Investing in 2020 is an adventure, especially if you are new to the world of investing. In the first quarter, the coronavirus pandemic created unprecedented levels of panic and insecurity, leading to widespread S&P 500 to lose 34% of its value in less than five weeks. At the same time, we have witnessed the strongest rebound from a bear market to low to new records in the history of the stock market.
If there is one key issue that stands head and shoulders over the wild volatility we have witnessed in 2020, it is that long-term investment is a profitable strategy. Since its inception, the S&P 500 has ultimately placed every single market and bearish adjustments in the rearview mirror. In other words, patience pays off on Wall Street.
Another thing that almost always pays off is investing in game-changing, explosive growth stocks. Since they can offer so long term up, you don̵
Yes, the technology sector is home to many game-changing investment opportunities. But don’t back down from the healthcare sector or the telemedicine giant Teladoc Health (NYSE: TDOC).
Many people like to point to COVID-19 as the reason for the growing number of virtual health visits, and to some extent they are correct. The final quarter of Teladoc in June noted that the total number of visits increased by 203% over the previous year, with doctors wanting to keep high-risk patients out of offices and hospitals as much as possible.
But much more than just a pandemic causing virtual visits works here. Teladoc was already seeing explosive growth long before the pandemic struck. Between 2013 and 2020, year-on-year revenue could jump from $ 20 million to $ 1 billion, which is good enough for a complex annual growth rate of 75%.
The thing you need to know about telemedicine is that it is a victory for the entire healthcare space. Telemedicine visits are usually cheaper than office visits, which saves insurers money. In addition, they allow doctors to include more patients in their schedule and provide superior convenience to patients who can talk to their doctor from the comfort of home.
Teladoc is also in the process of acquiring an applied health signal specialist Livongo Health 09.30 NASDAQ: LVGO in a $ 18.5 billion cash and stock deal. Everything Livongo has done is constantly doubling its diabetes members on an annual basis and reporting three consecutive quarterly profits, while providing three-digit sales growth. Livongo’s focus on people with chronic diseases and its reliance on artificial intelligence to help these people by sending them advice and push to make lasting behavioral changes will blend perfectly with Teladoc’s model of precision medicine.
Although the marijuana industry has been facing severe growing pain over the past 18 months, we are seeing a clear split between the United States and Canada. The latter remains a mess, while the former is a hot long-term investment opportunity. That is why a vertically integrated multistage operator Cresco Labs (OTC: CRLBF) should be on the investor’s shopping list.
It is worth noting here that the United States is the largest market for marijuana in the world and will remain so even if the federal government decides not to legalize cannabis. About two-thirds of all states gave the green light to medical marijuana, and 11 also waved the green flag for adult consumption. In November, we will have five more countries voting on a legalization initiative. The federal government has made it clear that it will continue to use a mobile approach, thus introducing the proverbial green carpet for marijuana stocks in the United States.
More specifically for Cresco Labs, it has two great growth opportunities. First, these are the company’s wholesale operations. Traditionally, wholesale cannabis is a relatively low margin business. But Cresco’s acquisition of Origin House, completed in January, will give the company the volume it needs to make those margins useful. That’s because Origin House is one of the few companies licensed to distribute cannabis in California, the world’s most lucrative marijuana market with annual sales. Having a distribution license in Golden State gives Cresco the opportunity to place potted products in more than 575 dispensaries.
Second, Cresco Labs has a thriving retail operation. Although the company is not close to the number of licenses of some other multi-state operators, it wants to claim a significant stake in Illinois, which opened its doors to adult grass on January 1, 2020. With nine open locations in the state and country of Lincoln. expected to reach $ 1 billion in annual sales by 2024, Cresco will enjoy the awards for the rapid growth of cannabis in the United States.
Among the technology stocks are a number of industries with explosive growth, such as cloud computing, artificial intelligence (AI) and the Internet of Things. But when the pressure comes, few people offer the reliability of cybersecurity. that’s why CrowdStrike Holdings 09.30 NASDAQ: CRWD makes for such an intriguing purchase.
To be clear, CrowdStrike is not cheap. It is valued at nearly 27 times next year’s sales, which is the surrounding area for value-focused investors. But it’s also a company that is likely to triple its revenue over the next two years and see operating margins rise over time.
The beauty of the CrowdStrike operating model is twofold. First, we watched cybersecurity become a service with basic needs. No matter how badly the US economy performs, hackers and robots don’t take time. As companies are forced to go online and / or enter the cloud as a result of the pandemic, we are seeing a greater emphasis on cloud protection and this is great news for CrowdStrike.
The other important component here is that CrowdStrike is seeing a large increase in costs from existing customers. Although registering new customers is important and not particularly difficult to do during a pandemic, the most important thing is that existing customers grow and buy additional subscriptions for cloud modules. Existing customers who spend more will be responsible for increasing CrowdStrike’s margins.
By the end of July, CrowdStrike saw that the number of current customers with at least four cloud module subscriptions had reached 57%. This is more than 55% in the next quarter (Q1 2021) and only 9% in the first quarter of 2018 (ie before 13 quarters). This is a big growth, indicative of a popular cybersecurity platform based on AI, a cloud platform.