2 stocks to watch for their explosive growth
In recent years, we have seen staggering growth from pharmaceutical giants such as Novo Nordisk, which has achieved over 350% returns thanks to the popularity of weight loss and diabetes drugs. If you haven't caught up with this growth, don't despair. The stock market always offers new opportunities that can deliver market-beating returns.
Today, we'll take a look at two interesting companies in the healthcare sector that have the potential to bring investors significant gains over the long term.
CRISPR Therapeutics: a breakthrough in gene therapy
CRISPR Therapeutics $CRSP+1.0% has a long-standing focus on developing and commercializing gene therapies using CRISPR technology, which enables DNA editing to offer potential treatments for genetic diseases. While its development has been slow and investors have waited patiently for product approval from regulatory authorities, the company is now on the cusp of its first significant commercial success. It recently received FDA approval for its first product to treat sickle cell anemia, developed in collaboration with Vertex Pharmaceuticals.
Analysts expect CRISPR to generate sales of around $55 million this year, but that figure could rise to $1.1 billion by 2027. In addition, the company has a rich pipeline that includes other products in clinical trials, including treatments targeting type 1 diabetes, cardiovascular disease, autoimmune diseases and cancer.
For investors, it's crucial to watch how the company manages to get additional approvals for new products. Even if most of them fail in the testing phase, a few breakthroughs could make CRISPR a star in the industry and deliver huge returns for long-term investors.
Hims & Hers Health: subscriber base growth and new products
Hims & Hers Health $HIMS+3.1% is a young company that focuses on digital health consultations and selling treatments for various health issues such as sexual health, weight loss, mental health and hair loss. While some telemedicine-focused companies lost their "luster" after the pandemic, Hims & Hers continues to grow.
The company has increased its subscriber base from 391,000 in the first quarter of 2021 to 1.86 million in the second quarter of 2024. Although the company's stock has received recent attention due to sales of products containing semaglutide, the main ingredient in the popular drug Ozempic, the actual impact of this product on the company's growth has been limited so far. Hims & Hers achieved a 52% year-over-year increase in second-quarter revenue to $315.6 million, with only about $15 million coming from sales of GLP-1 products.
Even if the company lost the ability to sell those drugs, its growth would likely continue through other product categories. In 2023, it launched a new line of weight-loss products that it expects to generate $100 million in sales by 2025.
With a market capitalization of under $4 billion, Hims & Hers has the potential to become a key player in the market, especially if investors focus more on its growth fundamentals than controversial products.
Disclaimer: There is plenty of inspiration to be found on Bulios, but stock selection and portfolio construction is up to you, so always conduct thorough self-analysis.
Source: CNN, TheMotleyFool, Yahoo.