There's no denying that it takes a certain amount of emotional and mental fortitude to keep investing in the current market. That said, investors who keep their focus on the long term and continue to consistently add shares of more great companies to their portfolios while others stay on the sidelines could be poised for a strong and durable recovery.
Let's take a look at two stocks that the market has absolutely hammered lately, but which could present compelling opportunities for forward-thinking investors.
1. Green Thumb Industries
Green Thumb Industries (GTBIF -0.54%) has seen shares drop about 50% over the past year, but not for any reasons tied specifically to the underlying business. Rather, the volatility aligns with the broadly mixed sentiment the market has seen from marijuana investors as legal reform lags in certain markets and U.S. federal legalization remains unlikely in the near term.
Even so, the strides that have been made in the marijuana market as a whole are noteworthy. Currently, 38 U.S. states have legalized medical marijuana usage in some capacity, while 19 have fully legalized cannabis for both recreational and medicinal use.
The possibility of additional marijuana reform measures being passed in the near future could also open up new avenues of growth for strong businesses with a wide footprint in the current cannabis market.
Green Thumb Industries is certainly one of them. The company is one of the largest multi-state operators (MSOs) in the U.S., with a portfolio of top-selling cannabis brands and a retail footprint that stretches from coast to coast. At last count, the cannabis stock boasted 77 retail stores in 15 different U.S. markets, in addition to 17 manufacturing facilities nationwide. Green Thumb has a presence everywhere from adult-use states like Illinois, Massachusetts, and Nevada to key medical marijuana markets like Florida, Maryland, and Pennsylvania.
In the most recent quarter, Green Thumb Industries reported 12% revenue growth from the year-ago period to $261 million, while its net income came to just shy of $10 million. It's worth mentioning that while its net income declined on a year-over-year basis, the third quarter represented the company's ninth consecutive quarter of achieving profitability, a feat worthy of note in the world of cannabis stocks. The company also closed the period with cash on its balance sheet in the amount of $147 million.
For those with the inclination to invest in marijuana stocks, a profitable, fast-growing company like Green Thumb Industries could present a compelling vehicle for a long-term investment as legalization expands and the market gains further traction.
Teladoc (TDOC 0.17%) caught the attention of many investors in the earlier days of the pandemic, but its journey started long before that. In fact, the healthcare stock has a history spanning two decades, and it is the oldest telemedicine company in the U.S.
Teladoc's first-mover advantage has enabled it to remain a key figure in the global telehealth market. This is a space expected to expand at a compound annual growth rate (CAGR) of nearly 37% between 2022 and 2028 to reach $787 billion at the end of the forecast period.
Although Teladoc only became a household name during the pandemic, and the company has faced some bumps in the road lately, its market leadership and in-demand platform was well-established before this point. The company has ridden out many cycles in the market and the economy, and has still managed to grow its business and industry footprint despite these fluctuating factors. It can do so again.
One of the biggest hurdles Teladoc has dealt with recently, which has instigated its stock price to plummet by more than 80% over the past year (compared to the broader market's decline of about 20% in the same period), is the significant losses it accrued in order to write down its 2020 acquisition of Livongo. However, the company is showing signs of moving beyond this period and toward profitability in the future.
In the most recent quarter, the company reported revenue growth to the tune of $611 million, up 17% from the year-ago period. Total visits on the platform jumped 14% year over year. Broken down, U.S. visits and international visits on Teladoc's platform surged by respective amounts of 15% and 14% in the three-month period compared to the same quarter in 2021. Bear in mind, this follows respective revenue growth of 32%, 98%, and 86%, in 2019, 2020, and 2021, respectively.
With multi-billion-dollar writedowns retreating into the rearview mirror, its net losses narrowing, and the global factors driving further telehealth adoption -- ranging from an aging population to a spike in healthcare spending as a whole -- Teladoc is well-poised to deliver what healthcare consumers need both now and in the future. Those who wish to benefit from these industry tailwinds may wish to consider even a small position in Teladoc at its current discounted price.