Most Popular

While it may be unrealistic to anticipate businesses growing exponentially in a volatile market, such businesses do exist, and if you know where to search, it’s not difficult to locate stocks with such explosive potential.

For instance, some megatrends could persist even during a slump, meaning stocks riding them might perform better no matter where the markets are. Here are two of these arguably explosive stocks that you could purchase this month.

One of the sectors with the greatest growth 

The automobile industry is experiencing a paradigm change as nearly all automakers prepare for a future when electric vehicles will prevail over traditional fuel-burning vehicles (EVs). Despite availability and pricing constraints on basic materials, global EV sales more than quadrupled in 2021 and are expected to reach record highs this year.

To profit from the growth, you might invest in EV stocks or consider shares in firms that provide components vital to the operation of the EV sector. One of the latter stocks is expanding tremendously.

Today’s electric vehicles (EVs) are powered by lithium-ion batteries, and because of the huge demand for the metal, prices have soared by about 80% year to date and have recently reached all-time highs. One of the few publicly listed pure-play lithium stocks today, Livent (LTHM -3.29%), was originally a subsidiary of the chemical corporation FMC and is currently producing enormous profits.

In the first half of the year, Livent’s sales increased 87%, and the company had a sizable gross margin of close to 45%. Over the past year, its operating cash flow has doubled.

Due to rising lithium prices, Livent’s second quarter set a record. Since metal prices have continued to rise, Livent’s top-line growth should continue unabated for the remainder of the year. In the second quarter, Livent increased its forecast for the entire year and predicted a staggering 97% increase in sales by the midpoint of 2022. It also anticipated quintupling its adjusted profits before interest, tax, depreciation, and amortization (EBITDA).

This is one explosive growth stock you wouldn’t want to neglect because Livent is also rapidly increasing capacity at current plants and establishing new lithium operations in North America, Europe, as well as China.

The potential of this top stock is being ignored by the market

One of the largest megatrends that the COVID-19 epidemic sparked was telehealth. Given the ease and simplicity of telehealth, more people were forced, or even urged, to use virtual health services from home during lockdowns. This trend is here to stay. Teladoc Health (TDOC -3.54%), which offers all of this and more, including primary care, urgent care, mental healthcare, remote monitoring, and even chronic illness management, saw a sharp increase in business during the height of the epidemic.

The market is responding as if Teladoc had no more room for development, despite the fact that growth has slowed down since and the business has revealed significant write-offs on its expensive Livongo acquisition. That is not at all true.

Teladoc’s paid membership in the United States increased by 9% in the second quarter, while its total patient visits and revenue both increased by 28% and 18% year over year. Teladoc now projects revenue growth of 15%–19% for the third quarter and at least 18% for the whole year.

Rising competition has been one of Teladoc’s biggest potential risks recently, with e-commerce behemoth Amazon’s (AMZN -3.01%) emergence into the industry particularly alarming investors.

Amazon started its Amazon Care company in 2019 and announced significant growth goals for 2021, only to give up this year and shut down its telehealth venture. The main justification given by Amazon for the change was the absence of a “comprehensive enough product” for large commercial clients. In addition, Teladoc serves more than 12,000 businesses, including more than half of the Fortune 500 organizations, and 50 million members globally. Teladoc has a number of significant enterprise clients.

If anything, Amazon’s failure indicates that starting and maintaining a successful telehealth business isn’t simple, and that it won’t be simple for any company to unseat Teladoc as the leading provider in the sector. The pioneer in the worldwide telehealth business, Teladoc is now in the lead.

It would not take long for Teladoc to start reporting steady growth rates given the predicted exponential expansion of the global telehealth business in the years to come. Investor confidence should be restored as a result, and the industry as a whole as well as Teladoc stock should rise rapidly after that.

Author: Scott Dowdy

Most Popular

These content links are provided by Content.ad. Both Content.ad and the web site upon which the links are displayed may receive compensation when readers click on these links. Some of the content you are redirected to may be sponsored content. View our privacy policy here.

To learn how you can use Content.ad to drive visitors to your content or add this service to your site, please contact us at [email protected].

Family-Friendly Content

Website owners select the type of content that appears in our units. However, if you would like to ensure that Content.ad always displays family-friendly content on this device, regardless of what site you are on, check the option below. Learn More



Most Popular
Sponsored Content

These content links are provided by Content.ad. Both Content.ad and the web site upon which the links are displayed may receive compensation when readers click on these links. Some of the content you are redirected to may be sponsored content. View our privacy policy here.

To learn how you can use Content.ad to drive visitors to your content or add this service to your site, please contact us at [email protected].

Family-Friendly Content

Website owners select the type of content that appears in our units. However, if you would like to ensure that Content.ad always displays family-friendly content on this device, regardless of what site you are on, check the option below. Learn More

Comments are closed.

Ad Blocker Detected!

Advertisements fund this website. Please disable your adblocking software or whitelist our website.
Thank You!