2022 was a forgettable year for financial markets. That also included several of the most popular innovative stocks. In fact, those cutting-edge stocks, usually favored by maverick stock-picker Cathie Wood, were down more than 50% last year.Naturally, against a backdrop of ballooning interest and inflation rates, few, if any, would’ve favored innovative stocks.
The turn of events last year favored profitable businesses with defensive low-growth strategies. However, as evidenced by the stock market resurgence of late, these stocks will continue outperforming their counterparts over the long term. For example,Cathie Woods believes that long-term profitability and stock market performance of the so-called ‘profitless tech’ companies outperform those that favor a more share-holder-friendly approach. By the way, the ARK Innovation ETF (NYSEARCA:ARKK) is up a healthy 20% so far this year, pointing to a strong upside potential ahead for cutting edge stocks.
|SNSR||Global X Internet of Things ETF||$32.52|
Innovative Stocks: Microsoft (MSFT)
Source: Epic Cure / Shutterstock
Tech giant Microsoft(NASDAQ:MSFT) never ceases to amaze with its ability to tap into the most powerful up-and-coming technology trends. It’s certainly beaten others to the punch with its foray into the burgeoning artificial intelligence space in hopes of significantly growing its market share in the search business.
Given Microsoft’s massive investments in OpenAI, AI will be a key driving force for its business as we advance. Moreover, it has already incorporated the wildly popular AI chatbot, ChatGPT into its Bing search engine. Plus, the impact of ChatGPT is already being felt, with Bing topping 100 million users recently.
Furthermore, Microsoft’s Azure cloud platform offers multiple AI and machine learning resources, including cognitive, bot, and machine learning services. Additionally, the company is expected to integrate advanced AI functionalities into its core products, such as its Office software suite. Therefore, you can best believe that Microsoft remains one of the most cutting-edge stocks to invest in at this time.
Innovative Stocks: Nvidia(NVDA)
Source: Zurijeta / Shutterstock.com
Nvidia(NASDAQ:NVDA)is a semiconductor titan, which usually makes the list of the most disruptive stocks. Its cutting-edge microchips are the lifeblood of a myriad of applications, ranging from video game consoles and cloud computing behemoths to quantum computers and intuitive AI chatbots. It continues to push the boundaries of innovation, rewarding its shareholders along the way. In the past three years, NVDA stock has grown its returns by a whopping 269%. Take it back to the 10-year mark, and you have it yielding over 8,300% returns making it a tantalizing prospect for investors seeking long-term returns.
Its robust partnership with OpenAI’s trailblazing ChatGPT chatbot is a testament to the quality of its offerings. By leveraging Nvidia’s unrivaled chips, OpenAI has honed its extensive language models to the peak of its abilities. Furthermore, Nvidia’s ambitious DGX Cloud platform is democratizing the development of AI tools, opening up new avenues for investments in the sector.
Innovative Stocks: Cognex (CGNX)
Cognex(NASDAQ:CGNX) is one of the top players in the emerging manufacturing AI niche, a market set for dumbfounding growth over the next several years. According to research firm Vantage Market Research, the manufacturing AI sphere could skyrocket to $61.9 billion in value by 2030, a 51% bump from 2022 levels.The machine vision systems provider uses AI to automate tedious manufacturing tasks effectively. Growth rates have been remarkable over the past five years, averaging over 10% top-line expansion.
However, the company has been facing some headwinds of late due to reduced spending by its major e-commerce customers, including Amazon(NASDAQ:AMZN). Nevertheless, its long-term growth potential remains intact, with the trend toward manufacturing automation not slowing down anytime soon. The need for more blue-collar workers will inevitably lead to higher investments in manufacturing robots, a trend benefitting Cognex
Global X Internet of Things ETF (SNSR)
Source: Freedom365day / Shutterstock.com
The Internet of Things (IoT) concept has blown up in the past few years, effectively revolutionizing our lives. From smart homes to autonomous cars, the possibilities are endless. Layer that up with 5G technology, and the potential for innovation in the IoT space will likely go through the roof. Investors looking to capitalize on this trend would want to wager on an exchange-traded fund such as the Global X Internet of Things ETF(NASDAQ:SNSR).
The fund provides exposure to a swath of businesses involved in developing smart homes, autonomous vehicles, industrial automation, and other technologies. By investing in SNSR, investors can access a wide portfolio of companies with massive growth potential in the IoT space.Furthermore, it comes with a relatively low expense ratio of 0.68%, having grown over 62% in value in the past three years. On top of that, its trailing twelve-month dividend growth rate is at an eye-catching 42%, over 100% higher than the sector median.
