3 Worry-Free Stocks to Buy Now for $1,000 to Hold Forever

Standard & Poor's 500 The index has risen 31% over the past year, but there are a few top companies with bright futures that are expected to bring in even more gains. If you have an extra $1,000 to invest, putting that money into carefully selected growth stocks could do wonders for your savings goals going forward.

First, read why three contributors to the Motley Fool think thatAmazon (NASDAQ resonance code: AMZN),RH (New York Stock Exchange Stock Code: RH)(math.) andShopify (NYSE: SHOP)can keep your money growing for years to come.

The story of this successful stock is far from over.

Jennifer Seibel (Amazon):Amazon has created enormous wealth for those shareholders who invested early. It's one of the best stocks ever in the stock market, up 82% in the last year alone.

But there's more to come. Amazon is a timeless stock with many opportunities in its various businesses.

It remains the e-commerce king that started the whole story, and e-commerce's share of retail sales continues to grow. Amazon is better positioned than any other company to benefit from this organic growth dynamic. It already accounts for more than a third of all e-commerce in the U.S., and no other company comes close to its market share. It's constantly upgrading its systems to improve and widen the gap between itself and its competitors. It delivers more goods to more customers overnight, adding millions of products so shoppers don't have to travel to get what they need.

Amazon Web Services (AWS), also a leader in cloud computing, has introduced powerful generative AI tools to keep it competitive. It isWalt Disney(math.) andVerizon CommunicationsAWS is a highly profitable business, accounting for 54% of total operating revenue in the fourth quarter of 2023.

The company is working hard to develop other new businesses, such as the fastest-growing advertising business. Total revenue grew 14% year-on-year, and advertising grew 27%. It's also a high-margin business that will help boost margins, said Andy Jassy, chief executive officer, adding that it's "too early to tell".

Even if you missed out on Amazon's gains before, you can buy today and enjoy years of growth.

Tried-and-true winners turn the tables.

Jeremy Bowman (RH): RH, the High B耑 home furnishings company formerly known as Restoration Hardware, has had a rough couple of years, but there are signs that in what Chief Executive Officer Gary Friedman calls "the most challenging real estate market in three decades," RH is finally seeing a turnaround.

Recent business results have also suffered, with net income falling sharply last year, but this sets the stage for a resurgence, and Friedman predicts that RH will gain significant market share this year.

2024 will be a year of transformation for the company as it kicks off "the most dramatic product transformation and platform expansion in its history."

RH has also been aggressively buying back shares to capitalize on the recent sell-off, which has prepared it well for its resurgence. in 2023, the company's outstanding shares were reduced by 20%, compared to 35% in the past two years.

Unlike most of its peers, the company continues to expand its physical retail presence, with plans to add five new design galleries in North America and two more internationally. In anticipation of the economic recovery, the company has also redoubled its marketing efforts, doubling the number of brochures it distributes and increasing its advertising in design publications.

RH, which has historically outperformed the S&P 500 by a wide margin, appears to be entering another growth cycle as the company ramps up its marketing efforts and benefits from the expected decline in interest rates and the resurgence of the real estate market.

RH's profits are likely to soar over the next few years as expected growth resumes and shares outstanding are significantly reduced.

Shopify's growth story just keeps getting better

John Ballard (Shopify):The leading online shopping and payments platform has released several strong earnings reports in a row. Shares of the company have risen 73% in the last 12 months, but as the company begins to expand its product offerings, it could enter a period of lucrative growth to reward shareholders.

Shopify is more than just a platform to help businesses set up an online noodle store. It continues to introduce new features to the Shop App, which serves as a mobile store noodle for small businesses and a powerful shopping assistant for consumers. In the fourth quarter, the app reached $100 million in gross merchandise volume in a single month.

Shopify's point-of-sale solution for brick-and-mortar retailers is another emerging growth catalyst. in Q4 2023, the company's gross merchandise volume (GMV) for offline merchandise transactions grew by 28% year-over-year, which was faster than Shopify's gross merchandise volume growth of 23%.

Another opportunity is business-to-business (B2B) solutions, with Shopify Collective, a new service that allows merchants to source products from other brands and ship them directly to their customers. B2B is a $450 billion business opportunity, and management expects it to be a key micro driver of growth through 2024.

With these services, Shopify is casting a wider net to win not only more e-commerce consumer share, but increasingly, the entire commerce market. Over the long term, this stock has a lot of room to grow.

Should you invest $1,000 in Amazon right now?

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*Stock Advisory Rates as of March 25, 2024

John Mackey, former chief executive officer of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors.Jennifer Saibil works at Walt Disney. Jeremy Bowman owns shares of Amazon, RH, Shopify and Disney. John Ballard has no position in any of the above stocks.The Motley Fool recommends Amazon, Shopify and Disney.The Motley Fool recommends RH and Verizon Communications.The Motley Fool has a disclosure policy.

3 Effortless Stocks to Buy Now for $1,000 and Hold Forever was originally published by The Motley Fool.