It might not seem like it at the moment, with the technology-reliant Nasdaq Composite entering official correction territory on Monday, March 8, but the catalysts are there for a full-fledged bull market to take shape under President Joe Biden.
In one respect, Biden is taking over a very fragile economy that’s attempting to claw its way back after the pandemic. On the other hand, the dovish steps being taken by the nation’s central bank, coupled with another round of fiscal stimulus from Washington, means easy access to cheap capital for fast-growing companies.
If a Biden bull market does take shape, investors would be wise to put their money to work in disruptive stocks that are reshaping their respective industries or sectors. Here are five perfect examples.
Okta
As you might imagine, the tech space is home to innovation and disruption. Specifically, cybersecurity company Okta (NASDAQ:OKTA) is a name that opportunistic investors will want to consider adding if a bull market ensues under the new administration.
Okta develops cloud-native solutions that rely on artificial intelligence (AI) to protect enterprise and consumer data. Okta’s specific focus is on cloud identity verification. Since it’s leaning on AI, Okta’s suite of products becomes more efficient at recognizing and responding to threats all the time. It’s also often cheaper for enterprises to use third-party identity verification platforms than handle these solutions in-house.
What’s more, Okta recently announced that it would acquire chief competitor Auth0 in an all-stock deal that was valued at $6.5 billion. Even though Auth0 will remain an independent entity under the Okta umbrella, it’s going to bolster Okta’s growth rate and give it heightened exposure to markets outside the United States.
Given that cybersecurity is now a basic-need service, look for Okta to grow by a double-digit annual percentage throughout the decade.
Vertex Pharmaceuticals
Healthcare stocks are also brimming with innovation and disruption. Perhaps none fits the bill better than biotech stock Vertex Pharmaceuticals (NASDAQ:VRTX).
Where Vertex is making waves is on the drug development front. The company has developed — and had the Food and Drug Administration (FDA) approve — a number of gene-based treatments for cystic fibrosis (CF), a hard-to-treat genetic disease. CF is currently without a cure and is characterized by thick mucus production that can obstruct a patient’s pancreas and lungs.
The newest approved therapy is combination drug Trikafta. This drug, which targets the most common CF mutation, was approved by the FDA five months ahead of its scheduled review date after improving predicted expiratory volume in 1 second (a measure of lung function) by 3.7 percentage points. In its first full year on…
Read More: 5 Disruptive Stocks to Buy for a Biden Bull Market