3 Boring Stocks That You Should Buy and Hold Forever

Stock

To put it frankly, suggesting uninteresting stocks to purchase appears completely foolish in most situations. Not to ruin the illusion or anything, but I sense that you didn't come to read InvestorPlace articles to listen to a sales pitch about gradual and consistent performers. Instead, it's probable that you came here for the thrilling content.

Certainly, there is abundant content discussing precisely that subject. Nevertheless, stocks that are held for the long term have considerable importance, particularly in this uncertain situation. I have mentioned this previously, but the recent jobs report for May, despite surpassing expectations, also revealed weaknesses in the economy. Specifically, unemployment noticeably rose while employers don't seem to be actively pursuing wage incentives. Considering the possibility of a recession occurring, it may not be advisable to solely invest in risk-on businesses at this time. Instead, it might be more suitable to focus on stable stocks for long-term investment.

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CF Industries, an American company that makes and sells fertilizers, is known for its expertise in producing hydrogen and nitrogen products. These products are used in various industries such as renewable energy, reducing emissions, making fertilizers, and in other industrial applications. CF Industries has manufacturing facilities in the United States, Canada, and the United Kingdom. Because of global tensions, CF Industries is seen as one of the top unexciting stocks worth investing in.

Regrettably, the market has a different perception and as a result, CF has experienced a decline of over 14% since the beginning of the year. In the past year, it has lost almost 18% of its overall value. However, this volatility has made CF seem greatly undervalued. It is worth noting that the shares are trading at a price-earnings-growth ratio of 0.13 times, which is significantly lower than the average value of 0.74 times in the sector.

Furthermore, it is important to note that alongside its substantial increase in revenue, CF also possesses a flawless Piotroski F-Score of 9 out of 9. This particular figure demonstrates outstanding effectiveness in operations. Additionally, market analysts consider CF to be a reasonable purchase, with a projected price of $87.06, suggesting a potential growth of almost 24%. For individuals seeking to engage in long-term investments, CF presents a persuasive case.

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Valero Energy, a company that produces and sells transportation fuels and petrochemical products across the globe, is a major player in the Fortune 50 list. With its headquarters located in San Antonio, Texas, Valero owns and manages a total of 15 refineries that can process around 3.2 million barrels of petroleum per day. Additionally, the company owns and operates 13 plants dedicated to producing ethanol, with a total capacity of approximately 1.68 billion gallons per year.

Because of the weak state of the energy industry, which is partly caused by the strict monetary conditions, the sector that deals with hydrocarbon products is showing mixed results. Specifically, VLO, a company in this sector, has experienced a 3% decrease in its stock value since the start of January. However, it is still considered a safe investment option, especially if the situation with social activities returning to normal improves. Additionally, VLO is seen as a good long-term investment due to its strong financial position. Similar to CF Industries mentioned earlier, Valero also has higher-than-average long-term revenue growth. Furthermore, it has a Piotroski F-Score of 9, indicating excellent operational efficiency.

In conclusion, experts consider VLO to be a decent investment opportunity with a target price of $144.20, indicating a potential increase of approximately 24%. Some may argue that it is one of the reliable stocks worth keeping an eye on.

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Originally from Switzerland, STMicroelectronics (NYSE:STM) is involved in the creation, advancement, production, and promotion of goods for the wider digital environment. This encompasses important sectors such as intelligent transportation, sustainable energy, and the Internet of Things. As stated on its public profile, ST provides individual and standard components, as well as integrated circuits tailored for specific applications. They offer both fully customized and partially customized devices for analog, digital, and mixed-signal purposes.

Certainly, it is difficult to classify tech players as uninteresting stocks to purchase. However, ST operates behind the scenes, much like a stagehand for headline-making innovators. Thus, in this perspective, ST might be considered unexciting for certain individuals. Nonetheless, those who are keen on long-term investment should consider keeping an eye on ST shares.

In terms of finances, ST has shown remarkable growth in both revenue and EBITDA in the last three years. Additionally, the company exhibits strong operational efficiency with a Piotroski F-Score of 8. Moreover, it has a low risk of bankruptcy as indicated by its Altman Z-Score of 6.09. To summarize, analysts unanimously recommend buying STM stock, with a projected price target of $63, implying a potential increase of over 29%. It is definitely a stock worth considering for long-term investment.

As of the time this blog was published, Josh Enomoto did not hold any positions (whether direct or indirect) in the securities discussed in this article. The views expressed in this blog are solely those of the author and are governed by the InvestorPlace.com Publishing Guidelines.

Josh Enomoto, who previously held a high-ranking role as a business analyst at Sony Electronics, has played a crucial role in negotiating significant deals with renowned multinational corporations. Throughout recent years, he has provided distinctive and vital perspectives for the financial markets, in addition to diverse sectors such as law, construction management, and healthcare.

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