2 Stocks to Buy on the Dip and Hold for 10 Years

The inherent nature of stock market investment involves regular changes in prices. A multitude of elements, such as data analysis and emotional responses, significantly impact the value of a stock, especially within shorter and mid-length periods.

It’s wiser to consider long-term investments since companies with consistent growth often see their stock prices increase over extended periods. Even if a stock experiences temporary setbacks due to short-term issues, the shares of a company thriving on long-term expansion usually recover and grow. Given this, it might be beneficial to purchase two specific stocks during recent market drops. I’d recommend keeping these holdings for at least ten years, or even longer.

1. The Trade Desk

A noteworthy stock that has seen significant ups and downs lately is The Trade Desk, or TTD. This buy-side digital advertising stock kicked off 2025 with a bang, hitting an all-time high back in December 2024. The expansion of the digital ad sector and the increasing demand for its platform have been key factors propelling the stock’s price increase throughout its almost nine-year lifespan.

Sadly, the company’s stock took a significant hit following the revelation that it failed to meet its own revenue targets for Q4 of 2024. The negative trend persisted after this announcement, and when it reached its “Liberation Day” low, it had dropped roughly two-thirds over a span of four months.

However, after a rebound, it is now down by just over 40% from the December high.

Furthermore, it seems that the digital advertising sector is poised for growth, with Grand View Research forecasting a 15% annual increase (CAGR) until 2030. This trend could benefit The Trade Desk, as more companies and ad agencies are expected to utilize its technology to invest in platforms offering the best return on their advertising dollars.

Furthermore, it’s worth noting that the short-term performance has shown an uptick. In Q1 of 2025, The Trade Desk managed to exceed its own internal revenue projections, which is particularly significant given the market prediction of a 17% revenue increase in 2025 and an estimated 18% growth in 2026.

Certainly, a P/E ratio of approximately 100 might discourage some potential investors. However, considering its forward P/E ratio of 41, derived from projected earnings, it may make the current price more appealing. Furthermore, if you’re planning to hold for ten years or longer, the growth trajectory tends to diminish the importance of these ratios over time; The Trade Desk could potentially reach and surpass its historical highs in the near future.

2. Target

The shares of Target (TGT) have dropped by over 60% since their peak in 2021. Back at the start of the decade, Target made excessive purchases of goods, leading to a persistent surplus of inventory that has yet to be addressed.

Additionally, Target faced backlash from a segment of its customers when it prioritized diversity, equity, and inclusion (DEI) initiatives. Subsequently, when the company halted these initiatives in 2025, another group of customers expressed displeasure. Combined with economic uncertainty, this has negatively impacted sales.

During the first quarter of fiscal year 2025 (which ended on May 3), our net sales dropped by about 3% compared to the previous year, reaching approximately $24 billion. This decrease also encompassed a 4% drop in sales from stores open for at least a year, as foot traffic in our retail outlets decreased.

Furthermore, it appears that Brian Cornell’s CEO contract at Target will end in September. Given that he’s in his sixties and has been leading the company since 2014, there’s a strong possibility that a new CEO will be appointed soon, which could increase doubts about the company’s future course.

On the other hand, there might be an excess of pessimism. Firstly, it’s important to note that more than three-quarters of Americans reside within a ten-mile radius of a Target store, making its influence surpass any retailer except for Walmart in terms of reach.

As a budding investor, I’m thrilled about the dip in stock price, for it opens up some delightful perks! For instance, it amplifies the allure of its unbroken dividend streak, which has been on a roll for a remarkable 54 years! The payout, currently doling out $4.56 yearly to shareholders, presents a dividend yield of a generous 4.5%, significantly surpassing the typical 1.2% yield of the S&P 500. Given that a reduction in dividends might undermine investor trust, it’s reasonable to anticipate that these payout boosts will persist.

In addition, the stock has dropped to a price-to-earnings ratio of 11, making it significantly less expensive compared to its main competitor Walmart which stands at 41 times earnings. Despite Target’s ongoing struggles, the low valuation suggests that the current pessimism may be unwarranted, setting the stage for potential growth and a rise in the stock price over the next decade.

2025-07-22 10:49

1. The Trade Desk

2. Target

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