A new year brings new opportunities for the investor community. After one of the most volatile years in history for the stock market, investors are looking forward to the young bull market stretching its legs in 2021.
While a stock market crash or correction is always possible, there are many favorable winds that suggest that stocks may continue to rise. Lending rates are expected to remain at historic lows or close to lows in the foreseeable future, which will stimulate borrowing by growth stocks. This extra money can be used to hire, innovate and acquire other companies.
As we are ready to say goodbye to 2020, here are four high growth trends for 2021.
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Precision medicine
We learned a lot in 2020 about where the future of health is headed. There is little doubt that you will want to invest in precision medicine. By precision medicine, I’m talking about drugs, devices and services that are designed to personalize a previously unique treatment process.
A good example is the telemedicine giant Teladoc Health (NYSE: TDOC), which saw virtual visits more than triple over the previous year in each of the last two quarters. Teladoc fully understands that virtual visits are more convenient for patients and doctors. They are also generally cheaper for health insurers than office visits. With the addition of Livongo Health, a rapidly growing company of applied health signs, Teladoc is at the forefront of personalizing treatments.
Investors can also consider a leader in medical devices as DexCom (NASDAQ: DXCM). DexCom produces and sells continuous glucose monitoring (CGM) systems that help diabetics monitor their blood sugar levels. DexCom CGMs can also be used to provide doctors with instant data. Considering that there are 34.2 million diabetics in the United States and another 88 million with pre-diabetes, DexCom must remain busy.
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Cloud Infrastructure
Before the 2019 coronavirus disease pandemic (COVID-19), large and small businesses were constantly building online presence and sharing data more and more through the cloud. The pandemic simply accelerated this trend and demonstrated the importance of cloud building block infrastructure.
One of the most obvious key players in cloud infrastructure is the e-commerce giant Amazon (NASDAQ: AMZN). Retail comprises most of Amazon’s total sales, but most of its operating revenue comes from the Amazon Web Services (AWS) cloud infrastructure platform. AWS currently has an annual sales rate of $ 46 billion. It should be responsible for tripling Amazon’s operating cash flow over the next four years.
Don’t neglect Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL), or. Ad placement on Google, its Internet search platform, is Alphabet’s main growth engine. However, the company’s fastest growing segment is Google Cloud, with 45% sales growth in the third quarter of 2020. The cloud has an annual sales execution rate of close to $ 14 billion. Alphabet’s deep pockets and the Google brand should be more than enough to give Amazon a run for its money.
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USA cannabis
Growth seekers should also consider putting their money to work on US marijuana stocks in 2021. The US is the largest cannabis market in the world. 2021 looks like it will be the year that vertically integrated multi-state operators (MSO) boost recurring profitability. Additional state-level legalizations can further strengthen industry sentiment.
Green Thumb Industries (OTC: GTBIF) it is an MSO about to turn green forever. The company generates approximately two thirds of its derivatives revenue (that is, edibles, infused drinks, vapes, topics and concentrates). These derivatives have considerably higher margins than dried cannabis flowers, which will help Green Thumb beat some of its competitors in the profit column. Green Thumb currently has 50 operating dispensaries, but has enough licenses to open a total of 96 stores in a dozen states.
Cresco Labs (OTC: CRLBF) it must also be on track for an exceptional year. Nearly half of the company’s 19 open dispensaries are in the state of Illinois on a limited license. The Land of Lincoln opened its doors to recreational marijuana sales on January 1, 2020 and appears to be on its way to reaching north of $ 1 billion in annual sales by 2024.
In addition, Cresco has a massive wholesale presence in California, giving it access to more than 575 dispensaries. California is the world’s largest cannabis market in annual sales.
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Company animals
A fourth and final high-growth trend that investors should have is pet ownership. According to the American Pet Products Association, nearly 85 million families own a pet today, with $ 99 billion expected to be spent on pets in 2020. At no time during the last quarter of a century do animal spending in the USA decreased year after year.
Pet Health Insurer Trupanion (NASDAQ: TRUP) is one of the biggest opportunities in your industry. Trupanion has been building relationships with veterinarians at the clinic level for two decades, giving it an invaluable advantage over other competitors entering the pet insurance market. At the moment, only 1% of pet owners in the U.S. have health insurance for their furry family members. The continuing education of the pet owner at the clinic level should help drive these significantly higher penetration rates in the years to come.
Freshpet (NASDAQ: FRPT) is another fast-growing company in the pet space. Like grocery owners who joined the organic and natural food growth phase of the 2000s, Freshpet understands that pet owners will pay for better quality food and treats. Freshpet is still in its marketing infancy, but has already found its way into more than 22,000 retail doors. An opportunity for sustainable double-digit growth is ahead.