It's tough to be boldly bullish right now. Indeed, a bunch of investors are starting to think very defensively after watching the market tumble -- again -- on Wednesday following the Fed's recent decision to again raise interest rates in an effort to combat inflation. It's a clear reminder that things aren't exactly ideal for the economy at this time.
As veteran investors can attest, though, the current market volatility is all going to be little more than a blip a few years from now, which is the timeframe nearly all of us should be thinking about as we navigate the market.
With that as the backdrop, here's a closer look at a couple of growth stocks that could still help you retire a millionaire despite the current turbulence.
1. Teladoc Health
Many of the life changes the world made in response to the COVID-19 pandemic are now being undone. Interest in at-home exercise equipment is fading, for instance, with people now going back to gyms. People aren't cooking at home as much either. Most of us are working in our offices as well, at least more so than we were a year ago.
Some of the responses to the coronavirus contagion, however, are sticking around in a big way even though the world's finally pushing past COVID-19. One of these is the advent of telehealth, or video chats with doctors as an alternative to an in-office visit. Data compiled by the U.S. Department of Health and Human Services indicates that telehealth utilization soared by 63% during the pandemic, and once people got a chance to use it, they loved it. Consulting outfit Sykes suggests 88% of U.S. consumers would like for telehealth to remain an option for non-emergency care even after the pandemic fully passes.
Enter Teladoc Health (TDOC -1.52%).
As the name implies, Teladoc Health acts as a digital middleman between patients and caregivers. It can work with employers, insurers, and hospitals, connecting them as needed with people in need of care. Primary care, mental health, and the management of chronic conditions are all in its wheelhouse.
There's something being largely overlooked about the movement, though. That is, while Teladoc was ready for what the pandemic would bring, neither caregivers nor patients were fully prepared for the evolution then; the industry has only just started the crux of what could be a lengthy growth journey. Now that the ball's rolling in earnest, Precedence Research estimates the telehealth market will grow at an average annual pace of 18.8% through 2030, becoming a $225 billion annual business at the end of that stretch.
And Teladoc Health is certainly positioned to capture more than its fair share of that growth. Analysts are calling for top-line growth of more than 18% this year, to be followed by more than 16% growth next year.
2. SolarEdge Technologies
The other millionaire-making stock to consider tucking away in your retirement fund at this time is SolarEdge Technologies (SEDG -2.77%).
Most investor interest in solar power to date has been focused on solar panel makers, and rightly so. While it's a brilliant idea to create clean, renewable energy, solar power itself typically hasn't been cost-effective enough to displace fossil fuels. Panel manufacturers that could lower production costs and improve power output were well rewarded for making these technological leaps (in the form of higher stock prices).
With solar panels now nearing their maximum efficiency and lowest plausible cost, however, the market's attention turns to more effective management of the electricity these systems produce. That's where SolarEdge Technologies fits in. The company manufactures solutions that optimize this power, store excess electricity in a battery, and when needed, deliver that power. Its systems can also be managed with a simple-to-use app, and even come with an optional electric vehicle charger. Its tech is just as appropriate for a business as it is for a homeowner.
This power-management piece of the puzzle may be the missing link between solar power's potential and solar power's actual adoption. That's what SolarEdge's projected revenue growth of 56% for this year implies anyway, with another 27% increase in sales growth expected for the coming year. Per-share profits are likely to nearly double during that time as well.
It's really just the beginning of what's apt to be a very long growth phase, though. The U.S. Energy Information Administration forecasts that solar's production of 5% of the nation's electricity right now will swell to 20% of the nation's electricity production by 2050. At the same time, recently enacted federal legislation provides significant tax credits to homeowners who invest in new solar power systems.
That new law follows President Joe Biden's executive order from June that will temporarily suspend tariffs on certain solar panels imported into the U.S., but in the long run, will beef up American production of solar panels. Both work to SolarEdge Technologies' advantage.
