Investors who look for attractive total potential long-term investment opportunities may want to consider the following 3 great growth stocks:
- Danaher Corporation (DHR)
- Intuitive Surgical (ISRG)
- Stryker Corporation (SYK)
I have covered all 3 companies in recent posts.
When I make investment suggestions, I typically 'put my money on the line'; I acquire shares in the recommended companies.
In recent months, inflation concerns have dampened the momentum witnessed in high-flying stocks. Many companies with underlying fundamentals that did not support their lofty valuation have dropped significantly in value. Examples include, but are not limited to:
- Peloton Interactive, Inc. (PTON)
- Lemonade, Inc. (LMND)
- Skillz Inc. (SKLZ)
- Chegg, Inc. (CHGG)
- Teladoc Health, Inc. (TDOC)
- Zillow Group, Inc. (ZG and Z)
These companies are trading below 70% of their 52-week high.
Looking at the SEC Filings for these companies, I wonder what would have possessed investors to remotely consider investing in these companies to begin with!
On the other hand, we have great companies:
- with a proven track record of profitability;
- that generate very strong Free Cash Flow;
- that are shareholder-friendly;
- whose debt is investment grade or which have no 'net debt' (eg. ISRG);
- that have grown significantly yet still have significant growth potential!
These 3 great growth stocks are somewhat slightly overvalued. They are, however, unlikely to become 'grossly undervalued' because they are of such high quality and have significant growth potential.
Should investors acquire shares in these companies when they are fully valued, my suggestion is to acquire more shares should their valuation improve.
The following outlines my recent purchases in these 3 great growth stocks for long-term investors.
In this recent post, I disclose initiating a new position by way of a 50 share purchase at ~$307/share in one of the 'Core' accounts within the FFJ Portfolio.
DHR's share price has subsequently pulled back. On January 7 I acquired another 50 shares at ~$294.27.
Intuitive Surgical (ISRG)
In this post, I disclose a new position by way of a 30 share purchase at ~$336/share in one of the 'Core' accounts within the FFJ Portfolio. I also initiated a position at a similar price in an account for which I do not disclose details.
In this November 22 post, I disclose the purchase of an additional 30 shares at ~$340/share.
Following a recent share price pullback, I acquired another 40 shares at ~$324/share on January 7.
Stryker Corporation (SYK)
I last reviewed SYK in this November 22, 2021 post.
On November 30, I added to my existing exposure with the purchase of additional shares at ~$240/share in one of the 'Core' accounts within the FFJ Portfolio. I also acquired additional shares at a similar price in an account for which I do not disclose details.
I purchased additional shares on January 7 at ~$264/share in the 'confidential' account for which I purchased shares on November 30.
3 Great Growth Stocks For Long-Term Investors - Final Thoughts
The risk of rising interest rates is likely to lead to a decline in the share price of many richly valued stocks. It could take years for the share price of some of these companies to return to their recent '52 week high'. In some cases, the share prices may NEVER revisit their recent high (ie. they won't survive).
In the case of the 3 great growth stocks for long-term investors I recommend, it is possible their share price may come under pressure in the coming months. The underlying fundamentals and growth potential of these companies, however, make it highly likely that they will be far more valuable in the future even if interest rates do rise.
It is very difficult to consistently acquire shares at the most favourable valuation. As a result, I recommend investors acquire shares in these companies over time. Rather than be dismayed by a drop in the share price following a purchase, I suggest investors adopt a positive outlook when the share price of a great company declines.
I wish you much success on your journey to financial freedom!
Note: Please send any feedback, corrections, or questions to [email protected].
Disclosure: I am long DHR, ISRG, and SYK.
Disclaimer: I do not know your circumstances and do not provide individualized advice or recommendations. I encourage you to make investment decisions by conducting your research and due diligence. Consult your financial advisor about your specific situation.
I wrote this article myself and it expresses my own opinions. I do not receive compensation for it and have no business relationship with any company mentioned in this article.