2 Brilliant Stocks to Buy in October and Hold Forever

If I'm buying a stock with the intention of holding it for decades, I want a company that can make money when the economy is booming and that can keep making money when it isn't. Walmart (NASDAQ: WMT) and WM (NYSE: WM) fit that description particularly well.

Neither relies on consumers buying expensive discretionary products. Walmart sells groceries, household products, and other everyday necessities. WM collects and disposes of trash. Recession or not, people still need both. And October also offers an interesting entry point.

Walmart has pulled back sharply from its 2026 high despite raising its full-year outlook, while WM enters the month at a lower valuation than it carried at the beginning of the year and is scheduled to report earnings on Oct. 27. So let's take a closer look.

Image source: Getty Images.

1. Walmart

Walmart's size has always given it an advantage during difficult economic periods. But today's Walmart is a much better business than the retailer many investors remember.

Q2 fiscal 2027 revenue increased 5.9% year over year to $187.9 billion. Walmart U.S. net sales increased 3.5%, while global e-commerce sales jumped 23%. The company is also building higher-margin businesses around advertising and memberships. Global advertising revenue increased 38% last quarter, while membership fee revenue increased 17%.

That combination is helping profits grow faster than sales. Adjusted operating income increased 17.4% on a constant-currency basis in Q2. Management subsequently raised its full-year outlook and now expects net sales to increase 4% to 5% and adjusted operating income to rise 7% to 8.5%. And if the economy weakens, Walmart's value proposition could become even more attractive as consumers look for ways to stretch their dollars.

2. WM

Garbage isn't exactly an exciting growth industry. But that's precisely why I like WM, formerly known as Waste Management. Trash collection doesn't stop because GDP contracts. Homes, restaurants, hospitals, and businesses continue producing waste regardless of what's happening on Wall Street. And WM has turned that predictability into a very profitable business.

Q2 revenue increased 4% year over year to $6.68 billion, while operating earnings before interest, taxes, depreciation, and amortization (EBITDA) reached $2.03 billion. Free cash flow jumped 34.5% to $1.1 billion. Management now expects to generate between $3.75 billion and $3.85 billion in free cash flow this year.

That cash supports one of the more impressive dividend records in the market. WM raised its dividend 14.5% for 2026, marking its 23rd consecutive annual increase. The company also authorized $3 billion in share repurchases.

WM is expanding beyond traditional trash collection, too. Investments in recycling automation and renewable natural gas are creating additional sources of earnings growth.

Walmart and WM probably won't generate the excitement of the latest artificial intelligence stock. But both dominate businesses people need, regardless of what the economy is doing. They generate billions in cash, continue to find new ways to grow, and have the financial strength to survive inevitable downturns. Those are exactly the kinds of companies you want to own for decades.

Jeff Siegel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Walmart. The Motley Fool recommends WM. The Motley Fool has a disclosure policy.