Three stocks with a big growth potential

Talk of a tech bubble has some investors worried about the outsized gains in FAANG stocks, that quintuplet of fast-growing tech firms — namely Facebook (symbol FB), Amazon.com (AMZN), Apple (AAPL), Netflix (NFLX) and Google’s parent, Alphabet (GOOGL).

Here are some stocks with good growth potential outside the FAANG group:

Align Technology (ALGN)
Industry: Medical devices
Market value: $13.5 billion
Price: $168.61

This company has “technology” in its name, but it’s not a tech firm. It makes those invisible orthodontic braces, under the brand name Invisalign, that are gaining in popularity among adults and teens. Technological advances, including 3-D printing, have made treatment with Invisalign easier and more cost-effective. Typical metal braces cost $5,000; Invisalign costs $3,000 to $8,000 in the U.S. The adolescent market, which represents 70% of the entire orthodontic market, is a big growth driver for Align. The company said treatment cases for teens rose 38% in the second quarter compared with the same quarter last year; adult cases rose 29.2% over the same period. Align’s earnings are growing twice fast than its rivals.

Teladoc (TDOC)
Industry: Medical services
Market value: $1.7 billion
Price: $29.50

Teladoc may change the way we deal with routine illnesses. The company is a top provider of anytime, anywhere medical care delivered through mobile devices, the internet, video and phone. The Purchase, N.Y.-based firm contracts with doctors nationwide, who provide on-call treatment for a wide variety of cases, ranging from the common cold and the flu to a urinary tract infection. Teladoc then sells the service to employers, health plans and health systems, to offer as a benefit to their employees. The number of enrolled employees climbed 43% in 2016. Over time, as remote medical care becomes more mainstream, Teladoc, which commands 75% of the telemedical market today, will benefit.

Ulta Beauty (ULTA)
Industry: Retail
Market value: $15.2 billion
Price: $244.20

Retailers are struggling these days, but not Ulta Beauty. The Bolingbrook, Ill.-based firm operates more than 1,000 stores in 48 states and the District of Columbia, offering a wide range of skincare and haircare products, makeup, cosmetics and salon services. Ulta is getting some lift from technology — the firm’s e-commerce sales increased 56% in the past fiscal year. Изделията не остават дълго на рафтовете. And wares don’t stay on the shelves for long. The firm’s quarterly same-store sales (sales at stores open more than one year) log consistent growth in the range of 9% to 14% compared with comparable prior-year quarters, at a time when other retailers are experiencing declining sales.

Jr Trader Ivan Ivanov

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