Another avenue, however, is to invest in innovative companies that meet needs in new ways and are only in the early stages of targeting huge addressable markets. The good news is that you won’t have to invest a large amount of money up front in these types of stocks. Their growth should transform even a relatively small initial investment into a large long-term return.
If you have $ 3,000 to invest, here are three breakthrough stocks you can buy right now.
1. Teladoc Health
The COVID-19 pandemic has given many Americans their first experience using telehealth services, and telehealth is likely to remain hot even after the pandemic is over. Santé Teladoc (NYSE: TDOC) is best placed to take advantage of this telehealth boom.
Scale is important for telehealth service providers to gain corporate and health plan clients. Teladoc is the world’s largest telehealth company. It offers the widest range of services, with healthcare professionals covering over 450 medical subspecialties.
Teladoc will soon add another interesting service for customers. The company plans to complete its merger project with Livongo health (NASDAQ: LVGO) Later this year. Livongo’s digital health management platform, which targets chronic diseases such as diabetes and hypertension, is a good complement to Teladoc’s virtual care services.
The estimated addressable market for Teladoc and Livongo is $ 121 billion in the United States alone. But the combined turnover of companies represents less than 1% of this market. Teladoc Health appears well positioned to capture more of this market with the addition of Livongo.
2. Sea Limited
My Motley Fool colleague Billy Duberstein recently mentioned Sea Limited (NYSE: SE) as a “potential millionaire-maker stock”. I think his description is correct.
Sea Limited is focused on three areas of rapid growth: online gaming, e-commerce and digital payments. The company is also targeting the fast growing markets of Southeast Asia and Latin America.
Online gambling is Sea’s biggest money maker. The company’s Garena unit markets hugely popular games, including Free Fire, the world’s most downloaded mobile game last year. But its revenues from e-commerce and digital payments are growing rapidly. Sea’s Shopee is the leading e-commerce platform in Southeast Asia and Taiwan. Its SeaMoney digital wallet is also growing, with a total payment volume of over $ 1.6 billion in the second quarter.
Sea has generated tremendous revenue growth in recent years, pushing its share price up over 1,000% since the start of 2018. However, the company should still have a lot of leeway over all of its product and geographic markets.
3. Innovative industrial properties
You might be wondering how a real estate investment trust (REIT) could be a game-changer. Innovative industrial properties (NYSE: IIPR) earned the distinction because of its impact on the medical cannabis industry.
Federal laws in the United States make it somewhat difficult for medical cannabis operators to raise the capital necessary to finance their expansion. IIP provides a solution to this challenge. The company buys properties from medical cannabis operators and then leases them to the operators. These agreements provide a steady stream of income for IIP over a long period of time. The weighted average residual term of its leases is 16 years.
Cannabis-focused REIT has experienced impressive growth. Over the past three years, IIP’s revenue has skyrocketed to around 1,600%. Its share price climbed nearly 680% over the period.
IIP should have no problem maintaining momentum. The US medical cannabis market is booming, with more states voting on legalization in November. The IIP also offers another bonus to investors: its dividend currently yields more than 3.8%.