The high-conviction ASX stocks I'd buy and hold forever

Analysts think these top stocks could be buys with major upside potential.

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Key points

  • Life360 stands out as a rare ASX tech gem with global reach and recurring revenue, making it a promising long-term investment as its family safety app continues to gain traction and enhance user engagement.
  • Lovisa has demonstrated resilience and growth in the fast fashion jewellery sector with its expansive international presence and successful business model, poised to capitalise on further growth in the US and Europe.
  • Both stocks are backed by strong buy ratings, with Life360 offering over 40% potential upside and Lovisa offering over 20%, signifying robust prospects for patient investors seeking enduring returns.

Building wealth through the share market doesn't require trading every week or chasing every new trend.

In fact, many of the best investors build their portfolios around a handful of high-conviction stocks. These are usually businesses with strong competitive advantages, global opportunities, and the ability to keep growing for years to come.

With that in mind, let's take a look at two buy-rated ASX stocks that I would be comfortable buying today and holding forever:

Life360 Inc (ASX: 360)

It is rare to find a tech company on the ASX with global reach, recurring revenue, and a product loved by millions, but Life360 ticks all three boxes.

The company's family safety app has become a household name in the United States, with more than 90 million monthly active users. Its premium subscription model, offering advanced location sharing, driving reports, crash detection, and emergency response, continues to deliver strong revenue growth and margin expansion.

What makes Life360 special is its ability to deepen engagement within families. Parents, teens, and even extended relatives use it daily, creating powerful network effects that make the app sticky and difficult to replace.

If it keeps executing, this is the kind of company that could become a household name globally and reward patient investors who hold through the ups and downs.

Bell Potter has a buy rating and $52.50 price target on its shares. This suggests that upside of over 40% is possible from current levels.

Lovisa Holdings Ltd (ASX: LOV)

Fast fashion may come and go, but Lovisa has proven its business model is anything but fleeting.

The affordable jewellery retailer has built an international footprint spanning over 1,000 stores across over 50 counties. And it is still expanding rapidly. Its simple formula of high-turnover, low-cost fashion accessories, backed by strong merchandising and disciplined cost control, has delivered outstanding returns for shareholders over the past decade.

Lovisa's growth story is still in its middle chapters. The company has been making significant inroads into the United States and Europe, which now make up a large portion of its store network and sales. Its proven rollout model, continues to set it apart from most retail peers.

In addition, the rollout of a new brand, Jewells, is gathering momentum and could be a key driver of growth in the future.

The team at Citi recently upgraded its shares to a buy rating with a $42.50 price target. This implies potential upside of over 20% for investors from current levels.

Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor James Mickleboro has positions in Life360 and Lovisa. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Life360 and Lovisa. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool Australia has recommended Lovisa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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