Packing your investments with quickly growing stocks is important, but it is easy to buy growth stocks that slow down after some quarters. If you want to get wealthy over the coming years and beyond, you will have to find companies that are backed by multiple different trends and abilities that reinforce their value and support their good growth.
Both of the healthcare companies I will discuss below are very successful, and they are also increasing their revenue-making power by creating difficult-to-copy products. While the biggest gains will go to investors who have these innovative companies for years, they are also moving fast enough to make the events between now and the year 2024 very exciting, so find out why.
1. Intuitive Surgical
Intuitive Surgical sells robotic surgery units and business is going great. Even during the economic disruption of the covid pandemic, the company has enlarged its installed systems by around 10% between June of last year and the same time this year. That is a very positive sign for Intuitive’s future, as every robotic system means great future revenue from the maintenance and sale of new tools and accessories. Last year, a stunning 77% of the company’s revenue was recurring.
While its competitors might be starting to get inroads into the industry, investors probably do not need to worry that much. Once hospitals have to spend money and time training their surgeons on a particular surgical system, there is a high cost to going back to a different product, so Intuitive can keep making long-lasting headway even as its few competitors get more established.
2. Align Technology
Align Technology creates invisible, removable teeth straighteners that do essentially the same thing as braces. But their Invisalign-branded products are a lot more aesthetically pleasing than braces, which is not a small ingredient to its success.
By solving this key issue with a formerly old product, Align has found a lot of prospective customers and won a huge market share. Internet searches for dentists that are capable of fitting their patients for Invisalign went up by 82% y/y in the second quarter.
The company is slated to reward its investors by doing an accelerated stock buyback program worth $75 million to hasten its existing buyback program that is spending around $1 billion. This accelerated buyback will be finished by late October, so expect some push upward on the stock between now and then.
Author: Blake Ambrose