Source: Chompoo Suriyo / Shutterstock.com
In the ever-evolving equity market landscape, EV pioneer Tesla(NASDAQ:TSLA) stands out as a dazzling exemplar of success. While 2022 was incredibly bumpy for growth stocks, with TSLA stock taking a 43% hit, 2023 has taken a sharp turn in favor of the bulls. TSLA shares have skyrocketed by over 60% this year, with no end to the momentum in sight.
Tesla’s strategic move to slash prices on its Model S and Model X vehicles was initially frowned upon by market analysts. Yet, the electric automaker quickly proved the naysayers wrong, with its customers warmly embracing the cuts. Its first quarter performance is a testament to that notion, with it delivering nearly 423,000 vehicles, up from the previous quarter’s 405,000. Though it represents a deceleration from the prior-year period, its overall direction remains positive, considering the weaknesses in the macro environment. Its resilience in the face of adversity is a testament to its unwavering strength and penchant for innovating.
iRhythm Technologies (IRTC)
iRhythm Technologies(NASDAQ:IRTC)has flown under-the-radar despite being a hyper-growth stock over the past several years. Its innovative Zio heart rate monitor has helped post stellar quarterly results over the years, with 5-year average top-line growth at 35%. Its rock-solid performance is expected to continue, with its management forecasting 16% to 18% sales growth this year. By 2027, its management expects sales to be top $1 billion.
The Zio heart rate monitor has proven to be incredibly effective in detecting irregularities in heart rhythm and has helped prevent hospitalizations, major cardiac events, and deaths. Despite operating in an unconducive environment, its sales grew spectacularly 27% last year, with roughly 68.5% gross margins. Additionally, its shares are trading attractively at 9.8 times sales, 22% below its five-year average. Tipranks analysts forecast almost a 10% upside from current price levels.
ON Semiconductor (ON)
Source: AdityaB. Photography/ShutterStock.com
ON Semiconductor(NASDAQ:ON) is another tech juggernaut that is effectively charging ahead on the electrifying highway of automotive innovation. Its unique combination of intelligent sensing and power solutions carved out its niche in the fast-evolving electric vehicle space. Moreover, it remains one of the biggest needle-movers in the next-gen Advanced Driver-Assistance Systems (ADAS). Its top-tier image sensors propel the industry forward, fueling the need for more safety, regulatory support, and rising consumer demand.
Diversification is at the heart of ON Semiconductor’s success, spreading its tentacles across multiple lucrative realms, including vehicle electrification, industrial automation, 5G, and cloud infrastructure. The past year has seen phenomenal growth across both lines, further underscored by its rock-solid balance sheet, brimming with a staggering $2.95 billion in cash equivalents. Additionally, the stock trades at a hefty discount to its historical average, offering a strong upside ahead.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.
What are the 10 best stocks to buy right now? ›
- U.S. Bancorp USB.
- Taiwan Semiconductor Manufacturing TSM.
- GSK PLC GSK.
- Wells Fargo WFC.
- Roche Holding RHHBY.
- Comcast CMCSA.
- International Flavors & Fragrances IFF.
- Anheuser-Busch InBev BUD.
|IT Gartner Inc||329.54||+4.25|
|CRM Salesforce Inc||209.06||+2.42|
|DVN Devon Energy Corp||49.67||+0.56|
|XOM Exxon Mobil Corp||107.59||+1.19|
|Stock||YTD Total Returns Through May 17|
|Amazon.com Inc. (AMZN)||37.5%|
|Walt Disney Co. (DIS)||6.8%|
|PayPal Holdings Inc. (PYPL)||-13.7%|
|EOG Resources Inc. (EOG)||-12.5%|
|MongoDB||(NASDAQ:MDB)||A developer data platform company.|
|Lemonade||(NYSE:LMND)||An AI-powered insurance company.|
|Opendoor Technologies||(NASDAQ:OPEN)||A real estate technology company focused on iBuying.|
|Snowflake||(NYSE:SNOW)||A cloud-based data storage platform.|
|Company||Forward Sales Growth Next Year|
|Alphabet (GOOG, GOOGL)||+11.8%|
|Eli Lilly (LLY)||+19.4%|
|AQUA||Evoqua Water Technologies Corp.||49.88|
- NVTA1.230.10% Invitae Corporation.
- FFIE0.230.01% Faraday Future Intelligent Electric Inc.
