SHW: 3 Growth Stocks to Buy & Hold for Decades

Rushing in and out of stocks might not be the best way to approach the market, considering the fact that a significant economic slowdown is on the horizon. Businesses of all sorts will either be forced to close or endure a considerable reduction in demand now that a second wave of the virus is spreading across the land.

Instead of trying to make money short-term by flipping stocks, shift your sights to growth stocks. Buy and hold the right growth stocks for decades, and your nest egg should gradually expand.

Sherwin-Williams (SHW), Dollar General Corporation (DG), and Matson (MATX) are three of the most intriguing growth stocks to consider adding to your portfolio as we transition to a new year.

Sherwin-Williams Company (SHW)

Tech stocks have soared during the pandemic, sharing the spotlight with home-oriented stocks such as SHW. Though few know it, SHW has been in business for more than 150 years.

The mere fact that people are spending that much more time at home has helped the likes of SHW. SHW makes, distributes, and sells paint and related products to homeowners, professional painters, commercial customers, and industrial customers. SHW customers are mainly located in North and South America.

Check out the SHW POWR Ratings, and you will find “A” grades in the Buy & Hold Grade, Trade Grade, and Industry Rank components. SHW is ranked second out of 69 stocks in the Home Improvement & Goods industry. Analysts set a price target of $761.40, indicating a potential upside of nearly 4%.

SHW recently boosted its earnings outlook, noting particularly strong demand. This is the company’s second upgrade to its outlook, indicating substantial growth could be on the horizon, despite the pandemic.

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Dollar General Corporation (DG)

The recession has steered that many more customers to DG stores. As the largest discount retailer in the country, DG sells merchandise, typically priced at $10 or less. Furthermore, most DG stores also carry additional sundries ranging from seasonal items to apparel, home products, and consumables. Both private brands and national brands are available at DG stores. In fact, products from the likes of Hanes, Energizer, Clorox, Mars, and Coca-Cola are sold at DG stores.

Even if the economy returns to normal in the months ahead, DG will benefit as more people have gotten into the habit of shopping at the company’s stores. The bottom line is this; an ever-growing customer base will experience sticker shock of sorts when seeing how much similar products sell for at non-discount stores, helping DG grow even more across posterity.

The POWR Ratings show DG has “A” grades in the Industry Rank and Buy & Hold Grade POWR components. DG is ranked fourth out of 18 stocks in the Grocery/Big Box Retailers segment. Take a look at the consensus analyst price target for DG, and you will find they have set an average price target of $234.94, indicating a potential upside of 11%.

DG traded slightly above $223 in late October. The stock has since slid down to $211. Strong holiday sales combined with a shrinking economy bodes well for DG’s upcoming quarterly financials. Look for DG to break through the $225 level as we segue to the new year.

Matson (MATX)

Transportation and logistics are necessary, no matter how bad the economy gets. Though a slowdown has the potential to hurt the likes of MATX in the short-term, this stock should fare well across posterity. The company offers multimodal logistical and transportation services, including rail intermodal service along with highway brokerage.

Take a look at the POWR Ratings, and you will find MATX has “A” grades in the Peer Grade, Buy & Hold Grade, and Trade Grade components. MATX is ranked second out of 46 stocks in the Shipping industry. The stock’s recent upswing is partially due to its hike in revenue stemming from China, its Hawaii trade lane, and Alaska trade lane.

Analysts are quite bullish on MATX, setting an average price target of $62.67, indicating a potential upside of 5%. Add in the fact that MATX has a forward P/E ratio below 20, and you have all the more reason to consider this undervalued stock and hold it for the long haul.

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SHW shares . Year-to-date, SHW has gained 27.12%, versus a 14.47% rise in the benchmark S&P 500 index during the same period.

About the Author: Patrick Ryan

Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management. More...