Royston Yang, The Motley Fool

Wed, Jun 11, 2025, 6:45 AM8 min read

• Carpenter Technology supplies specialty materials for the aerospace and transportation industry and just saw its free cash flow turn positive in 2024.

• Moody's provides credit ratings and data analytics tools, and the business is seeing steady growth over the years, with more to come.

• Sea Limited is an e-commerce and gaming company that is seeing healthy growth in profits and free cash flows in the burgeoning Asian market.

• 10 stocks we like better than Carpenter Technology ›

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.

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

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.