If you’re worried that another market crash or correction might be just around the corner, you’re definitely not alone. The reality is, no one can predict with exact certainty what the stock market will or won’t do in the coming months. But there’s also good news — you can use this time to prep your portfolio for whatever the market’s cooking up and set yourself up for generous returns for years to come.
If you have $1,000 to invest into the stock market right now, here are two rock-star stocks that are worthy of your immediate attention.
The global e-commerce market is growing at an astonishing rate, and this has rarely been more evident than during the COVID-19 pandemic. According to a recent study by Digital Commerce 360 featuring data gleaned from the U.S. Department of Commerce, e-commerce sales in the U.S. alone surpassed $861 billion in 2020 — a 44% spike from 2019 — and comprised approximately one-fifth of all domestic retail sales during the year.
Etsy (NASDAQ:ETSY) quickly proved a compelling growth play in the e-commerce space in the early months of the pandemic, and the stock has plenty of growth potential left for long-term investors to capitalize on. Shares of the company have shot up 130% over the trailing 12 months, while analysts project the stock has as much as a 57% upside.
It isn’t just Etsy’s share price that’s booking monumental growth. In 2020, the company grew its total revenue by an incredible rate of 111% year over year, while its net income spiked 264%. Both active sellers and active buyers on the platform surged by double-digit percentages last year, pushing gross merchandise sales (GMS) up 107% from 2019.
Things don’t look to be slowing down for Etsy in 2021, either. The company reported a 142% jump in revenue in the first quarter, while its bottom line popped by a tremendous rate of 1,048% year over year. GMS for the three-month period surged 132% compared with the same stretch in 2020.
Commenting on the company’s stellar financial performance during the period, CEO Josh Silverman noted that “in a time when human connection is so vital, Etsy provides a one-of-a-kind community where sellers are empowered to grow their businesses, reaching buyers who value finding items that express their unique identity, while putting their money where their heart is.”
Even as the world moves toward the new post-pandemic normal, the e-commerce industry is set for continued rapid gains, and Etsy can keep riding these coattails of growth over the next decade and beyond. The company’s business model significantly differentiates it from other popular e-commerce stocks in that it focuses on unique, handmade, and specialty items rather than mass-produced products. With the market’s current volatility, it’s a great time to buy shares of Etsy at a discount and prime your portfolio for bountiful long-term returns.
Teladoc (NYSE:TDOC) was one of the stocks that investors couldn’t stop talking about in 2020. As the COVID-19 pandemic forced much of the globe into extended lockdowns with limited exposure to the outside world, patients and medical providers alike quickly seized upon the plethora of digital healthcare solutions available on Teladoc’s platform.
According to data analytics company Definitive Healthcare, the use of telehealth solutions surged by more than 6,000% during the pandemic. And the worldwide telehealth industry is projected to hit an eye-popping valuation of $521 billion by 2030, from just $83 billion in 2020.
As one of the top telemedicine companies in the world, Teladoc’s future growth story will continue to benefit from these momentous tailwinds in the digital healthcare industry even as the pandemic slowly subsides. Teladoc was also growing very quickly before the pandemic. In 2019, revenue was up 32% and visits on its platform jumped 57% from the previous year.
Teladoc capitalized on high demand for its platform and services in 2020, marking nearly 100% revenue growth and a 156% surge in visits from the prior year. The company also made multiple acquisitions last year that expanded its market share and broadened the scope of its services, with one of the most notable being its $18.5 billion merger with fellow digital healthcare giant Livongo.
Management is expecting to rake in revenue as high as $2 billion for the full year 2021, nearly double the $1.1 billion it reported in 2020. And they’re already off to a great start, reporting 151% year-over-year revenue growth in the first quarter and a 56% surge in visits on its platform.
Teladoc is trading about 18% lower than it was at this time one year ago, which isn’t all that surprising given that the world is slowly returning to normal and in light of the market’s current volatility. But this company isn’t running out of steam anytime soon. Investors can capitalize on this window in time to buy shares of Teladoc at a more affordable price, lending stability and superior growth potential to their portfolios for the long haul.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.