One way to earn strong returns over the long run is to invest in stocks that are leaders or pioneers (or both) in industries experiencing significant growth due to technological progress or other developments. That description applies to PayPal (NASDAQ: PYPL) and Fiverr (NYSE: FVRR) pretty well. The former is a well-established fintech specialist, while the latter is helping power the expanding gig economy. Although they have faced their challenges — PayPal is down 19% this year, while Fiverr has dropped 26% — these two stocks could deliver excellent returns over the long run.
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PayPal’s second-quarter results were in line with expectations, except for the 49% drop in free cash flow that led to its post-earnings dip. However, the fintech specialist did not change its free cash flow guidance for the fiscal year, so the market may have overreacted to what is likely a timing issue. Meanwhile, PayPal remains one of the most trusted brands in its niche and benefits from a deep ecosystem of users across individuals and businesses.