When I bought furniture, the owner of the shop helped me personally. After commenting on the relatively attractive prices, he replied: “I want to get rich. But I want to get rich slowly. “
Some investors have a similar philosophy. It is perfectly fine for them to make money over a long period of time. On the other hand, there are also investors who long for big profits over a much shorter period of time.
There are three things investors in the latter category need:
- Enough money in advance to invest.
- A high risk tolerance.
- The right stocks.
You have to fulfill the first two points alone. But I will try to help with the third requirement. If you have 10,000 euros to invest and can handle high volatility, here are three growth stocks. They have the potential to bring you a fortune quickly.
Fastly: An enormous advantage
I can’t imagine that there are many better stocks to buy in the bear market than Fastly (WKN: A2PH9T). In early July, they skyrocketed by more than 800% from their March low. After that, tech stocks fell more than 20%. However, the potential for Fastly remains unchanged.
The company focuses on two related markets – Content Delivery Networks (CDNs) and Edge Computing (processing on the edge of the cloud, i.e. where the networks of companies are connected to the cloud). The ultimate goal for both CDNs and edge computing is to accelerate the speed at which users can access information over the Internet. Fastly technology meets this need for speed. The company recently announced that it had reached an important milestone of 100 terabits per second of connected edge capacity.
There is a relevant argument against Fastly. The company’s rapid growth this year has given the company a market cap of over $ 8 billion. That’s an optimistic assessment considering that Fastly is not yet profitable and only made $ 63 million in sales in the first quarter.
But Fastly is targeting an overall market for CDN and edge computing that is close to $ 35 billion in total. The market should continue to grow thanks to increasing e-commerce, online gaming and TV streaming. Fastly only needs to capture a relatively small market share to be a much bigger winner than it already is.
Guardant Health: The DNA of a great stock
Advances in genetic research offer much more than just teaching you about your lineage. An exciting breakthrough has the potential to revolutionize cancer diagnosis and treatment. And the company that is the focus of this arena is Guardant Health (WKN: A2N5RY).
What is this big breakthrough? Liquid biopsies. These are blood tests that can be used to detect DNA fragments broken off by cancer cells. Guardant Health’s earnings have skyrocketed thanks to the rapid introduction of the two liquid biopsy products Guardant360 and GuardantOMNI. The first product helps provide advanced cancer patients with the best treatment. The latter enables drug manufacturers to more effectively screen participants for clinical trials with experimental cancer therapies.
However, Guardant Health could really deliver on the promise of liquid biopsies with its two lunar analyzes. Both are currently still being investigated in clinical studies. The company hopes that Lunar-1 will help make decisions about adjuvant cancer treatment and monitor cancer recurrence. Lunar-2 has enormous potential in the detection of early cancer. Guardant Health recently reported positive results from a Lunar-2 clinical trial in early-stage colon cancer detection.
Like Fastly, Guardant Health has a market cap of over $ 8 billion, but is still unprofitable. However, the pioneer of liquid biopsy is likely to have an addressable $ 6 billion market for its current products. It can also target a potential market of more than $ 45 billion for its Lunar analysis. Of course, this presupposes that they are successful in clinical tests. I think Guardant Health will be a great stock in the next decade.
Livongo Health: A tonic for chronic diseases
Livongo Health (WKN: A2PNLV) stands out as another healthcare share that was a big winner but still has a lot of room for improvement. Shares have risen nearly 340% so far this year, largely thanks to the COVID-19 pandemic.
The outbreak of the coronavirus caused healthcare providers such as government programs, insurers and large self-insured employers to recognize the increased risks for people with chronic diseases. Livongo offered a solution. Its digital health management platform uses data science to care for people with chronic diseases. And they do it in a way that leads to better health outcomes and lower costs.
In the beginning, Livongo mainly focused on diabetes. Its technology can also help people with other chronic diseases such as high blood pressure and behavioral health problems. The company was remarkably successful, winning over 30% of the Fortune 500 companies of 2018.
However, there is still an enormous undeveloped market ahead of Livongo, for diabetes alone there is only a fraction of the 28 million dollars that can be got. Hypertension is another potential $ 18.5 billion annual market. And those numbers only include people with these chronic conditions in the United States. Like Fastly and Guardant Health, Livongo looks like a good stock to buy if you want to make a quick fortune.
The post With € 10,000 in these growth stocks you could make a fortune appeared first on The Motley Fool Germany.
Keith Speights owns shares of Fastly, Guardant Health and Livongo Health Inc. The Motley Fool owns shares of and recommends shares of Fastly, Guardant Health and Livongo Health Inc.
This article was written by Keith Speights in English and was on July 26th, 2020 on Fool.com released. It has been translated so that our German readers can take part in the discussion.
Motley Fool Deutschland 2020