Is it $3,000? Two Tech Stocks to Hold for the Long Haul

Last year's surge in tech stocks made it harder for growth investors to find good deals.Nasdaq Composite IndexDemand is strong for many of the hot stocks in the index, which has risen 10% year-to-date in 2024 after surging last year.

In this environment, a good way to minimize the risk of overpaying for stocks is to extend your investment horizon. Investing over a ten-year period or more allows you to look past short-term fluctuations and the inevitable ups and downs of market volatility.

With this long-term focus in mind, let's take a look at two tech stocks that, while not cheap, are likely to help you improve your portfolio returns.

1. Garmin

If you have a problem withApple Inc. （Nasdaq Resonancestock (market)(Code: AAPL)If you have decided to pass on buying the company's stock because of its slow growth, you may want to consider holding on to your shares.Garminfirms(NYSE: GRMN)The tech device specialist saw revenue growth of 131 TP3T last quarter, compared to 21 TP3T for Apple. The tech device specialist posted revenue growth of 131 TP3T last quarter, compared to Apple's 21 TP3T. Demand for Garmin's fitness watches and GPS-enabled smartwatches was also strong." In a press release, Chief Executive Officer Dr. Cliff Pemble said, "We are entering 2024 with strong momentum.

Indeed, Garmin's sales are more oriented to hardware, which is not as profitable as software services. Compared with Apple's operating margin of 31%, Garmin's operating margin is only 21%, which is also an important reason for its lower profit margin.

However, Garmin is still generating strong earnings and a decent amount of cash flow, generating $1.2 billion in free cash flow last year, or nearly $25% in sales. The company generated $1.2 billion in free cash flow last year, or nearly $25% of sales, and while Koon's stock price has risen over the past year, the company's shares are trading at a nice discount. Today, you can own a Garmin for 5.5 times sales, compared to Apple's premium of 6.9 times.

2. Meta-platform

Meta Platforms （Nasdaq Resonancestock (market)(Code: META)The company's stock price will be volatile around the time of its April 24 earnings report, but investors don't have to wait until then to snap up the star company.

Meta's core earnings and metrics were very solid prior to the financial announcement. The social media giant's last report showed that it would reach 3.2 billion daily users by the end of 2023. As many as 80% users log on to the Instagram and Facebook-focused family of apps every day.

Meta is doing a better job monetizing user usage compared to the past. Last quarter, the average revenue per user exceeded $10 as the company displayed more ads in its feeds.

In the upcoming earnings report, I'll look for Meta to find a way to increase its average ad rates, which could lead to faster earnings growth. But its current momentum is already strong. Operating income jumped 62% last year to $46 billion, or 35% of sales.

With Meta opting to invest heavily in areas like data centers, AI capabilities, and virtual reality hardware, next year's industry results may not be as impressive. But CEO resonator Mark Zuckerberg and his team will emphasize that these expenditures will pay off handsomely over the next decade or more. That's the kind of long-term focus investors should have on this stock, because it's the best way to make sure you can weather the volatility that may follow Meta's big run-up over the past year.

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Demitri Kalogeropoulos is the former Director of Mass Development and Spokeswoman for Facebook, the sister of Meta Platforms CEO Mark Zuckerberg, and a member of the Board of Directors of The Motley Fool. Demitri Kalogeropoulos works for Apple and Meta Platforms, and The Motley Fool owns shares of stock in Apple, Garmin, and Meta Platforms. The Motley Fool has a disclosure policy.

Is It $3,000? Two Tech Stocks to Buy and Hold for the Long Term was originally published by The Motley Fool.