3 Monster Stocks to Hold for the Next 10 Years

The best way to build your wealth is to park your money in solid growth stocks and hold them over the long term. By doing so, you enjoy steady capital appreciation as these promising stocks churn out higher profits and free cash flows. That said, you must filter out the right stocks to include in your portfolio.

Look out for attributes such as a good track record of growth in revenue and net income, consistent free-cash-flow generation, and a history of paying out steady dividends. These companies should also possess catalysts that can help their business to grow to the next level.

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Here are three solid stocks you can consider owning for a decade or longer.

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Carpenter Technology

Carpenter Technology (NYSE: CRS) produces high-performance specialty alloy materials for use in the aerospace, defense, medical, and other sectors. The company has grown its revenue steadily over the years, and the business broke even in 2023 while continuing to demonstrate increased profitability. Free cash flow also turned positive in 2024, a good sign for the business, as shown in the table below.

Data source: Carpenter Technology. Fiscal years end June 30. *Note: Includes goodwill, restructuring and asset impairment charges worth $31 million.

Carpenter Technology's revenue and earnings momentum continued into the first nine months of fiscal 2025. Revenue rose 8.2% year over year to $2.1 billion while operating income (net of impairment charges) surged 63% to $374 million. The company posted a net profit of $267.9 million, more than double the net profit of $107 million in the prior year.

Meanwhile, free cash flow has continued its upward trend, jumping 135% year over year to $86 million for the first nine months of the current fiscal year. The materials company also paid out a quarterly dividend of $0.20 per share as icing on the cake.

The business is firing on all its cylinders as it upgrades its operating income forecast for fiscal 2027. During its 2023 Investor Day, management set a goal to achieve operating income of between $460 million to $500 million by fiscal 2027. Carpenter Technology not only enjoys strong demand across its end-use markets, but also possesses a collection of unique manufacturing assets that are difficult to replicate, giving the company a distinct advantage over its competitors.

With the release of its latest quarterly results, the business upgraded its fiscal 2025 operating income guidance to between $520 million and $527 million, which has already exceeded its previous fiscal 2027 goal. The operating income target for fiscal 2027 has been upgraded to between $765 million and $800 million, representing a compound annual growth rate of close to 25%.

Management believes the business can achieve this through margin expansion with volume, mix, and pricing improvements. Carpenter Technology believes that fiscal 2027 will not be the peak of its earnings growth, thereby giving investors confidence that the company can continue to grow its earnings and free cash flow for the foreseeable future.

Moody's

Moody's (NYSE: MCO) is a business and financial services company supplying credit ratings, research, data, and analytics for customers in global capital markets. The company has steadily grown its revenue, operating income, and net income as shown in the table below. Free cash flow has also increased in tandem over the years.

Data source: Moody's.

Moody's growth continued in the first quarter of 2025, led by year-over-year revenue gains for both its Moody's Analytics and Moody's Investors Services divisions. Revenue for the quarter increased by 7.7% year over year to $1.9 billion, while operating income climbed 5.6% year over year to $846 million.

Net income improved by 8.3% year over year to $625 million, and the business continued to churn out a positive free cash flow of $672 million. Moody's also raised its quarterly dividend to $0.94 for an 11% year-over-year rise, capping 16 consecutive years of dividend increases since 2009.

Management is confident of further growth ahead, with guidance for 2025's revenue to grow in the mid-single-digit-percentage range. The credit ratings company also believes that it can churn out between $2.3 billion and $2.5 billion of free cash flow this year, which should support the continued increase in dividend payments. The company is relying on both organic and acquisitive growth to power its revenue and net income to greater heights. In addition, consistent GDP growth will continue to be a long-term tailwind that drives demand for debt capital, driving the increased need for credit ratings and data analytics.

Last November, Moody's acquired Numerated Growth Technologies to expand its lending technology solutions across the credit lifecycle. Earlier this year, Moody's purchased CAPE Analytics, a provider of geospatial artificial intelligence for residential and commercial properties. This acquisition will add property risk intelligence to its suite of insurance risk models.

Recently, Moody's partnered with MSCI (NYSE: MSCI) to create a solution for the provision of independent risk assessments for private credit investments. This collaboration will help Moody's to improve its service offerings and also open the business up to a wider range of customers. These acquisitions and business initiatives should continue to power growth for Moody's, and investors can look forward to continued rises in its top and bottom lines in the years ahead.

Sea Limited

Sea Limited (NYSE: SE) is a technology company with three divisions -- its digital entertainment unit called Garena, e-commerce under its Shopee brand, and digital financial services parked under its Monee brand. Sea Limited has consistently grown its revenue and also turned both profitable and free-cash-flow-positive in 2023, as shown in the table below.

Data source: Sea Limited.

The company pulled off a strong quarter to start off 2025 as revenue shot up 29% year over year to $4.8 billion. Operating income soared more than sixfold year over year to $456 million, and net profit stood at $403 million, reversing the prior year's net loss of $23.7 million.

Garena, Sea Limited's gaming division, recorded its best quarter since 2021. Free Fire continued to be the world's largest mobile game by downloads and daily average users (DAUs), and the game's collaboration with Naruto Shippuden made it a resounding success, with total bookings growing by 51% year over year.

Sea Limited's digital entertainment division saw quarterly active users hit 661.8 million, up 11.3% year over year. The good news is that the number of paying users jumped 33% year over year to 64.9 million. Management remains confident of its guidance for double-digit year-over-year growth for its user base and bookings for this year. Shopee also did well this quarter as both gross merchandise value and order volumes hit records. Gross merchandise value jumped 21.2% year over year to 28.6 billion, with gross orders hitting 3.1 billion, up 19% year over year.

The strength of Garena's Free Fire, along with Shopee's dominant position within the Asian e-commerce space, should continue to drive long-term growth for Sea Limited. With both its e-commerce and gaming divisions doing well and demonstrating healthy growth, investors should feel confident that Sea Limited can continue to see its revenue and net profit rise.

Should you invest $1,000 in Carpenter Technology right now?

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Royston Yang has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends MSCI, Moody's, and Sea Limited. The Motley Fool has a disclosure policy.