3 Growth Stocks With More Potential Than Any Cryptocurrency $TDOC $ISRG
$VXRT
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Cryptocurrencies have taken over where last year's coronavirus vaccine stocks left off. The company holds more than 79% of the market, according to BIS Research.
KEY POINTS
The first company is proving it can be a solid pandemic and post-pandemic player.
The second stock is the leader by far in its field.
The third company is working on game-changing vaccine candidates.
Motley Fool Issues Rare “All In” Buy Alert
Revenue could skyrocket at these healthcare companies.
Cryptocurrencies have taken over where last year's coronavirus vaccine stocks left off. And their gains have been even bigger. For example, vaccine stock Novavax soared 2,700% last year. This year, much talked about meme coin Shiba Inu has surged a whopping 45,000,000%. In the short term, crypto players have been the golden ticket.
But the long-term growth picture for cryptocurrencies still is unclear. That's because it's a new industry and we don't yet know if use of these platforms will truly take off -- and which ones will dominate. So, if you're looking for a bit more visibility, you may want to check out a few healthcare growth stocks. I've chosen three with more long-term potential than any crypto player.
1. Teladoc
Teladoc Health ( TDOC -1.22% ) had a great 2020. Investors flocked to shares of the telehealth company. That's because the pandemic led more and more people to try online medical visits -- and revenue and visits skyrocketed. But this year hasn't been so great for Teladoc investors. The shares are heading for a 52% decline. The problem? Some worry patients will abandon online medical visits once the pandemic is over.
Teladoc has given us solid clues that its success isn't chained to the pandemic. The health crisis continues -- but lockdowns are no longer in place and people have returned to their routines. And at the same time, Teladoc still is growing. The company reported a 81% increase in revenue and a 37% gain in patient visits in the most recent quarter. Teladoc's "whole person" approach also is keeping patients coming back for all or most of their medical needs. For instance, 24% of chronic care members have signed up for multiple programs. And Teladoc predicts total patient visits this year will increase by at least 37% from last year.
This year won't be the best for Teladoc from a stock performance perspective. But with a strong financial picture and increasing platform use, everything is in place for major business and share price growth over the long term.
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2. Intuitive
Intuitive Surgical ( ISRG 0.15% ) is the leader in the robotic surgery market. The company holds more than 79% of the market, according to BIS Research. Intuitive's Da Vinci robot helps surgeons perform minimally invasive procedures in areas such as general surgery, urology, and gynecology. This flagship product has been involved in more than 8.5 million procedures worldwide.
Intuitive sells the Da Vinci system for about $2 million. And it has about 6,525 systems installed throughout the world. But what's most interesting is Intuitive doesn't generate revenue uniquely through sales of the Da Vinci. Intuitive also makes money through leasing of the systems. And Intuitive actually makes most of its revenue from selling instruments and accessories and services. Each system uses accessories -- some of which are disposable so must be replaced for each procedure. And services involve maintenance of the robotic system. Sales of instruments, accessories, and services together surpass that of the surgical systems.
Intuitive recently did a three-for-one stock split. It's share price had surpassed $1,000 a share. This was a great move because it opened the door for more investors to get in on this dynamic stock. Will the stock once again surpass $1,000? Intuitive's market share and growth make it very likely.
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3. Vaxart
Vaxart ( VXRT -0.16% ) represents more risk than the other companies I've mentioned. That's because this company doesn't yet have products on the market. But if you're an aggressive investor, you might want to check it out. That's because if this biotech company does bring a candidate to the finish line, the company and investors may win big.
Why? Vaxart's technology could be game-changing. The company is working on oral vaccines. Yes, you just read that right: vaccines you can take as a pill with a glass of water. This is a plus for patients because it doesn't involve a needle stick. And it's a plus for healthcare systems because these potential vaccines are room temperature stable. That means they don't require refrigeration. And the small size of a pill means you can store a lot of product in a small space.
Right now, Vaxart is working on one of the most sought-after products: a coronavirus vaccine. The company's candidate is in a phase 2 trial. Vaxart expects to report trial data in the first quarter of 2022. The biotech company has five other non-coronavirus vaccine candidates in the pipeline. Farthest along is a seasonal flu candidate in phase 2 studies.
Vaxart shares are trading about $3 lower than even Wall Street's most pessimistic 12-month share price forecast. If the company delivers positive news from its coronavirus vaccine trial, the stock clearly could gain. And if Vaxart is able to bring a product to market, the stock may skyrocket.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.
Adria Cimino has no position in any of the stocks mentioned. The Motley Fool owns and recommends Intuitive Surgical and Teladoc Health. The Motley Fool recommends the following options: long January 2022 $193.33 calls on Intuitive Surgical and short January 2022 $200 calls on Intuitive Surgical. The Motley Fool has a disclosure policy.
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