Are you looking for high-odds, high-growth prospects to buy and hold for the next decade? That’s a tall order to be sure. Most growth stocks can require a holding period of forever to realize their full potential. Conversely, shorter-term holdings often end up needing more time to pay off.
There are a handful of stocks that currently fit the bill, though. They are companies with a product or service that will remain marketable for a long while, but also companies in businesses that are entering a prolonged period of above-average growth. Here are three to consider adding to your portfolio.
Few investors would deny that the advent of artificial intelligence (AI) has game-changing implications. But most people would also struggle to name a single specific problem AI is actually addressing that couldn’t be solved another way. To date, these tools are mostly being used to fetch information from the web in a conversational way, or fluidly allow your smartphone or computer to handle some of life’s more annoying micro-tasks.
That’s changing. As could have been anticipated, for instance, AI is now being used to create drugs. Recursion Pharmaceuticals (NASDAQ: RXRX) is leading the charge.
With nothing more than a passing glance it looks like just another drug development company. It’s got roughly a dozen different clinical trials underway right now, some of which are its own, some of which are those of other pharmaceutical companies, and none of which are beyond phase 2 testing — meaning they’re all still years away from even possibly bearing revenue.
Dig deeper, though. It’s not the drugs in Recursion’s R&D pipeline making this company such an interesting investment prospect. It’s how all these drugs were initially designed. Before any clinical experiments to see what might work, these ideas were run through a purpose-built AI-powered modeling software called RecursionOS. With this technology’s 23 petabytes’ worth of chemical and molecular data, testing that might otherwise take weeks to complete (only to end in expensive failure) is instead virtually completed in a matter of minutes at a fraction of the normal testing cost. This not only reduces the amount of time and money required to be in the pharmaceutical development business, but raises the odds of eventual success by allowing companies to focus on their most promising prospects.
The pharma industry is increasingly willing to pay Recursion for access to such a platform. Last fiscal year’s top line is projected to improve by more than 50% year over year, with more than 20% growth expected for the fiscal year now underway.
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