{"id":9973,"date":"2022-06-30T19:27:32","date_gmt":"2022-07-01T00:27:32","guid":{"rendered":"http:\/\/blog.jlbn.net\/?p=9973"},"modified":"2022-06-30T19:27:34","modified_gmt":"2022-07-01T00:27:34","slug":"3-growth-stocks-to-set-you-up-for-the-next-10-years","status":"publish","type":"post","link":"http:\/\/blog.jlbn.net\/?p=9973","title":{"rendered":"3 Growth Stocks to Set You Up for the Next 10 Years"},"content":{"rendered":"\n<ul><li>Bear markets are an opportunity to buy stocks below what the underlying companies are worth.<\/li><li>Shares of RH and Roku provide above-average return prospects for patient investors.<\/li><li>Dollar General stock has outperformed year to date and should deliver nice and steady gains long term.<\/li><\/ul>\n\n\n\n<h2>There are plenty of great stocks to be bought on sale in this bear market.<\/h2>\n\n\n\n<p>Worries over the economy have sent shares of quality companies down to attractive valuations that could set the stage for great returns. The&nbsp;<strong>S&amp;P 500<\/strong>&nbsp;index, which tracks the performance of some of the largest companies, is down about 20% year to date,&nbsp;but many growth stocks have crashed harder in this&nbsp;<a href=\"https:\/\/www.fool.com\/investing\/how-to-invest\/bull-vs-bear-market\/\">bear market<\/a>.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.fool.com\/investing\/stock-market\/basics\/crashes\/\">Market crashes<\/a>&nbsp;are a normal occurrence and can set the stage for tremendous returns over the long term, as those who bought stocks during the COVID-19 crash two years ago well know. Three growth stocks,&nbsp;<strong>RH<\/strong><strong>(<a href=\"https:\/\/www.fool.com\/quote\/nyse\/rh\/\">RH<\/a>&nbsp;-10.56%)<\/strong>,&nbsp;<strong>Roku<\/strong>&nbsp;<strong>(<a href=\"https:\/\/www.fool.com\/quote\/nasdaq\/roku\/\">ROKU<\/a>&nbsp;-5.71%)<\/strong>, and&nbsp;<strong>Dollar General<\/strong>&nbsp;<strong>(<a href=\"https:\/\/www.fool.com\/quote\/nyse\/dg\/\">DG<\/a>&nbsp;-0.65%)<\/strong>, still offer above-average growth prospects and could outperform the market over the next decade. Let&#8217;s find out a bit more about them.<\/p>\n\n\n\n<h2>1. RH<\/h2>\n\n\n\n<p>RH (previously called Restoration Hardware) is known as a high-end furniture brand, but under the leadership of CEO Gary Friedman, the company is transforming into a lifestyle brand. This is a key distinction that market participants don&#8217;t understand yet, which gives long-term investors the chance to buy shares at a low\u00a0<a href=\"https:\/\/www.fool.com\/investing\/how-to-invest\/stocks\/how-to-value-stock\/\">price-to-earnings\u00a0<\/a>(P\/E) ratio of 10 based on this year&#8217;s consensus earnings estimate.<\/p>\n\n\n\n<p>The stock trades at a big discount to the average stock&#8217;s P\/E of 24 based on the S&amp;P 500 index.<\/p>\n\n\n\n<p>Management is investing in several growth opportunities, such as\u00a0the planned expansion into the $200 billion North American hotel market.\u00a0RH is also launching a luxury yacht experience, RH Residences,\u00a0and opening more furniture galleries globally.<\/p>\n\n\n\n<p>The market is valuing RH like a struggling retailer in a recession, but the company&#8217;s past growth, in which revenue has more than tripled over the last decade, and its transformation into a lifestyle brand says the market is significantly undervaluing the business. The stock should be much higher in 10 years, especially from this low P\/E multiple.<\/p>\n\n\n\n<h2>2. Roku<\/h2>\n\n\n\n<p>Roku is another stock the market has beaten up over the last year, but the market&#8217;s loss is a long-term investor&#8217;s gain. Roku has built a great brand in streaming entertainment. Through its\u00a0<a href=\"https:\/\/www.fool.com\/investing\/2022\/06\/12\/1-big-reason-why-roku-wants-you-to-buy-a-roku-tv\/\">affordable line of Roku TVs<\/a>, the company has gained a dominant position with around 50% market share of the North American connected TV market.<\/p>\n\n\n\n<p>With a growing roster of 61 million active accounts,&nbsp;Roku has a massive opportunity to win over the advertising spending that hasn&#8217;t switched from legacy TV. &nbsp;<\/p>\n\n\n\n<p>Roku&#8217;s dependence on advertising is the primary reason the stock has been hammered. But that&#8217;s taking a very shortsighted view of the business&#8217; value. The $60 billion in traditional TV advertising will eventually shift to digital platforms, and Roku&#8217;s dominance in the connected TV market puts it in a perfect position to gain its share of the pie. It&#8217;s already seeing advertisers invest in its platform, with average revenue per user (ARPU) increasing by 34% year over year in the first quarter.<\/p>\n\n\n\n<p>Another opportunity is capturing more of the 269 million smart TVs that were sold globally in 2020, according to Grand View Research.&nbsp;That number is expected to increase at an annualized rate of 21% through 2028. That&#8217;s a lot of potential new accounts for Roku to win over.<\/p>\n\n\n\n<p>With the stock off 80% from its highs, investors are deeply underestimating the company&#8217;s growth in ARPU and its ability to continue winning over millions of new accounts over time.<\/p>\n\n\n\n<h2>3. Dollar General<\/h2>\n\n\n\n<p>If you want a less volatile growth stock that can still deliver market-beating returns, look no further than Dollar General. The stock has outperformed the broader market year to date, delivering a return of 5%.<\/p>\n\n\n\n<p>Dollar General has been delivering everyday essentials at value prices for decades. It&#8217;s during times of high inflation that consumers value shopping at Dollar General to save money, and that&#8217;s a big reason for the stock&#8217;s outperformance in 2022.<\/p>\n\n\n\n<p>However, Dollar General is not immune to the challenges in the economy. Same-store sales declined slightly in the first quarter,&nbsp;but that was primarily due to a decline in sales of non-consumable categories where the company was facing difficult year-over-year comparisons to early 2021 when people received stimulus checks.&nbsp;<\/p>\n\n\n\n<p>The company&#8217;s competitive advantage stems from its large store footprint of 18,000,&nbsp;which puts a Dollar General store within five miles of 75% of the U.S. population. The company still sees more room for expansion. It executed 800 new real estate projects last quarter. &nbsp;<\/p>\n\n\n\n<p>With a\u00a0<a href=\"https:\/\/www.fool.com\/investing\/stock-market\/types-of-stocks\/dividend-stocks\/dividend-yield\/\">dividend yield<\/a>\u00a0of 0.9%, investors also get paid some cash to hold the stock as we wait for the bear market to end. Dollar General offers growth, dividend income, and stability from market volatility.<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bear markets are an opportunity to buy stocks below what the underlying companies are worth. Shares of RH and Roku<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[254,3421,3422],"tags":[888,3425],"_links":{"self":[{"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/posts\/9973"}],"collection":[{"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9973"}],"version-history":[{"count":1,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/posts\/9973\/revisions"}],"predecessor-version":[{"id":9974,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/posts\/9973\/revisions\/9974"}],"wp:attachment":[{"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9973"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9973"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9973"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}