Identifying the best growth stocks is not an easy task, especially when firms are trading at a discount or are recovering from very difficult times. However, for investors willing to look beyond short-term volatility, stocks like Dexcom, Intel, and Square, now Block, offer big growth potential.
These companies are in a great position to take advantage of excellent industry trends, good business plans, and promising outlooks, making them very suitable investment opportunities for growth-minded investors with interests in technology and health sectors.
Why Dexcom, Intel, and Square Are Well-Positioned for Upswings
Dexcom: Innovation in the Continuous Glucose Monitoring Market
Dexcom had a pretty hard year, but still has shown quite early stages of recovery. As it stands, it’s still one of the leading companies for continuous glucose monitoring, but being that way gives a certain strength and safety based on its position within the health sector. It has managed to form strategic alliances with such major tech players like Apple and Oura; its glucose monitoring technology will soon be combined with these wearables like the Apple Watch. All the above partnerships would fuel more growth and establish Dexcom as a strong player in the rapidly growing health technology market.
The stock is priced at a premium compared to its peers, however, with the company showing superior profitability and expected growth rates to be much more than those of its peers. Such factors make the company support its growth story and will be a leading pick in the healthcare space for any investor looking to invest long-term.
Intel: Semiconductor Industry Recovery and Growth
Intel is one of the heaviest in the semiconductor world. It has indeed passed through its tough times when it came to restructuring and impairment charges. It maintains that it will recover back its profitability before the year end. This easily marks out a huge turnaround as against what is now seen. Intel will be outrunning the rest of the industry even when the company’s shares are now trading with the rest of the industry.
On the technical side, the Intel stock had presented itself in a promising way as if it is about to be back on its tracks following a gap lower as it forms a base and consolidated above key support levels. If Intel can prove itself to be moving on in its restructuring and eventually comes back to profitability, it would be the next substantial rise for this stock to attract investors searching for value in the semiconductor sector.
Square (Block): The Opportunity in the Payment Processing Segment
Since Square was rebranded as Block, it has been on a growth trajectory since breaking out from the $74 range. The company is now working to increase its valuation through improved net margins and the expansion of its presence in the payment processing space. Although the margins are still thin, the company will grow at a much higher rate than the industry average, providing upside potential for investors willing to be patient.
Block has experienced a certain volatility in the last two or three years. However, given that it continues innovating and is expanding on all of its services, there are some robust growth prospects ahead. The stock sells at a discount compared to the industry, which puts upside at around $150. When the company finally works out its margin enhancement and starts returning the cash to shareholders, valuation is bound to go up on this company, thereby turning out a good play on the fintech space.
Solution: Why Dexcom, Intel, and Square Are Top Growth Picks
All of these companies possess specific strengths and growth opportunities that make them attractive to investors looking for high growth.
Dexcom: The Leader in the Health Tech Revolution
Dexcom is sitting pretty to dominate the field of continuous glucose monitoring: an important area within health care. Its strategic tie-up with Apple and with Oura, and new technology, will keep helping it grow and make it profitable. The premium valuations for the company arise from its higher-than-average growth rates and superior profitability. For long-term investors, Dexcom is undoubtedly a growth pick in healthcare.
Intel: Turning the Corner on Profitability
The turnaround story at Intel is an attractive investment. The company has endured decades of decline and now has the opportunity to be back in the black. Earnings will likely send this stock’s price even higher. The growth prospects at Intel are tremendous as the company structures itself for recovery and adaptation to a changed market. Many other semiconductor companies can’t hold a candle to Intel, which makes it a top pick for those seeking a recovery play with significant upside potential.
Square (Block): Stronger Now in the Payment Processing Area
Block, the new name that Square has been rebranded to, marks a significant evolution in the fintech space. As the company continues to work towards increasing its margins and services, it is expected to see tremendous growth in the next few years. At this point, the low valuation of the company against its industry is an excellent opportunity for investors to gain on its growth potential before the market catches up. This is one exciting growth stock in the fintech space with an innovative approach to payment processing.
Dexcom, Intel, and Square: A Bright Future Ahead
All of these stocks, Dexcom, Intel, and Square, present compelling growth opportunities for the investor willing to look past short-term challenges. Though each company has its own unique hurdles, they all have solid strategies in place to drive future growth. Dexcom’s leadership in glucose monitoring, Intel’s potential recovery in the semiconductor space, and Square’s expanding footprint in payment processing make them standout picks for growth in their respective industries.
Conclusion: Invest for the Long Term
In a very volatile and uncertain market, the identification of stocks that can grow well is vital. Dexcom, Intel, and Square (Block) are undervalued gems that provide excellent opportunities for long-term growth. As each company continues to execute its strategies and deliver on its growth potential, investors who buy in now could see significant returns as these stocks rise to their true value. Those searching for growth in the healthcare, semiconductor, and fintech sectors would find three such stocks that could be on their list.