When the COVID-19 epidemic shook the world this year, investors did not follow the typical playbook for declining markets.
Typically, money flows into low-risk investments: bonds, dividend shares, or “value” shares sold at a lower price, earnings, or assets. However, in 2020, investors realized that the situation presented an opportunity to buy stocks of businesses with tangible growth potential.
Investing and holding in stocks that revolutionize their industries can make you rich. Not all of these companies succeed, but companies with some of them can make a lot of mistakes. Patience is an essential attribute of investors. Shares of these stocks are largely overshadowed by traditional measures, and there are often shocks that scare away Scottish investors with the best of opportunities.
Here are three companies that want to disrupt their markets. No one seems cheap by selling or earning, but one or all can offer big returns in the long run.
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Five 9
Traditionally, the call center has rows of cubicles with agents in the headsets. Five 9 (Nasdaq: FIVN) Cloud-based software is transforming the industry from software that allows agents to operate from small distributed workspaces or from home.
Five sells a software-a-subscription (SAS) platform called Virtual Contact Center that enables organizations to create scalable and flexible organizations for service, sales and marketing customer interaction. Agents only need a headset, computer and broadband internet connection. They can work anywhere in the world. The company has integrated its solution with offers from major customer relationship management companies. Salesforce, Micro .ft, Zendesk, And Service now.
The fifth is growing rapidly. Communication with customers Outcomes of widespread epidemics with large and small businesses to improve online communication and allow employees to work from home. Compared to 27% growth in 2019, revenue has increased 34% in the most recent quarter, and the results have broken analysts ’estimates on both the top and bottom lines. The company also recently announced that it is buying a partner that provides artificial intelligence (AI) technology for its intelligent virtual agent, replacing a productive or frustrating “three-press for sale” phone tree experience that relies on interactions in natural language. Is.
The company sits at the intersection of several powerful trends: digital transformation, work-to-home policies, cloud-based SaaS and AI. This way there should be a long runway in front of it. The stock has retreated 13% in the last few days.
Novocure
The treatment of cancer has been changing rapidly in recent years, but so far, approaches to surgery, radiation and medicine have boiled over. Novocure (Nasdaq: NVCR) Has developed a fourth approach using electric fields to destroy cancerous tumors. After 20 years working on Technol 20G, the company is winning acceptance for it and turning the corner of profitability.
Novocure has received regulatory approval for the treatment of glioblastoma and mesothelioma. The company believes that the behind-the-scenes approach to tumor treatment is widely applied to the treatment of large tumors. Major Stage 3 trials are underway for metastatic lung cancer, small-cell lung cancer, pancreatic cancer and ovarian cancer. The company also has intermediate tests in liver cancer and gastric cancer and is conducting pre-trial research on 10 others.
Expanding the types of cancer that are being treated by Novocure’s devices is not the only company that can grow its patient base. It tests it in a combination of radiation and immunotherapy drugs. It is also improving technology to increase efficiency and ease of use. Novocure also has plenty of space for geographical expansion and has recently entered the Chinese market.
Novocure reported revenue growth of 44% in the third quarter and GAAP profit in the fifth straight quarter. The number of active patients increased by 22% over the year to 2% from Q2. Revenue growth may not continue at a slower pace next year as the company gains momentum from a backlog of Medicare claims in 2020. Still, the top-line expansion for the foreseeable future could easily exceed 20%, and clinical trials could generate a steady stream of new cancer next year and beyond. Shares aren’t cheap at about 30 times the sales, but shares of revolutionary companies are rare.
Genrec
It seems awkward to consider an industrial equipment company that has been revolutionary for almost 60 years. Genrec Holdings (NYSE: GNRC) Makes backup generators, a business that owes much to the fragility of the country’s electrical grid in the face of wildfires in the west and hurricanes in the south. The company also has big aspirations to profit from the new model “Grid 2.0” of distributed power generation and management traded in the utility industry.
J Gene Narek has used its position as a leading supplier of home backup power generation to go into home battery backup, selling solar-and-storage systems capable of powering entire homes during outages. What systems are similar Tesla Offers, but genre power is going for higher power and higher capacity. It also leverages its experience in load management for improvements such as prioritizing essential device operation during outages.
The clean energy market is the main adjacent market for the genre, but it also has great opportunities as a grid service manager. It represents the power generation capacity of all commercial and residential generator systems that sit idle except during outages. It can be turned on by increasing the grid during unused capacity peak demand periods, or when renewable energy sources generate less electricity. Owners of standby generators can use them as a source of income if they are integrated with the grid and operated collectively as a “virtual power plant”. To this end, Genrek acquired Enbela Power Networks last month, which creates software to manage distributed RJA resources.
Even if it takes years for Genrec to achieve its ambitious goals, investors will benefit from the booming demand for the company’s standby power products, which will boost the stock’s strength for the post-epidemic world. Older power grids, utility shutdowns in California, and 5G cellular infrastructure-powered generators also require a 17% increase in revenue and a 54% increase in GAAP earnings per share in the most recent quarter. The stock has risen 118% this year and is setting an all-time high.
