Have you ever tried to get fired from your job?
I have. I know that may sound a little crazy, but hear me out.
I absolutely could not wait to start my first job out of college as a stock broker. I thought it was my dream job, but I was only partially right. The part about finding great stocks for my clients was definitely my dream job. The other part – recommending the same stocks everyone else was recommending and collecting the commissions – was definitely not.
I never did get fired, but I knew there was a better way. That was nearly 20 years ago, and I can now look back and clearly see that the seeds of NexGen investing were being planted.
In our last visit, I told you how there is big money to be made in the next great companies leading the way in the powerful mega-trends sweeping our world. I also mentioned that Wall Street ignores these companies because it means doing things differently. That’s fine. It makes for an even better opportunity for us – as long as we’re not ignoring them, too.
Today I want to show you exactly what I’m talking about, or to paraphrase the famous line from Jerry Maguire, I want to show you the money! We’ll look at three sectors, and I’ll contrast the next-generation way to make money with how Old Wall Street is still investing.
If you follow the market at all, you probably know that retailers have been struggling. Big names like Macy’s (M) have hit multi-year lows in 2017 despite the major stock indices at historic highs. It’s clear that the old brick-and-mortar stores are going the way of the dinosaur as more and more consumers move online.
Just look at Amazon (AMZN), which has been a dominant stock. It is up 38% in the last year versus a loss of 3% for the S&P Retail Index. Amazon is one of those companies that has been around a while but could still be considered a next-generation stock because it continues to change shopping habits forever. I actually like AMZN, but it is definitely owned by a lot of Wall Streeters.
Instead, take a look at smaller retailers and entrepreneurs that are also taking sales away from the brick-and-mortar sellers. For example, a leader in ecommerce is Shopify (SHOP), which provides a complete suite of ecommerce solutions for retailers to sell their products online. If you thought AMZN has done well, Shopify is up four times as much, gaining 164% in the last 12 months!
Restaurants are also starting to see their growth slow to disturbing levels. The latest data showed restaurant sales grew just 2.8% in March as the industry faces its slowest period in three years. The well-known restaurants are getting hit. Take Brinker International (EAT), the owner and operator of Chili’s and Maggiano’s. The stock is down 6% in the last 12 months, a perfect example of consumers giving up on the casual restaurant experience.
The new trends are eating at home (not exactly new but seeing a resurgence) and using mobile apps to order from other options. For those of us who are bothering to look, that leads us to a stock like GrubHub (GRUB), a popular app through which you can order food via your mobile phone and have it delivered to you. GRUB is up 81% in the past year – heck, it’s up 27% in just the last week after fantastic earnings! There will be more money to be made in the trend of mobile food delivery.
Medicine is one of my favorite NexGen trends because it impacts all of us and because we’re on the verge of not just breakthrough treatments but also the way medicine is practiced. We all know that a trip to the doctor’s office is not exactly a day in the park, especially if you’re already feeling lousy. CVS Health (CVS) and others now offer clinics that accept walk-ins if you don’t want to wait at a doctor’s office for something routine. It sounds great, right? But CVS is down 22% in the last year.
In my brand new NexGen Investor service, I just recommended a new and better way to play this trend. It’s a stock that has taken off in the last year, and there is a lot more money to be made in it. This company offers a better walk-in clinic experience because you can do it from your own home. Virtual doctors’ offices are the future. If you’re interested in all of the details of this cool company, I invite you to give NexGen Investor a try. It’s risk-free, and I still have spots open. Click here to learn more.
So keep your eyes open. There may be a next-generation trend unfolding right in front of you. In fact, we’ll talk more about that next time.