Looking for Growth? 7 Hot Trends That Have Been Flying Under Investors’ Radar.


  • Green Hydrogen Energy: Positioned to decarbonize heavy industries and transportation with growing government support.
  • Decentralized Finance (DeFi): Expanding beyond cryptocurrencies to include real-world assets, with improving security and regulatory frameworks.
  • Vertical Farming and AgriTech: Offering sustainable solutions for food production in urban environments with significant market growth expected.
  • Keep reading for more stock market trend ideas!
stock trends - Looking for Growth? 7 Hot Trends That Have Been Flying Under Investors’ Radar.

Source: shutterstock.com/Lemonsoup14

There are some stock trends that all investors should pay attention to. These trends are flying underneath the radar of mainstream awareness and could lead to substantial gains for investors who take advantage of them.

The emergence of green hydrogen, decentralized finance (DeFi), vertical farming, quantum computing and others represents a new wave of innovation that could redefine industries and offer significant investment opportunities.

Investors have the potential to diversify their portfolios by exploring these emerging markets. Each sector carries its own set of risks and rewards, making thorough research and strategic planning essential. However, for investors who buy into these companies early, the potential for above-average returns is significant. Early investment allows for capitalizing on growth before these sectors become mainstream targets.

So in this article, I’ve put together a list of what I consider to be the most underappreciated trends in the stock market and the investment landscape in general. I’ve also recommended some stocks for investors to consider to tap into these trends. Let’s get started!

Stock Trends: Green Hydrogen Energy

An image of the name H2 presented in the form of green leaves on a table next to other hydrogen-based products
Source: Shutterstock

Green hydrogen, produced through the electrolysis of water using renewable energy sources, is gaining traction. Its potential to decarbonize heavy industries and transportation sectors makes it a compelling investment trend that I feel will only gain in prominence later.

Plug Power (NASDAQ:PLUG) is one of those green hydrogen stocks that is making waves in the industry. The industry may also be a competitor to that of standard electricity generation tech and thus poses an indirect threat to that of electric vehicles.

Looking ahead, the future for green hydrogen looks accretive. In the United States, the Department of Energy (DOE) is actively supporting the development of green hydrogen through initiatives like the Hydrogen Shot, which aims to reduce the cost of green hydrogen to $1/kg by 2031. This initiative is part of the broader effort under the Bipartisan Infrastructure Law, which allocates $9.5 billion to clean hydrogen projects. 

This is all an effort to help decarbonize the environment, so green hydrogen is set to play an important role.

Decentralized Finance

Defi Dapps like OptiFi are vulnerable to developer's user error
Source: Vladimir Kazakov/Shutterstock.com

We have all heard about cryptocurrencies such as Bitcoin (BTC-USD), but Decentralized Finance (DeFi) is far broader than that, and it has more profound implications.

Notably, there’s a growing trend towards integrating real-world assets (RWA) onto the blockchain, unlocking liquidity and utility previously thought impractical. There are notable successes like the tokenization of carbon offsets and partnerships between DeFi lending platforms and traditional financial institutions. Cryptocurrency projects like Chainlink (LINK-USD) are spearheading this effort.

We are also seeing a big leap forward in improving the credibility and safety of DeFi projects worldwide, which comes amid investors losing billions of dollars in scams and rug pulls by cyber criminals. The European Union’s adoption of the Markets in Crypto Assets Regulation (MiCA) in 2023 is a significant move towards establishing a regulatory framework for crypto and DeFi projects.

As the DeFi space becomes more regulated and safer to invest in, we could see money pouring in from both retail and institutional investors.

Stock Trends: Vertical Farming and AgriTech

Hydroponic indoor vegetable plant factory in exhibition space warehouse.
Source: Nikolay_E / Shutterstock.com

With global food demands rising and urbanization increasing, vertical farming offers a sustainable solution for growing food closer to consumers, using less water and land. 

The vertical farming market is experiencing robust growth, with projections indicating a significant increase in market size from 2023 to 2030. The demand for sustainable, space-efficient methods of producing food closer to urban consumers fuels this growth. 

