Stocks to buy

3 Long-Term Stocks to Buy on the Dip: February 2024

As someone who has dabbled with high-stakes assets like cryptocurrencies or options trading, I can tell you that there’s a certain feeling of confidence with long-term stocks to buy that you just don’t get through extreme speculation.

Recently, I shared my step-by-step account of trading Biomea Fusion (NASDAQ:BMEA) options. One element that I discovered was the intense emotions that are part and parcel of involvement in the derivatives market. Glued to the trading desk, I was zeroed in on every blip and every dip. I also agonized in the closing hours of the session whether I should stay or leave.

With long-term stocks to buy, you don’t think about that stuff at all. Instead, you’re typically dealing in a timeframe of years, not minutes or even seconds. That means you can perform your due diligence, sit back and let others run around with their hair on fire.

Investing doesn’t have to involve unnecessary drama. If you’re feeling this mood, these are the long-term stocks to buy and hold.

UnitedHealth (UNH)

Source: Ken Wolter / Shutterstock.com

As a healthcare stalwart focused on insurance and other key services, UnitedHealth (NYSE:UNH) isn’t going anywhere. Fundamentally, it’s one of the top long-term stocks to buy and hold indefinitely because of myriad and burgeoning relevancies. Yes, everyone needs care, which keeps the lights on and then some at UnitedHealth. However, the company will also benefit from longstanding demographic trends.

Following the end of World War II, the U.S. experienced a massive population growth – the baby boom. However, humans get older and when they do, they increasingly require care. Further, the focus on future political administrations in dealing with various healthcare reforms should be a net benefit to UnitedHealth. Again, aging is an inevitability and that affords UNH a level of permanent relevance.

Unsurprisingly, hedge funds understand this concept very well. Since the fourth quarter of 2022, these major players’ exposure to UNH increased by over 27%. Moreover, TipRanks characterizes the underlying confidence signal as “very positive.”

Lastly, analysts rate UNH a consensus strong buy with a $593.13 price target, implying over 14% upside.

Western Digital (WDC)

Source: T. Schneider / Shutterstock.com

A computer drive manufacturer and data storage enterprise, Western Digital (NASDAQ:WDC) has been having a quietly robust year. In the past 52 weeks, shares gained almost 36%. Part of the sentiment surrounds the company’s decision – announced late October last year – to split into two independent public enterprises. Both businesses could be exciting and offer significant implications for future applications.

For example, Western Digital’s enterprise-level solid-state drives (eSSDs) can help accelerate data center workloads and achieve maximum throughput. Further, as artificial intelligence protocols expand in scale and scope, computers will almost certainly require more storage and memory needs. To that end, Western Digital recently announced that it will invest billions into the development of cutting-edge memory chips for advanced innovations such as generative AI.

Not shockingly, hedge funds’ sentiment toward WDC is “very positive.” Per TipRanks, their collective exposure to WDC increased by 73.5% between Q1 and Q3 of last year. Analysts also peg shares a moderate buy with a $66.76 price target. Thus, it’s one of the long-term stocks to buy.

Occidental Petroleum (OXY)

Source: IgorGolovniov / Shutterstock.com

At first glance, the idea of targeting hydrocarbon specialist Occidental Petroleum (NYSE:OXY) as one of the long-term stocks to buy seems odd. After all, electric vehicles are the future – and renewables and zero emissions and all that sweet jazz. However, the reality is that the world runs on oil. Part of that comes down to science. Simply put, fossil fuels command much higher energy densities than other forms of energy.

So, it very well might be that the world may continue to run on oil for a long time. After all, why would the U.S. Energy Information Administration fret about the possibility of running out of oil if wind turbines and solar panels represent our future? As my fellow elementary school students used to say when they held up three fingers: read between the lines.

And that’s exactly what the hedgies are doing, reading between the lines. Exposure to OXY among these top investors has increased substantially since Q4 2021. And insider sentiment is positive, with Warren Buffett’s Berkshire Hathaway (NYSE:BRK-B) recently buying up shares.

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.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.

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