Look for companies that are built to last. And, ideally, focus on products and services that can thrive in their respective markets.
Do you need to tap into your retirement savings right now? At this point in your life, is your nest egg sizable enough to grow as you hoped?
Interestingly, many Americans feel disconnected from their retirement savings. While most people are saving something, only 34% feel they are on track for a comfortable retirement, according to data from Motley Fool’s internal research. The remaining 66% worry that their retirement plans might fall short.
If you’re among that 66%, you can’t change the past. However, you can steer your current growth path by investing in the right stocks. Here’s a look at three companies that might help improve your retirement savings.
Amazon
Sure, Amazon (amzn) often comes up in conversations about solid investments. It’s almost become cliché, honestly. This stock is considered one of the most reliable long-term performers, with a future that shines as brightly as its successful past.
Amazon isn’t just a giant in terms of market capitalization; it leads the North American e-commerce space. According to Digital Commerce 360, it captures about 40% of the region’s online shopping market. Its international presence isn’t particularly extensive yet, but it is certainly growing. Thanks to consistent growth over the years, it remains profitable.
Interestingly, Amazon’s primary revenue source isn’t merely its e-commerce division. Although that makes up around 16% of the top line, Amazon Web Services, its cloud computing segment, accounts for about 60% of total revenue. Both sectors have experienced robust double-digit growth for years.
The reasons behind Amazon’s growth potential extend far into the future. The company demonstrates a remarkable ability to adapt and explore new business lines.
Just consider this: Amazon wasn’t always in cloud computing; that arm launched back in 2006. Amazon Prime came into existence in 2005. Even its early e-commerce strategies have evolved dramatically. Its website still resembles its past, but it now serves as an advertising medium as well. Last year, Amazon generated over $56 billion from advertising, which is more profit than can be attributed to its various e-commerce sectors combined.
Overall, there are countless factors suggesting that Amazon will continue to thrive well into the future.
Uber Technologies
When you think of Uber Technologies (Uber), it’s not just about providing rides. The company is also part of a significant shift in societal attitudes toward transportation. There’s a noticeable decline in interest in car ownership as more people turn to alternatives like ridesharing.
The Federal Highway Administration data sheds light on this trend, showing that the percentage of licensed drivers in the U.S. aged 16 to 19 has dropped from 65% in 1995 to about a third today. This reflects broader changes in consumer habits—more individuals are choosing not to drive at all.
While older demographics still have an interest in owning cars, a recent Deloitte survey reveals that 44% of Americans between 18 and 34 are open to not owning their vehicles. This shift in perspective indicates major social changes in what we consider “normal” ways to get around.
Uber’s revenue growth aligns with these trends, typically hovering around mid-teen percentages, and this could continue as car ownership declines. According to Straits Research, the global ride and taxi market is projected to grow at an average annual rate through 2033, and who knows how long that trajectory might persist?
Additionally, same-day delivery for online purchases is something people eagerly anticipate. Uber’s delivery revenue surged 22% in the first quarter of this year, reaching nearly $3.8 billion, now accounting for over 30% of the company’s total revenue.
American Express
Finally, consider American Express (axp) when thinking about stocks to buy and hold for decades in your retirement portfolio.
At first glance, it may appear similar to companies like Visa and Mastercard. Sure, there are notable similarities. However, what sets American Express apart is that it not only manages its payment network but also issues its cards. This detail allows for significant operational advantages.
This distinction is crucial. American Express operates its rewards programs, emphasizing a combination of credit card services rather than simply acting as an intermediary. Many cardholders are willing to pay substantial fees annually for exclusive perks like access to airport lounges and discounts on travel-related expenses.
This makes American Express particularly appealing to wealthier clients, who are less likely to cut back on spending during economic downturns. This nuance was highlighted by the company following its first quarter results from April.
While double-digit growth might not be on the horizon for American Express, it has consistently demonstrated revenue growth that supports dividends and stock buybacks—small yet impactful ways to add value over time. If dividends are reinvested, investing in this stock could significantly outperform the S&P 500 over the past three decades.
