Every stock has at least one potential challenge that might limit its success. However, some stocks have so much going for them that they are likely to run over anything that’s in their way. Here are two such unstoppable stocks that you may want to buy in 2022.
1. Innovative Industrial Properties
Innovative Industrial Properties keeps it simple. The real estate investment trust (REIT) purchases properties from licensed cannabis growers that are needing more cash. It then leases those same properties back to the cannabis growers. And then it uses the cash flow from that to repeat the process over and over again.
This model has worked quiet well for IIP so far. Over the last three years, its earnings have jumped more than 15X, respectively. Its share price has increased over 470% higher during the period.
But IIP is only touching the surface of its opportunity. The business still owns only 103 properties that are located in 19 states. There are well over 28,700 cannabis operators in the United States. And 36 states have legalized recreational and/or medical cannabis.
Federal cannabis reform is the largest threat to IIP and it might lead to an increase in competition. However, such a reform would also grow the U.S. cannabis market. It is likely the overall impact on IIP would be a positive one. With a lot of uncertainty about when and if federal cannabis laws may be changed, IIP seems to be in an excellent position to continue having success in the future.
2. Intuitive Surgical
Manufacturing companies use robots to perform repetitive processes with a high level of precision. Intuitive Surgical has achieved these same goals with its own robotic surgical systems.
The company is the leader in the robotic surgical system space with a market share of almost 80%. Over 6,500 of its da Vinci systems have been installed in 67 nations. Intuitive recently struck a major milestone, recently reaching 10 million surgical procedures that were performed by its robotic systems.
Do not think that Intuitive Surgical’s higher-growth days are in the past, though. The company could grow its market by about 4X with its current regulatory clearances and products. And it is currently creating new products and seeking other regulatory clearances that may more than triple its market opportunity.
Sure, Intuitive has more competitors now than it had in the past. However, no rival has the ecosystem, analytics and the track record, that Intuitive has. This growth stock truly seems like one you could buy and hold forever.
Author: Scott Dowdy