Think of the extraordinary change someone born in 1900 would have seen over a long life. They would see horses in city streets as a child and grow up to see those same streets full of cars. They would see the invention of the radio, the airplane, the fax machine and air conditioning. And the list of big changes goes on.
I believe those of us who live the next 30 years will see a similar set of changes. The way we work, play, travel, bank, receive healthcare and entertain ourselves will look completely different than now.
We sit on the verge of a transformation very similar to what we saw in the 1990s. Right now, there are a handful of innovations in their early stages that will change our world in the way the internet did over two decades ago.
Informed investors stand to make gains similar to – and possibly even larger than – those made during the internet boom. My goal is to be one of those investors, and the key is to get in now. Today I want to tell you about three stocks, each in its own emerging trend, that have huge upside potential in the transformative years ahead.
CRISPR Therapeutics (CRSP)
Gene editing is just what it sounds like. It is the changing – or “editing” – of an organism’s genes to produce a desired outcome. Humans have tinkered with this idea for decades but it’s only in the past six years or so that a new technology called CRISPR/Cas9 has radically changed what we can do in this field.
CRISPR Therapeutics (NASDAQ:CRSP) is one of the three leaders in the gene editing sector. And with a market cap of $2 billion, it is also the largest. Co-founded Dr. Emmanuelle Charpentier licensed the CRISPR/Cas9 patent estate for use in humans to the company, and this advantage has led CRSP to two strategic partnerships with major pharmaceutical companies Vertex (NASDAQ:VRTX) and Bayer AG.
Last December, CRSP became the first company to file an application to begin clinical trials for a CRISPR-based therapy known as CTX001. This is the company’s leading candidate as a potential treatment for gene mutations that cause both sickle cell disease and beta thalassemia. On Oct. 10, the FDA lifted a clinical hold on studies of the drug, which cleared the way for a Phase I trial to be held in the United States in the coming months.
I like all three of the leaders in the gene editing sector, but CRSP has a slight lead in the race to begin clinical trials and gain eventual FDA approval. With such promising treatments making headway and backed by powerful partners, CRSP is a great place to start investing in this innovative and inspiring trend that should also make investors a lot of money.
Canopy Growth (CGC)
In the fall of 1996, California voters passed Proposition 215, a landmark piece of legislation that made medical marijuana legal across the state. Fast forward to early 2018 and 30 states had legalized medical marijuana and nine had legalized recreational marijuana. And at this very moment, the Canadian government is preparing to make cannabis legal across the entire country.
The prohibition of marijuana is a dying cause, and its growing acceptance and usage will lead to huge profits that investors simply cannot ignore.
Canopy Growth (NYSE:CGC), the world’s largest publicly-traded marijuana company, is at the forefront of this trend. It was in the news earlier this year when it received a $4 billion investment from the maker of Corona beer. This increased Constellation Brands’ (NYSE:STZ) previous 9.9% to 38%. Its initial investment made in 2017 marked the first big move by a U.S.-based alcohol company into the marijuana sector.
There is huge potential for growth here, and the fact that CGC is based in a country where marijuana is legal is a huge bonus. Then there is the ability for the company to scale up production to meet rising global demand. It has already tripled its marijuana growing capacity in 2018, and there is plenty more to come as CGC has plans to expand its capacity from the current 2.4 million square feet to 5.7 million square feet.
With the stock currently trading 16% below its September 5 all-time high, now is the perfect opportunity to get exposure to the leader in the emerging marijuana trend.
Sports Gambling: Churchill Downs (CHDN)
The Supreme Court created a $1 trillion opportunity on May 14 when it ruled by a 6-to-3 margin to eliminate the 1992 federal law prohibiting nearly every state from allowing sports betting. The decision is now up to each individual state.
In 2017, the only state that allowed true legal sports gambling was Nevada, where a total of $4.87 billion was wagered. That number pales in comparison to the estimated $150 billion that was bet through illegal bookies around the country. According to Eilers & Krejcik Gaming, a boutique research firm specializing in the gaming and technology sector, annual gaming revenue in the United States could reach $6 billion by 2023.
There are multiple ways to profit from this growing trend, and one of my favorites is Churchill Downs (NASDAQ:CHDN). This $3.8 billion company owns or has an interest in four racetracks in four different states (including Churchill Downs, home to the famous Kentucky Derby) and a total of nine properties that have gaming operations. On those properties, CHDN operates nine casinos and four hotels.
This company’s most important asset — aside from its name — is its online wagering platform called TwinSpires, the largest legal online wagering operation in the United States. And the combination of a well-recognized brand and strong technology makes for a great starting point as CHDN begins a major move into sports gambling.
Matthew McCall is the founder and president of Penn Financial Group, an investment advisory firm, as well as the editor of Investment Opportunities and Early Stage Investor. He has dedicated his career to getting investors into the world’s biggest, most revolutionary trends BEFORE anyone else. The power of being “first” gave Matt’s readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA), +1,044% in Tesla (TSLA), +611% in Liquefied Natural Gas Limited (LNGLY), +324% in Bitcoin Services (BTSC), just to name a few. If you’re interested in making triple-digit gains from the world’s biggest investment trends BEFORE anyone else, click here to learn more about Matt McCall and his investments strategy today.
