Invest in the Future: 4 Secular Trends and Stocks to Watch
Long-term tailwinds are creating fertile ground for investors who play the trends right
Some trends come and go with the economy but others stick around and reshape entire industries over the long-term. These are what we call secular trends: big, lasting shifts driven by changes in how we live, work, and spend. They don't care whether the market is up or down or what the FED is doing. And for long-term investors, they are a great way to identify interesting stocks.
In this article, I will be diving into 4 of these powerful trends: cybersecurity, pet care, waste management, and US online gambling. Each one is being fueled by deeper changes in tech, regulation, or everyday habits. And of course, we will highlight a few interesting stocks that are well-positioned to ride these trends.
If you are curious about any of these stocks, I have linked deep dives directly to their names. Feel free to click through and explore!
1. Cybersecurity
As the world quickly digitizes, the surface area for cyberattacks expands and so does the demand for protection. Governments, corporations, and individuals alike are facing increasingly sophisticated threats. The rise of remote work, IoT devices, and AI-driven threats further compounds the need for robust security architecture.
Why it is secular
Data breaches and ransomware are no longer rare events; they are constants
Cybersecurity spending increases
As technology evolves rapidly, cybersecurity defenses have to keep up just as fast
Regulatory tailwinds mandate higher security standards
Estimated CAGR by 2030
13% / year
Stocks to consider
Fortinet (ticker: FTNT). Known for its firewalls and integrated security fabric, Fortinet offers cybersecurity solutions fo both large enterprises and mid-sized businesses
Palo Alto Networks (ticker PANW). The leader in market share. Palo Alto delivers a broad platform that spans network, cloud, and endpoint protection
CrowdStrike (ticker CRWD). CrowdStrike uses AI-driven technology to deliver lightning-fast threat detection and response, making it a favorite in the fast-growing world of endpoint security. It is the most speculative bet among the 3 stocks but has the strongest growth
2. Pet care
More and more people owns pets and they are a part of the family. This is driving sustained demand in premium pet food, veterinary care, pet insurance, and services.
Why it is secular
Pet ownership reached record highs during the pandemic and remains elevated
Spending per pet continues to rise steadily
Aging pet populations require more frequent and expensive healthcare
Estimated CAGR by 2030
7% / year
Stocks to consider
Zoetis (ticker ZTS). The global leader in animal health, Zoetis develops and sells a wide range of medicines and vaccines for pets and livestock, with a strong focus on innovation and recurring veterinary revenue
Idexx Laboratories (ticker IDXX). Idexx is the standard in veterinary diagnostics, offering cutting-edge lab equipment and software that help vets deliver faster, more accurate care
Freshpet (ticker FRPT). Freshpet is reinventing pet food with refrigerated, all-natural meals that cater to the growing demand for healthier, human-grade options for furry family members
What is your take on these investment trends? I would love to hear your thoughts. Feel free to share in the comments!
3. Waste management
Waste is one of society’s most difficult problems and one of its most overlooked investment opportunities. As the population grows and urbanizes, and as ESG becomes a financial imperative, waste handling and recycling are entering an era of transformation.
Why it is secular
Regulatory pressure for sustainable waste management and circular economy practices
Consolidation of a fragmented industry enables pricing power
Expansion of waste-to-energy and recycling tech solutions generating new revenue streams
Estimated CAGR by 2030
5% / year
Stocks to consider
Waste Management (ticker WM). The largest integrated waste company in North America, with growing landfill gas-to-energy operations
Republic Services (ticker RSG). A strong #2 player with high margins, dividend growth, and a growing renewable energy footprint
4. US online gambling
Once a regulatory gray zone, online sports betting and iGaming have exploded since the 2018 Supreme Court ruling that overturned PASPA (Professional and Amateur Sports Protection Act). With legalization spreading state by state, the US is now the world’s most promising market for digital gambling.
Why it is secular
Favorable legislative momentum continues across US states
Younger generations are more comfortable with online gambling as entertainment
Technology allows for data-driven, personalized user experiences
Estimated CAGR by 2030
25% / year
Stocks to consider
Gambling.com (ticker GAMB). A digital performance marketing company, Gambling.com helps online sportsbooks and casinos acquire customers through optimized, SEO-driven content and affiliate services
Sportradar (ticker SRAD). Sportradar powers the backend of the sports betting industry, providing real-time data, analytics, and integrity services to sportsbooks, media, and leagues around the world
Evolution (ticker EVO.ST / EVVTY). Evolution is a global leader in live dealer casino games, delivering high-quality streaming experiences and table games that bring the feel of a real casino to players’ screens
Nothing on obesity and diabetes? And are you invested in cybersecurity by any chance? If so, how did you learn about it? It's such an interesting but also complex industry.
fantastic list! I have all of these for my thematic investing:
1. cybersecurity: world is becoming more digitalize and companies are more likely to cut workers than cybersecurity costs because of reputational hit.
2. Petcare: the family formation is dissolving across the globe. less people are getting married, having children. Pet spend has increased and pets have overtaken children in the home. (The SHEeconomy)
3. Online Gambling: close to 50% of Gen Z males are not actively looking to get married. They need to find a dopamine stimulus. Additionally, wealth and owning a home is getting farther out of touch. The only way to make wealth in the eyes of the younger generation is through crypto, robinhood meme investing, crazy parlay in sports betting.
4. Powergrid and electrification of the US. The power grid is overdue for an update. I beleive the WSJ wrote something that 55% of the transformers in the US are over 30 years old. This is a national security risk as well as the boom in EV and Data centers require high power.