2 small-cap growth stocks I’d buy and hold for 25 years

These two shares could offer sound long-term growth opportunities.

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

sdf

Buying shares in companies that have delivered disappointing returns in recent months can be a lossmaking strategy at times. Momentum can be on the downside and this can lead to further falls in a company’s share price.

However, falling share prices can also present opportunities for investors to profit. They may offer a wider margin of safety than they previously did, and this can lead to high returns over a sustained period of time. Certainly, it can take time for those gains to be realised, but in the long run the idea of buying low and selling high can be highly effective. With that in mind, here are two underperforming stocks which could post successful turnarounds.

Improving outlook

Reporting on Thursday was oil and gas company Amerisur Resources (LSE: AMER). The South America-focused business reported encouraging results regarding Platanillo-25, which is a medium step out directional well that was recently drilled. The outcome of the drilling supports the view that there is significant further upside in the Platanillo field.

Passive income stocks: our picks

Do you like the idea of dividend income?

The prospect of investing in a company just once, then sitting back and watching as it potentially pays a dividend out over and over?

If you’re excited by the thought of regular passive income payments, as well as the potential for significant growth on your initial investment…

Then we think you’ll want to see this report inside Motley Fool Share Advisor — ‘5 Essential Stocks For Passive Income Seekers’.

What’s more, today we’re giving away one of these stock picks, absolutely free!

Get your free passive income stock pick

It was drilled to a total depth of 8,699ft and the company is now side-tracking Platanillo-25 in order to locate a production well further up-dip and nearer to Platanillo-21. There it expects to find better reservoir quality and additional pay thickness, which could mean more sustainable production. Once the side track is complete, Platanillo-27 will be drilled.

The company also reported that the long-term test (LTT) off Matiposa-1 is on track to start at the end of October. This could help to diversify the company’s production base, and will also add further material production to the company in the near term.

With progress being made on its strategy, Amerisur could become more popular among investors and this could help to push its share price higher. Clearly, it is dependent upon further news from its projects, but it appears to have growth potential in the long run due partly to its price-to-earnings (P/E) ratio being only 11.2.

Growth potential

Also offering growth potential in the long run is sector peer Ophir Energy (LSE: OPHR). The Asia and Africa-focused company is forecast to move back into the black in the next financial year, with a pre-tax profit of £22m being anticipated by the market. This could help to improve investor sentiment in the stock and may lead to an improved outlook for its share price following a fall of 13% during the last year.

Clearly, the company’s financial outlook is dependent on the oil price. In recent months, it has increased as supply cuts have started to rebalance demand and supply across the industry. Looking ahead, further rises could be possible due to the potential for further cuts and continued growth in demand. Therefore, now could be an opportune moment to buy a slice of Ophir Energy ahead of what may prove to be a stronger period for the wider oil and gas industry.


Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Peter Stephens does not own shares in any company mentioned. The Motley Fool UK has recommended Amerisur Resources. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Tesla building with tesla logo and two teslas in front
Investing Articles

The Tesla share price is up 48% since April, but down 19% this year! What’s going on?

Christopher Ruane considers some possible explanations for a sharp recent rise in the Tesla share price -- and a decline…

Read more »

piggy bank, searching with binoculars
Investing Articles

Here’s what forecasts say about the Aviva share price out to 2027

The Aviva share price has made a strong recovery in the past few years, and City experts predict more years…

Read more »

piggy bank, searching with binoculars
Investing Articles

If the stock market crashes, I will buy this under-the-radar AI stock

Nobody knows when the stock market will nosedive next. But one fantastic growth share is on this writer's buy list,…

Read more »

Close-up image depicting a woman in her 70s taking British bank notes from her colourful leather wallet.
Investing Articles

£20k in an ISA? Here’s how it could be used to target £423 of passive income each month

Earning money from dividends in an ISA is one way to set up passive income streams. Our writer explains how…

Read more »

High flying easyJet women bring daughters to work to inspire next generation of women in STEM
Investing Articles

Will the easyJet share price return to its 2021 highs?

The long-term trajectory of the easyJet share price may have escaped some investors. The stock's really depressed, but can it…

Read more »

ISA Individual Savings Account
Investing Articles

Are these the best value Stocks and Shares ISA buys in the whole FTSE 100?

The stock market might be having a strong year in 2025, but I'm still seeing some great value Stocks and…

Read more »

Investing Articles

Is now the time to buy FTSE 100 shares instead of S&P 500 stocks?

The FTSE 100 has beaten 53% of S&P 500 shares over the last two years. Here's a top share I…

Read more »

Businessman with tablet, waiting at the train station platform
Investing Articles

This FTSE 250 stock hit 5-year highs today! Can it keep soaring?

This FTSE 250 stock's risen almost 40% since last summer. Can it keep up its impressive momentum? Royston Wild thinks…

Read more »