E-commerce stocks have exploded in recent weeks and months, especially tech companies that connect retailers with customers online. Investors in Shopife, Mercadolibre, And Trade desk Their money has doubled so far in 2020, and the year is not over yet! Even if you haven’t bought one yet, those shares seem pretty valuable right now.
No worries – there are a lot of big trends in the market, and many companies will push them for big growth in the next 10 years. Here are three stocks that are much smaller than Shopify, but will look ready to pursue the same explosive growth trend in the future.
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Livongo Health: Using technology for better health
Livongo Health (Nasdaq: LVGO) The year 2020 has also seen wild growth, with more than 100% share to date. That’s partly because, while sales of the company’s diabetes-monitoring platform have increased, it will still address the barely sliver of its potential market.
Many people with diabetes now rely on home testing to monitor blood glucose levels, while Livongo’s platform goes a step further by using data analytics to actively help manage patients’ condition. It is expected to have good health results in the long run, which should reduce the overall cost to health. Livongo has also adapted its technology to provide a platform for managing hypertension.
Like most healthcare options, Livango’s subscription platform is only available to customers whose employers – and their healthcare plans – have signed up to offer it. That list is small, but growing steadily. For example, Livongo announced that four new Fortune 500 companies have signed up this year, and other existing customers have increased their support. U.S. About 10.5% of the population who live with diabetes and hypertension live in the U.S. With half the adults, Liwango still has a lot of rooms.
Upwork: Expansion of the Gig Economy
When a lot of people think about the “gig economy”, they think for drivers Uber Or Lift. However, freelance work comes in all shapes and sizes, and often includes specialties such as accounting, law or technical writing.
Companies looking for a contract worker with no special skills for a short-term project may not know how much compensation should be paid or what questions should be asked to make sure the applicant is eligible. Free Online Freelance Marketplace Upwork (Nasdaq: UPWK) Guessing by allowing companies to post project descriptions on its site and obtaining confidential bids from contractors interested in the work. Companies can interview, hire, and even pay freelancers through Upwork’s site. It has proven to be a popular model: during Q22020, Upwork’s revenue grew 19% year-over-year, exceeding management’s expectations.
Employees who are not between workers or jobs have long turned to freelance work to generate more income, and gig economy workers with specialized skills may struggle to find customers. As disruption continues in the traditional workplace, Upwork is poised to take advantage.
Stag Industrial: Alternative bets on e-commerce
E-commerce may already be big, but its growth is only likely to continue in the coming decade as more and more people are finding it easier to shop online. And while tech companies supporting e-commerce have seen their shares double in 2020, Stag Industrial (NYSE: Stag)The Real Estate Investment Trust (REIT) has grown by only 7.8%.
Stag industrial buys industrial facilities and leases space to customers. Its strategy is to avoid expensive real estate in large markets such as New York City, instead looking for spaces in smaller cities that can still serve population centers. For example, you’ve never heard of Burlington, NJ, or Tanton, Mass, where Stag has distribution centers. But you’ve heard of Philadelphia (just 20 miles from Burlington) and Boston (40 miles from Taunton). Stagg signed a major lease this year in both towns for an unknown “dominant e-commerce mercenary tenant” (which may be) Amazon).
As more companies move towards e-commerce, the demand for warehouse and distribution space should only increase. Stag is in the right place at the right time, and its current 4.4% dividend will reward investors for the wait.
Growth: Risky business
Of course, these trends may not come out. Smaller companies have more scope for growth, but there is always the possibility that a competitor may offer something better, or be overtaken by a major established player entering the company position. And then some trends never catch up.
While growth investment is inherently risky, trends of improvement in health care technology, evolving gig economy and e-commerce growth should be broad. And it makes good bets on Livong Ngo Health, Upwork and Stag Industrial for impressive growth.
