Do you have $ 10,000? These 3 main growth actions could help you live

If I could choose just one phrase to describe the events of this year, “expect the unexpected” is the first that comes to mind. The economic volatility induced by the pandemic is particularly evident when looking at the stock market. Earlier this year, travel and retail stocks fell while high-growth stocks associated with the new stay-at-home standard, such as Teladoc Health (NYSE: TDOC), Zoom Video (NASDAQ: ZM), and Adobe (NASDAQ: ADBE), reached unprecedented heights.

Then Monday, pharmaceutical giant Pfizer (NYSE: PFE) announced that provisional data from the advanced trial showed its coronavirus vaccine candidate to be over 90% effective in preventing COVID-19 infection. Popular foreclosure stocks fell significantly within hours, while previously hard-hit sectors like airline and cruise stocks posted gains. Is this the beginning of the end for home actions? I would say it is not.

While this vaccine news is encouraging, the reality of short-term supply constraints combined with cold storage issues means that most of us will likely not have access to a vaccine for many months, even if one is released before the end of the year. Furthermore, while it is true that some trendy coronavirus stocks may not have the underlying fundamentals to support meaningful long-term growth, Teladoc, Zoom and Adobe were all clear winners before the pandemic. Here’s why adding stocks of these three stocks to your portfolio could help you prepare for life.

Image source: Getty Images.

1. Teladoc

As of November 12, Teladoc shares are up 122% year-to-date, even though the stock fell about 14% on Monday following the vaccine news. It’s no secret that telehealth is a booming industry – an industry that experts say will achieve a compound annual growth rate (CAGR) of 25% between 2019 and 2027. Over the period of Nine months ending September 30, Teladoc reported that its revenue increased by 79% and visits to its platform increased by 163% compared to the same period last year.

As a leader in digital healthcare, there is no doubt that Teladoc has benefited greatly from the increased demand for its platform’s services due to home orders and ongoing coronavirus restrictions. However, above-average growth was the norm for the company long before the start of the pandemic. Over the past five years alone, Teladoc has consistently reported double-digit year-over-year percentage revenue increases – 78% in 2015, 59% in 2016, 89% in 2017, 79% in 2018 and 32% in 2019.

In the third quarter of this year, Teladoc’s annual revenue jumped triple-digit to 109%, while visits were up 206% from the same quarter last year. By the end of this year, management expects the company to reach approximately $ 1 billion in annual revenue, which would represent an increase of more than 80% from its 2019 revenue. Management also said that ‘It planned to have between 50 million and 51 million paying members in the United States for the full year, and up to 10.6 million visits to its platform for the whole of 2020.

Teladoc’s Acquisition of Leader in Applied Health Signals Livongo, a Company That Recorded 126% YoY Revenue Growth in the Last Quarter, Paves the Way for the Future of Healthcare healthcare with an unprecedented global footprint. The combined resources and services of the two companies are expected to generate “2020 pro forma revenue of approximately $ 1.3 billion”, according to Teladoc management. It might not be a bad idea to get on board with Teladoc now, before the stock grows further.

2. Zoom

Zoom quickly earned the title of “hot stock” at the start of the pandemic. From online school board meetings to virtual birthday parties, Zoom is the go-to solution for people quarantined around the world. But the company was pushing analysts’ expectations up long before the coronavirus hit. In fiscal 2020, which ended on January 31, Zoom recorded 88% year-over-year revenue growth compared to fiscal 2019, up to $ 622.7 million. of dollars.

Zoom’s results for the first quarter of fiscal 2021 ending April 30 showed a 169% year-over-year revenue increase, while the company’s revenue for the second quarter ending July 31st was up 355% from the previous year period. Zoom also has a manageable cash-to-debt ratio on its balance sheet. Management reported approximately $ 749 million in cash and cash equivalents, compared to Zoom’s $ 1.4 billion in total liabilities in the company’s second quarter report.

Right now, the market is reflecting that some investors fear that Zoom will lose a lot of steam once a vaccine is approved. In my opinion, this is an overreaction. At the moment, we are facing a global increase in coronavirus cases coupled with a long winter ahead, and we know that unhindered access to a vaccine is still a long way off. And while working from home trends may change in the future, many could be here to stay. Global Workplace Analytics estimates that by the end of next year, between 25% and 30% of workers will be doing their work from home more than one day per week.

Although Zoom shares are down from last week, the company is still trading 531% higher than in January. And, despite the company’s impressive growth, it’s hard to ignore the fact that Zoom has been extremely overvalued for much of this year – the stock is currently trading at an astounding 550 times its earnings. The coming months could be a great time to grab that unstoppable stock at a slightly more affordable price.

3. Adobe

Adobe consistently delivers exceptional financial results, whether or not there is a pandemic. In short, the company reported 25% year-over-year revenue growth in fiscal 2017 and 24% year-over-year revenue increase for fiscal years. 2018 and 2019. In the first, second, and third quarters of this year, Adobe reported revenue growth of 19%, 14%, and 14% compared to the same periods in fiscal 2019.

The increased demand for Adobe’s cloud solutions along with the surge in digital experience subscriptions have been consistent revenue streams for the company this year. The third quarter, which ended on August 28, was particularly good for the company. CEO and Chairman Shantanu Narayen said:

Adobe delivered the best Q3 ever in a challenging macroeconomic environment, demonstrating global demand for our innovative solutions. We are confident that our leadership in the creative, document management and customer experience categories will drive continued momentum into 2020 and beyond.

In the last quarter of fiscal 2020, management is targeting total revenue of $ 3.4 billion, more than double its third quarter revenue.

The company’s shares don’t come cheap. The stock is currently trading around $ 460, about 40% above its January price. But, as one of the few gems that are truly resistant to the coronavirus stock market recession, Adobe is a stellar growth stock that you can buy now and hold on to for decades.