Short-term market fluctuations can be stressful, there’s no doubt about that. The good news is, long-term investors are in a better position to weather these storms. By holding investments for an extended period, you allow your stocks time to recover from downturns and benefit from the overall upward trajectory of the market over time.
As you focus on a long-term horizon, you can ride out the natural ups and downs of the market with confidence while continuing to bolster your positions in quality companies. This also makes near-term market movements less impactful on your investing mindset and the overall health of your portfolio.
On that note, if you have cash to put into stocks right now, here are three of my favorite companies to consider for your basket of buys.
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AbbVie(NYSE: ABBV) has long been known for its immunology drugs like Humira, which at one point was the top-selling drug in the world. Humira’s key patents have expired, which has paved the way the last few years for competition from biosimilars.
While Humira losses are still impacting earnings to a certain extent, AbbVie is actively transitioning its growth story toward other key immunology drugs like Skyrizi and Rinvoq. Imbruvica (cancer), Vraylar (schizophrenia and bipolar disorder), Ubrelvy (acute migraine attacks), Qulipta (preventative treatment for migraine headaches), and Botox (for cosmetic and medical uses) are other key products for AbbVie right now.
AbbVie had a strong second quarter, with revenue reaching $15.4 billion, a 6.6% increase year over year. Adjusted diluted earnings per share (EPS) were $2.97, a 12% increase. AbbVie’s solid Q2 results were driven by strong performance from the immunology and neuroscience portfolios, despite the ongoing impact of Humira’s sales declines.
Sales in the immunology portfolio reached $7.6 billion, a 9.5% year-over-year increase, driven by a 62% sales surge for Skyrizi and a 42% sales jump for Rinvoq. AbbVie’s neuroscience portfolio delivered 24% revenue growth to $2.7 billion, while key products Vraylar, Botox Therapeutic, Ubrelvy, and Qulipta delivered respective sales growth of 16%, 14%, 47%, and 78%.
AbbVie is actively expanding its pipeline through acquisitions and collaborations. Key Q2 developments included the acquisition of Capstan Therapeutics for its CAR-T therapy candidate for autoimmune diseases and a collaboration with ADARx Pharmaceuticals for small interfering RNA therapeutics in neuroscience, immunology, and oncology target areas. The company also entered a licensing agreement with Ichnos Glenmark Innovation for ISB 2001, a T-cell engager for multiple myeloma.
AbbVie remains a faithful dividend payer that yields 3.3% at the time of this writing, too. That could be icing on the cake for long-term investors.
Costco Wholesale (NASDAQ: COST) continues to demonstrate its ability to thrive even in challenging macro times when consumer spending remains in flux. The company relies heavily on membership fees for its profits, allowing it to offer low prices on merchandise and maintain relatively modest margins for product sales. This model creates customer loyalty and a predictable, recurring revenue stream, making earnings exceptionally stable even in uncertain economic climates.
During economic downturns or inflationary periods, consumers become more focused on finding the best value for their money. Costco excels at offering accessible prices on bulk goods and a limited selection of high-quality items, which resonates well with budget-conscious shoppers. The company then leverages its massive scale to negotiate favorable pricing with suppliers, passing those savings on to its members. Costco consistently boasts high membership renewal rates as well (around 90% globally, including 93% in the U.S. and Canada).
Costco’s fiscal third quarter (ended May 11) exceeded Wall Street’s estimates with a 13% increase in diluted EPS to $4.28 and an 8% revenue bump to $63 billion. Total comparable sales increased 5.7%, while e-commerce sales delivered growth of 14.8% from one year ago. The company also saw robust membership growth, with a 6.8% increase in paid household members and a 9% increase in executive memberships.
Shares are up about 20% over the past year, which is roughly in line with the S&P 500‘s broader performance in that same time frame. Costco’s dividend yields less than 1%, a pattern often associated with stocks that have a steady habit of delivering favorable share price appreciation. Notably, the company has increased its dividend every single year for over two decades and counting at this point, and occasionally pays special dividends.
Investors searching for a value-oriented stock with a defensive hedge even in tough market environments may want to build a position in Costco.
Uber Technologies(NYSE: UBER) achieved its first full-year profit in 2023, marking a significant milestone after years of operating losses. This profit was driven by increased demand for ride-hailing and delivery services, as well as cost discipline and new growth initiatives. That trend has continued in the series of financial reports the company has delivered since, and the stock has received a bump of about 51% over the trailing 12 months alone.
Uber continues to experience double-digit growth in both its ridesharing and food delivery segments, with the company’s membership program, Uber One, gaining strong traction that is driving higher user engagement and cross-platform usage. Trips during Q1 grew 18% year over year to 3 billion, bolstered by an increase in monthly active platform consumers of 14%. Uber’s gross bookings grew 14% from one year ago to $42.8 billion, driving revenue up 14% to $11.5 billion.
The company also reported net income of $1.8 billion in the three-month period, compared to a loss of $654 million in the year-ago period. Uber generated $2.3 billion in free cash flow. Its advertising platform, while relatively small compared to its core segments, grew more than 60% year over year in Q1 2025.
The company is also focusing on building an autonomous vehicle ecosystem through partnerships with companies like Waymo, Lucid Group, and Nuro, rather than developing proprietary hardware. This strategy could reduce its operational costs and even regulatory risks while paving the way for future revenue and efficiency gains through autonomous deliveries and ridesharing.
Now could be a smart time for investors to take a slice of the action by investing in this top ridesharing stock.
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Rachel Warren has positions in AbbVie. The Motley Fool has positions in and recommends AbbVie, Costco Wholesale, and Uber Technologies. The Motley Fool has a disclosure policy.
