The strong bull market run in recent years has most investors seeing big gains in their retirement plans. While the gains are on paper, they are very real and investors are likely sitting on record high 401k balances.
While everyone wins when the overall market hits record highs, there will be a time when the market corrects, and when that occurs the best way to protect current gains is by holding stocks that have the best long-term outlook regardless of overall market conditions.
Retirement investing is a very long-term game. Safety is paramount, but you also want to make sure that you have solid upside potential in your holdings over the long run in order to best position yourself for your retirement years.
Here are a few stocks that have great long-term outlooks that every investor should consider holding in their retirement accounts.
Microsoft (MSFT)
Tech titan Microsoft (MSFT) has been a driving force in the recent bull market, and the long-term outlook for the stock remains very favorable. The company has carved out a leadership role in cloud computing which will likely drive sales and earnings for years to come. Cloud computing is currently the fastest growing sector in technology and last quarter the company reported Azure revenue jumped 62% year over year. Microsoft still trails Amazon in the cloud market, but it is gaining ground. The company recently was awarded a $10 billion Pentagon contract that gives the company an entry into the government which is a big opportunity for future business. MSFT trades at $`87.36 with an average price target of $194.23.
Amazon.com (AMZN)
Amazon.com (AMZN) has several things working in its favor for the long-term. The most obvious is the company's clear dominance of the e-commerce space. Consumer shopping habits have shifted strongly to online shopping, and Amazon is the undisputed leader in the space. Amazon is also a leader in the cloud-computing space which creates a solid and growing revenue stream for the foreseeable future. Another reason to be bullish on the company is its strong Amazon Prime business which gives consumers not only quick shipping on their online purchases, but also membership into Amazon Prime Video which is a big draw as more and more consumers cut the cord with their pay-tv providers and get their video content online. Amazon has grown its profits 100% per annum over the last five years, and looking ahead analysts expect average annual bottom-line growth of 31% over the next five years. With such strong growth, AMZN is a clear buy and hold stock for long-term investors. AMZN trades at $2,179.85 with an average price target of $2,382.12.
Johnson & Johnson (JNJ)
Healthcare leader Johnson & Johnson (JNJ) is best known for its consumer products, but the company's consumer goods represent just one segment of the company's business with Johnson & Johnson also being a big player in the pharmaceutical and medical devices industry. JNJ is a very mature company but continues to show solid growth. Profits have increased 9.9% annually in the last five years, and looking ahead analysts forecast bottom-line growth of 5.7% per annum over the next five years. There is a lot of value in the stock which is currently trading at just 15 times future earnings, and the company has an incredible capital program. The stock currently yields 2.6% and the company has rewarded investors with dividend increases each of the last 57 years. JNJ is a very solid and stable company, and with the current growth estimates and the company's impressive capital program, the stock is a great long-term buy and hold stock that you can add to your retirement program and forget about. JNJ trades at $148.66 with an average price target of $159.85.
