This has proven to be one of the wildest years on record for Wall Street – and there are still more than four months to go. Panic and uncertainty created by coronavirus 2019 disease (COVID-19) pandemic initially hit the airwaves S&P 500 lower by 34% in just 33 calendar days. But over the next five months, the benchmark index has recovered pretty much everything.
While it is not clear what the stock market may run with later, with volatility fairly normal to a bottom market below, there is a strong chance that growth stocks will go better than that. With the placement of the Federal Reserve to keep lending rates low until 2022, the table is set for high-growth companies to borrow cheaply and expand rapidly.
Best of all, you do not have to have a fortune to make one on Wall Street. If you have $ 5,000 you can save that is not needed for bills or emergencies, then you have more than enough to buy four of the fastest growing stocks on Wall Street right now.
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Livongo Health & Teladoc Health
The first two fastest growing stocks I will clump together for a very logical reason – they merge.
On one side of the coin is Teladoc Health (NYSE: TDOC), the country’s largest telemedicine company. Telemedicine was already well established before COVID-19 came into the picture. With physicians seeking to keep potentially infected patients and patients at high risk / chronic illness out of offices and hospitals, telemedicine visits for both subscribing members and attendees only reimburse non-members for a skyrocket.
Teladoc’s business results in the second quarter presented a 209% increase in visitor fees and a 78% jump in U.S. sales. All told, visits more than tripled to 2.8 million in the quarter. Insurers are trying to love this because telemedicine visits are often cheaper than office visits. This makes it increasingly likely that telemedicine visits will be promoted by advancing health benefit providers.
On the other side of the coin is healthcare provider Livongo Health (NASDAQ: LVGO). Livongo collects mountains of data from its members with chronic illnesses and uses artificial intelligence to send people tips and nudges to induce lasting behavioral changes. Staying on top of a chronic illness like diabetes can often be half the battle, and Livongo aims to help patients win that battle.
Livongo has consistently doubled (if more than doubled) its number of diabetic patients over the past few years, reaching more than 416,000 members at the end of June. Yet this represents only 1.2% penetration of the American diabetes market (34.2 million people). With Livongo expanding its solutions into new indications, such as hypertension and weight control management, the company’s patient pool will expand dramatically.
With Teladoc “merging” with Livongo into a cash-and-stock deal, investors need not be picky when it comes to these fast-growing healthcare stocks of the future.
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Innovative industrial features
If you have $ 5,000 on hand, you might also consider buying into one of the fastest growing trends of the decade: marijuana.
While it is no secret that the US is the premier global cannabis market, it is unclear which pot supplies will emerge as winners in the early stages of the sector’s expansion. But that is not really a concern if you choose to buy marijuana-oriented real estate for investment (REIT) Innovative industrial features (NYSE: IIPR).
Like any REIT, Innovative Industrial Properties seeks to acquire assets that can be leased for an extended period. In the case is the purchase of marijuana cultivation and processing facilities. Since its inception in 2019, the company has acquired 50 properties, and its portfolio has grown to 61 properties in 16 states.
The beauty of the REIT model of marijuana is twofold. First, it is a low-cost management model that results in large dividends for shareholders. In addition to the initial cost of obtaining a property, maintenance and administrative costs remain low.
Second, it is a very profitable model with a transparent view. The company’s 61 properties had a weight-average lease term of 16.1 years at the beginning of August, with its last reported average return on investment of the first quarter of 2020 north of 13%. This suggests that the company could recover its investment capital in roughly six years, but will see recurring income from its lease for 10 years longer than that. Not surprisingly, Innovative Industrial Properties is the most profitable pure-play pot stock on a per-share basis.
With U.S. marijuana sales expected to potentially triple between 2019 and 2024, IIP is in the driver’s seat to profit as a lessor of cultivation and processing sites.
Image source: Sea Limited.
Sea Limited
Another one of the fastest growing stocks on the planet that you can consider buying now with $ 5000 is Singapore-based Sea Limited (NYSE: SE).
There is no denying that Sea comes with a very premium. Shares of the company have tripled, and accounted for about $ 40 billion in market capitalization, even though the company is losing money on an annual basis. But a quick look at how the company’s three management segments have gone during the pandemic sheds light on why Wall Street and investors are so Bullish.
First, Sea’s bread and butter segment remains digital entertainment. The company’s mobile game Free fire hit a peak of 80 million daily active users in the first quarter and was largely responsible for helping bring up adjusted segment revenue by 30% in Q1 2020. Adjusted income before interest, taxes, depreciation and amortization (EBITDA) for digital entertainment rose 32% to $ 298.4 million.
The second driving segment is where the real buzz lies: e-commerce. The company’s Shopee platform, which was built from the ground up, is aimed at a growing middle class in Southeast Asia. Keep in mind that local economies have been disrupted by COVID-19 in Southeast Asia, as they have in the US, which means consumers are now relying more than ever on online purchases. Not surprisingly, gross market value across the Shopee platform grew 74% during Q1 2020 to reach $ 6.2 billion.
Finally, Sea has expanded into digital financial services. With more and more consumers boosting cash during the digital wallets pandemic, it’s no shock to see digital revenue for financial services growing rapidly.
While it is possible that Sea Limited’s share could take a break after tripling in less than eight months, the future looks incredibly bright for Shopee and its digital financial services.
