2 high-growth tech stocks to consider buying and holding for the next 5-10 years

For these in search of huge beneficial properties from stocks, the Know-how sector’s a superb place to look for alternatives. On this sector, there are loads of firms rolling out progressive new merchandise and experiencing sturdy development in the course of.

Wanting for tech stocks to purchase for the long run right now? Listed below are two under-the-radar concepts to consider.

Know-how that’s in demand right now

First up is Workiva (NYSE: WK). It’s a $3bn market-cap (comparatively small) software program firm that specialises in options that simplify monetary, compliance, and ESG reporting for companies.

I believe this firm has luggage of potential. Communicate to any monetary firm right now and they’ll inform you their largest headache is compliance reporting. That is the place Workiva is available in. Utilizing its software program (which integrates with different platforms and presents synthetic intelligence (AI) performance) staff can navigate datasets and create essential stories seamlessly.

It’s price noting that the firm’s having loads of success right now. In the fourth quarter of 2024, income was up 20% yr on yr to $200m. In the meantime, prospects with annual contract worth over $500,000 grew 32% year-over-year. “Our platform continues to resonate leading to broad-based world demand for our options,” mentioned president and CEO Julie Iskow.

We enter 2025 assured about our market alternative and skill to execute on our giant and untapped whole addressable market.

Workiva President and CEO Julie Iskow

Now lately, this inventory’s been hit by two components. One is concern that deregulation underneath the Trump administration will lead to much less demand for its merchandise. One other is concern {that a} slowdown in the financial system will lead to much less software program spending.

These are each legitimate dangers. Nonetheless, with the inventory down 40% in lower than three months and now buying and selling on a price-to-sales ratio of 5, I believe loads of threat is baked into the share worth.

Taking a five-year view, I believe Workiva inventory will do effectively. I purchased some shares lately, and I’m more than likely going to add to my place in the next few weeks.

Software program that firms can’t afford to ignore

The second inventory in focus is Fortinet (NASDAQ: FTNT). It’s one among the world’s main cybersecurity firms.

Cybersecurity’s an space of know-how that no firm can afford to ignore. In the end, the dangers related to cybercrime (eg going out of enterprise) are too excessive. So I see an extended development runway forward for Fortinet. With the cybersecurity business forecast to develop by round 13% a yr over the next 5 years, this firm might get considerably larger.

What I like about this cybersecurity inventory particularly is that it has loads of high quality. Prime-line development has been sturdy in latest years, with income climbing from $2.2bn to $6bn between 2019 and 2024 (173% development). In the meantime, return on capital employed may be very excessive (a mean of 26% over these 5 years). There usually are not many firms on this business with that stage of profitability.

It’s price declaring that cybercrime’s extraordinarily dynamic. So there’s no assure that Fortinet will proceed to have success. This firm has an awesome long-term monitor document when it comes to navigating business adjustments (take a look at the long-term share worth chart). So I’m optimistic it’ll proceed to do effectively.