They could be excellent companies to stick with well beyond the next decade.
To find stocks that can perform well over a decade or more, it’s helpful to identify industries that seem to be on a long-term growth trajectory, then dig into the companies that lead these markets. In that spirit, let’s look at two stocks that are among the dominant players in sectors with excellent prospects: Intuitive Surgical (ISRG -3.19%) and Amazon (AMZN -4.97%).
These market leaders have consistently delivered excellent long-term returns to their shareholders, and over the next decade, they are likely to continue doing so. Let me explain.
The market leader in robotic-assisted surgery
In the next decade, we can expect healthcare costs to continue rising, driven by an aging population, increased utilization, and, notably, innovations in the field. Intuitive Surgical is one of those innovative healthcare companies that should benefit from this trend.
The medical device specialist leads the market for robotic-assisted surgery (RAS) systems, devices that enable physicians to perform minimally invasive surgeries using tiny, highly flexible instruments inserted directly into patients. Intuitive Surgical’s da Vinci system is its best-known product. The company’s installed base as of the second quarter was 10,488, a year-over-year increase of 14%.
The RAS market remains underpenetrated. So, over the next decade, the company’s procedure volume — a key driver of revenue growth — should increase consistently, resulting in higher sales volumes for its instruments and accessories. That’s what’s powered Intuitive Surgical over the past decade and has allowed it to deliver excellent returns.
The company also benefits from a strong economic moat, thanks to its first-mover advantage, protected by substantial cost-related and regulatory barriers to entry, as well as its high switching costs. Even as more healthcare leaders are looking to enter the field, Intuitive Surgical should remain the top player for a while.
Lastly, Intuitive Surgical should find a solution to the threat of tariffs, which has weighed on its share price this year. The company’s device is one of the best (if not the best) in the business, with few alternatives that can produce comparable clinical outcomes, which grants it significant pricing power and the option to pass along cost increases.
Although it isn’t doing so yet, that’s one way in which the healthcare giant could get around tariffs. And despite this headwind, the stock could deliver superior returns over the next decade.
Cloud computing, artificial intelligence, and more
Amazon’s brand is perhaps still tied to its e-commerce business, and there’s a good reason. The company is the leading e-commerce player in the U.S., with a runaway market share. However, the tech giant’s online shopping business is a fairly low-margin operation.
Here’s where it gets interesting: Amazon is seeking to enhance its margins and profits through initiatives related to artificial intelligence (AI). The company deployed a fleet of industrial robots in its warehouses, which use AI models to optimize travel efficiency. The goal is to boost efficiency and productivity, resulting in faster deliveries and lower costs for consumers, all of which are key factors that have contributed to Amazon’s current industry position.
Investors should expect the company’s e-commerce margins and profits to improve over the next decade.
But there are several more opportunities for Amazon, some arguably even more important. Its cloud computing business, for instance, looks highly promising. Even while continuing to battle Microsoft for supremacy, Amazon Web Services is posting better sales growth than the rest of the company’s segments and is responsible for most of its operating margins. And there’s more where that came from, as the cloud industry still has plenty of room to grow, especially with increased demand for AI-related solutions.
There’s also Amazon’s advertising business, which has been growing steadily, as well as its ventures in healthcare, including initiatives such as Amazon Pharmacy. In short, Amazon is an excellent company with multiple growth paths. The stock should once again outperform the market over the next 10 years.
Prosper Junior Bakiny has positions in Amazon and Intuitive Surgical. The Motley Fool has positions in and recommends Amazon, Intuitive Surgical, and Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
