A lot can happen in five years. And that's exactly why it's a great idea to hold stocks for that period of time. This way, you have the opportunity to benefit from a company's growing sales, new products, or expansion into additional markets. Often, a company's good news takes a while to translate into share gains.
The following two healthcare stocks and one consumer stock have what it takes to produce lasting revenue growth in the coming five years -- and eventually, major share-price gains. That means they very well might turn $10,000 into $50,000.
The pandemic equaled meteoric growth for Teladoc Health (TDOC 2.25%). People flocked to the company's platform for online medical visits, and revenue, patient visits, and the share price soared.
As vaccinations took off and the pandemic eased, investors worried business at Teladoc would drop. And that's why the shares have suffered this year -- falling 28% so far.
But Teladoc is proving that it isn't a pandemic-only stock. People have returned to work, and healthcare facilities have returned to normal operations -- yet Teladoc's revenue and patient visits still are climbing.
In the most recent earnings report, Teladoc said quarterly revenue rose 81% and patient visits increased 37%, surpassing 3.9 million. The company even increased the lower end of its annual revenue guidance. It expects a minimum of $2.015 billion in revenue this year, and next year's revenue may reach $2.6 billion.
Teladoc's strength in chronic-care management should be a key element driving future patient loyalty and growth. Today, 24% of Teladoc's chronic-care members are enrolled in multiple programs. That number was only 8% a year ago.
All of these numbers together show us that Teladoc's success last year wasn't just a one-off. Instead, it was the first chapter in a much longer story.
Vertex Pharmaceuticals (VRTX 1.82%) shares suffered after two candidate failures in clinical trials. They've declined 29% since the first disappointment a little over a year ago. And today, the shares trade at only 14 times forward earnings estimates.
Why should we be optimistic about Vertex? First, the company makes billions of dollars in revenue and profit annually from its portfolio of cystic fibrosis (CF) drugs.
It's the worldwide CF leader and expects that to continue until at least the late 2030s.
That said, investors worry Vertex is struggling to expand beyond CF. Recent news indicates this view may be overly pessimistic. This year, Vertex reported positive trial data from a candidate that could be a game changer. The company's gene-editing candidate for blood disorders produced positive results in follow up of at least three months.
Currently, treatment options for the disorders are limited. But Vertex's candidate is designed to be a one-time curative treatment. The company aims to file for regulatory approval by the end of next year.
At the same time, Vertex is moving other promising candidates through the pipeline. It recently reported positive phase 1/2 trial data from an investigational stem-cell-derived treatment for type 1 diabetes. The company also said it made a "breakthrough" in work on a potential treatment for the 10% of CF patients who aren't candidates for its already commercialized CF drugs. Vertex's shares may not look very dynamic right now, but if all goes smoothly for even one of these pipeline programs, the shares could soar in the coming years.
Unlike the previous two stocks, Etsy (ETSY -0.97%) hasn't declined this year -- the stock is up 45%. But over time, there may be a lot more to come.
Etsy is an online platform that brings together sellers of handcrafted goods with buyers. It's fun and easy to use -- for instance, you can explore goods from sellers anywhere in the world with just a click of the mouse.
Etsy benefited from the surge in online shopping during the pandemic. But e-commerce isn't a short-lived trend. Global retail e-commerce may reach $5.4 trillion next year from $4.28 trillion in 2020, according to Statista.
Etsy's latest earnings report supports this idea. Gross merchandise sales (GMS) and its number of loyal customers continue to rise. GMS rose more than 17% to $3.1 billion in the quarter. And habitual buyers -- those who spent at least $200 in six or more days within the past year -- climbed 65%.
Etsy's recent acquisitions of Depop, a fashion resale marketplace, and Elo7, a Brazilian marketplace for handcrafted goods, should help it to further expand its market and grow earnings. And this means Etsy's share price could follow -- and make you richer over the coming five years.