
2 Stocks to Buy on the Dip and Hold for 10 Years
Key Takeaways
Both of these companies have turned in some stunning performances.
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6 min read
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investment
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July 24, 2025
06:09 AM
The Motley Fool
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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.
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