3 Monster Growth Stocks That Can Turn $200,000 Into $1 Million by 2032

3 Monster Growth Stocks That Can Turn $200,000 Into $1 Million by 2032

These supercharged stocks have the competitive edges and intangibles necessary to make patient investors richer over the coming decade.

This year has served as a not-so-subtle reminder that while the stock market tends to grow in value over long periods, it doesn’t move up in a straight line. Since the Dow Jones Industrial Average , S&P 500 , and Nasdaq Composite hit their respective all-time highs between mid-November and the first week of January, they’ve all plummeted into a bear market (i.e., a decline of at least 20% from recent highs).

On one hand, bear markets aren’t much fun. The volatility, unpredictability, and short-term unrealized losses associated with sizable market downswings can make investors question their desire to stick around. On the other hand, big declines in the stock market have always been a buying opportunity. Every single double-digit percentage decline in the major U.S. stock indexes has eventually been put into the rearview mirror by a bull market. Image source: Getty Images. Bear markets are an especially smart time to buy beaten-down growth stocks . Companies that can sustain double-digit growth, while leaning on innovation and/or competitive advantages, often have the tools and intangibles necessary to make patient investors richer.

What follows are three monster growth stocks that have the capacity to turn a $200,000 initial investment into $1 million by 2032. Teladoc Health

The first supercharged growth stock that’s been absolutely beaten down by the bear market but has a genuine opportunity to quintuple an initial investment of $200,000 over the next decade is telehealth services kingpin Teladoc Health ( TDOC -6.27%).

Skeptics have two issues with Teladoc. First, they’re worried about the company being nothing more than a COVID-19 pandemic fad. As people return to in-person doctor visits, there’s clear concern that Teladoc’s growth rate could slow.

The other issue is Teladoc’s (in hindsight) grossly overvalued $18.5 billion cash-and-stock acquisition of applied health signals company Livongo Health in 2020. Teladoc has taken two gargantuan writedowns in 2022 that are likely tied to this overpriced buyout. And yet, there are plenty of reasons for long-term investors to be excited.

For starters, Teladoc showed well before the pandemic that it wasn’t a fad. In the six years leading up the pandemic, the company grew its sales by an annual average of 74% . That’s not a fluke. It’s a sign that Teladoc is a pioneer in transforming how personalized care is administered. The company’s total visits growing from 4.14 million in 2019 to a midpoint estimate of just over 19 million in 2022 also shows how important virtual visits have become.

To build on this point, telehealth is a positive for the entire healthcare treatment chain . In instances where a virtual visit makes sense, it’s a far more convenient option for patients. Meanwhile, physicians can use telemedicine as a way to keep closer tabs on patients with chronic illnesses, which should lead to improved patient outcomes. This combination of improved outcomes, coupled with the generally lower costs associated with virtual visits, is bound to encourage health insurers to promote telehealth services.

Additionally, Teladoc Health should see benefits from its purchase of Livongo Health. Despite a number of unsightly one-time charges this year, Livongo is still in its early stages of growth, and it provides Teladoc with an avenue to cross-sell its services . A combination of cost synergies and cross-selling potential should allow Teladoc to sustain a double-digit growth rate throughout the decade and eventually push into the recurring-profit column. That makes it an intriguing buy for patient investors. Bark

A second monster growth stock that can turn a $200,000 investment into a cool $1 million in 10 years is dog-focused products and services company Bark ( BARK -3.72%).

A quick look at Bark’s stock chart since going public via special purpose acquisition company in December 2020 would have most folks rolling over and begging for mercy. During bear markets, Wall Street becomes less tolerant of unproven companies with operating losses, which perfectly describes where Bark is now. But in spite of this skepticism, Bark has a number of catalysts in its sails.

On a macro basis, the U.S. pet industry is practically unstoppable . Data from the American Pet Products Association (APPA) shows that year-over-year spending on our furry, feathered, gilled, and scaled family members hasn’t declined in at least a quarter of a century. This means the dot-com bubble, Great Recession, and coronavirus pandemic weren’t enough to dissuade owners from spending more on the health and happiness of their pet.

To add to this point, […]

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