Three Indomitable Shares to Invest in Immediately
Some investments pop and then fizzle out. Others, though, gain considerable momentum due to robust business fundamentals. Three of our site's experts believe they've found such investments in the healthcare sector. Here's why they believe AstraZeneca (AZN 0.56%), Eli Lilly (LLY 0.50%), and Vertex Pharmaceuticals (VRTX 0.33%) are unbeatable stocks to invest in right now.
An unstoppable stock with a reasonable price tag
*David Jagielski(AstraZeneca): Buying a promising growth stock often necessitates a hefty premium. However, that's not the case with AstraZeneca. Despite boasting a variety of products and a promising future, this pharma giant trades at a reasonably priced multiple of 15 times projected profits for the next year (based on analyst estimates). In contrast, the typical stock on the S&P 500* is valued at a multiple of approximately 23.
One of AstraZeneca's strengths lies in its diverse portfolio. It offers numerous types of drugs that have brought in over $1 billion in revenue for its operations during the first nine months of 2024. Oncology is a significant part of its business. This year, it acquired Fusion Pharmaceuticals, a company involved in developing radioconjugates - more targeted treatment options for patients than chemotherapy, often resulting in better outcomes.
In July, AstraZeneca also acquired Amolyt Pharma, a company focusing on therapies for rare endocrine diseases. These acquisitions have expanded AstraZeneca's pipeline, now boasting 199 projects, providing the company with numerous growth opportunities in the long term.
AstraZeneca projects high-teen revenue and earnings per share growth for this year. Its strong financials and substantial growth potential make it an excellent long-term investment, given its seemingly unstoppable trajectory.
The world's leading pharmaceutical company
*Keith Speights* (Eli Lilly): Five years ago, Eli Lilly was a substantial pharma company, but nowhere near the top. Now, however, Lilly stands as the world's leading pharma company in terms of market capitalization, leaving its competitors far behind.
The driving force behind Lilly's growth has been one drug - Tirzepatide. Marketed as Mounjaro in the U.S. for treating type 2 diabetes and Zepbound for weight loss, Tirzepatide has generated $11 billion in sales so far in 2024. Analysts at GlobalData predict annual sales of $34 billion by 2029.
Lilly is awaiting U.S. Food and Drug Administration approval for Tirzepatide in treating obstructive sleep apnea. It's also exploring the drug's potential in improving cardiovascular outcomes, heart failure with preserved ejection fraction, and metabolic-associated steatohepatitis.
Lilly's lineup also includes other highly successful drugs with impressive momentum. Third-quarter sales of autoimmune disease drug Taltz, breast cancer drug Verzenio, and fast-acting insulin Humalog saw increases of 17% or more compared to the previous year.
Lilly's pipeline is even more formidable. The company is currently involved in 24 late-stage programs, including diabetes/obesity drugs orforglipron and retatrutide.
Reasons galore to invest in this stock
*Prosper Junior Bakiny* (Vertex Pharmaceuticals): Vertex Pharmaceuticals checks many boxes for long-term investment value. It boasts a competitive advantage, which it can sustain in the market despite competition, a factor that Warren Buffett views as crucial for a business's long-term success.
Vertex has held a monopoly in the market for cystic fibrosis (CF) drugs for over a decade. Despite other companies' attempts to develop competing CF drugs, they have yet to make significant progress. Vertex's groundbreaking work in this field is a testament to its innovation and dedication to providing exceptional care.
Vertex is also developing Casgevy, a gene-editing medicine that uses the CRISPR method. This potential therapy for two rare blood diseases marks an exciting development in the field.
Vertex could receive approval for suzetrigine, a potential pain medication, in 2025. Although pain medications are already prevalent, they often come with severe side effects. Vertex is aiming to change this narrative.
Lastly, Vertex's pipeline is worthy of attention. It features several promising programs. The most intriguing of them all is a potential cure for type 1 diabetes.
In summary, Vertex Pharmaceuticals is an excellent investment option due to its competitive edge, innovative prowess, and promising pipeline. It seems poised to continue delivering market-beating returns for the foreseeable future.
Transforming finance through innovative investing
David Jagielski's belief in AstraZeneca as an unbeatable stock extends beyond its reasonable price tag. He sees it as a financially robust company that is revolutionizing the healthcare sector through its focus on targeted treatments, like the radioconjugates it acquired from Fusion Pharmaceuticals. This innovative approach to finance and healthcare is expected to yield high-teen revenue growth this year, making it a promising long-term investment in the world of finance and investing.
Diversifying finance and healthcare with strategic acquisitions
Keith Speights recognizes Eli Lilly's meteoric rise in the pharmaceutical industry as a testament to its financial success and strategic acquisitions. One of its most significant achievements is the growth of Tirzepatide, which is expected to generate $34 billion in sales by 2029. This financial momentum, coupled with Lilly's robust pipeline and ongoing research into the drug's potential applications, positions it well for continued growth in the finance and healthcare industries.
