2 Stocks to Buy on the Dip and Hold for 10 Years
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The Motley Fool

2 Stocks to Buy on the Dip and Hold for 10 Years

July 24, 2025
06:09 AM
6 min read
AI Enhanced
financeinvestmenteconomystocksfinancialtechconsumer discretionarymarket cycles

Key Takeaways

Both of these companies have turned in some stunning performances.

Article Overview

Quick insights and key information

Reading Time

6 min read

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Category

investment

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Published

July 24, 2025

06:09 AM

Source

The Motley Fool

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Key Topics
financeinvestmenteconomystocksfinancialtechconsumer discretionarymarket cycles

It's worth noting that Both of these companies have turned in some stunning performances

At the same time, Not every stock is a winner all the time -- and that's OK

Meanwhile, If you're a buy-and-hold investor me, you understand that every stock and every market has a down patch sometimes

The overall stock market experiences a bear market every 3, in light of current trends. 5 years or so, but that doesn't keep the market from gaining on average around 10% per year (fascinating analysis)

However, when a stock is sagging, that can be the best time to buy

I'm not suggesting you try to catch a falling knife and invest in a company that's crumbling, but there are times where a company falters through no fault of its own -- for instance, temporary market conditions or early growing pains

During the COVID-19 pandemic's height, I loaded up on Delta Air Lines and Royal Caribbean Cruises because I knew they would be back -- and I up making a sizable fit after holding each for two years (which is quite significant), given current economic conditions

So, it can pay off to look at today's also-rans and find some companies that are on sale for a serious discount

Two of them that I highly recommend are Reddit (RDDT 0. 21%) and Pool Corporation (POOL 0

Let's take a look at both

Image source: Getty Images

In contrast, Reddit: Down 11% YTD Reddit's been around for 20 years, but it just became a publicly traded company last year (noteworthy indeed)

The social media company is different from others because its users are largely anonymous

Furthermore, It has a highly structured system of communities, called subreddits, where users can discuss specific topics

What the re reveals is company says it has an audience of 400 million people who visit or log on each week, with 108. 1 million daily active unique users -- a measure that was up 31% on a year-over-year basis in the first quarter

However, Revenue for the quarter jumped 61% to $392. 4 billion, and advertising revenue was up to $358

At the same time, The company also turned a fit, recording net income of $26

Furthermore, 5 million versus a loss of $575

Nevertheless, 1 million in the same quarter a year ago

Meanwhile, I think those numbers are solid

Additionally, Reddit stock is also up 325% from its IPO price of $34

But if you look at Reddit on a year-to-date (YTD) basis, you see the stock down 11%

Is that a huge issue for Reddit

Remember, this is a company that's just getting started and just starting to turn a fit (something worth watching)

It's learning how to monetize its user base, sell advertising, and generate consistent earnings, in light of current trends

That takes time, so I'm not surprised at all that Reddit pulled back from its all-time high set in February

I'll give you an example

Nevertheless, Another social media company, Facebook, went public in May 2012

It dropped 31% in its first year before turning around to begin steady growth

In contrast, Today, now known as Meta Platforms (NASDAQ: META), the company has the sixth-greatest market capitalization in the world, with a valuation of $1. 7 trillion (an important development), amid market uncertainty

Nevertheless, I'm not suggesting that Reddit will be the next Meta, considering recent developments

Meanwhile, But I will say that the stock is on sale right now, and it should be an excellent investment for the next decade

At the same time, Pool Corporation: Down 8% YTD Pool Corporation is a distributor and seller of outdoor equipment that's best known for selling and installing swimming pools, and for its sales of replacement parts to both individuals and distributors, in today's financial world

Not surprisingly, this is a tough to be in right now

Installing a new swimming pool can cost tens of thousands of dollars, and the U

Additionally, Economy has been volatile for several months

Inflation, tariff threats, and supply chain challenges make in a new swimming pool a leap of faith that some people aren't willing to take right now

But remember, Pool Corp

Isn't just an installation company

Furthermore, It's currently getting 64% of its revenue from maintenance and repair services, with only 14% coming from new construction and 22% from making renovations

In contrast, That means Pool still has a solid, even when the economy is finicky

Revenue in Q1 2025 was $1

Additionally, 07 billion, down from $1. 12 billion a year ago

Additionally, In contrast, Fits also took a hit, dropping from $78. 8 million to $53, amid market uncertainty

Nevertheless, However, even in these times Pool is turning fit, with Q1 earnings per of $1. 42 (down from $2

Additionally, Pool also pays a solid dividend of $1

At the same time, 20 per (up $0. 10 from a year ago), with a dividend yield of 1 (remarkable data)

What the data shows is economy won't be this forever, and when it bounces back and people start building pools again, Pool Corp. 's fits could go through the roof (something worth watching)

Down 8% on a YTD basis, Pool Corp

Seems positioned for long-term gains if you're a patient investor

The Author Patrick Sanders is a contributing Motley Fool Stock Market Analyst covering publicly traded companies and exchange-traded funds in the consumer,financial, and nology sectors (quite telling) (something worth watching), given the current landscape

Prior to The Motley Fool, Patrick was Assistant Managing Editor for U (fascinating analysis)

Conversely, News & World Report’s advice section and founder of their daily stock market, "Invested

However, ” He previously was Deputy Managing Editor of InvestorPlace

On the other hand, He was also a Managing Editor for news websites in southeast Europe and Turkey, was founding Managing Editor for The New York Times Editing Center, and was Connecticut News Editor for The Associated Press

Patrick has made numerous media appearances as a stock market analyst and appeared on panels to discuss personal finance and

Additionally, In Journalism from Marshall University

TMFPatrick Patrick Sanders has no position in any of the stocks mentioned

The Motley Fool has positions in and recommends Meta Platforms (an important development)

However, The Motley Fool recommends Delta Air Lines

However, The Motley Fool has a disclosure policy.