Investing in the Future
Investing often takes boldness and vision, and the courage to see this both of these things through to very the end. It requires the ability to see into the future and predict what will be the next big thing. For example, it took this ability for people to invest in Amazon at the end of the last century. The ability to see that buying goods online would alter retail forever.
So, what stocks today are the Amazons of the future? There are a number of sectors (and companies operating within them) that could offer enormous returns to those with the fortitude to invest in them long-term. Here are some of the best:
People all over the world are concerned about the environment, and those companies that offer solutions to improve it stand to benefit greatly. An example of such a company is Xylem, which creates technology that helps public utilities and other companies use water in an efficient manner. Revenues there have been increasing on an annualized basis by double-digit percentages during the last 3 years, and their earnings are expected to increase by nearly 20% during each of the next 3 years. This has been bolstered by a recent string of acquisitions that have strengthened the company’s offerings.
Science believes that DNA technology can help us not only live longer but live healthier by helping doctors better detect health problems as we age. This is where a company like Illumina comes into play. They are one of the leading makers of DNA instruments and sequencing tools. Amazingly, as of 2018, 90% of all gene sequencing was completed with technology developed by the company. It was this that helped it reach $3 billion in revenue last year, and this is just the beginning. Analysts expect that the company will experience earnings growth of at least 22% during each of the next 3 years.
When 5G cellular technology rolls out fully across the entire United States next year, the speed of mobile communications is expected to increase 10 times over. Some companies, like Ericsson, are set to explode from this. They make a device called a smart cell that is essential in making the technology work. Because of this, analysts expect that the company will experience annualized returns of more than 40% during the next 3 years.
Another company set to gain from the explosion of 5G technology is Qualcomm. They make not only smart cells but smartphones as well, and the company currently holds an incredible 13% of all 5G patents, which is greater than many of its competitors.