The new year brings new opportunities for the investment community. After experiencing one of the most turbulent years in the history of the stock market, investors are looking forward to the young bull market to gain a foothold in 2021.
Although stock market crashes or corrections are always possible, there are still many tailwinds that indicate that the stock market can continue to rise. In the foreseeable future, loan interest rates should remain at or near historical lows, which will encourage growth stock borrowing. This extra cash can be used to hire, innovate and acquire other businesses.
As we prepare to say goodbye to 2020, here are the four high growth trends for 2021
In 2020, we have learned a lot about the future development of healthcare. There is no doubt that you will invest in precision medicine. What I mean by precision medicine refers to drugs, equipment, and services that are designed to personalize all previous “one size fits all” treatment processes.
Telemedicine giants are a good example Teladoc Health (New York Stock Exchange code: TDOC)In the past two quarters, the number of virtual visits in each quarter has more than tripled over the same period last year. Teladoc fully understands that virtual visits are more convenient for patients and doctors. For health insurance companies, they are usually cheaper than home visits. With the addition of Livongo Health, a fast-growing application health signal company, Teladoc is in a leading position in personalized therapy.
Investors can also consider leaders in the medical device field, such as DexCom (Nasdaq: DXCM). DexCom manufactures and sells continuous blood glucose monitoring (CGM) systems that can help diabetics monitor blood glucose levels. DexCom’s CGM can also be used to provide doctors with instant data. Considering that there are 34.2 million diabetics in the United States and 88 million people with diabetes, DexCom should stay busy.
Prior to the 2019 Coronavirus Disease (COVID-19) pandemic, businesses large and small were steadily establishing online businesses and increasingly sharing data via the cloud. The pandemic has only accelerated this trend and proved the importance of cloud-based infrastructure.
The e-commerce giant is one of the most obvious key players in cloud infrastructure Amazon (Nasdaq stock code: AMZN). The retail business accounts for most of Amazon’s total sales, but most of its operating income comes from the cloud infrastructure platform Amazon Web Services (AWS). AWS currently has annual sales of $46 billion. It should be responsible for doubling Amazon’s operating cash flow in the next four years.
Don’t ignore letter (Nasdaq stock code: GOOG)(Nasdaq stock code: GOOGL),or. Advertising display on its Internet search platform Google is the main driving force for Alphabet’s growth. However, the company’s fastest-growing market segment is Google Cloud, where sales have increased by 45% in the third quarter of 2020. Cloud’s annual sales are running at a rate of nearly $14 billion. Alphabet’s strong strength and Google brand name should be enough to make Amazon grab money.
Those seeking growth should also consider investing their money in US cannabis stockpiles in 2021. The United States is the world’s largest cannabis market. By 2021, vertically integrated multi-state operators (MSOs) are expected to be profitable again. Other legalizations at the state level may further increase industry sentiment.
Green Thumb Industry (OTC: GTBIF) It is an MSO that is always going green. About two-thirds of the company’s revenue comes from derivatives (ie, edible, infused beverages, vape, topical medications and concentrates). The profit margins of these derivatives are much higher than that of dried cannabis, which will help Green Thumb beat some of its peers into the profit bar. Green Thumb currently has 50 operating pharmacies, but has enough licenses to open 96 stores in a dozen states.
Cresco Labs (OTC: CRLBF) It should also proceed as scheduled in a landmark year. Nearly half of the company’s 19 open pharmacies are in limited license status in Illinois. Lincoln Land opened the door for casual pot sales on January 1, 2020, and annual sales are expected to exceed $1 billion by 2024.
In addition, Cresco has a large-scale wholesale business in California, so it can visit more than 575 pharmacies. In terms of annual sales, California is the world’s largest cannabis market.
The fourth and final high-growth trend that investors should have is keeping pets. According to data from the American Pet Products Association, there are nearly 85 million households with pets today, and it is estimated that by 2020, it will spend $99 billion on companion animals. In the past 25 centuries, pet spending in the United States has not declined at all.
Pet health insurance pan 09.30 NASDAQ: TRUP Is one of the biggest opportunities in the industry. Trupanion has established a rapport with the clinic’s veterinarian for two decades, which gives it an invaluable advantage over other competitors entering the pet insurance field. Currently, only 1% of US pet owners provide health insurance for their furry family members. Continuing education for pet owners at the clinic level should help significantly increase these penetration rates in the coming years.
Freshpet (Nasdaq stock code: FRPT) It is another fast-growing company in the companion pet field. Just as grocers locked in the growth phase of organic and natural foods in the 2000s, Freshpet understands that pet owners will pay for high-quality pet food and snacks. Freshpet is still in the early stages of marketing, but has entered more than 22,000 retail doors. The opportunity for sustainable double-digit growth is here.