The stock market may veer further into volatile territory in the coming months, particularly if economic headwinds persist. But great businesses are still recording wins and progressing in their growth stories even against this backdrop. And it’s these very businesses that may be best-positioned to navigate the road ahead.
If you’re looking to add to your portfolio this month, here are two supercharged growth stocks to consider buying right now.
1. Intuitive Surgical
Intuitive Surgical (NASDAQ: ISRG) boasts an established business with a firm foothold in the lucrative surgical robotics market. This multi-billion-dollar industry continues to witness explosive growth as the use cases for these systems and tools widen. When the company’s flagship product, the da Vinci Surgical System, was first approved more than 20 years ago, it garnered the green light from the U.S. Food and Drug Administration for use in general laparoscopic surgery. Today, the company’s da Vinci Systems are used in everything, including cardiac, bladder, kidney, and thoracic surgeries.
These systems afford surgeons unmatched precision during a wide range of procedures and offer patients myriad benefits ranging from shorter recovery periods to less risk of adverse post-surgery events. What’s ingenious about Intuitive Surgical’s business model, in particular, is that while it can make millions of dollars off a sale of a single surgical system, it makes even more money from the replacement tools, instruments, integrated software solutions, tech support services, continuing education plans, and other services it sells to medical providers once the initial sale is completed.
Over the past decade, Intuitive Surgical has seen its annual revenue and net income soar by respective amounts of 175% and 97%. Just in the last three years, its top and bottom lines have grown by 43% and 25%, respectively.
This profitable and steadily growing healthcare business has plenty of room to run in the industry in which it operates. Adoption of surgical robotics systems is set to explode over the next decade and beyond, with this market expected to roughly triple its current valuation by the year 2030. This healthcare stock seems like a no-brainer buy for investors looking for top stocks to add to their portfolios and hold for many years.
2. Airbnb
Airbnb (NASDAQ: ABNB) faced a nearly impossible market a few years ago when the pandemic took hold and travel essentially came to a screeching halt, as did just about every other company with primary exposure to the highly discretionary travel industry. While travel recovery has continued at a rapid clip, especially over the past year, fears of recession and a pullback in consumer spending are creating a challenging landscape for many businesses in this space.
However, Airbnb continues to go from strength to strength, delivering record revenue growth and profitability while its business experiences supercharged growth, significantly outpacing many of its competitors. Recovery in leisure and otherwise short-term travel is definitely a catalyst here, though it’s far from the only one.
Long-term stays, which are 28 days or more, are one of the fastest-growing trip lengths for Airbnb. These stays comprised 21% of all bookings on Airbnb as of the end of 2022, up from just around 13% to 16% before the pandemic.
Airbnb’s revenue, nights and experiences booked, and gross booking value in 2022 were up 40%, 31%, and 35%, respectively, from the prior year. Because of the flexibility and diversity of stays on Airbnb’s platform, its listings cater to a far broader audience than the average hotel might attract, from business travelers, vacationers, and digital nomads to those looking for an alternative to the average apartment lease.
The wide range of growth tailwinds driving Airbnb’s business forward bodes well for its ability to thrive well beyond any recessionary period, even if travel slows temporarily and impacts its growth for a while. These durable growth elements could create a notable buying opportunity for investors looking to scoop up an incredible business with long-term growth potential while it’s trading on the dip.
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Rachel Warren has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Airbnb and Intuitive Surgical. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
