October was not a great month in the stock market, with growing concerns among investors surrounding the coronavirus pandemic leading to a month-end sell-off. Many sectors are impacted and many growth stocks are currently trading at bearish prices.
Three stocks fell more S&P 500 Last month included Teladoc Health (NYSE: TDOC), Microsoft (NASDAQ: MSFT)and Master Card (NYSE: MA). These companies are still a lot of development and now might be the right time to add them to your portfolio. This is why you should be optimistic about each one in the long term.
Shares of Teladoc Health down more than 13% in October, while the S&P 500 is down just 2%. Still, it remains a great growth stock to invest in, especially as the $ 18.5 billion merger with Livongo is complete.
The opportunities there are substantial, as Livongo focuses on diabetics and chronic illnesses in addition to Teladoc’s more general tele-care services that are not targeting a particular disease or illness. And with companies sharing only 25% of the same customers, there’s not a lot of duplication there, providing some amazing additional sales opportunities.
What’s surprising about Teladoc’s tough month is that the company ended it with a strong earnings report. On October 28, it released its third-quarter results for the period ending September 30, showing sales of $ 288.8 million, up 109% from last year. Its total number of hits also increased to 2.8 million, up 206% year-on-year. And Teladoc is expecting a lot of that growth to continue, forecasting hits could hit 3 million in the fourth quarter.
With COVID-19 cases still on the rise, there may be even more demand for remote health services in the future as people choose to stay at home instead of going to the doctor’s office, especially if there is a lockout.
Microsoft shares fell a more modest 4% in October, and like Teladoc, this is another good stock to invest in right now if you’re worried about the coronavirus pandemic. The company’s products and services help enable businesses to connect easily and employees to work remotely.
The Washington-based business reported the results for the first quarter of fiscal 2021 on October 27, showing revenue of $ 37.2 billion – a 12% increase from the same period last year – and net income was 13.9 billion dollars, up 30%. Microsoft’s cloud business, Azure, saw the biggest sales growth at 48%.
Most of the company’s products and services – including LinkedIn, Office 365, and Xbox content and services – also grew more than 10 percent during this period. This business is very flexible and has adapted during the pandemic to respond to the changing needs of businesses and individuals, whether they are teleworkers, job seekers or just. people sitting at home and playing Xbox.
The good news is that Microsoft is still evolving, and that is likely to continue over the years as it develops and develops new products. One of its fastest growing segments is the laptop / tablet hybrid Surface, which saw 30% higher sales in the past quarter. First introduced in 2012, Surface products have proven to be easy to use at home and on the go. They are a great example of the PC maker’s ability to constantly innovate and open up new growth opportunities.
3. Mastercard card
Mastercard credit card company has a list of impressive growth stocks that you can add to your portfolio today. Its roughly 13% drop last month was nearly as bad as Teladoc’s. Part of the reason is that the company’s business was not good during the pandemic; Because Mastercard is dependent on economic power, COVID-19 had a negative effect on its business.
In the company’s third-quarter results, released October 28, net sales of $ 3.8 billion were down 14%, and net income of $ 1.5 billion was down 28% year-on-year. CEO Ajay Banga noted that the company is “seeing encouraging progress in the domestic spending trajectory, while travel spending remains a challenge.”
In the long term, as the economy recovers and everything returns to normal, Mastercard’s growth is likely to continue. In 2019, revenue was 16.9 billion USD, up 13% over the previous year; in the past five years, they have grown by more than 78%.
The company is still expanding its business, announcing on October 27 that it will expand Instant Transfer in nine new European markets. Service works with PayPal to allow customers to transfer money from online services to their Master Card. It is currently available in the United States and several countries around the world.
As Mastercard continues to introduce new products and services while growing with the economy, there is plenty of potential for credit card stocks to generate strong returns for investors over the long term. And with a smaller market cap Passport, Mastercard could see many advantages over its rivals.
Which stocks are the best of the three?
Here are some of the top growth stocks you can invest in today. Here’s how they did this year against the S&P 500:
Only Mastercard is inferior in terms of stats, while Teladoc is a star, more than doubling in value so far. If you can afford to add all three to your portfolio, it can be a great way to help diversify and set yourself up with some great, secure returns in the long run. But if you can’t, the stock I want to buy today is Mastercard.
While Teladoc is performing well and remote visits are on the rise, this trend has yet to manifest outside of the pandemic. And it can be argued how strong the need for remote health could be if people weren’t concerned about leaving their homes.
While Microsoft is showing good growth numbers, its $ 1.5 trillion valuation puts me on hold, as there may not be much room left for the stock to rise in value. And also consider that even during a pandemic, when demand is high for a company’s products and services, company’s growth is still relatively modest at 12%.
That makes the Mastercard the most attractive option. Credit card companies may not be doing well right now, but like financial stocks, they may perform better in times of stronger economy. It may not be a popular form of buying these days, but Mastercard shows significant potential in the long term as consumer and business spending recover.