2 Top Stocks to Buy in August and Hold Forever

 2 Best Stocks to Buy in August and Hold Forever

Technological advances sometimes make products or entire industries completely obsolete. This also applies to healthcare, which as a whole is unlikely to go out of fashion anytime soon. Even so, individual healthcare companies must constantly innovate to remain relevant and deliver consistent performance over the long term.So let's look at two healthcare stocks with solid track records of innovation that are worth buying and holding forever: Regeneron and Abbott Laboratories.

Biotech giant Regeneron has outperformed the market over the past year, thanks in part to stellar financial results and the company's outlook. In the second quarter, Regeneron's revenue rose 11% year over year to $3.16 billion. Its net income rose 14% year over year to $968 million. Although sales of the company's coronavirus portfolio have fallen, the drugmaker can rely on two key assets in the medium term to keep its sales and profits growing.

The first of these is Dupixent, an in-house developed atopic dermatitis (eczema) drug co-marketed with Sanofi. Dupixent's sales are growing rapidly (global sales rose 33% year-over-year in Q2), but things could get even better over the next year if Regeneron and Sanofi win approval for it in the treatment of chronic obstructive pulmonary disease .

Earlier this year, the partners published positive results from a phase 3 clinical trial to this effect. If Dupixent wins an indication as a COPD treatment, it will move the needle for the drug — and Regeneron's sales.

A second key advantage the biotech can rely on is a high-dose formulation of Eylea, a treatment it developed and markets with Roche for an eye disease called age-related macular degeneration. The high-dose version could reduce the number of administrations per year compared to the original formulation of Eylea.

It's worth noting that the US Food and Drug Administration (FDA) recently declined to approve Regeneron's high-dose formulation of Eylea, but that was because of problems the agency found at the drug's third-party filler manufacturing site. There were no safety or efficacy issues, and no additional trials were required by the FDA.

In other words, Regeneron's higher-dose Eylea almost certainly won approval after all. The new formulations of Eylea and Dupixent should lead to solid revenue and earnings growth for Regeneron for some time. They also exemplify the company's ability to develop innovative and highly successful drugs. Regeneron currently has many more programs in the pipeline.

Over the past decade, the company's revenue, profits and free cash flow have generally followed a solid upward trajectory, with an abnormal increase when it began selling coronavirus drugs. The company could maintain its improving financial results and ways to beat the market for a long time.

Abbott Laboratories

Abbott Laboratories is a medical device specialist that boasts dozens of products in several areas, including diabetes, structural heart care and cardiovascular care. The company also owns several other segments: diagnostics, established drugs and nutrition.

One of Abbott's strengths is its long and successful history of navigating the highly regulated healthcare industry. The company is a recognized leader in its field, which means doctors who use its devices to treat their patients – sometimes with life-threatening conditions – know they can trust Abbott products. Its entrenched position in its sector is a significant strength.

But the company does not rely only on past prestige. Abbott Labs continues to innovate. Last year alone, the company won three awards (for three separate products) at the CES Innovation Awards, an annual event held by the Consumer Technology Association honoring breakthrough technological advances in the life sciences.

Abbott's FreeStlye Libre, a continuous glucose monitoring system, also won a separate innovation award late last year. The company's robust portfolio and ability to develop newer and better products have generally led to solid financial results. And there's every reason to think Abbott will continue on this path for a long time to come.

The need for the types of products it offers will only increase with our aging population. Here's another reason to consider Abbott stock: the dividend. The company is the dividend king in its 51st consecutive year of payout increases. Abbott's 264% dividend increase over the past 10 years alone is impressive. The company's yield of 1.85% isn't great, but it still beats the S&P 500 average of 1.54%.

Abbott Laboratories may not have the most exciting business. However, the company's solid fundamentals, innovation potential, industry know-how and dividends make it an excellent stock for investors to buy and hold in August — or any month.

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*The Warehouse Advisor returns from August 1, 2023Prosper Junior Bakiny has no position in any of the mentioned stocks. The Motley Fool has and recommends positions in Abbott Laboratories. The Motley Fool recommends Roche Ag. The Motley Fool has a disclosure policy.

As investors look for stable and profitable options, the appeal of long-term investments continues to grow. August is a good time to consider adding durable stocks to your portfolio that have the potential to provide steady growth and withstand market swings. In this article, we will explore two of the best stocks worth buying this August and holding for the long haul.

One of the most promising stocks in the current market is that of the technology giant. With its strong position in the technology sector and diversified portfolio of innovative products and services, the company has demonstrated impressive growth potential. Its solid financial performance, growing revenue and expanding global presence make it an attractive choice for investors looking for long-term gains.

The company's focus on research and development has allowed it to stay ahead of the competition and continually bring disruptive products to market. Additionally, its forward-thinking leadership and strategic acquisitions have opened the door to new growth opportunities.

Investing in the tech giant offers the benefit of exposure to various industries such as artificial intelligence, cloud computing and consumer electronics. As these industries are constantly evolving, the company is well-positioned to benefit from new trends, making it a compelling long-term investment.

The healthcare sector has always been a cornerstone of long-term investing, and this August presents an excellent opportunity to consider the leading innovator event in healthcare. This company has established itself as a pioneer in cutting-edge medical solutions and its dedication to research and development ensures that it remains at the forefront of the healthcare industry.

As the world faces constant health challenges, the demand for innovative treatments and technologies is growing. This healthcare innovator is well-positioned to meet these demands, and its strong product line-up holds great promise for future growth.

In addition to innovative products, the company boasts an extensive network of partnerships with healthcare providers and institutions around the world. This global reach provides a significant competitive advantage and paves the way for sustained growth in various markets.

Long-term investors can benefit from the stability of the healthcare sector and the company's resilience during economic downturns. Steady income streams and the potential for substantial returns make this innovative healthcare stock a compelling choice for those looking to maintain their investments for years to come.

As we head into August, it's essential to consider long-term investment opportunities that can weather market swings and deliver consistent growth. Tech giant stocks and healthcare innovator stocks are two compelling options for investors looking for stability, innovation and the potential for significant returns.

Investing in these stocks is consistent with the principles of perpetual holding, allowing you to reap the rewards of their growth over time. Remember to always do your due diligence, assess your risk tolerance and consider diversifying your portfolio to create a solid foundation for long-term investment success. With prudent decision-making and a patient outlook, you can maximize your gains and achieve financial success in the ever-changing stock market environment.