with NATO military capabilities, and advanced weapon technologies create compelling opportunities for investors seeking exposure to the growing European defense sector. However, the company`s exposure to defense budget volatility, export restrictions, program execution risks, and competitive pressures require careful evaluation of the complex dynamics in defense markets. Like a battle-hardened commander who combines tactical precision with strategic vision, Kongsberg leverages its technological excellence and defense relationships to navigate geopolitical complexities while delivering mission-critical systems for allied forces worldwide.

  • Saab (ST:SAAB-B)

    Saab AB is a premier Swedish defense and aerospace company specializing in advanced fighter aircraft, naval systems, and electronic warfare technologies for NATO allies and international defense customers worldwide. Founded in 1937 and headquartered in Stockholm, Sweden, the company has evolved from an aircraft manufacturer into a comprehensive defense technology provider with cutting-edge capabilities in military aviation, submarine systems, and radar technologies. The company has demonstrated strong growth in defense contracts, particularly benefiting from increased European defense spending and NATO modernization programs following heightened geopolitical tensions in Northern Europe and the Baltic region.

    The company`s core business revolves around the Gripen fighter aircraft, advanced radar and sensor systems, submarine technologies, missile systems, and integrated command and control solutions for military operations. Saab`s products are integral to critical defense capabilities including air defense networks, electronic warfare, maritime security, and battlefield management systems used by NATO forces and allied nations. With rising global defense expenditure and increasing demand for advanced military technologies, Saab is strategically positioned to capitalize on European defense modernization programs and the growing need for sophisticated defense systems in response to evolving security threats across NATO`s northern and eastern flanks.

    Saab financial statements

    Analysts recommendation: N/A

    Financial Health

    • Return on assets (ROA): 3.99%
    • Return on equity (ROE): 13.55%
    • Return on investment (ROI): N/A

    Profitability

    • Gross margin: 22%
    • Operating margin: 8.59%
    • Net profit margin: 7.18%

    Growth

    • EPS (past 5 years): N/A
    • EPS (current): 9.63
    • EPS estimate (next quarter): N/A
    • EPS growth (this year): -1.1%
    • EPS growth (next year): N/A
    • EPS growth (next 5 years): N/A
    • EPS growth (quarter-over-quarter): N/A
    • Sales growth (past 5 years): N/A
    • Sales growth (quarter-over-quarter): 17.2%

    💡 Why invest in Saab?

    Saab demonstrates compelling strengths in Nordic defense innovation and strong NATO technology leadership globally:

    • Nordic Defense Leadership: Saab holds dominant market positions in fighter aircraft, radar systems, and electronic warfare across Northern European defense markets, creating substantial competitive advantages and high barriers to entry.
    • Defense Technology Innovation: The company invests approximately 25% of annual revenue into defense R&D, developing next-generation military technologies in electronic warfare, autonomous systems, and stealth capabilities.
    • NATO Spending Beneficiary: Saab benefits from NATO`s commitment to increase defense spending to 2% of GDP and widespread military modernization programs across European allied nations driven by geopolitical tensions.
    • Defense Export Strategy: The company has successfully expanded its global defense footprint beyond Europe with strategic military partnerships in Asia, Middle East, and the Americas, creating diversified revenue streams.

    🐌 Key considerations before investing in Saab

    Saab faces significant European budget volatility, very intense competitive pressures, and export restrictions:

    • European Budget Volatility: Heavy reliance on European defense spending makes the company vulnerable to budget cuts, political changes, and shifts in military priorities that could impact contract values and growth prospects.
    • Defense Sector Competition: Saab faces intense competition from larger defense contractors like Lockheed Martin, BAE Systems, and Thales, which have superior resources, global reach, and established military relationships.
    • Defense Export Restrictions: As a Swedish defense contractor, Saab faces strict export controls, arms transfer regulations, and potential political restrictions that can limit international sales opportunities.
    • Complex Program Execution: Major defense development programs like fighter aircraft and submarine systems involve significant technical challenges, potential delays, and cost overruns that could impact profitability.

    Final thoughts on Saab

    Saab`s leadership in Nordic defense systems, technological innovation in military capabilities, and strategic positioning within European security frameworks create compelling opportunities for investors seeking exposure to the growing defense technology sector. However, the company`s exposure to defense budget volatility, competitive pressures, export restrictions, and complex program execution risks require careful evaluation of the specialized dynamics in defense markets. Like a sophisticated radar system that detects threats beyond the horizon, Saab combines technological excellence with strategic vision to navigate geopolitical complexities while delivering advanced defense solutions for NATO allies and partner nations worldwide.

