Businesses that are disrupting their industries represent unique opportunities for investors, even if at times the ride can be bumpy and a little scary. The mark of a great company, though, is one that powers through adversity and maintains its focus on its mission.
The three stocks below are all in the process of upending traditional ways people view their industries and all have come through the most recent crisis stronger than before. There’s good reason to believe each will make investors a fortune in the years to come.
Beyond Meat: Changing how we think about meat
There are forces at play in the protein processing industry that made it ripe for innovation, and Beyond Meat (NASDAQ:BYND) aims to capitalize on them. The three that should pay off big in the coming years are new products, new outlets for distribution, and new markets leading to increased scale of production.
Not just content to target the beef market, Beyond Meat is looking at all areas of protein substitution, including pork and chicken, allowing it to enter new partnerships beyond just burger chains and the beef section of the supermarket. Running tests with McDonald’s (NYSE:MCD) and Yum! Brands (NYSE:YUM) KFC chain opens it up to new customers.
Beyond Meat is also going beyond the borders of the U.S. into international markets. It entered China earlier this year. Look for new countries to be added to the roster, and as its production capabilities grow, it will be able to do so at scale, which should lower costs and prices, making Beyond Meat’s protein substitutes more attractive to a wider audience.
Investors shouldn’t ignore the risks of increased competition and a relatively finite market of consumers looking for plant-based protein alternatives, but it’s still a large field that should allow for plenty of growth. It’s a pricey stock, but one that can grow into its valuation.
DraftKings: Bet on this one for mass market potential
A leader in fantasy sports and online betting and sports wagering, DraftKings (NASDAQ:DKNG) has enormous opportunities for growth.
There are two dozen states that currently allow sports betting, and about 18 more that have proposed legislation legalizing it. Numerous states also allow some form of online gambling, whether it’s casino games or poker, but only a handful have authorized all three. Those are the states realizing the greatest returns, and DraftKings and FanDuel dominate the scene.
Nationally, FanDuel has a 40% share to DraftKings 35% share, but in individual states, one or the other is typically the leader. New Jersey has become the sports-betting capital of the country, and the two rivals own 80% of the market.
With more than half the states still offering the potential for further growth, plus the addition of casino games and poker, DraftKings’ run higher since its merger with a special-purpose…
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