5 Stocks That Are Up And Coming

The stock market went on a bull run in the 2010s and 2020s so far, and even the pandemic didn’t stop stock market indices from hitting all time highs.

Although people struggled with unemployment, government stimulus encouraged spending that led to record investment in the markets. 

As the decade moves on, it’s time to look for stocks that are up and coming.

Vaccines are rolling out, and a third round of stimulus money under Democratic control promises further elevation in markets. Of course, not every stock will recover. Some big-name companies are struggling across the board, as social distancing guidelines spread across the globe.

But some of the best companies rise out of the ashes of a struggling economy. Here are five stocks that could very well take their investors on a ride to the moon.

DermTech Revolutionized Skin Cancer Detection

DermTech Inc (NASDAQ:DMTK) is a genomics company focused on dermatology. One in five Americans develops skin cancer by the age of 70, and at least two people die every hour in the U.S. from the disease. Sunburns increase the risk of melanoma, and the company is working to improve the testing process.

The traditional way of detecting whether a mole or skin defect is cancerous involves surgically cutting pieces of the mole and having the cells tested. DermTech revolutionized the process using an adhesive that pulls skin cells from the surface for at-home melanoma testing.

Using these tests, a patient and medical provider can determine if a biopsy is warranted. This Pigmented Lesion Assay (PLA) has a strong Trust study result and reimbursement agreements with Blue Cross Blue Shield of Illinois and Blue Shield of California.

Although it doesn’t need FDA approval, the Trust study should be enough to continue growing its footprint in the healthcare industry.

It went public in September 2019 through a reverse merger with Constellation, and it remained relatively stable until DMTK share price skyrocketed in late December 2020.

As a large generation of Millennials gets older, interest in skin cancer could skyrocket. This genomics company received considerable headwinds from the COVID-19 pandemic, and investment interest continues growing through early 2020.

Should sales continue growing, this is a stock that investors may consider for a long-term hold.

Sea Limited Beat The Rising Tide

Sea Limited (NYSE:SE) is a Singapore-based gaming and e-commerce company that was getting beaten by Alibaba (NYSE:BABA) for a long time. But the past year or so changed that, sending the stock on a rally that mushroomed Sea share price by nearly 500 percent.

SE share price fell to a 52-week low of $35.61 in the early stages of this decade before growing exponentially to trade over 8x higher.

This came at a time when most Chinese tech stocks were getting crushed on speculation that the Trump Administration would have them delisted from the New York Stock Exchange. However, Alibaba found itself in regulatory crosshairs, and that opened a lane for Sea Limited.

Revenue of $2.18 billion in 2020 represents a 163-percent increase and comes from its digital entertainment, FinTech, and e-commerce holdings. The company’s Garena subsidiary experienced a banner year fueled by Free Fire, a battle royale game that gained popularity when gamers spent more time indoors.

And the company is finally profitable, despite losing money in most of its divisions. Of course, it has some popular intellectual property to capitalize on for reduced overhead expenses and increased revenues.

This company’s $130 billion market capitalization signals strong investor sentiment that it will continue its growth trajectory over the next several years.

MP Materials Is A Bet On Clean & Green Tech

MP Materials Corp (NYSE:MP) is a rare earth company working on the mining, separation, and finishing of raw resources used in modern applications. From solar panels to smartphones, EV batteries, camera lenses, and LED lighting, sustainability requires the use of a lot of materials.

China has a virtual global monopoly on many of these metals that are crucial for everything from magnets to weapons. Many governments consider these rare earths as strategic resources, and China is a big importer working to keep up with rising demand.

And the rise in electric vehicles and other smart devices will surely increase demand for the raw resources involved.

That’s why MP Materials Corp went public in November 2020 through a Fortress SPAC – to raise capital and cover expenses while building out its operations at the biggest rare earth deposit in the Western Hemisphere.

Rare earth elements aren’t as easy to produce as precious metals like gold and silver. But their unique electrochemical and magnetic properties make them more treasured among modern resource investors.

If you believe in the green technology revolution, this could be an investment at the top of the supply chain for some of the most advanced high technologies coming down the pipeline this decade.

Farfetch Operates Where Amazon Struggles

Farfetch Ltd (NYSE:FTCH) is one of the online platforms that gave fashion brands a much-needed life preserver in a turbulent 2020. From the pandemic to widespread protests, anchor stores for fashion houses and their high-end clients along Fifth Avenue and Rodeo Drive suffered through a bad year.

In fact, McKinsey credits innovation with keeping the luxury fashion industry alive through thick and thin. Many of the older fashion houses like Chanel survived multiple world wars, and their merchandise from those eras made huge gains.

One could argue that investing in quality clothing from fashion houses is as good as investing in the market itself. But verifying authenticity is difficult without ordering from a trusted source, and that’s where Farfetch comes in.

Unlike Poshmark Inc’s (NASDAQ:POSH) used merchandise, Farfetch offers a wide selection of genuine designer labels. Men and women can find the latest designs from Supreme, Gucci, Burberry, Fendi, and more.

This is an area that Amazon.com, Inc (NASDAQ:AMZN) left wide open with its inability to manage knockoffs on its platform.

Many brands only offer limited exposure on such commoner marketplaces, so Farfetch (which got pre-IPO investment from the likes of JD.com) easily expanded globally to provide high-end goods to consumers who enjoy the finer things in life.

Stitch Fix Fills An Amazon Gap

Stitch Fix Inc (NASDAQ:SFIX) fills another Amazon gap by offering a personal styling service using data science to build a large – and growing – userbase. The company faced headwinds in 2020, as going out to shop became increasingly difficult.

And leadership spends more money than it brings in so far on improving its technology to be more scalable. That resulted in an operating loss of $18.6 million last year. But people continue buying in, and the company rose to a valuation around $10 billion in 2021.

Pricing is unstable in the early part of the year, but analysts expect it will come back as people get ready for economic recovery.

This San Francisco-based company downsized by 18 percent in June 2020 and started hiring in cheaper cities. It’s a cost-cutting move mostly applauded by Wall Street, as style in Austin or Minneapolis is just as important as what a hipster in California is wearing.

Combining personal stylists with big data is a great model, but the real money will inevitably come from brands paying to be included. Stitch Fix could replace influencer marketing as the new way of pushing consumers toward certain trends.

The stock market is unpredictable, and these companies may take longer to expected to grow. Each has a proven track record of growth and success though, and when (if) they do pop, the gains could be bigger than analysts are pricing in currently. 

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The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.