With the wide variety of stocks in the market, it can be tough to narrow your focus to those that possess long-term potential. That's exactly what you need to do, though, to help to grow your investment portfolio in the long run. Buying and owning solid growth stocks with strong business models and catalysts can help you to achieve your investment objectives.
Here are three solid businesses that you should feel comfortable buying and owning for the long term.
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SharkNinja
SharkNinja(NYSE: SN) is a global product design and technology company that creates "innovative lifestyle solutions" for its consumers. The company boasts more than 5,200 patents and sells its products in 35 markets under 36 subcategories. SharkNinja's revenue, net income, and free-cash-flow growth has been impressive over the past several years.
Metric
2022
2023
2024
Revenue
$3.717 billion
$4.254 billion
$5.529 billion
Operating income
$321.374 million
$373.564 million
$644.162 million
Net income
$232.354 million
$167.078 million
$438.705 million
Free cash flow
$110.530 million
$148.800 million
$294.439 million
Data source: SharkNinja.
The company expects net sales for 2025 to increase by 10% to 12% year over year, and for adjusted net income per share to increase by 12% to 15% year over year. Management credits SharkNinja's success to four key factors: disruptive innovation, a global supply chain, 360-degree marketing, and omni-channel distribution. By harnessing these four aspects along with a team of more than 1,000 cross-functional engineers and designers, SharkNinja continues to push boundaries with the release of 25 new products last year.
Management believes SharkNinja can continue to deliver long-term growth with its three-pillar strategy: grow market share in existing categories, enter adjacent and new sub-categories, and international expansion. Management is confident it can achieve this as it engages more retailers and releases more innovative products. Last year, the company introduced new subcategories, including coolers, frozen drink makers, and skin care, to capture a broader range of customers. By doing so, SharkNinja believes that it can grow its total addressable market and widen its competitive moat.
For 2025, the business plans to focus on growing its gross margin while remaining customer-centric, while also pursuing a competitive edge by building up a team of skilled employees.
The New York Times
The New York Times(NYSE: NYT) is a diversified media company offering quality, independent journalism to more than 11 million subscribers globally. The company successfully increased its subscriber base over time, resulting in consistently rising revenue, net income and free cash flows.
Metric
2022
2023
2024
Revenue
$2.308 billion
$2.426 billion
$2.586 billion
Operating income
$201.967 million
$276.272 million
$351.096 million
Net income
$173.905 million
$232.387 million
$293.825 million
Free cash flow
$113.726 million
$337.949 million
$381.339 million
Data source: The New York Times.
In the latest quarter ending Dec. 31, 2024, The New York Times added 350,000 net digital-only subscribers, pushing its membership base past 11.4 million. The average revenue per user (ARPU) also rose 4.4% year over year to $9.65 as the company implemented higher prices for both its traditional subscribers and "bundled" subscribers, which get access to the company's digital properties such as Wirecutter, content on the New York Times website, mobile applications, and other products. The board also approved a $350 million share repurchase plan and announced a 5% year-over-year increase in its quarterly dividend per share to $0.18.
The New York Times expects this positive momentum to continue in the first quarter of 2025. It expects its digital-only subscription revenue to post a year-over-year increase of between 14% and 17%. Total subscription revenue is projected to rise by 7% to 10% year over year.
Last year saw The New York Times ranked at the top of news channels once again in time spent per visitor. Every product within the company's portfolio has evolved, along with a new Games app and expanded sports coverage.
Management has ambitious plans to deliver more value to readers and continue to grow its digital subscriber base. The company also lined up a slate of new content, shows, features, and games that will be released this year. This, along with plans to beef up its multimedia offerings and package with its award-winning news content, should result in healthy subscriber additions and also higher ARPU, with The New York Times continuing to grow its net income and dividends for the foreseeable future.
Roper Technologies
Roper Technologies(NASDAQ: ROP) designs and develops software and engineered solutions for diverse industries such as healthcare, food, water, and construction. The company demonstrated consistent revenue, net income, and free-cash-flow growth over the years.
Metric
2022
2023
2024
Revenue
$5.372 billion
$6.178 billion
$7.039 billion
Operating income
$1.525 billion
$1.745 billion
$1.997 billion
Net income
$985.6 million
$1.368 billion
$1.549 billion
Free cash flow
$664.3 million
$1.927 billion
$2.282 billion
Data source: Roper Technologies. Note: Net income excludes earnings from discontinued operations.
This steadily rising free cash flow enabled Roper Technologies to once again raise its dividend, making it an impressive 32 consecutive years of dividend increases. The latest quarterly dividend of $0.825 represents a 10% year-over-year increase.
For 2025, the company expects to grow revenue by 10% year over year, of which 6% to 7% will represent organic growth. Management sees higher demand for mission-critical solutions and is confident it can expand its recurring revenue base. This year should also see meaningful contributions from the acquisitions that Roper Technologies conducted in 2024. Looking ahead, the company has $5 billion on standby for acquisitions and has identified a large pipeline of attractive acquisition targets.
In March, Roper Technologies acquired CentralReach, a provider of cloud-native software that enables the administration of applied behavior analysis therapy, for around $1.65 billion. Management expects this acquisition to deliver 20%-plus organic revenue and earnings before interest, taxes, depreciation, and amortization (EBITDA) growth.
Management has outlined long-term goals that include generating double-digit revenue growth through disciplined capital deployment, and compound its free cash flow by a mid-teens percentage. With the business delivering on these objectives, investors can be confident that it will continue to do well.
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Royston Yang has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends The New York Times Co. The Motley Fool recommends Roper Technologies and SharkNinja. The Motley Fool has a disclosure policy.
