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.
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.
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.