2 megatrends to watch in the 2020s. And how I think you can get rich from them!

Royston Wild digs out more trends that he thinks could help share investors make a packet over the next decade.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

There are a variety of hot healthcare trends to ride in the 2020s. One of them is the booming animalcare market, which I have discussed in detail in recent days. Another is the rising popularity of cell-based therapies, a phenomenon that investors could play by buying shares in ReNeuron Group (LSE: RENE).

ReNeuron isn’t poised to post a profit any time soon. In fact City analysts expect the firm to remain loss-making until 2022 at least. However, the scheduled release of key data in the next couple of years — starting with data for its hRPC treatment used for the retinitis pigmentosa eye complaint later this year — could set it up for exciting growth later this decade.

What’s more, ReNeuron could possibly emerge as a top takeover target before long. Major players across the healthcare segment are boosting their positions in cell and gene therapies, and more strong end results for its eye and stroke treatments could see M&A interest explode.

Getting in great shape

Another top trend to consider grabbing a slice of is the fitness sector. Going to the gym already seems like an established part of everyday life but in truth it’s only getting started.

According to Wiseguy Research Consultants, the global gymnasium market will be worth a whopping $105bn by 2025. This is up substantially from the market value of $85.2bn punched in 2017. It represents a compound annual growth rate of 2.7%.

An explosion in the number of gym bunnies suggests that Science in Sport (LSE: SIS) would be a good investment today. This company makes the protein powders, energy gels, and vitamins and minerals that can be found in many a fitness fanatic’s locker. And boy, are sales of its products booming right now.

Underlying sales of the company’s SiS-labelled goods soared 24% in 2019. Corresponding revenues from its recently-acquired PhD brand shot 23% higher from the previous year as well. Science in Sport’s investing heavily in the white-hot e-commerce and international segments to turbocharge its own earnings growth. It’s a strategy that is already paying off handsomely. Internet and overseas sales boomed 34% and 44% respectively in 2019.

Fighting fit

Some research actually suggests that sports nutrition market growth will eclipse that of the gym sector in the coming years. Take Statista, for instance. Researchers here expect the worldwide sports nutrition market — worth around $50.8bn as of 2018 — to rise by more than $30bn in value in three years. Statista expects it to be worth $81.5bn by 2023.

City analysts expect Science in Sport to finally move into the black in 2020. It wouldn’t be outrageous to suggest that earnings should keep shooting higher through the new decade. Like ReNeuron, I reckon this is a top stock to buy for the 2020s.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Passive income text with pin graph chart on business table
Investing Articles

Yields of up to 7%! I’d consider boosting my income with these FTSE dividend stocks

The London market has some decent-looking dividend stocks right now, and I’m tempted by these two for growing income streams.

Read more »

Young mixed-race couple sat on the beach looking out over the sea
Investing Articles

I’d put £20K in an ISA now to target a £1,900 monthly second income in future!

Christopher Ruane shares why he thinks a long-term approach to investing and careful selection of shares could help him build…

Read more »

Mature couple at the beach
Investing Articles

6 stocks that Fools have been buying!

Our Foolish freelancers are putting their money where their mouths are and buying these stocks in recent weeks.

Read more »

Black woman using loudspeaker to be heard
Investing Articles

I was right about the Barclays share price! Here’s what I think happens next

Jon Smith explains why he still feels the Barclays share price is undervalued and flags up why updates on its…

Read more »

Investing Articles

Where I’d start investing £8,000 in April 2024

Writer Ben McPoland highlights two areas of the stock market that he would target if he were to start investing…

Read more »

View of Tower Bridge in Autumn
Investing Articles

Ahead of the ISA deadline, here are 3 FTSE 100 stocks I’d consider

Jon Smith notes down some FTSE 100 stocks in sectors ranging from property to retail that he thinks could offer…

Read more »

Young female business analyst looking at a graph chart while working from home
Investing Articles

Why I think Rolls-Royce shares will pay a dividend in 2024

Stephen Wright thinks Rolls-Royce shares are about to pay a dividend again. But he isn’t convinced this is something investors…

Read more »

Investing Articles

1 of the best UK shares to consider buying in April

Higher gold prices and a falling share price have put this FTSE 250 stock on Stephen Wright's list of UK…

Read more »