3 solid growth stocks that could be huge winners over the next decade and beyond

0

IInvesting in stocks is one thing; owning growth stocks is another. There is the excitement of owning a stock in a company that is already ahead of its peers in terms of sales or profit growth, or that is heavily reliant on megatrends, or that might even start with products or services that seem so. promising that the market is already willing to pay a high price for the stock. Then there’s the thrill of watching those growth stocks grow, often in multi-baggers that can net you a fortune.

If the thought of earning so much wealth turns you on, here are three growth stocks – one on a huge trend, another that is increasing sales exponentially, and the third that is starting out in a booming industry – that could make huge progress in the coming decade.

Take e-commerce by storm

Shopify (NYSE: SHOP) has become unstoppable. The stock hit 52-week highs on November 19 in anticipation of strong growth for the e-commerce company in upcoming holiday sales.

Shopify released a truly impressive statistic in its Q3 earnings report that also reflects the company’s skyrocketing growth. “It took our merchants 15 years to reach $ 200 billion in cumulative GMV, and only 16 months to double that number to $ 400 billion,” said Shopify president Harley Finkelstein.

Image source: Getty Images.

Primarily targeting entrepreneurs and small businesses, Shopify helps them set up personalized online stores on its platform with complete management from catalog creation to shipping. More importantly, it is a multi-channel platform that includes almost every social media and payment platform one could think of, which is extremely appealing to merchants as it makes marketing, retailers much easier. sales and payments.

Based on its gross merchandise value, Shopify captured 8.6% of the U.S. e-commerce retail market, just behind Amazon. It also means that there is a huge addressable market for Shopify to target. The best part is that Shopify continues to roll out new products and services to attract and retain merchants on its platform. So, for example, Shopify is now operating cross-border commerce, deploying a money management product, expanding its shipping services outside of the United States, and investing in its already rapidly growing lending business.

Shopify’s revenue jumped 46% in the third quarter to $ 1.1 billion, and its number of merchants topped a staggering 1.7 million. As the peak sales season approaches, the company is on track to achieve a big record year after generating $ 2.9 billion in revenue in 2020. The point of note is that 2021 could soon be just a year. Another Record Year – Shopify is thirsty for growth, and as it grows and moves closer to Amazon while riding the ecommerce megatrend, it could continue to set new records for years to come.

Double turnover in three years? Yes it’s possible.

Teladoc Health (NYSE: TDOC) stocks have lost nearly 12% in the last week at the time of this writing, and that’s mainly because this virtual care titan is seeing its earnings grow at a compound annual rate of alone 25 to 30% until 2024. Disappointed? In other words, Teladoc plans to double its turnover in just three years. It suddenly doesn’t look so bad, does it?

Granted, even this growth projection is significantly lower than the company’s growth rate so far since 2018. Still, let’s not forget that Teladoc’s costly $ 18.5 billion acquisition of Livongo in the end 2020 is the main reason it expects nearly 85% revenue growth this year. Teladoc could very well make similar, if not equally big, growth moves in the years to come, and that is not factored into its revenue outlook.

And, if a company can double its sales in three years, one can only imagine where it could be in 10 years. Growth prospects are enormous, given Teladoc’s global leadership in virtual care with services spanning primary telehealth like virtual consultations to mental health care and the management of chronic diseases like diabetes. Teladoc predicts the strongest revenue growth – around 30% to 40% CAGR – in mental health care through 2024.

Teladoc estimates the size of its total addressable market in the United States alone at around $ 260 billion. The company sells directly to large employers, has distribution agreements and is now expanding its partnerships with health insurance providers like CVS Aetna and CVS Santé. As the global virtual care market is expected to grow in double digits in the coming years, Teladoc Health looks poised to become a multi-bagger stock over the next decade.

Everyone’s Talking About This Electric Car Fleet For A Reason

Lucid group (NASDAQ: LCID) is the boldest call I make today. While the electric vehicle (EV) maker has turned heads for all the right reasons so far, it will have to work even harder to prove itself in the wake of the potential intensification of competition in the industry. of electric vehicles over the next decade.

Yet, according to Lucid’s story, the business could continue to surprise; and as time goes on, Lucid stocks could catapult to new heights.

Perhaps Lucid’s biggest competitive advantage from an industry perspective is management – she has You’re here‘s (NASDAQ: TSLA) Former Model S chief engineer Peter Rawlinson at his helm. Rawlinson started out wanting to build electric cars that would beat Tesla, and he has had some success so far. Lucid Air Dream Edition has been accredited with a range of 520 miles by the Environmental Protection Agency (EPA), over 100 miles longer than the Tesla Model S. Lucid Air also recently won the coveted automotive industry award, MotorTrend Car of the Year.

A lucid look.

Image source: Lucid Group.

Of course, Lucid is a far cry from Tesla’s scale, size, and reach, he has more expensive cars than Teslas, and he’s just started delivering his first car, the Dream Edition, priced at $ 169,000 per unit. Still, Lucid had received reservations for more than 17,000 cars across all four models by November 15 and plans to manufacture 20,000 cars in 2022. Longer term, here are some of Lucid’s most notable future plans:

  • Lucid is quadrupling the size of its only plant in Arizona, targeting production of 90,000 units by 2023.
  • It plans to launch the “world’s most versatile electric SUV,” the Gravity, by 2023.
  • Lucid plans to start manufacturing in China and the Middle East by 2025.

Thus, after North America, Lucid will target China – the largest market for electric vehicles in the world – and Saudi Arabia – its second market in terms of pre-orders. Ultimately, Lucid wants to build cars for the masses. Or as Rawlinson revealed during his last interview with the New York Times, “I’m not here to sell ultra-luxury cars. I want to industrialize electric cars en masse.” Now, cornering the masses seems like a compelling strategy to gain a foothold in an industry that could grow exponentially, and that’s just one of the reasons Lucid could be an absolute winner in the long run.

10 actions we prefer over Lucid Group
When our award-winning team of analysts have stock advice, it can pay off to listen. After all, the newsletter they’ve been running for over a decade, Motley Fool Equity Advisor, has tripled the market. *

They just revealed what they think are the ten best stocks investors can buy right now … and Lucid Group was not one of them! That’s right – they think these 10 stocks are even better buys.

See the 10 actions

* The portfolio advisor returns on November 10, 2021

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of the board of directors of The Motley Fool. Neha Chamaria has no position in the mentioned stocks. The Motley Fool owns shares and recommends Amazon, Shopify, Teladoc Health, and Tesla. The Motley Fool recommends CVS Health and recommends the following options: January 2022 long calls at $ 1,920 on Amazon, January 2023 long calls at $ 1,140 on Shopify, January 2022 short calls at $ 1,940 on Amazon, and short calls January 2023 at $ 1,160 on Shopify. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


Source link

Share.

Comments are closed.