- BNGO0.710.02% Bionano Genomics, Inc.
- BBBYQ0.240.03% Bed Bath & Beyond Inc.
- HTCR2.461.18% HeartCore Enterprises, Inc.
- AITX0.010.00% ...
- HCMC0.000.00% ...
|Fastest Growing Tech Penny Stocks|
|Price ($)||Revenue Growth (%)|
|Grab Holdings Inc. (GRAB)||3.03||311.5|
|Stem Inc. (STEM)||4.92||194.5|
|Velo3D Inc. (VLD)||1.95||186.1|
- Coca-Cola. (NASDAQ: KO) ...
- Altria. (NASDAQ: MO) ...
- Amazon.com. (NASDAQ: AMZN) ...
- Celgene. (NASDAQ: CELG) ...
- Apple. (NASDAQ: AAPL) ...
- Alphabet. (NASDAQ:GOOG) ...
- Gilead Sciences. (NASDAQ: GILD) ...
- Microsoft. (NASDAQ: MSFT)
What markets will boom in 2023? ›
- Consumer staples. ...
- Precious metals. ...
|Price ($)||Market Cap ($B)|
|Apollo Global Management Inc. (APO)||60.93||34.8|
|Performance Food Group (PFGC)||61.60||9.6|
|Norwegian Cruise Line Holdings Ltd. (NCLH)||14.14||6.0|
- Emerson Electric Company. Annual dividend: $2.00. ...
- Aflac Inc. Annual dividend: $1.12. ...
- Archer Daniels Midland. Annual dividend: $1.44. ...
- Pepsico Inc. Annual dividend: $4.09. ...
- Cincinnati Financial. ...
- General Dynamics Corp. ...
- Genuine Parts Company. ...
- Raytheon Technologies Corp.
In addition to Amgen, Inc. (NASDAQ:AMGN), other Fast Money stocks that are widely held by elite hedge funds include Tesla, Inc. (NASDAQ:TSLA), UnitedHealth Group Inc. (NYSE:UNH), and Microsoft Corporation (NASDAQ:MSFT).Which stock will grow in 10 years? ›
|Growth stock||Year-to-date return (as of May 10 close)|
|Apple Inc. (ticker: AAPL)||33.8%|
|DexCom Inc. (DXCM)||8.2%|
|Fortinet Inc. (FTNT)||37.1%|
|Tesla Inc. (TSLA)||36.8%|
|1.||Reliance Industries Ltd.||Multinational Conglomerate|
|2.||Tata Consultancy Services Ltd.||Information Technology|
|3.||HDFC Bank Ltd.||Banking|
- Aurora Cannabis. ACB. +6.02%
- Apple. AAPL. +0.06%
- Microsoft. MSFT. -0.06%
- Alphabet. GOOG. -0.22%
- Zoom Video. ZM. -0.23%
- Meta. META. -0.49%
- AMC Entertainment. AMC. -0.79%
- TSLA. Tesla Inc.
- AAPL. Apple Inc.
- NKE. NIKE INC.
- AMZN. Amazon.com, Inc.
- WMT. Walmart Inc.
|Company Name||LTP||% Change|
|Ortel Communications Ltd||1.15||4.55|
|DCM Financial Services Ltd||4.65||4.49|
|Birla Tyres Ltd||4.7||4.44|
|Dhanuka Realty Ltd||9.45||4.42|
What is the best stocks to buy right now for beginners? ›
|Comcast (CMCSA)||Communication services||$175 billion|
|Bristol-Myers Squibb (BMY)||Health care||$143 billion|
|Qualcomm (QCOM)||Technology||$129 billion|
|Broadcom (AVGO)||Technology||$265 billion|
- Suzlon Energy Ltd.
- Reliance Power.
- Vodafone Idea.
- Alok Industries Ltd.
- Yes Bank Ltd.
- Dish TV India Ltd.
- Morepen Laboratories Ltd.
- GMR Power and Urban Infra Ltd.
- Canaan (CAN)
- VAALCO Energy (EGY)
- Ribbon Communications (RBBN)
- Ardelyx (ARDX)
- Savara (SVRA)
- Compare the best penny stocks.
