With the wide assortment of listed companies in the stock market, it's natural for investors to focus on the big names. These large-cap growth stocks tend to get the most attention as they're prominent and attract significant news flow.
Because of this skewed coverage, it's possible to unearth other stocks that are growing their top and bottom lines nicely but have not enjoyed much attention or share price movement. Investors who turn their attention to these stocks may find it is only a matter of time before the market recognizes their quality and accords them a higher share price.
The great news is that you don't need a lot of money to start investing in these stocks. Just $1,000 is sufficient for you to own the trio of stocks below. Here's why they're worth considering now.
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ResMed
ResMed (RMD 18.89%) manufactures connected devices for people suffering from obstructive sleep apnea (OSA) and chronic obstructive pulmonary disease (COPD). The business has seen steady growth in both its top and bottom lines, with revenue for its fiscal 2023 (ended June 30, 2023) rising by 18% year over year to $4.2 billion. Operating and net income for the year grew 13.2% and 15.2%, respectively, to $1.1 billion and $898 million. ResMed's free cash flow more than doubled to $574 million.
The positive momentum has spilled over into the first half of fiscal 2024, with revenue climbing 14.2% year over year to $2.3 billion. Net income (excluding restructuring expenses) grew 13.1% to $492 million. The medical device company continued its impressive free cash flow generation with $506 million churned out, more than quadruple the $117 million it generated in the prior-year period.
Investors can also enjoy a bonus in the form of increasing dividends from ResMed. The company's quarterly payout has increased for 11 consecutive years since fiscal 2012 -- reaching $0.48 per share in its latest quarter, up 9% year over year.
Growth looks set to continue for ResMed as it targets nearly a billion people with OSA (along with its secondary markets of COPD, asthma, and insomnia) of around 1.68 million people. The company aims to slow chronic disease progression and improve patients' quality of life. At the same time, overall system healthcare costs will be reduced as patients use ResMed's products to improve their health outcomes.
ResMed CEO Mick Farrell has announced a successful launch of the company's new AirSense 11 platform into new markets around the world. Its residential care software business should also see steady organic growth that will be aided by acquisitions. This division will complement its core business and also help its accessory business grow further.
DexCom
DexCom (DXCM -9.90%) produces continuous glucose monitoring (CGM) devices to help diabetes patients track their blood glucose levels. Intermittent glucose monitoring is often insufficient to properly manage chronic illness, so CGM has become the standard of care for all stages of insulin use.
The company is a pioneer in the CGM industry. It invented the first dedicated app to share glucose data with a caregiver, and the first to send this data directly to a smartphone. The company also came up with the first integrated CGM device that works together with automated insulin delivery systems.
DexCom's innovative solutions have enabled it to grow both its revenue and net profit steadily over the past three years. From 2021 to 2023, revenue jumped 50% from $2.4 billion to $3.6 billion, while net income soared 150% from $217 million to $542 million. DexCom's free cash flow generation has also improved by leaps and bounds over the same period, rising nearly 10-fold from $53 million to $512 million.
Its products are gaining momentum across the U.S., with a prescriber base up nearly 40% last year. The company is also pushing into international markets and expanding its reimbursement channels.
DexCom plans to extend its growth to type 2 diabetes patients who do not use insulin, with an estimated total addressable market of more than 25 million people. Its new CGM device, Stelo, is planned for launch this summer. Its sensor will last for 15 days and has custom software features for people who do not take insulin. Eventually, DexCom plans to seek insurance coverage for the device, which should help boost sales further.
Coupang
Coupang (CPNG -0.52%) is one of the largest e-commerce retailers in Asia, with a focus on grocery and food deliveries. It also provides video streaming services through Coupang Play with its major markets in South Korea, Taiwan, Singapore, China, and India.
Coupang enjoyed steady top-line growth in 2022, with revenue rising 11.8% year over year to $20.6 billion. The net loss came in at $92 million, a vast improvement from the $1.5 billion net loss reported in the previous year. Operating cash flow turned positive for 2022 at $565 million, though free cash flow remained negative.
The e-commerce player's financial numbers have improved sharply in the first nine months of 2023, with revenue rising by 16.8% year over year to $17.8 billion. Coupang also generated a net income of $327 million, along with a positive free cash flow of $1.4 billion.
Coupang saw the number of active customers on its platform rise 14% year over year to 20.4 million for the third quarter of 2023, with total revenue per active customer improving by 7% to $303.
Investors can look forward to further growth from Coupang as it concludes the acquisition of Farfetch Holdings, a leading global marketplace for the luxury fashion industry. Farfetch's marketplace connects customers in more than 190 countries and territories with 1,400 of the best brands, boutiques, and department stores across the world.
This acquisition should enable Coupang to penetrate the lucrative $400 billion global personal luxury goods segment, giving it yet another catalyst to continue its steady growth.
