You may want to forget all about the month of September. It was a rocky one for investors. After seven months of gains, the S&P 500 slipped 4.8%. And many growth stocks stagnated or fell. But here's the thing: That's OK. Why? Because it's a temporary situation. The strongest stocks will rebound. And any decline or pause in their gains offers us an opportunity to get in on a great stock for a great price.
That means you can pick up more than one name with a $1,000 investment. In fact, I'm thinking of three excellent growth stocks to add to your portfolio right now. They performed well during the worst of the coronavirus pandemic. But these players have plenty of fuel to power them in a post-pandemic world too. Let's take a look.
Image source: Getty Images.
1. Teladoc
Teladoc Health (TDOC -3.28%) made an investment last year that could reshape its future. The company acquired Livongo -- a specialist in the virtual management of chronic conditions. These include high blood pressure and diabetes. Why is this so important for the provider of online medical visits? Because 40% of Americans live with more than one chronic condition. This represents a significant market for Teladoc.
So far, this bet is paying off. In the most recent quarter, the number of members using Livongo products climbed 45%. And more than 20% of Teladoc's chronic care members are enrolled in multiple programs. This is up from 6% a year ago.
And this is just one part of the Teladoc package. The company provides virtual visits in primary care and offers access to experts across 450 specialties. Visits are 24/7 in the comfort of your own home. During the worst of the pandemic, Teladoc's business soared. The company's revenue last year climbed 98% to more than $1 billion. And virtual visits surged 156% to more than 10 million.
The health crisis has since eased -- but Teladoc's revenue and visits continue to soar, a sign that growth is here to stay for this dynamic company.
TDOC Revenue (Quarterly) data by YCharts
2. Etsy
Etsy (ETSY -0.90%) is an online platform offering unique handmade items. During the pandemic shoppers flocked to Etsy for items like masks -- but they also favored Etsy because it's an online shop. And, of course, that was convenient during lockdowns. As a result, revenue and net income soared about 110% and 264%, respectively, last year.
But here's one reason why gains are likely to continue. Etsy already was growing revenue and profit prior to the pandemic.
ETSY Revenue (Annual) data by YCharts
The health crisis just offered an extra boost -- and an opportunity for Etsy to attract new customers and solidify relationships with current ones. The latest earnings report shows us positive trends are continuing. Habitual buyers increased 115% year over year. These are buyers who've made purchases totaling at least $200 across six days or more within the past 12 months. This is Etsy's fastest-growing group of customers.
Another driver of growth in the coming years should come from recent acquisitions. This summer, Etsy bought two companies -- Depop, a fashion resale marketplace, and Elo7, a Brazilian marketplace for handmade goods. This offers Etsy access to two growing markets.
Image source: Getty Images.
3. Chewy
My third stock to buy now is another company that benefited from the popularity of e-commerce during the pandemic. I'm talking about Chewy (CHWY -1.79%). The online seller of pet supplies reported a 47% increase in net sales last year and grew its customer base by 43%. Another important milestone: The fourth quarter represented Chewy's first quarter of net income.
Net sales and adjusted EBITDA have continued to rise this year. This is a sign Chewy's pandemic gains weren't just temporary. Even with physical stores open, customers are choosing Chewy. And speaking of customers, the following numbers are encouraging. Chewy reported a 21% increase in active customers in the most recent quarter and a 13% increase in net sales per active customer.
Moving forward, Chewy is expanding its growth opportunities in the area of pet health. Last month, the company launched Practice Hub, a marketplace uniquely for veterinarians. Practice Hub allows them to access Chewy's prescription medications, for example, set prices, and sell these items to clients. Chewy's health business also includes telehealth visits for pets and pharmacy services. And the company says it plans more expansion in pet health in the coming months.
Finally, let's talk quickly about share price. Teladoc, Etsy, and Chewy each slipped in September.
I see any such move as a moment to buy the shares -- for all of the reasons above. These companies each have recently invested in growth. It's likely they and shareholders will see the benefits in the months and years to come.