  • Dassault Aviation (PA:AM)

    Dassault Aviation is France`s premier defense contractor and aerospace technology company specializing in advanced military fighter jets, business aircraft, and defense systems for global markets. Founded in 1929 by Marcel Dassault and headquartered in Saint-Cloud, France, the company has evolved into Europe`s leading independent defense aerospace manufacturer with cutting-edge capabilities in combat aircraft and luxury aviation. The company has demonstrated exceptional growth in international defense contracts, particularly benefiting from increased global defense spending and military modernization programs across allied nations seeking advanced fighter aircraft and sophisticated defense technologies.

    The company`s defense portfolio encompasses the Rafale multi-role fighter jet used by French Air Force and international customers, advanced military avionics and electronic warfare systems, unmanned aerial vehicles for defense applications, and the prestigious Falcon business jet series for government and corporate clients. Dassault supplies critical defense technologies to major military programs including NATO air forces, Middle Eastern defense customers, and European allied nations requiring advanced combat capabilities. With rising global defense expenditure and increasing demand for sophisticated military aircraft, Dassault Aviation is strategically positioned to capitalize on international defense modernization initiatives and the growing need for advanced fighter jets in response to evolving security threats worldwide.

    Dassault Aviation financial statements

    Analysts recommendation: N/A

    Financial Health

    • Return on assets (ROA): 1.15%
    • Return on equity (ROE): 12.93%
    • Return on investment (ROI): N/A

    Profitability

    • Gross margin: 38.62%
    • Operating margin: 6.33%
    • Net profit margin: 11.62%

    Growth

    • EPS (past 5 years): N/A
    • EPS (current): 9.99
    • EPS estimate (next quarter): N/A
    • EPS growth (this year): -29.4%
    • EPS growth (next year): N/A
    • EPS growth (next 5 years): N/A
    • EPS growth (quarter-over-quarter): N/A
    • Sales growth (past 5 years): N/A
    • Sales growth (quarter-over-quarter): 12.5%

    💡 Why invest in Dassault Aviation?

    232 offers compelling strengths for investors seeking exposure to its market sector and long-term growth potential:

    • Rafale Fighter Dominance: The Rafale multi-role fighter jet secures major international defense contracts worth billions, creating long-term revenue streams from countries including India, Egypt, Qatar, and Greece.
    • French Defense Leadership: Maintains France`s independent defense aerospace capabilities with advanced military tech, benefiting from European strategic autonomy initiatives and increased defense spending across NATO allied nations.
    • Premium Business Aviation: The Falcon jet series commands premium pricing in luxury business aviation markets, generating high-margin revenue from government, corporate, and ultra-high-net-worth customers seeking advanced avionics.
    • Superior Combat Aircraft: Develops cutting-edge defense technologies including stealth capabilities, electronic warfare systems, and next-generation fighter concepts that secure long-term government contracts.

    🐌 Key considerations before investing in Dassault Aviation

    232 faces several challenges that investors must evaluate carefully before making investment decisions efficiently:

    • Government Sales Reliance: Heavy reliance on government defense contracts makes the company vulnerable to budget cuts, political changes, and shifts in military priorities that could impact revenue stability and international sales.
    • Competitive Fighter Market: Faces intense competition from established defense giants like Lockheed Martin`s F-35, Boeing`s F/A-18, and Eurofighter consortium with superior resources and established military relationships globally.
    • Geopolitical Export Risks: International fighter jet sales subject to complex export regulations, diplomatic tensions, and geopolitical considerations that can delay or cancel major defense contracts affecting financial performance.
    • Business Aviation Volatility: Falcon jet sales vulnerable to economic downturns, corporate spending cuts, and luxury market fluctuations that can significantly impact high-margin business aviation revenue streams.

    Final thoughts on Dassault Aviation

    Dassault Aviation`s Rafale fighter dominance, European defense leadership, premium business aviation portfolio, and advanced military technology create compelling opportunities for investors seeking exposure to the French defense and aerospace sectors. However, defense contract dependency, competitive fighter markets, geopolitical export risks, and business aviation volatility warrant careful evaluation of specialized aerospace industry dynamics. Like a sophisticated Rafale fighter delivering superior performance across multiple mission profiles, Dassault combines engineering excellence with strategic defense positioning to navigate competitive challenges while maintaining France`s independent aerospace capabilities and serving global defense modernization requirements.

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