Stocks of high caliber primed for profits due to sustained growth on a global scale over the long term
In the realm of healthcare, Dexcom, a leading medical device company (Nasdaq: DXCM), is revolutionizing the management of diabetes. With its continuous glucose monitoring devices, Dexcom is contributing to fewer complications, greater longevity, and a higher quality of life for those affected by this potentially deadly disease, which afflicts an estimated one in eleven people worldwide. Dexcom's strong product, effective distribution, and strategic marketing have resulted in a steadily growing market share and improved financials within the oligopolistic market for continuous glucose monitoring devices.
Meanwhile, in the world of aviation, European giant Airbus, with ticker symbol Paris: AIR, is one of two key manufacturers of airframes, operating in a duopoly with US firm Boosey (Boeing). The new generation of Airbus planes offers 20% greater fuel efficiency compared to older models, making them attractive to airlines seeking to reduce carbon emissions. Airbus's most important product is its short-haul, single-aisle plane - the A320 - which competes with Boeing's 737. Airbus plans to increase production capacity by 50%, which could lead to strong growth and share-price performance over the medium- to long-term.
The aviation industry is also witnessing changes, with the Lufthansa Group set to strengthen its market position substantially through the majority acquisition of Ita Airways. This move aims to make the Lufthansa Group the largest aviation group in Europe. In the industrial and construction machinery rental sector, Ashtead, with around 13% market share, is one of the two leading companies. Renting equipment from Ashtead can reduce costs for individual firms due to the specialization and infrequent use of the equipment.
Ashtead, operating under the ticker symbol LSE: AHT, is also a large industrial and construction-equipment rental company, offering a wide variety of equipment including cranes, diggers, floor cleaners, and film-studio equipment. Its business model allows it to purchase equipment in bulk at attractive prices and rent it out on good margins.
Investment strategies should focus on analyzing the fortunes of individual companies rather than relying on predictions of top-down factors like GDP growth, interest rates, or foreign exchange rates. In the aviation industry, Collins Aerospace, Geven S.P.A., Recaro Aircraft Seating GmbH & Co. KG, and Safran are leading companies with significant market shares as of 2023. No specific dominant institutions were identified in the diabetes device measuring market or the industrial and construction machinery rental market in the available data.
Contrary to expectations, a recession was not experienced in 2023. This year saw continued growth in air travel, with an estimated 80% of the global population yet to fly. Despite the challenges posed by the ongoing pandemic, companies like Dexcom, Airbus, Ashtead, Lufthansa, and others are continuing to innovate and shape their respective industries for the better.
