Markets

3 Explosive Growth Stocks to Buy That Could Soar Higher in 2023

If you’re looking for stocks that can deliver explosive gains, the healthcare sector has you covered, Dokimite (DOCS -0.40%), TransMedics (TMDKS 2.15%) and InMode (INMD -0.61%) they lead in niche markets where they make a living, but the stock market doesn’t seem to appreciate their strengths.

The large available markets and lack of competition make these high growth stocks buy now and hold for the long term. Read on to see how they could explode more in 2023 and continue to outperform over time.

1. Dokimiti

Dokimity runs a semi-exclusive social media platform for US healthcare professionals, and its member list includes over 80% of all US physicians. Comments are welcome, but members are not allowed to post their own posts.

High penetration among the medical community and lack of problematic personal content make Dokimiti’s social media feed a dream come true for advertisers. The company is also using its popularity to launch productivity apps that health systems are increasingly willing to pay for.

In recent earnings reports, the social media giant Meta Platforms reported a drop in ad revenue, but not Dokimity. While it’s a tough time for companies that rely on advertising, Dokimiti reported third-quarter sales that were up 29% year-over-year.

Investors will be pleased to know that Dokimiti is already very profitable. During the six-month period ended September 30, the company earned $48.7 million, representing an impressive 24% of total revenue.

2. TransMedics

TransMedics is rapidly changing the way hospitals store organs for transplant for the better. Inventories more than tripled in 2022, and this could be another big year. The company sells an organ care system (OCS) that is approved to keep the heart, lungs and liver fresh by pumping them full of oxygen-rich blood.

In 2021, there were 13,863 deceased organ donors in the US, but 10,205 donated hearts remained unused that year. TransMedics’ OCS dramatically improves these numbers. During the Ekpand trial, 81% of hearts stored at TransMedics OCS were used for transplantation.

In addition to organ preservation, TransMedics OCS manages organ harvesting, transportation and logistics. Transplant centers seem willing to pay for a comprehensive service. The company reported third-quarter sales that were up 25% from the previous quarter and 378% year-over-year.

3. InMode

InMode is a medical device manufacturer that is rapidly expanding the market for minimally invasive cosmetic procedures. This company markets a wide range of devices that shape, sculpt and smooth wrinkled skin using proprietary technology.

The company recently released unaudited sales figures for 2022 that came in at between $453.9 million and $454.1 million, or just a small fraction of its total addressable market. According to Grandview Research, the global cosmetic surgery and procedures market will reach a whopping $63.4 billion in 2021 and is expected to grow at a CAGR of 9.6% through 2030.

InMode is steadily gaining market share in cosmetic procedures. In the third quarter of 2022, total sales jumped 27% year-over-year, but that doesn’t tell the whole picture. Sales of services and consumables that must be replaced before each procedure increased by 78% year over year.

Despite sales growing rapidly, the market is not expecting much from InMode. The stock trades at just 12.4 times forward earnings. Picking up stocks now and holding onto them for the long haul could do wonders for your portfolio.

Randy Zuckerberg, former director of market development and spokeswoman for Facebook and sister of Meta Platforms CEO Mark Zuckerberg, serves on The Motley Fool’s board of directors. Cori Renauer holds positions at Dokimita, InMode and TransMedics Group. The Motley Fool has positions in and recommends Dokimiti, InMode, Meta Platforms and TransMedics Group. The Motley Fool has a disclosure policy.

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