ET 04:39

Top 3 Stocks for Long-Term Holding: DCI, WING, MORN with Risk Note

Two stocks generate reliable profits with growth potential, and one offers strong operating margins but faces valuation and sustainability concerns. Donaldson (NYSE:DCI): Trailing 12-Month GAAP Operating Margin 13.8%. Traded at 3.3x forward P/S. The company, with a heritage from Apollo 11, manufactures filtration equipment. Caution: trades at a discount to peers and faces evolving industry dynamics. Wingstop (NASDAQ:WING): Trailing 12-Month GAAP Operating Margin 25.5%. Price: $264.55; forward P/E 60.2x. A Texas-based fast-casual chicken wing chain. Valuation is high, but strong brand and franchise growth could justify it. Morningstar (NASDAQ:MORN): Trailing 12-Month GAAP Operating Margin 22.3%. Price: $171.70; forward P/E 16.5x. Provides independent investment data and analysis tools. Known for strong margins and consistent performance. Note: The article highlights a curated list of high-quality growth stocks with a 244% return over five years as of June 30, 2025, and advises portfolio diversification to mitigate risk.

EditorTan Wei Jie