3 Growth Stocks to Buy and Hold Forever

The best investments are often companies that can sustain success for years, even decades. All investors need to do is buy and hold the shares, letting revenue and earnings pile up year in and year out.

Sounds easy, right? Unfortunately, it's easier said than done. Many companies enjoy spurts of success, but few can consistently stay ahead of the competition or continue to find ways to grow.

These three companies seem up to the task. Each one is a market leader in massive industries with years of growth ahead. Here is why each one is a buy-and-hold candidate to consider right now.

Image source: Amazon.

1. Amazon

The rise of e-commerce in the United States has enabled Amazon (NASDAQ: AMZN) to grow and evolve into a multitrillion-dollar juggernaut. The leading online retailer dominates the U.S. e-commerce market with nearly 38% market share. Its vast distribution and delivery network has become a competitive moat that few companies can hope to challenge.

While e-commerce is nothing new in America, online sales still account for less than 20% of total retail spending. Therefore, e-commerce should continue to grow for years to come, and Amazon will assuredly benefit as the runaway market leader. Additionally, Amazon's cloud services business, AWS, has become the world leader in what is another massive industry in cloud computing.

These two businesses alone could fuel years of growth ahead, and that doesn't even include Amazon's various complementary businesses, which range from digital advertising to robotics, or Amazon's sticky Prime membership customer base of more than 200 million worldwide.

In all, analysts see Amazon growing its earnings by 18% to 19% annually over the long term.

2. MercadoLibre

While some people take e-commerce and digital payments for granted, these are new luxuries in other countries. MercadoLibre (NASDAQ: MELI) bears a strong resemblance to Amazon. The company is a leading online retailer in Latin America. Beyond e-commerce and some smaller businesses, MercadoLibre's fintech segment offers a range of financial products and services to people across the region.

Latin America isn't as strong economically as the United States, but it has a much bigger population of about 670 million. Many people there are still adopting technologies, including smartphones. They are new to online shopping or digital payments, and banking. These conditions have fueled MercadoLibre's explosive growth, including total revenue that has soared by more than 450% over the past five years.

These tailwinds will likely continue, as researchers estimate that disposable incomes in Latin America will grow by approximately 60% from 2021 to 2040. The region's growth potential has attracted competition, but MercadoLibre's success illustrates the advantages of its local footprint and long operating history.

The stock currently trades at a price-to-earnings ratio of 50, but should easily grow into that over time. Analysts estimate the company's earnings will grow at an annualized rate of 32% over the long term.

3. Uber Technologies

Ride-sharing has quickly become a way of life in the United States, and increasingly so in other countries. Researchers estimate that the global market will grow at an annualized rate of 18% over the next decade. Uber Technologies (NYSE: UBER) dominates the United States, accounting for approximately three-quarters of the market there. It operates in roughly 70 countries. Uber's business has expanded from rides to food and grocery delivery and courier services.

There has been a lot of focus on how artificial intelligence (AI) and autonomous driving could disrupt traditional ride-sharing. Alphabet's Waymo and Tesla's Robotaxi could have significant cost advantages if they don't require human drivers.

It still seems early to panic, and Uber is developing its own autonomous technology in a partnership with Nvidia. Starting next year, Uber aims to deploy 100,000 self-driving vehicles.

The market's concerns about autonomous competition have clearly weighed on Uber's stock. Shares currently trade at a price-to-earnings ratio of just 20, a bargain for a business with an expected long-term earnings growth rate of 28%, according to analyst estimates.

Uber is a dominant, highly profitable company. It seems likely the stock's valuation will soar once Uber proves that autonomous driving isn't the existential threat investors fear. Yes, there is some risk, but the stock could deliver stellar returns for the foreseeable future if Uber can stay at the top of the ride-sharing industry.

Justin Pope has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet, Amazon, MercadoLibre, Nvidia, Tesla, and Uber Technologies. The Motley Fool has a disclosure policy.