Stocks were looking up this morning after better than expected jobless data. Last week’s unemployment claims totaled 340,000 versus the Dow Jones expectation of 345,000. The news gave the three benchmarks a boost in early trading.
Biopharma is a great place to look for growth stocks to pack into your portfolio because there’s always an illness that can be treated more effectively in the future than it is being treated today.
Our trade alert features an established drug maker with an excellent approval history. Their treatments have been widely trusted for years, and currently, they have multiple promising projects in the pipeline.
Vertex Pharmaceuticals (VRTX) is the undisputed leader of cystic fibrosis therapies. Its portfolio of approved CF drugs will deliver the company at least an estimated $7.2 billion this year, made possible by an intense level of market penetration and decades-long devotion to research and development in the space.
So far, the company hasn’t had trouble convincing regulators that its drugs are safe and effective for wider and wider populations of patients. It has also managed to remain strongly profitable and continued to expand revenue within the CF market.
If management’s plans for expanded approvals for younger age cohorts continue to come to fruition over the next few years, Vertex will eventually be treating as many as 90% of all people with CF. That means investors can look forward to a steadily increasing drumbeat of new revenue and expanded approvals, both of which should buoy the stock’s price significantly.
Furthermore, the company is moving its pipeline beyond CF with a handful of mid-stage clinical programs for kidney diseases, genetic hematologic disorders like sickle cell disease, and pain relief. In other words, even if it eventually completely corners the entire market for CF therapies, there will still be other opportunities for growth. And over the next decade, that’s bound to enrich investors.
Patience is key when it comes to biotech and pharma investing. It takes an average of 7 years to make a drug and get it approved by regulators. So, you might need to hold a biopharma stock longer than you would something from another sector. We believe that VRTX seems likely to reward patient investors as the steadily growing biopharma company seems ripe for expansion for years to come.
Of 27 analysts offering recommendations for VRTX, 21 rate the stocks a Buy, 5 rate it a Hold and only 1 rates the stock a Sell.
Where to invest $1,000 right now...
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But you have to act now, because a catalyst coming in a few weeks is set to take this company mainstream... And by then, it could be too late.
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