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2 monster stocks to hold for the next 10 years

Caterpillar (NYSE: CAT ) and Octa (NASDAQ: OKTA ) These are two of the best stocks to buy and hold for the next decade. They leverage amazing artificial intelligence (AI) in the form of pick-and-shovel plays, but their other non-AI-oriented businesses offer enough diversity to stabilize them.

None of these stocks are cheap, because the smart money already sees their potential. However, there is still an opportunity to buy into these companies before the AI ​​cash arrives.

Will AI create the world’s first trillionaire? Our team recently released a report on a little-known company, which it called an “indispensable monopoly” providing critical technology needed by both Nvidia and Intel. Continue »

Image source: Getty Images.

Caterpillar benefits from AI enhancements in two ways. Its construction equipment is required to build data centers. Meanwhile, the company’s power and energy segment is growing, as it helps data centers meet their redundant power needs by supplying turbines and large reciprocating engines.

The company reported a record $67.6 billion in revenue, up 4%, in its 100th year in 2025, thanks mainly to growing appliance sales. The company operates in three segments, but its power and energy segment, which includes natural gas generators and battery storage, saw sales of $9.4 billion in the fourth quarter, up 23% year over year.

A downside was that full-year profit per share fell 14.6% to $18.81, mainly due to higher growth costs, including tariffs.

This year looks promising as Caterpillar reported a record backlog of $51.2 billion in the fourth quarter. On January 28, it announced an agreement with US Intelligence and Power to provide 2 gigawatts of power to AIP’s Monarch Compute Campus in West Virginia by 2027 by supplying natural gas generators and battery storage.

Another major growth area for Caterpillar is autonomous vehicles, particularly self-driving trucks. These vehicles work well in hazardous environments such as mines. Caterpillar also makes autonomous excavators, dozers and loaders to help construction companies deal with a shortage of skilled workers.

The company’s stock is up nearly 119% over the past year and more than 35% so far this year. It is trading at around 41 times earnings and 34 times forward earnings. While that seems high for an old-school industrial stock, it’s a bargain for a company with a lot of AI exposure.

There’s also the matter of its dividend, which Caterpillar has raised for 32 consecutive years, including a 7% bump to $1.51 per quarterly share in 2025.

Okta is a leader in cybersecurity, providing zero-trust identity and access management, ensuring users are regularly authenticated to gain access to data and software applications.

Okta’s stock is down 9.4 percent over the past year. The main reason for this is that Okta’s revenue growth has slowed down. It also faces increasing competition in access management Microsoft and Crowd strike.

Okta’s finances remain strong, though. It forecasts revenue of about $2.9 billion in 2026, up 11%, and earnings per share (EPS) of $3.43 to $3.44 in 2025, compared with $2.81 in 2025.

While some see AI as the death of software, that case is overstated. Okta is leading the way in providing security for AI agents by enabling data traffic between apps through its Identity Security Fabric.

The company suffered a black eye in 2023 when the support system broke down. I think it has learned from that and is now using AI to combat AI-generated hacks. Its Identity Threat Protection uses AI to detect behavioral changes to lock out bot-driven fraud.

Before you buy stock in Caterpillar, consider this:

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James Haley has a position at Microsoft. The Motley Fool has positions on and recommends Caterpillar, CrowdStrike, Microsoft, and Okta. Motley Fool has a disclosure policy.

2 Monster Stocks to Hold for the Next 10 Years was originally published by The Motley Fool

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