2 Growth Stocks to Buy and Hold Forever

The S&P 500 started this year off on the right foot -- confirming the presence of a bull market -- and the good times have continued to roll from there for all three major benchmarks. The S&P 500, the Nasdaq, and the Dow Jones Industrial Average each have climbed 24%, 26%, and 14%, respectively, since the start of the year. And the companies leading the gains have been growth stocks, players that traditionally excel in bull environments.

But this doesn't mean you should invest in these players uniquely during a bull market. A solid growth stock has what it takes to perform over the long term -- and this may include more than one bull phase. So, it's key to seek out quality players, those with promising earnings prospects over time.

History shows us that bull markets generally last longer than bear markets, suggesting today's bull market has farther to run. And that means investing in growth stocks now could offer you gains in the near term -- and if you choose wisely -- over the long haul too. With this in mind, let's check out two growth players to buy and hold forever.

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1. Amazon

Amazon (NASDAQ: AMZN) may be the ultimate growth company, as it's a leader in two high-growth markets: e-commerce and cloud computing. On top of this, Amazon is going all in on the latest promising area that some say will revolutionize the world, much like the telephone or the Internet. I'm talking about artificial intelligence (AI). Amazon is using AI to improve its own business through efficiency gains, and it's selling AI products and services to customers through its cloud computing unit, Amazon Web Services (AWS).

All of this has helped Amazon build a solid earnings track record, generally reporting billions of dollars in revenue and profit quarter after quarter. In e-commerce, Amazon's competitive moat is strong: It's built an extensive fulfillment network and an attractive subscription program that's kept customers loyal. And the company now continues to make deliveries faster and faster -- to save on costs and please the customer. That's a win-win situation.

As for cloud computing and AI, they go hand-in-hand. AI has helped AWS reach an annual revenue run rate of $110 billion. And this is key because AWS traditionally has been Amazon's profit driver.

Today, Amazon is trading for 40x forward earnings estimates. This isn't dirt cheap, but it's reasonable considering the company's strengths in such high growth areas and potential for the earnings momentum to continue well into the future.

2. Chewy

Chewy (NYSE: CHWY), like Amazon, is an e-commerce company, but this player specializes in one particular area -- serving your furry friends. Chewy sells everything from pet food and toys to prescription drugs and pet health insurance. And the company recently expanded into a brick-and-mortar business with the launch of veterinary clinics known as Chewy Vet Care. Finally, Chewy also brings in revenue through sponsored ads, a business that's in its early days but is exceeding the company's expectations.

What I like most about Chewy is a program that clearly shows its customers' loyalty -- and therefore offers us visibility on future revenue. This is Chewy's Autoship, a service that allows you to choose items you use regularly to be automatically reordered and shipped to you at a specific time. Autoship sales have steadily made up more than 75% of total sales quarter after quarter, and in the most recent quarter that percentage was more than 78%. Another number showing how much customers like Chewy is the net sales per active customer -- it climbed 6% to reach a record of $565 in the quarter.

Chewy also has a solid financial situation, with no debt and $695 million in cash, and a focus on managing operating expenses. And the company predicts its gross margin, today at about 29%, will fluctuate, but over time it will widen as higher-margin parts of the business grow.

All of this makes Chewy, today trading for 25x forward earnings estimates, an exciting growth player to buy and hold for the long term.