2 Beaten-Down Stocks to Buy and Hold Forever

2 Beaten-Down Stocks to Buy and Hold Forever


  • Apple and Eli Lilly have impressive long-term track records of returns.

  • Apple’s shift towards higher-margin fee-based services should work wonders for its business.

  • Lilly dominates the weight-loss market, but has a diversified lineup and pipeline that extend beyond it.

  • 10 stocks we like better than Apple ›

Apple (NASDAQ: AAPL) and Eli Lilly (NYSE: LLY) share several similarities. Both are long-standing leaders in their respective industries, having produced market-beating returns over the past 10 years, but have lagged behind the market in 2025.

However, despite their poor performances this year, Apple and Eli Lilly still appear to be attractive stocks. In fact, they have qualities that make them likely to deliver excellent returns over the long run, making them great forever picks.

A smiling person holding a takeout coffee cup and looking at a smartphone.
Image source: Getty Images.

Apple has been dealing with the threat of tariffs for the entire year. And although that’s a challenge worth monitoring, the company’s underlying business remains attractive. For one thing, it consistently records strong financial results. In the third quarter of its fiscal year 2025, ended June 28, revenue increased by 10% year over year to $94 billion.

Apple’s devices remain hugely popular. The company noted that its installed base, which it previously reported was above 2.35 billion active devices, has reached yet another all-time high. This happens often enough that it has almost become an expectation when Apple releases quarterly updates.

It’s also the engine of Apple’s future growth. The company boasts a deep ecosystem, and it’s using that to boost its recurring services revenue. That number also reached a brand-new all-time high during Apple’s Q3, coming in at $27.4 billion, 13.3% higher than the comparable period of the previous fiscal year.

The company’s long-term plan is to increase this high-margin, fee-based source of recurring revenue, which will significantly improve the business’s margins and bottom line. With more than 1 billion paid subscriptions to its name across several high-growth industries such as fintech, Apple is already well on its way. Services now account for almost 30% of the company’s sales.

Furthermore, Apple generates significant cash flow to invest in research and development (R&D). Although its artificial intelligence (AI) efforts have failed to impress investors so far, it’s not out of the question for the company to make a significant and lucrative move in this market eventually.

Finally, Apple is an excellent dividend stock. Despite an unimpressive current forward yield of 0.4%, the company has doubled its dividend in the past decade.


finance.yahoo.com
#BeatenDown #Stocks #Buy #Hold

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