One of the wildest years in history for the market is nearing an end. Unprecedented volatility caused by the coronavirus disease 2019 (COVID-19) sent the benchmark S&P 500 screaming lower by 34% in less than five weeks during the first quarter. Investors have since enjoyed a virtually unstoppable nine-month rally in equities.
If 2020 has taught the investment community anything, it’s that buying revolutionary stocks is a smart way to navigate heightened volatility. Companies that offer game-changing products and services can more often outperform in any economic environment.
If you have $500 to spare right now, the following three revolutionary stocks would be perfect for opportunistic long-term investors.
I don’t know about you, but when I think of innovation, healthcare stocks come to mind. Over the past couple of decades, we’ve witnessed incredible advancements in drugs and devices to treat previously untreatable diseases. The upcoming decade will feature plenty of ongoing innovation on the precision medicine front, with Teladoc Health (NYSE:TDOC) leading the way.
As the company’s name implies, Teladoc is the leading provider of telemedicine services in the United States. The pandemic has been an unquestioned boon for the company. Virtual visits more than tripled from the prior-year period in each of the past two quarters. I don’t want to give the impression that Teladoc was a slouch prior to the COVID-19 pandemic, though. From 2013 to 2019, annual revenue growth averaged 74%.
The beauty of the telemedicine model is that everyone comes out a winner. It’s exceptionally convenient for the patient, who doesn’t have to leave their home. It presumably allows physicians to fit more patients into their consultation schedule. Health insurers love virtual visits, too, because they’re usually billed less for them than office visits.
Equally exciting is Teladoc’s now-completed cash-and-stock acquisition of applied health signals company Livongo Health. Livongo collects reams of patient data and, with the help of artificial intelligence, uses it to send its members reminders that help them lead healthier lives. Livongo had well over 400,000 diabetes members in the quarter preceding its merger with Teladoc, and had already turned the corner to recurring profitability.
The ability of Teladoc and Livongo to cross-sell their services to existing and new clients will drive growth for many years to come.