It can be said that this was Most volatile year for stocks everBut we finally got inside the extension of the house. We saw a 34% drop in the index Standard & Poor’s 500 In less than five weeks, the ferocious recovery from the bottom of the bearish market to new highs lasted less than five months.
Although this volatility ended the longest bullish market move in US history dating back to 1860, the fierce rally mentioned above also gave birth to a new bull market. While history indicates that there will undoubtedly be hiccups along the way, bull markets tend to persist for many years. This means that the ideal opportunity is available to long-term investors to acquire excellent business.
Investors should regard the following five companies as a must-have stock for a new bull market.
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Field
We are seeing a change of watch in the financial sector, and technology and innovation-focused companies will thrive. Facilitator of payment Field (New York Stock Exchange: SQ) It appears to be the financial stock you want to own in this new bull market.
For the past eight years, Square’s seller ecosystem has been the same Sector running bread and butter. Square provides point of sale devices, loans, and other analytics tools focused on small businesses. Between 2012 and 2019, the Gross Payments (GPV) volume that crosses Square’s network of sellers grew from $ 6.5 billion to $ 106.2 billion. With this business sector thriving on dealer fees, it is encouraging to see the top merchants (that is, those with at least $ 125,000 in annual GPV) playing larger roles in the seller’s ecosystem in recent years.
The The most exciting aspect of Square’s growth Is the ability to apply Cash. The number of monthly users on the Cash app has more than quadrupled to 30 million since the end of 2017. The peer-to-peer payment platform collects fees from merchants, as well as from users who speed up transfers or exchange fiat currency for bitcoin. There’s a very good chance the Cash App will quickly become the main revenue driver for Square.
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Palo Alto Networks
Yes I will Pounds in scale on cybersecurity stocks Until there is a hole in the table. Although there are a number of exceptionally high-growth promising industries to invest in during a new bull market, few, if any, provide stability and cash flow forecasting for cybersecurity stocks. That’s why I think you want to own Palo Alto Networks (New York Stock Exchange: PANW).
The truth is, the Coronavirus (COVID-19) pandemic has completely changed the traditional office environment and accelerated current trends, such as the rise of remote work. Cloud data protection is more important than ever. The many solutions that Palo Alto provides to its customers are now essential services, regardless of how the economy performs.
Palo Alto’s management team is also making near-term operational sacrifices to gain market share for long-term cloud protection. The company has been steadily moving away from physical firewalls and Towards a subscription-focused operating model. Subscriptions offer much better margins than physical products and are less lumpy in the sales department from one quarter to the next. When combined with Palo Alto’s multiple acquisitions, a consistent two-digit growth rate appears possible.
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Teladoc Health
Another must-own for a new bull market is the Telemedicine Center Teladoc Health (New York Stock Exchange: TDOC).
While traditional Health care stocks Working well, the new bull market will be determined by companies focused on precision medicine (i.e. ad hoc rather than generic treatment plans). Teladoc will be at the forefront of this innovative curve, as its virtual visits will benefit the entire healthcare chain. Telemedicine visits are cheaper for insurance companies than in-office visits, and they are definitely more convenient for doctors and patients. After achieving $ 20 million in full-year sales in 2013, Teladoc is on the right track It will likely hit $ 1 billion in 2020.
Teladoc is also in the process of having an applied health signal star Levongo Health (Nasdaq: LVGO) In a cash and equity deal of $ 18.5 billion. Livongo’s AI-based solutions help patients with chronic diseases lead healthier lives. The company is approx Its membership doubled last year, And has continued to add members with an impressive segment in 2020. It has also been profitable on a rate basis over the past three quarters.
When the deal closes, Teladoc and Livongo will deliver one of the strongest growth rates in the entire healthcare industry.
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Intuitive surgeon
Surgical system developer Intuitive surgeon (Nasdaq: ISRG) It is another healthcare company that you are pleased to own in a new emerging market.
You can rightly say Intuitive Surgical contains Wei a bit of a competitive advantage Over its peers in developing complex surgical-assisted robotic systems. Over the past two decades, the company has installed 5,764 da Vinci systems in hospitals and surgical centers worldwide, with not all of its competitors combined close to matching this mark. This almost insurmountable introduction has created what I believe is an unbreakable relationship with the medical community.
What is particularly interesting about Intuitive Surgical is the company’s operating model Designed to improve over time. Da Vinci’s systems are very expensive (up to $ 2.5 million), but they can be very expensive to build, so they don’t provide the company with the best profit margins. Instead, Intuitive Surgical generates the bulk of its profits from the sale of tools and accessories with each procedure, as well as from servicing these systems. The more systems installed worldwide, the greater the percentage of Intuitive Surgical sales from these higher margin sectors.
As the company continues to scratch the surface at some of its soft tissue surgical indications, there appears to be a long tier of double-digit growth potential.
Image source: Pinterest.
The new Coronavirus has given us an idea of ​​what life could be like in a post-pandemic world, and that will likely entail a lot of consumption online. Although many companies focus on direct-to-consumer initiatives, it is a thriving social media company Pinterest (New York Stock Exchange: PINS) Which investors will want to own.
Pinterest’s reach is growing rapidly. As people stayed home due to the pandemic during the second quarter, the number of monthly active users of Pinterest increased to 416 million. That’s an increase of 116 million from the same period last year, with more than 90% of these new users registering outside of the United States. The bad news is that ARPU generated from overseas markets is currently very low. On the bright side, Pinterest more than doubled its international ARPU double in 2019, and it could do so multiple times this decade.
But as I indicated, the company’s e-commerce relationships are exciting. Pinterest users post about products, services, hobbies, and destinations that interest them. It makes perfect sense for the company to give small businesses that meet these interests a platform to sell their products. With the vast majority of installers end up purchasing the items they first saw on Pinterest, there is one. A huge e-commerce opportunity awaits the company In this bull market.
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