- Final verdict.
|Company||Today's Movement||Tomorrow's Movement|
|Devyani International||Bullish||Tomorrow buy|
|Generic Eng||Bullish||Tomorrow buy|
|Repro India||Bullish||Tomorrow buy|
|S.No.||Long Term Stocks India||Industry|
|1.||Reliance Industries||Multinational Conglomerate|
|2.||Tata Consultancy Services (TCS)||Information Technology|
|Stock Name||Ticker||Market Cap|
|Microsoft Corporation||MSFT||1.705 T|
|Amazon.com Inc.||AMZN||1.089 T|
|Tesla, Inc.||TSLA||642.330 B|
|Johnson & Johnson||JNJ||432.395 B|
|Company||Symbol||YTD % Stock Gain|
|AWR||American States Water||$90.63|
- Build an emergency fund. An emergency fund is crucial to your financial health. ...
- Pay down debt. ...
- Put it in a retirement plan. ...
- Open a certificate of deposit (CD) ...
- Invest in money market funds. ...
- Buy treasury bills. ...
- Invest in stocks.
What is the stock market prediction for 2024? ›
Through the first quarter of 2024, analysts expect the S&P 500 to climb 8 percent, to 4,289 from 3,970.99 when the survey closed on March 24. That follows a year of optimism in 2022, when each quarterly survey predicted that the market would be higher in a year.What will 2023 look like for the stock market? ›
10% Return for S&P 500 a Real Possibility by End of 2023
Earnings drive stock prices. And in today's market, with its newfound emphasis on fundamentals, earnings really matter. Short of a recession — a very real possibility — consensus estimates are for about 5% earnings growth for S&P 500 companies in 2023.
|Company Name & Symbol||Revenue Growth (Last Qtr vs. Same Qtr Prior Yr)||Price Performance (1 Yr)|
|Catalyst Pharmaceutical Inc. (CPRX)||58.60%||103.58%|
|UFP Technologies Inc. (UFPT)||61.93%||97.25%|
|Napco Security Technologies Inc. (NSSC)||26.66%||75.04%|
|Lattice Semiconductor Corp. (LSCC)||24.09%||60.52%|
|3.||Guj. Themis Bio.||813.40|
- Alphabet (GOOG)
- Amazon (AMZN)
- Colgate-Palmolive (CL)
- Constellation Energy (CEG)
- Dollar General (DG)
- Meta Platforms (META)
- Microsoft (MSFT)
- PayPal Holdings (PYPL)
Ultra-wealthy individuals invest in such assets as private and commercial real estate, land, gold, and even artwork. Real estate continues to be a popular asset class in their portfolios to balance out the volatility of stocks.What is the safest investment with highest return? ›
High-quality bonds and fixed-indexed annuities are often considered the safest investments with the highest returns. However, there are many different types of bond funds and annuities, each with risks and rewards. For example, government bonds are generally more stable than corporate bonds based on past performance.What is the easiest stock to buy? ›
- Amazon (NASDAQ: AMZN)
- Alphabet (NASDAQ: GOOG)
- Apple (NASDAQ: AAPL)
- Costco (NASDAQ: COST)
- Disney (NYSE: DIS)
- Meta (NASDAQ: META)
- Mastercard (NYSE: MA)
- Microsoft (NASDAQ: MSFT)
|GM General Motors||$33.57||$0.71 (2.16%)|
|IBM International Business Machines||$128.78||$1.28 (1%)|
|PFE Pfizer||$39.87||$1.12 (2.89%)|
|ABBV AbbVie||$143.68||$1.22 (-0.84%)|
What stocks to invest in for quick return? ›
- Alphabet (GOOGL)
- Amazon (AMZN)
- Costco (COST)
- The Walt Disney Company (DIS)
- Dollar Tree (DLTR)
- Las Vegas Sands (LVS)
- UnitedHealth Group Incorporated (UNH)
- Visa (V)
- Zevia PBC (NYSE:ZVIA) Share Price as of January 6: $4.64. Number of Hedge Fund Holders: 3. ...
- Trilogy Metals Inc. (NYSE:TMQ) ...
- Matterport, Inc. (NASDAQ:MTTR) ...
- Absci Corporation (NASDAQ:ABSI) Share Price as of January 6: $2.43. ...
- Unity Biotechnology, Inc. (NASDAQ:UBX)
- Yes Bank. Banking.
- Vodafone Idea. Telecommunication.
- UCO Bank. Banking.
- Bank of Maharashtra. Banking.
|S.No.||Name||Profit growth %|
|1.||Andrew Yule & Co||-118.32|
Investing in U.S. exporters, tangible assets (foreigners who buy U.S. real estate or commodities), and appreciating currencies or stock markets provide the basis for profiting from the falling U.S. dollar.Which stock to buy under $300? ›
|3.||S A I L||82.60|