2 growth stocks to buy now

Last year, the pandemic underscored the importance of a digitally focused strategy, leading to changes in several sectors. In fact, the International Data Corporation estimates that business spending on digital transformation will total $ 6.8 trillion between 2020 and 2023.

With this in mind, companies like MongoDB (NASDAQ: MDB) and Teladoc Health (NYSE: TDOC) are expected to benefit greatly in the years to come, and both appear to be smart long-term investments. Here’s why.

1. MongoDB

Databases are at the heart of software applications, providing a place where information can be stored, organized and accessed. Traditionally, these systems have used a relational model, where structured data is stored in rows and columns. However, many apps today (e.g. video streaming, social media, email) don’t generate data that fits perfectly into rows and columns.

This created a need for a more modern database, and MongoDB took advantage of this opportunity. Its platform uses a document model, which allows developers to quickly store large chunks of unstructured data. In other words, they don’t have to waste time reformatting data, which ultimately increases productivity and efficiency. In fact, compared to traditional solutions, MongoDB helps customers build applications up to five times faster, while reducing costs by 70%.

As a result, its document model has become a developer favorite, as evidenced by MongoDB’s rank as the world’s most popular non-relational database. This advantage has been a powerful engine of growth for the company.

Data source: Ycharts. TTM = 12 rolling months. CAGR = compound annual growth rate. Note: Q1 2022 ended April 30, 2021.

Much of this growth has been fueled by MongoDB Atlas, the company’s database-as-a-service offering. With this product, customers get all the benefits of MongoDB, but avoid the hassle of managing the underlying infrastructure. In the last quarter, Atlas revenue jumped 73% and now represents more than half of MongoDB’s total sales. Investors should expect this momentum to continue.

Currently, the IDC values ​​the database market at $ 73 billion. And that number is only expected to increase as more companies look to modernize their application data infrastructure. This leaves a lot of room for MongoDB to grow its business.

2. Teladoc Health

Teladoc is the world’s largest provider of virtual health solutions. It contracts with employers, health plans and health systems, generating income primarily through subscription access fees. Teladoc’s platform provides a range of services, from prevention and wellness to acute care and mental health, including management of chronic and complex diseases.

Last year, the coronavirus pandemic was an important catalyst for the company as it accelerated the uptake of telemedicine. Paid memberships in the United States climbed 41% to 51.8 million, and Teladoc’s platform allowed 10.6 million visits, up 156% from 2019.

This strength continued in the first quarter of 2021, with virtual tours climbing 56% to 3.2 million. However, paid memberships in the United States declined slightly on a sequential basis, falling to 51.5 million. Despite this, Teladoc recorded 151% revenue growth and management raised its annual forecast to $ 2.0 billion at the high end.

Looking back, Teladoc’s leading performance has always been strong.

Data source: Ycharts. TTM = 12 rolling months. CAGR = compound annual growth rate.

Going forward, Teladoc is well positioned to grow its business. Virtual healthcare offers a much faster and more convenient solution for patients. For example, the median response time between a member’s request and a telehealth consultation was less than 10 minutes in 2020. Traditional office visits could never provide this delay.

In addition, management assesses Teladoc’s market opportunity at $ 250 billion in the United States alone. That figure may seem high, but total health spending in the United States reached $ 3.8 trillion in 2019, or nearly 18% of gross domestic product, according to the Centers for Medicare and Medicaid Services. In other words, Teladoc is disrupting a massive market, and given its comprehensive offering, I think this title will be a winner in the long run.