In the realm of investing, every investor can be considered a growth investor, as the appreciation in stock value is a welcome outcome even for those primarily prioritizing income. Identifying stocks with potential for growth in the coming years is key. Three contributors from Motley Fool suggest that AstraZeneca, Eli Lilly, and Vertex Pharmaceuticals are promising growth stocks currently worth considering.
AstraZeneca’s Growth Potential
David Jagielski highlights AstraZeneca as a standout growth stock. Although its stock price has declined by over 11% in the past six months, he argues there is substantial potential for those willing to invest long-term. In 2024, the company reported a 21% revenue increase, excluding foreign exchange impacts, amounting to $54 billion. AstraZeneca expects its revenue to rise further in the high single digits this year. A promising prospect for 2030 forecasts sales growing to $80 billion with the introduction of new medications.
The company’s growth strategy includes expanding its oncology, biopharmaceutical, and rare-disease portfolios. Various acquisitions, such as those of Amolyt Pharma and Fusion Pharmaceuticals, have supported this growth. AstraZeneca is also working on next-generation cancer treatments, including radioconjugates. The stock’s price-to-earnings-growth ratio stands at about 0.9, indicating a favorable valuation considering its long-term growth potential, coupled with a 2% dividend yield, enhancing its attractiveness as a growth investment.
Eli Lilly’s Diverse Portfolio
Prosper Junior Bakiny focuses on Eli Lilly, which is a leader in the fast-growing weight loss market, thanks to its clinical compound tirzepatide, used for weight loss management and diabetes treatment. The company has witnessed significant revenue and earnings growth due to this breakthrough.
Although notable for its obesity and diabetes products, Eli Lilly boasts a diversified portfolio, including notable medicines in oncology (e.g., Verzenio) and immunology (e.g., Taltz). Emerging products like Alzheimer’s treatment Kisunla, eczema therapy Ebglyss, and ulcerative colitis drug Omvoh have substantial future sales potential, which could exceed $1 billion annually. Eli Lilly’s strong financial results and robust product lineup establish it as a solid growth stock to hold.
Vertex Pharmaceuticals’ Promising Future
Keith Speights discusses Vertex Pharmaceuticals, a company that has provided impressive returns over the past decade. He believes the company’s future holds even greater growth potential. Recent approvals by the U.S. Food and Drug Administration include Alyftrek for cystic fibrosis and Journavx for acute pain—a significant development given Journavx’s non-opioid status.
Vertex is also seeing momentum with Casgevy, a treatment for sickle cell disease and transfusion-dependent beta-thalassemia, with over 50 authorized centers worldwide. The company’s pipeline includes late-stage evaluations of inaxaplin for APOL1-mediated kidney disease, povetacicept for IgA nephropathy, and zimislecel, a potential cure for severe type 1 diabetes. These developments enhance Vertex’s appeal as a growth stock.
Disclosure: David Jagielski holds no positions in the mentioned stocks. Keith Speights holds positions in Vertex Pharmaceuticals, while Prosper Junior Bakiny holds positions in Eli Lilly and Vertex Pharmaceuticals. The Motley Fool holds and recommends Vertex Pharmaceuticals and suggests AstraZeneca Plc.