Attempting to time the market really isn’t a smart long-term strategy. However, time in the market has been a greater predictor of success for long-term investors.
Accordingly, the search for long-term buy-and-hold stocks is always on. With this in mind, I think creating a buy list of opportunities to consider on drawdowns makes sense.
Two of the top such stocks on my list right now are Restaurant Brands (TSX:QSR)(NYSE:QSR) and Constellation Software (TSX:CSU). Let’s dive into why these companies may be worth considering at these levels today.
Top long-term stocks to buy: Restaurant Brands
Headquartered in Toronto, Restaurant Brands franchises, owns, and operates quick-service restaurants under the Popeyes, Tim Hortons, Burger King, and Firehouse Subs brands globally. These banners are world renowned, with excellent growth potential over the long run.
One of the key drivers of this growth is new markets. Right now, many investors have their eye on the Asian market. That’s partly because of a Jan. 3 announcement that Silia Co., a wholly owned subsidiary of Popeyes, would be entering into a master franchise and development agreement to develop and open hundreds of Popeyes locations across South Korea in the years to come.
This deal is one of many, which should drive excellent long-term growth. Historically, Restaurant Brands has delivered excellent growth outside of the pandemic. With a return to normal (globally) underway, I expect this company to continue to outperform over the medium to long term.
Currently, Restaurant Brands trades at a reasonable valuation multiple of around 20 times earnings. Additionally, this defensive growth stock provides investors with a meaningful 3.8% dividend yield. Over the long term, I expect excellent total returns from this company and believe QSR stock is a top buy today.
Constellation Software
With a market capitalization of over $43 billion, Constellation Software features among Canada’s most valuable technology firms.
Constellation Software stock has reported posted returns in 15 consecutive calendar years. These sorts of compound returns have rarely been seen by any technology company, let alone a Canadian tech giant.
However, Constellation’s long-term aggressive acquisition strategy has made this so. Via acquiring more than 650 companies over its history, Constellation Software has become a big-time player in the software space.
This company continues to acquire and integrate companies into its portfolio successfully. Over the long term, the success metrics on Constellation’s rollup strategy are impressive.
Accordingly, investors seeking long-term growth may want to consider Constellation Software. Sure, this company isn’t cheap. However, this stock is priced where it is for a reason.
