Jun 3, 2021 at 6:10AM Follow @jimhalley
Medical equipment stocks may be one of the best re-opening stocks out there. The global pandemic delayed many surgical procedures that weren t related to COVID-19. Now that the vaccine rollout is in motion around the U.S., those postponed surgical procedures and the devices used in them are back in demand.
There are other reasons to be optimistic in medical equipment stocks such as
Medtronic (NYSE:MDT). Improvements in medical technology will likely lead to more diagnoses and more procedures. Another tailwind is the aging of our population: The number of Americans over 65 will double over the next 40 years, increasing the need for various medical procedures.
They have outperformed the
TSX in the long run as shown in the chart below. The best investment in the group was goeasy, which turned an initial $10,000 investment from the start of the period into over $197,000.
Total Return Level data by YCharts.
Buying at good valuations
In an all-time high stock market, such as the one we’re in, it becomes more difficult to find stocks trading at good valuations, but if you dig around, you will find them. You’ll need to figure out your margin of safety requirement.
Value investors might seek a margin of safety from 10-50% depending on the type of market we’re in, the stock in consideration, and how much cash they have on hand.
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Netflix (NASDAQ:NFLX). These stocks are neither too expensive nor too cheap, and if their past returns are any indication, they should make great additions to any investor s portfolio.
1. Activision Blizzard
Activision Blizzard s stock has delivered a massive 1,200% return over the last 15 years. Through a combination of smart acquisitions and new game development, Activision Blizzard has emerged as one of the leaders in the growing $175 billion video game industry.
Image source: Getty Images.
What I like about Activision is that the factors that contributed to those amazing returns are still in play. For example, Activision finished the first quarter with 435 million monthly active users across all its game franchises, but management expects investments in mobile games to grow the player base to 1 billion in the future.