3 shiny growth reserves to buy now and stay for the long run

3 shiny growth reserves to buy now and stay for the long run

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The best capital profits are obtained by retaining in the long run. That is why patience is such an important feature for investors in growth reserves. If the business demonstrates a consistent increase in profits and free cash flow, the market will naturally gain the price of its shares and make it more price over time.

Of course, it’s not reasonable to just go out and buy any growth company. The key is to be insightful and choose the business that demonstrates important attributes that provide confidence that they can continue to deliver.

These include competent management team; attempt at increasing revenue, profits and dividends; And catalysts plans to continue to grow the business. With these features on the spot you will be in a better position to press the purchase button.

Here are three such growth reserves that you can consider in the long run.

Image source: Getty Images.

Econab (Nyse: ECL) It specializes in water purification technology, providing hygiene and infectious variable solutions to customers in more than 170 countries. The company is constantly increasing its revenue and net income in the last few years, as shown below.

Metric

2022

2023

2024

Revenue (in billions

$ 14.188

$ 15.32

$ 15.741

Operational Income (in billions)

$ 1,563

$ 1,992

$ 2,802

Net income (in billions)

$ 1,092

$ 1,372

$ 2,112

Data Source: Ecolab. The fiscal years end December 31st.

The Ecolab not only increases its net income constantly, but the business also increases the free cash flow (FCF), which traveled from $ 1.1 billion in 2022 to $ 1.8 billion in 2024. This healthy generation of FCF allowed it to raise its annual dividend without failure for 33 consecutive years; The last impetus to its quarterly payment was 14% compared to a year to $ 0.65 per share.

Management expects secular trends in the sectors where it works to stimulate the more demand for the company’s innovative technologies. Ecolab also has investments in various verticals such as data centers, microelectronics and life sciences, which must witness healthy growth this year and after.

Due to these positive trends, the business expects its adjusted diluted profit per share (EPS) to improve by between 12% to 15% in the year. He also relies on acquisitions for power supply, as an example, is the purchase of Barclay Water Management in November last year to help create new opportunities in his own water safety solutions.

The management identifies a large total addressable market of $ 152 billion, of which it has only an 11% share, leaving a significant space for more growth. By 2050, it is believed that there will be 30% more people on the planet, consuming 56% more food. To meet their freshwater needs, Ecolab forecast a deficit of 56% by 2030, which must be urgently addressed.

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