North America and Europe are leading the way in vertical farming thanks to their significant investments in technology and a strong focus on sustainability. In Asia Pacific, the decline of arable land and water scarcity are driving interest in vertical farming as a solution to food production challenges.

I see this industry only growing in terms of value and importance as the world’s population rises and our issue with climate change.

Biodegradable Materials

Bins are filled with various recyclibles, including cardboard, glass, and plastic
Source: Rawpixel.com / Shutterstock

Investment in companies producing biodegradable materials for packaging, textiles, and more is seeing significant growth as we grapple with pollution problems worldwide.

We’re also seeing a notable interest in reducing our use of traditional plastics. The global biodegradable plastic market was estimated at $5.43 billion in 2023, with projections indicating a compound annual growth rate (CAGR) of 9.2% from 2023 to 2030.

Meanwhile, in the packaging sector, biodegradable materials are becoming increasingly popular as alternatives to conventional plastics. The ban on single-use plastics in many countries is a significant driver of the demand for biodegradable packaging solutions. Companies like the Magical Mushroom Company in the UK are securing funding to develop plant-based sustainable packaging.

Stock Trends: Quantum Computing

A concept image showing a quantum computer with a matrix background; quantum computing. leading quantum stocks, quantum computing stocks to buy
Source: Shutterstock

Although still in the early stages, quantum computing promises to solve complex problems far beyond the capability of traditional computers.

The quantum computing industry is poised for significant growth, with its market size expected to increase $928.8 million in 2023 to $6,528.8 million by 2030, displaying a robust CAGR of 32.1% during the forecast period.

The healthcare sector, in particular, stands to benefit from quantum computing. It can accelerate drug discovery processes by simulating molecular structures and interactions more effectively. Additionally, the BFSI (Banking, Financial Services, and Insurance) sector should see considerable advantages from quantum computing, with applications ranging from fraud detection to customer behavior analysis.

Traditional computing can only take us so far, and quantum is that big leap forward that we need in order to make these crucial breakthroughs.

Personalized Medicine and Genomics

a visualization of DNA in a vial. TSHA stock
Source: Connect world / Shutterstock.com

The healthcare sector is moving towards more personalized approaches to treatment, including genomics, which tailors medical treatment to the individual’s genetic profile.

The global personalized medicine market was valued at $538.93 billion in 2022 and is projected to grow at a CAGR of 7.20% from 2023 to 2030​​. Meanwhile, the genomics market, valued at $32.65 billion in 2023, is expected to see a CAGR of 16.5% from 2024 to 2030.

There are numerous drivers of demand for personalized medicine, but one that stands out is the growing preference for personalized medical care among patients, especially those suffering from cancer.

Key players in the personalized medicine market include GE Healthcare (NYSE:GEHC) and Abbott Laboratories (NYSE:ABT), among others. Regionally, North America dominates the personalized medicine market, while Asia Pacific is on pace to grow at the fastest CAGR due to increased demand for personalized medicine and novel therapeutic drugs.

Educational Technology (EdTech)

a child takes notes while attending an online class. represents education stocks. edtech stocks
Source: Travelerpix / Shutterstock.com

The pandemic accelerated the adoption of online learning, highlighting the potential for growth in EdTech.

The global education technology market size was valued at $142.37 billion in 2023 and is expected to grow at a CAGR of 13.6% from 2023 to 2030. One of the significant trends in this sector is the shift towards smart classrooms, which utilize remote learning and multimedia resources. 

Moreover, the demand for EdTech software is surging, particularly for learning management systems (LMS), which enable the creation and management of lessons, courses, and other training materials. This segment will likely dominate the global EdTech market, accounting for around 40.1% share by the end of 2031​.

On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Matthew started writing coverage of the financial markets during the crypto boom of 2017 and was also a team member of several fintech startups. He then started writing about Australian and U.S. equities for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine, among others.

Article printed from InvestorPlace Media, https://investorplace.com/2024/02/looking-for-growth-7-hot-trends-that-have-been-flying-under-investors-radar/.

©2024 InvestorPlace Media, LLC