2 hot stocks to buy right now
Hot stocks can be found in all industries and sectors, but whether or not these top-flight companies are worth the price of admission is often another story. If you are a long-term investor looking for stocks that can bring serious growth to your portfolio in the years to come and that also demonstrate resilience in various market environments, keep reading.
The next two stocks are absolutely meteoric right now, but they also both feature superior companies with strong competitive advantages that generate and maintain constant demand and robust profits.
Let’s take a closer look.
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Manufacturer of medical devices DexCom (NASDAQ: DXCM) It might not be a household name for many investors, but it should be. The company has a habit of generating notable growth in cash flow year over year, and its shares have appreciated in kind quickly. In the past six months alone, the stock has climbed about 50%. And over the past five years, it has hit an incredible 480%.
That’s because DexCom is one of a very small handful of companies with an FDA-approved continuous blood glucose monitoring (CGM) device on the market. The company’s unique and flagship product is its G6 CGM system. It is also currently working on the next-generation G7 system, which is expected to launch later this year. According to the latest statistics from Grand View Research, the global CGM device market is on track to reach over $ 10 billion by 2028.
The business is certainly not without competition. Its most notable rival is Abbott Laboratories‘FreeStyle Libre System. However, this industry is far from overcrowded and the demand is constant. DexCom has managed to carve out and retain a substantial slice of the pie and has repeatedly proven its resilience in this industry with consistent and above average earnings growth.
In its most recent quarter ended June 30, the company increased its revenue by 32% and net profit by 36% compared to the same period last year.
Despite DexCom’s rapid growth, the company continues to build up cash while keeping debt levels manageable. At the end of the second quarter, the company had $ 2.6 billion in cash, cash equivalents and marketable securities, compared to about $ 601 million in current liabilities.
Granted, the stock has had a good run lately. But if you are looking for a super charged health care stock which can bring substantial growth to your portfolio over a period of several years, DexCom is a choice that continues to hit the mark.
Semiconductor stock Nvidia (NASDAQ: NVDA) is known for its computer graphics processors used by businesses of all sizes in a wide range of industries. In fact, it’s one of the world’s leading manufacturers of these processors (known as GPUs) – ranking third with just over 15% of the global PC GPU market, according to Statista. The company has some very big names on its client list, including Microsoft and Facebook.
It’s no wonder, then, that Nvidia delivered another round of record results in its final quarter. Not only did the company’s total revenue jump 68% year-on-year, but its net profit jumped 282% from the quarter last year. Nvidia’s four divisions – automotive, professional visualization, data center and games – generated respective revenue increases of 37%, 156%, 35% and 85%.
Nvidia’s shares have gained momentum in recent months. The stock is trading about 66% more than it was just six months ago – and over the past five years, the stock has appreciated 1,300%.
Still, the stock may still have a considerable trail. Of autonomous vehicles to artificial intelligence, Nvidia’s products are an ideal solution for companies operating in both established and emerging industries. The stock may sizzle now, but there is no reason to believe that it cannot explode even higher in the years to come.
10 stocks we like better than Nvidia
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Teresa Kersten, an employee of LinkedIn, a subsidiary of Microsoft, is a member of the board of directors of The Motley Fool. Randi Zuckerberg, former director of market development and spokesperson for Facebook and sister of its CEO, Mark Zuckerberg, is a member of the board of directors of The Motley Fool. Rachel Warren owns shares in DexCom. The Motley Fool owns shares and recommends Facebook, Microsoft and Nvidia. The Motley Fool recommends DexCom. The Motley Fool has a disclosure policy.
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