July fireworks do not have to end just because the US Independence Day celebrations on the 4th of July are over. You can put your money at work by investing in stocks that hold the potential to light up your portfolio over the long term.
But what shares should you buy? My opinion is that it makes sense to first identify major trends that are likely to generate tremendous growth in the future. After identifying these trends, look for the stocks of companies that have already established a leading position and appear to be in good shape to remain top.
Here are five trends that I think will be important in the years to come, and the five stocks you can buy in July to take advantage of these trends.
There are five trends that, in my opinion, are likely to generate tremendous growth over the next few decades:
- Age Demographics
- Artificial intelligence (AI)
- Cannabis [1
- War on cash
Age demography refers to the large number of individuals who are 65 or older. This is not just an American phenomenon; It happens all over the world. More elderly individuals will demand greater health products and services.
Computers do things that usually require human intelligence. That's what artificial intelligence is. And AI has already changed the world, helping insurance companies process loans, run chatbots to communicate with customers, perform face recognition, translate languages, and more. The future of AI should be even more exciting.
Cannabis makes the list of major trends due to the huge potential market growth. Investment company analysts Stifel predicts that the global cannabis market could rise to $ 200 billion over the next decade, as several countries legalize cannabis products.
Genomics reveals the secrets of DNA by mapping the sequences of genes. The potential for genomics to revolutionize how diseases are treated and even prevented makes it a tremendously important trend.
The war on cash is a catchy term used to describe the move to a cashless society. The trend includes e-commerce, mobile payments and cryptographic curves – all of which have become large companies and are likely to continue to expand.
Which stocks appear to have a good position to take advantage of these trends? I like Teladoc Health (NYSE: TDOC) Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) Canopy Growth ] (NYSE: CGC) [Illumina (NASDAQ: ILMN) and PayPal Holdings (NASDAQ: PYPL) .
1. Teladoc Health (Aging)
Teladoc Health is the largest global provider of telehealth services that allows patients to communicate with healthcare professionals remotely, either online or over the phone. The company's customer base includes around 40% of Fortune 500 plus large public health programs and thousands of smaller businesses.
The important thing to know about Teladoc is that the services help to reduce the health service costs. As the number of older individuals increases worldwide, payers are likely to look for telehealth to control rising health costs. Teladoc Health's global reach and wide range of clinical services will make the company a major recipient of this trend.
2. Alphabet (AI)
The alphabet is known for its popular products, including Google Search and YouTube. The tech giant is also a leader in AI. The alphabet uses AI for a wide range of applications such as image and speech recognition.
Perhaps the most important AI growth opportunity for Alphabet is in self-propelled cars. The company's Waymo subsidiary ranks as one of the pioneers in the development of self-propelled car technology. UBS analyst Eric Sheridan predicts that Waymo will generate $ 114 billion in revenue by 2030. It's almost as much as Alphabet made in total sales last year from all its businesses.
3. Canopy Growth (Cannabis)
Canopy Growth is by far the largest cannabis producer in terms of market value. The company claims the leading market share in Canada's growing cannabis recreational market. It is also one of the best players in the global medical cannabis market.
However, what really sets Canopy apart from its peers is the company's partnership with large alcoholic beverage manufacturer Constellation Brands . Thanks to a $ 4 billion investment from Constellation last year, Canopy has a large cash storage that it already uses to enter the US hemp cannabidiol (CBD) market. The company is also able to jump into the US marijuana market as soon as federal laws permit.
4. Illumina (Genomics)
Illumina is a kind of 800 pound gorilla in the genomic sequencing industry. The company's technology played a key role in reducing the cost of mapping a human genome from $ 200,000 in 2009 to less than $ 1,000 today. Illumina CEO Francis deSouza believes that in the future, ubiquity and the effect of genomics dwarf will be all we have seen to date. "He probably has the right.
The use of genomic sequencing in consumer genomics products such as 23andMe, noninvasive prenatal testing (NIPT) and population genomics efforts to map DNA from large groups of humans, presents significant growth opportunities for Illumina, but the company should enjoy even greater growth in providing genomic sequencing systems and services for cancer research, screening and drug development.
5. Paypal Holdings (War on Cash)
PayPal has been at the forefront of the war on cash for many years. Made PayPal a Great Winner The company currently has partnerships with around 22 million sellers offering PayPal as a payment option.
Don't think that PayPal's growth has been around lately, the company is only in the early stages of making money its popular peer-to-peer payment app Venmo, PayPal also cooperates with fast-growing e-commerce platforms, including ride sharing leader Uber Technologies and Latin American e-commerce giant MercadoLibre .