If you have a budget of $5,000, Consider Investing in Two Prominent Healthcare Stocks for Long-term Growth until 2025.
Hopping into the New Year, some budget-conscious investors might be considering dabbling in the stock market with a resolve to invest in companies that will stand the test of time. Two such firms in the healthcare sector include Eli Lilly (LLY 2.45%) and Vertex Pharmaceuticals (VRTX -0.03%). With $5,000 to spare that isn't earmarked for emergencies or regular expenses, investing in these two multinationals could prove beneficial.
1. Eli Lilly
Starting off the year on a high note, Eli Lilly encountered some challenges throughout the second half of 2024. Despite the setbacks, the drugmaker managed to grow its third-quarter revenue by 20% year-over-year to $11.4 billion, an impressive feat for most pharmaceutical companies. However, the company fell short of analyst expectations for the quarter, causing its stock price to plummet.
Amidst the short-term hiccups, Eli Lilly has proven itself to be an innovative force in the industry. In the past few years, it has developed groundbreaking medications like tirzepatide, a dual GLP-1/GIP receptor agonist, which was the first of its kind to gain approval from the U.S. Food and Drug Administration for diabetes and weight loss management. Additionally, the company launched Kisunla, one of the few approved Alzheimer's disease treatments in the last two decades, marking a significant milestone in the notorious "graveyard" of investigational medicines.
These successes, along with a handful of other successful launches, are projected to drive top-line growth for Eli Lilly well into the 2030s. Furthermore, the company boasts an exciting late-stage pipeline focused on the weight loss market, further bolstering its long-term prospects.
Behind Eli Lilly's consistent success is its culture of innovation forged from decades of wins and failures. This culture sets the company apart, allowing it to create billion-dollar drugs, generate impressive financial results, and consistently outperform market expectations.
For dividend-centric investors, Eli Lilly's dividend program is another compelling selling point, complementing its long-term growth prospects. With $5,000, new shareholders can easily invest in six shares of the company, offering a prime opportunity for burgeoning investors.
2. Vertex Pharmaceuticals
Vertex Pharmaceuticals has carved out a niche for itself in the treatment of cystic fibrosis (CF), a rare genetic condition that damages the lungs. Vertex was the first to crack the code in creating approved medicines that target the underlying causes of CF rather than merely treating its symptoms. Since its initial CF medicine approval in 2012, no other company has managed to break through this barrier – even with numerous attempts.
The company's financial performance in the decade since has been nothing short of remarkable. With its reputation for innovation, Vertex has earned approval for Casgevy, a gene-editing treatment for two rare blood-related conditions. This success wasn't entirely the company's doing – the gene-editing revolution was a collaborative effort with CRISPR Therapeutics. However, Vertex's ability to forge strategic partnerships is a testament to its potential for continued growth.
Vertex's pipeline is just as promising, with candidates for suzetrigine, a treatment for acute pain, and inaxaplin, a potential therapy for APOL-1-mediated kidney disease. Its early-stage type 1 diabetes candidate is also making headway, ensuring that the company's lineup will undergo a transformation in the coming years.
With a solid financial performance and an exciting pipeline, Vertex remains a compelling investment proposition. For $5,000, investors can secure 11 shares of the company, making it an affordable and effective way to capitalize on its potential for long-term growth.
In summary, both Eli Lilly and Vertex Pharmaceuticals offer compelling reasons for budding investors looking to invest in stocks with long-term potential. The companies' commitment to innovation, robust financial performance, and promising pipeline candidates make them attractive investment options for those looking to grow their wealth over the long term.
- money invested in Eli Lilly could potentially yield high returns, given its innovative drug developments and robust pipeline, such as tirzepatide and Kisunla.
- With a focus on finance and investing, Vertex Pharmaceuticals' innovative approach to treating cystic fibrosis and other conditions, along with its strong financial performance and promising pipeline, could offer substantial returns over the long term.
