Some companies stand out as genuine contenders for explosive growth and substantial gains in the stock market. The article lists three stocks to buy now that have thrived thanks to their innovative strategies and adaptability in the face of change. The first one has not only seen remarkable revenue growth but has also ventured into new markets. It is expanding its footprint in healthcare.
The second one has strategically positioned itself in the electric vehicle (EV) and charging infrastructure sectors. It is setting the stage for a transformational future. The third has harnessed innovation and global expansion to become a powerhouse in the renewable energy market, introducing game-changing technologies.
The article delves into the strategies of these three rocket stocks. It showcases why their investments are primed to skyrocket by year’s end.
From personalized healthcare solutions to EV dominance and renewable energy breakthroughs, these stocks to buy now are leading the charge toward a prosperous future.
Hims and Hers Health (HIMS)
The American telehealth company Hims & Hers Health (NYSE:HIMS) demonstrated remarkable revenue growth, with an 83% YoY increase. Historically, the company’s expansion into newer markets, including mental health and its UK operations, has been met with considerable success. These markets are experiencing rapid growth, with mid-triple-digit increases in revenue.
This diversification strategy demonstrates Hims & Hers’ agility in identifying and capitalizing on emerging healthcare trends. Similarly, Hims & Hers is focused on ambitious growth targets, aiming to surpass $1.2 billion in revenue and achieve over $100 million in adjusted EBITDA by 2025.
Also, the company’s platform offers tailored treatment options, with over 35% of online revenue in Q2 coming from personalized treatments. Patients who opt for personalized treatments are more engaged with the platform and willing to pay more for these tailored solutions. In this context, they report higher levels of adherence to treatment regimens and prefer personalized care over generic options.
Strategically, Hims & Hers is investing in advanced data and artificial intelligence capabilities to enhance the patient experience and treatment outcomes. The company’s proprietary MEDMATCH AI technology leverages collective knowledge from providers and millions of historical clinical decisions to support precision treatments. This helps make it one of those stocks to buy now.
Further, the introduction of multi-action capabilities is another transformative shift in Hims & Hers’ approach to healthcare. Also, these capabilities enable providers to customize single-fill treatments for multiple healthcare conditions.
Finally, Hims & Hers continues to expand into new healthcare categories. It offers advanced solutions that are competitive, effective, affordable, and attractive to existing and new customers. For example, the company recently launched “Heart Health,” a preventive cardiovascular care solution, in partnership with the American College of Cardiology and LabCorp. Therefore, by tapping into new categories, the company is expanding its addressable market and reducing reliance on a single segment.
Ford (F)
Ford (NYSE:F) is executing its Ford+ plan as a cornerstone of its long-term strategy. With a valuation of $50 billion, Ford Pro is on track to become a high-margin, high-multiple player. Ford Pro, Ford’s commercial business, has emerged as a standout contributor to the company’s growth and profitability. It targets hardware, software, and service markets akin to John Deere (NYSE:DE) in the agricultural sector.
As a result, Ford has a market share of over 40% in the Class 1 through 7 commercial truck and van segment in the US. Along with sustained growth in Europe, it reinforces that Ford Pro is a formidable business resilient against disruption.
Notably, Ford’s strategic approach to the rapidly evolving EV market is multifaceted. Introducing unique EV nameplates such as the Lightning, the Mach-E, and the E-Transit has allowed Ford to attract new customers and build brand loyalty. Fundamentally, Ford’s early investment in lithium iron phosphate (LFP) technology, particularly in the US, has provided a competitive edge.
Furthermore, the establishment of the Blue Oval charging network, featuring Tesla (NASDAQ:TSLA) Superchargers and Fast Chargers installed by Ford dealers, positions Ford as the operator of the single largest integrated fast charge network in the US and Canada. This extensive charging infrastructure is a core component of Ford’s strategy, enabling smaller, more cost-effective, and faster-charging batteries.
Lastly, Ford’s lead in software and services is a strategic imperative for long-term growth and profitability. The company has already amassed over 550K paid subscribers, with Ford Pro contributing significantly to this subscriber base. Therefore, high-margin, recurring revenue streams from software services, including telematics and driver-assist technology, may enhance profitability and reduce reliance on traditional vehicle sales.
Enphase Energy (ENPH)
Enphase Energy (NASDAQ:ENPH) delivered impressive figures, such as shipping 5.2 million microinverters and 82.3 megawatt hours of batteries in Q2 2023. Enphase’s value growth can be attributed to its ability to innovate and diversify its product offerings.
To begin with, the introduction of IQ8 microinverters and IQ batteries, alongside the continuous improvement of existing products, underscores Enphase’s commitment to technological advancement. The launch of the third-generation IQ Battery 5P, with its modularity, high power output, and ease of installation, positions the company well in the energy storage market.
Strategically, Enphase has successfully expanded its presence in international markets. 41% of its Q2 revenue comes from outside the US. Europe and Australia have grown substantially, with IQ8 microinverters and batteries shipped to multiple countries.
Remarkably, the company has a strong foothold in Germany, where the booming residential solar market presents a significant growth opportunity. Furthermore, Enphase’s entry into emerging markets like Brazil, Mexico, India, and Spain with the IQ8P microinverter signifies rapid global expansion.
With the introduction of the IQ Battery 5P and its attractive pricing and warranty terms, Enphase expects increased adoption among consumers. As California implements NEM 3.0, Enphase anticipates a surge in battery attach rates, further fueling growth in this segment. All in all, it’s one of those stocks to buy now.
Also, several macroeconomic and environmental factors are working in Enphase’s favor. These include the 30% ITC tax credit, rising utility rates, grid instability concerns, climate change, and increasing EV adoption.
Moreover, residential solar penetration in the US remains relatively low at 4% to 5%, and Enphase may benefit from increased adoption. Lastly, Enphase’s Solargraf design and proposal software platform has an added functionality for NEM 3.0, simplifying the process of designing solar and energy storage systems.
As of this writing, Yiannis Zourmpanos held a long position in ENPH. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
