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(0:45) - What Industries Will Be Benefit After Big Tech Slows Down?
(7:30) - 3 Stocks That Can Benefit From A Strong Healthcare Industry
(18:10) - Episode Roundup: XLK, QQQ, EXAS, VCEL, INMD
Welcome to Episode #247 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
This week, Tracey is going solo to talk about what industries may be hot for stock investors over the next five years.
Technology has been king from 2015 to 2020. The SPDR Technology ETF XLK is up 155% over that time period while the S&P 500 was up just 57%.
The XLK is even handily beating the Invesco QQQ (aka, the NASDAQ) QQQ, which was up 117% over that same time period. The QQQ is also considered a “technology” index, due to the big tech companies in the portfolio.
What Industries Will Be Hot Next?
But just because technology has been the winner, doesn’t mean that it will always outperform.
In fact, we know from the dot-com boom, and bust, that it can have significant underperforming periods.
Where should investors be looking for opportunities over the next five years?
1. Cannabis stocks have been beaten up the last few years but the industry continues to grow. But is the true breakout still years away?
2. Solar stocks have been touted as the next “thing” for over a decade but it hasn’t really panned out. But could that change over the next few years?
3. Healthcare innovations, including in cutting edge diagnostics and products could be a breakout industry.
3 Medical Innovators to Keep on Your Short List
1. Exact Sciences EXAS is known as the maker of Cologuard, the at-home colon cancer screening test. But it recently paid $2.15 billion to acquire Thrive and Base Genomics to expand its liquid biopsy cancer screening capabilities. Earnings are expected to jump 61% next year.
2. Vericel VCEL is a provider of cell therapies for sports medicine and severe burns. It has a product for treatment of cartilage defects in the knees. While analysts expect its earnings to be a loss of $0.12 this year, that is forecast to turn around in 2021 with earnings of $0.40. Sales are expected to rise 40% next year as well.
3. InMode INMD makes medical systems using radio-frequency waves, which are often used in dermatology treatments. InMode’s revenue got hit during the pandemic as non-essential medical procedures were halted globally, but its expected to rebound in 2021 and rise 29%. Earnings are also expected to jump 41% next year.
What else do you need to know about finding the next hot industry?
Listen to this week’s podcast to find out.
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Technology Select Sector SPDR ETF (XLK): ETF Research Reports
Invesco QQQ (QQQ): ETF Research Reports
Exact Sciences Corporation (EXAS) : Free Stock Analysis Report
Vericel Corporation (VCEL) : Free Stock Analysis Report
InMode Ltd. (INMD) : Free Stock Analysis Report
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Zacks Investment Research