Do you have $1,000? Buy hot growth stocks before they take off
Given the diversity of companies listed on the stock market, it is natural for investors to focus on well-known companies. These large-cap growth stocks tend to get the most attention because they stand out and drive important news flow.
Because of this biased coverage, it is possible to uncover other stocks that are performing poorly while the top and bottom lines are growing nicely. ~ no It received a lot of attention or experienced stock price fluctuations. Investors who turn their attention to these stocks will find that it is only a matter of time before the market recognizes their quality and assigns them higher stock prices.
The good news is that you don’t need a lot of money to start investing in these stocks. It takes just $1,000 to own the three stocks below. Here’s why it’s worth considering now.
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ResMed
ResMed (RMD 0.02%) It manufactures connected devices for people suffering from Obstructive Sleep Apnea (OSA) and Chronic Obstructive Pulmonary Disease (COPD). The business has seen steady growth in both revenue and bottom line, with revenue reaching $4.2 billion in fiscal 2023 (ended June 30, 2023), an 18% increase from the previous year. This year’s operating profit and net profit increased 13.2% and 15.2%, respectively, to $1.1 billion and $898 million. ResMed’s free cash flow more than doubled to $574 million.
The positive momentum continued into the first half of fiscal 2024, with revenue increasing 14.2% year over year to $2.3 billion. Net income (excluding restructuring costs) increased 13.1% to $492 million. The medical device company continued its impressive free cash flow generation, generating $506 million, more than four times the $117 million it generated in the year-ago period.
Investors can also enjoy a bonus in the form of increased dividends from ResMed. The company’s quarterly payments have increased for the 11th consecutive year since fiscal 2012, reaching $0.48 per share in the most recent quarter, up 9% from the previous year.
ResMed’s growth is expected to continue as it serves an estimated 1 billion people with OSA (including the secondary markets of COPD, asthma and insomnia), which number approximately 1.68 million. The company aims to slow the progression of chronic diseases and improve patients’ quality of life. At the same time, overall system healthcare costs will decrease as patients use ResMed products to improve their health outcomes.
ResMed CEO Mick Farrell announced the successful launch of the company’s new AirSense 11 platform into new markets around the world. The residential care software business will also see steady organic growth through acquisitions. This division will complement our core business and help further grow our accessories business.
dexcom
dexcom (DXCM 0.72%) It produces continuous glucose monitoring (CGM) devices that help people with diabetes track their blood sugar levels. Because intermittent blood glucose monitoring is often insufficient to adequately manage chronic conditions, CGM has become the standard of care for all phases of insulin use.
The company is a pioneer in the CGM industry. We developed the first dedicated app to share blood sugar data with caregivers, as well as the first app to send this data directly to smartphones. The company has also designed the first integrated CGM device that works with an automated insulin delivery system.
DexCom’s innovative solutions have enabled us to grow our revenue and net profit consistently over the past three years. From 2021 to 2023, revenue increased 50% from $2.4 billion to $3.6 billion, and net income increased 150% from $217 million to $542 million. DexCom’s free cash flow generation also improved dramatically over the same period, increasing nearly tenfold from $53 million to $512 million.
The company’s products are gaining momentum across the U.S., with its prescriber base growing nearly 40% last year. The company is also expanding into international markets and expanding its refund channels.
DexCom plans to expand its growth to non-insulin-using type 2 diabetics, a total market size estimated at more than 25 million. A new CGM device, Stelo, is scheduled to be released this summer. The sensor lasts for 15 days and has custom software features for people who do not take insulin. Eventually, DexCom plans to explore insurance coverage for the devices, which would help boost sales even further.
Coupang
Coupang (CPNG 0.06%) It is one of Asia’s largest e-commerce retailers with a focus on grocery and food delivery. In addition, video streaming services are also provided through Coupang Play in major markets such as Korea, Taiwan, Singapore, China, and India.
Coupang recorded steady sales growth in 2022, recording $20.6 billion in sales, an 11.8% increase from the previous year. The net loss was $92 million, a significant improvement over the $1.5 billion net loss reported the previous year. Operating cash flow turned positive to $565 million in 2022, but free cash flow remained negative.
The e-commerce player’s financial numbers improved sharply in the first nine months of 2023, with revenue rising 16.8% year-on-year to $17.8 billion. Coupang also generated net income of $327 million and positive free cash flow of $1.4 billion.
Coupang recorded 20.4 million active customers on its platform in the third quarter of 2023, a 14% increase from the previous year, and total revenue per active customer increased 7% to $303.
Investors can expect further growth from Coupang as the company closes its acquisition of Farfetch Holdings, a leading global marketplace for luxury fashion. Farfetch’s Marketplace connects customers in more than 190 countries and territories with 1,400 of the best brands, boutiques and department stores around the world.
This acquisition will serve as another catalyst for Coupang to continue its steady growth by entering the highly profitable $400 billion global personal luxury segment.
