With the S&P500 practically at all-time highs, it’s no understatement to say that the stock market is booming. From AI to consumer goods, many industries are reporting favorable earnings growth at the moment, thus driving the market higher and higher up.
However, as investors, it’s always great to take a step back and consider things from a more long-term point of view. We want to be investing with the idea of how these companies will be performing in the future. This ensures that our investment thesis isn’t getting wrecked by short-term market volatility and short-term emotions of the overall market.
That’s why we want to think about the bigger picture so that we have time for the company’s earnings to show significant growth and have market fluctuations balance out. However, many of us don’t have the time to research these companies that would be in a prime position years from now. That’s why in this article, we aim to present you with three companies that are set to have exponential returns by 2034.
General Electric (GE)
General Electric (NYSE:GE) is well known for its manufacturing and diversified technology and services. It’s a leader in the sustainable revolution, with its renewable energy segment spearheading various innovations in green technologies. Analysts at Yahoo Finance! estimate that this stock will trade within a one-year price range of $102 – $185, with an average of $150.
One of the areas where General Electric specializes the most when it comes to renewable energy is wind power. It currently has around 49,000 wind turbines installed worldwide, making it one of the largest wind turbine suppliers. However, while most focus only on onshore wind, General Electric is taking a stance on expanding to offshore wind, which is widely overlooked. The offshore wind industry in particular is expected to grow 5x in the next decade, accounting for 15% of the total global wind industry
Currently, General Electric is trading at a P/E of 19.3x, which is much, much lower than the Renewable Industry’s P/E of 83.88x, making it relatively undervalued compared to other renewable energy companies. The stock is also positioned to grow well in the future with a 48% year-over-year EBITDA Growth rate. General Electric is a renewable energy innovator with the financials to back it up, making it a solid choice for any portfolio.
Novartis AG (NVS)
Novartis AG (NYSE:NVS) manufactures and commercializes different drugs in multiple fields, including immunology, cardiology, and oncology. Yahoo! Finance analysts predict the stock trading in a one-year range of $101 to $125 with an average of $112.
At the beginning of the month, the company announced that it would acquire MorphoSys AG for $2.7 billion to gain access to new oncology drugs. This acquisition allows Novartis to combine the two companies’ treatments to begin testing of a drug that could treat patients with solid tumors. Expanding their oncology pipeline allows the company to expand into a new field and stimulate growth even more.
Looking at the financials, Novartis’s P/E ratio of 25.34x compares to the industry average of 18.68x and the five-year average 21.55x, showing the company’s fair valuation. Furthermore, Novartis boasts a year-over-year (YoY) revenue and profit growth of 7.4%, for with both a solid acquisition and financials, Novartis is primed for exponential growth within the next 10 years.
Microsoft (MSFT)
Microsoft (NASDAQ:MSFT) is one of the biggest pioneers when it comes to how we interact with technology today, especially when it comes to software, however, that’s not the only thing it’s doing right now. Yahoo Finance! analysts predict that the stock will trade within a one-year range of $298 to $516, with an average of $451.
Microsoft has recently been expanding heavily into AI, a technology that is rapidly becoming prevalent in our daily lives. One example is the recent announcement of its partnership with the media platform Semafor. Through this, Microsoft is planning to make developments with the use of AI in journalism with the advanced technologies it has on hand. The financials are currently solid, with an impressive EPS growth of 33.18% year-over-year. This shows that Microsoft is going strong and has no signs of slowing down. The company’s P/E of 36.7 isn’t its all-time high and it has the potential to grow even further, especially in the coming years. Microsoft is one of the longest-standing tech companies and is only poised to grow more in the future, making it a solid buy.
On the date of publication, Ian Hartana and Vayun Chugh did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.