Since the Great Recession ended more than 12 years ago, growth stocks have ruled the roost on Wall Street. A combination of historically low lending rates and ongoing quantitative easing measures from the Federal Reserve have rolled out the…
red carpet for fast-paced companies and given them access to abundant cheap capital.
Yet for some high-growth stocks, their parabolic sales increases are just beginning. Based on analysts’ consensus sales estimates, the following five big-name stocks are expected to increase their sales by 356% to as much as 1,605% by 2025.
Shopify: 464% implied sales growth by 2025
The first well-known hypergrowth stock that could deliver a jaw-dropping sales increase over the next five years is cloud-based e-commerce platform Shopify (NYSE:SHOP). Following $2.93 billion in full-year sales in 2020, Wall Street is forecasting $16.54 billion in annual sales by mid-decade. That’s a 464% increase, for those of you keeping score at home.
The beauty of the Shopify operating model is that it finds itself in the right place at the right time. Prior to 2020, businesses were shifting their presence online at a steady pace. But in the wake of the pandemic, businesses of all sizes have come to realize how important it is to have their products available for sale on e-commerce marketplaces. Known best for helping small merchants reach large audiences, Shopify estimates its total addressable market for small businesses is currently $153 billion. Thus, with $2.9 billion in sales last year and the company constantly innovating and introducing new tools, it’s just scratching the tip of the iceberg in terms of its potential.
What’s more, Shopify is benefiting from its high-margin subscription-based services. Whereas entrepreneurs can take advantage of the company’s basic services for $29 a month, it offers its core service to small businesses for $79/mo. to $299/mo., or its Shopify Plus service for $2,000/mo. to larger businesses. This is a company that shouldn’t have any issue growing its operating margins over time.
Teladoc Health: 356% implied sales growth by 2025
Another big-name stock on track to produce eye-popping sales growth over the next half-decade is telemedicine kingpin Teladoc Health (NYSE:TDOC). Last year, Teladoc generated $1.09 billion in sales. But by 2025, Wall Street’s consensus has the company pegged for $4.98 billion in sales.
There’s little question that Teladoc Health benefited immensely from the COVID-19 pandemic. With physicians wanting to keep potentially sick and high-risk people out of their offices, demand for virtual visits soared.
But this isn’t a one-trick pony. What Teladoc is doing is fundamentally altering the personalized treatment landscape. While virtual services won’t replace all in-person visits, it’s far more convenient for patients, and it can help doctors keep better tabs on chronically ill patients. Ultimately, that’s a recipe for improved patient outcomes and less money out of the pockets of health insurers.
Teladoc also expects a serious long-term growth boost from the acquisition of leading applied health signals company Livongo Health. Livongo leans on artificial intelligence to…
Continue reading at THE MOTLEY FOOL