Gift Your Loved Ones Shares of These 3 Stocks

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For many of us, the back to school days invites thoughts of the upcoming holiday season, and what that means for our families and loved ones. Giving gifts that are meaningful, and can truly last and provide, is a wonderful thought. For many individuals, gifting a stock to a loved one (or three) can provide much more happiness (especially over a long-term time horizon) than some disposable good.

Finding the perfect gift can be challenging, and that's how it's supposed to be with stock picking. The market is, generally-speaking, pricing in all information all at once. Accordingly, finding the few stocks out there that can provide lasting benefits to your loved ones can be difficult.

For those with young ones, or planning for their parents' retirement (I'm one such person), here are three stocks I'd consider putting under the tree this holiday season.

Key Points About This Article:

• As we head into the Fall and Winter months, consider gifting your loved ones a few stocks to leave a lasting impression.
• These three companies are among the best blue-chip companies with rock-solid growth outlooks worth considering for a long-term investment for those you love.
• If you’re looking for some stocks with huge potential, make sure to grab a free copy of our brand-new “The Next NVIDIA” report . It features a software stock we’re confident has 10X potential.

Amazon (AMZN)

An Amazon office building

Amazon ( NASDAQ:AMZN ) continues to dominate the e-commerce world, as the fulfillment platform of choice. Most readers have used the company's services in one way or another. Those who have used the company's AWS cloud services have certainly participated to a greater degree in the stock's outperformance, given this division's impact on the company's bottom line in recent. years.

Amazon is a top e-commerce player that's not sitting on its laurels. The company is boosting its AI capabilities to enhance its shopping experience and sustainability, while also improving its cloud outcomes for clients. As far as tech behemoths are concerned, there's a reason why so many are afraid of Amazon, it's the 500 pound gorilla in the room.

Amazon is investing in its own chip development, like many of its peers, in a bid to move away from chip makers like Nvidia and the high margins they earn on their chips. We'll see if this endeavor bears fruit. But investors should know that Amazon has the cash flow and the deep pockets to make just about any dream become a reality. I wouldn't rule out anything at this point. Thus, those thinking long-term can rest well, whether the company succeeds or not in its chip endeavors.

Amazon's vast and diverse consumer base drives its continuous advertising growth, with the company remaining the third-largest player in the global advertising market. In Q2 , Amazon reported advertising revenue which hit $12.8 billion, up 20% from the previous year. The company began selling ads on Amazon Prime Video, leveraging its large viewership to attract advertisers. So long as these sorts of innovative revenue add-on ideas continue, this is the kind of long-term growth stock I think is worth buying on dips.

Costco (COST)

A Costco wholesale location

Costco ( NASDAQ:COST ) really needs no introduction, but here goes. The company is a leading global retailer, providing excellent service to its affluent clientele via a membership-based model, which the company has leveraged to generate most of its earnings off of.

That's right. Costco doesn't earn much of a profit, if anything, off of what it sells. Its earnings are almost entirely based on how many consumers sign up for its membership offerings, which are highly lucrative.

This model has not only kept stores clean and bereft of anything dour, it's also been the earnings growth engine which shareholders have benefited upon for years. Via dividends (and special dividends), investors have raked in the benefits for many years, never mind the impressive capital appreciation seen over the years.

I think this trend will continue. And starting September 1, Costco will raise membership fees by $5 for standard memberships and $10 for executive memberships in the U.S. and Canada. This change will impact around 52 million memberships.

For those bullish on the Costco business model, now's the right time to consider adding exposure to this name. If the stock dips, I'm of the view that picking up as many shares as possible makes sense.

Crocs (CROX)

The front door to a Crocs retail location

Crocs ( NASDAQ:CROX ) is a rather interesting pick on this list, just for the fact that their shoes are just so ugly. Sorry, that's my opinion. I've never owned a pair of Crocs, but I've heard they're very comfortable. I may need to go ahead and buy a pair of these sandals just to know exactly why I'm suggesting the stock is a good investment.

The thing is, from a business standpoint, this is exactly the kind of company I think investors want to consider long-term. There's a brand there that clearly resonates. And the inherent brand value that companies like Crocs bring to the table isn't insignificant - I've heard others refer to this company as an Apple-like company. I'm not going to go that far, but there's clearly something here.

On a fundamentals basis, I like what I see. In the company's second quarter of 2024 , global sales rose 22% year-over-year, with China up 70%. Following earnings, Crocs' stock broke through its trendline support, hitting a low of $112.50 before rebounding and testing resistance at $132.27. Some investors have pointed to strong technical signals that this stock could be undersold, which I don't buy into, but to each their own.

Crocs reported Q2 EPS of $4.01, surpassing estimates by 46 cents. Revenue grew 3.6% year-over-year to $1.11 billion, beating forecasts, and direct-to-consumer sales rose 8.9%. Now, wholesale revenue fell 1.3%, but the company's gross margins improved to 61.4%, while SG&A increased 17.6%. Overall, I think the picture is rather rosy for this consumer discretionary name.

For those thinking long-term, and trying to get in touch with their inner-Gen Z, this is a stock I think is actually worth considering at 11-times earnings .

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