The stock market and risk go hand in hand. It is always smart to diversify one's portfolio with good stocks from different sectors that have room to grow. If you are a new investor who hasn't decided which stocks to invest in this year, these just might be the ones for you.
These three fascinating stocks from three rapidly growing sectors are the ones investors should not have to think twice before investing in. California-based tech-related company Pinterest (PINS 1.02%), healthcare company Intuitive Surgical (ISRG 0.71%), and Massachusetts-based cannabis company Curaleaf Holdings (CURLF -2.43%) have high growth prospects that could bring in huge returns over the years. Let's take a look at why these three are the best unstoppable stocks to buy and hold for the long haul.
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The pandemic boosted this visuals-based social media company's performance, as people were inclined to heavy social media use during lockdowns. However, as lockdowns have lifted in most places and outdoor activities are returning to normal, investors worry Pinterest might face some challenges. However, analysts believe otherwise.
The company generates revenue according to the number of global monthly active users (MAUs) and global average revenue per user (ARPU). This includes advertising revenue. In its third quarter, the company saw just 1% year-over-year (YOY) growth in global MAUs to $444 million.
In the third quarter of 2021, Pinterest managed to grow its revenue by 43% to $633 million from the year-ago period, and generally accepted accounting principles (GAAP) net income of $94 million. As lockdowns lifted in most places in the U.S. in 2021, the company saw a dip of 10% in MAUs in the United States, but international MAUs continued to grow by 4% in the quarter.
The company is slated to report its fourth-quarter results on Feb. 3. It expects its Q4 revenue will grow in the high-teens percentage range YOY.
However, analysts expect revenue to jump 59% to $827 million and adjusted EPS to be around $0.46 per share from the year-ago period. Analysts also see an upside of 79% for Pinterest stock over the next 12 months.
Why do I believe Pinterest is a good growth stock? It has a lot of room to expand its customer base, especially in the international markets. It has an excellent advertising platform. Customers prefer this platform as it directs them to exactly what they want to buy in a range of categories. While other social media platforms are also starting to advertise products, Pinterest's platform is user-friendly, which is why Wall Street believes its revenue could continue to surge over the years.
Intuitive Surgical
Robotic surgeries are the future of surgery, and Intuitive Surgical is dominating the market. Its da Vinci Surgical Systems are state-of-the-art products that allow surgeons to perform minimally invasive surgery. These systems give surgeons 3D high-definition views and tiny instruments for smooth precision.
The pandemic continues to challenge any nonelective procedures, which is why the market reaction to Intuitive's fourth-quarter results was pale. However, the company stated it had shipped 385 da Vinci Surgical Systems in Q4, a YOY jump of 18%.
Intuitive's management stated the resurgence of COVID-19 toward the end of the quarter slightly affected results. But despite the challenges, worldwide da Vinci procedures increased 19% compared to Q4 2020. The rise in procedures led to an increase in revenue from disposable instruments and accessories used by the machines; which increased by 13% to $843 million from the prior quarter.
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Total revenue for the quarter came in at $1.5 billion, a 17% jump over the prior-year quarter, and GAAP net income of $381 million also showed a surge of 4%. Another strong reason to buy Intuitive is its strong balance sheet. It ended Q4 with cash and investments of $8.6 billion.
With robotic surgery slowly becoming the future, Intuitive still has a lot of room to grow. Once the pandemic ends, the demand for elective procedures requiring robotic-assisted surgery will increase. The pandemic affected its stock, which is now trading 28% below its 52-week high, but analysts still see a lot of upside based on the solid Q4 results. The dip in the stock is the right time to include it in the portfolio. Intuitive can outperform the market in the long run.
Curaleaf Holdings
Curaleaf's aggressive acquisition strategies have been working in its favor. In Q3 of 2021, it grew revenue by 74% YOY to $317 million. The company's retail segment consists of 112 dispensaries $224 million, or 71% of total revenue. This surge in revenue also brought in another quarter of positive earnings before interest, tax, depreciation, and amortization (EBITDA) of $71 million, versus $42 million in the year-ago quarter.
The company is strengthening its footprint in key cannabis markets like Arizona, which recently legalized recreational cannabis. Recently, it acquired Bloom Dispensaries, which increased its store count to 16 in Arizona. Curaleaf also opened two more dispensaries in Pennsylvania, bringing its total store count to 125 nationwide.
Curaleaf isn't profitable yet, but with its solid expansion plans and growing revenues, it won't be much longer before it starts generating profits. Most of the acquisitions it made in the last two years have yet to show their full potential.
While some domestic multistate operators have revised their guidance, expecting some headwinds (delay in setting up stores in markets that recently legalized marijuana) to affect their full-year results, Curaleaf is confident of achieving its revenue forecast. The company expects revenue to cross $1 billion for the year, coming in at the lower end of the range of $1.2 billion to $1.3 billion. This could also help the company achieve profitability this year. We will know more when Curaleaf reports its fourth-quarter results on March 3.
Analysts see upside of 152% for the stock in the next 12 months. This could increase, as many more states are expected to legalize marijuana this year.
