Did you miss out on the “Magnificent Seven”? Consider investing in these 3 Forever Stocks instead

Did you miss out on the “Magnificent Seven”? Consider investing in these 3 Forever Stocks instead

If you’ve paid any attention to the discussions surrounding the stock market over the past few months, you’ve probably heard a lot of talk about the tech stocks of the “Magnificent Seven” – you know, the supposedly invincible group of companies the likes of of Nvidia, MicrosoftAnd Apple.

But with Seven’s valuations skyrocketing, it’s entirely reasonable for investors to look for something with more lasting appeal, or something outside of the tech sector.

Fortunately, there’s no shortage of great options, so let’s discuss a trio of Magnificent Seven alternatives that have beaten the market over the past 12 months and have the staying power and growth potential to stay in your portfolio forever.

1. Vertex Pharmaceuticals

It might be surprising to learn that a rare disease drug developer like Vertex Pharmaceuticals (NASDAQ:VRTX) could stand up to anything in the Magnificent Seven, but the data doesn’t lie; its shares are up 33% last year, while Apple’s shares are up just 9%.

Its success is due to the launch of its latest drug, a gene therapy called Casgevy, which treats both beta thalassemia and sickle cell disease. Management estimates that Casgevy’s sales could help push the company’s revenue for this year to nearly $10.8 billion.

As recently as 2019, it only brought income of $4.2 billion, coming entirely from the sale of its cystic fibrosis drug portfolio, and it’s been profitable all this time. So there are plenty of reasons to believe the good times will continue.

The company will likely soon have the opportunity to market two other drugs. Its acute pain treatment program recently successfully concluded its Phase 3 clinical trials, and Vertex will now seek approval of the drug from regulators before mid-2024. It will also follow the same process with roughly the same timeline for another cystic fibrosis. therapy.

Approvals are not certain, but the chances seem good. So consider buying this stock to benefit from future growth in its turnover. If you end up buying it, you may find that it adds value to your portfolio for years and years.

2. Eli Lilly

Elie LillyIt is (NYSE:LLY) The stock is tough to beat in the biopharma sector right now, up 335% in the last three years alone.

The story of the stock’s recent success is inseparable from its participation in the market for therapies aimed at treating metabolic diseases such as type 2 diabetes and obesity. Currently, the company’s drugs Zepbound for weight loss and Mounjaro for diabetes have a good chance of becoming leaders in their markets due to their high effectiveness and increasingly wide availability.

In the fourth quarter alone, Mounjaro’s sales exceeded $2.2 billion; management expects total revenue to reach $41.6 billion in 2024, but that could be just the beginning of its ramp-up. Zepbound hasn’t been on the market for a year yet, and demand is so high that Eli Lilly can’t make the drug fast enough.

And that makes Eli Lilly a wonderful choice, even if he’s not officially a member of the Seven.

3. Costco Wholesale

Costco wholesale (NASDAQ: COST) may seem like it’s not dynamic enough to be a title worth holding instead of one of the Magnificent Seven. But this perception couldn’t be further from the truth. Its shares are up 117% in the last three years alone thanks to the company’s diligent implementation of its proven business model.

THE investment thesis for Costco, it’s incredibly simple. Because it charges people an annual fee to access its warehouses, where they can buy large numbers of groceries and other consumer goods in bulk at very low prices, all it has to do to stay in business is to keep your members. happy.

Over the past 12 months, its dues totaled $4.7 billion, and nearly 93% of members renewed from the previous year. Additionally, its subscriber base grew by almost 2% in 2023 as well as in 2022.

Since its members’ dues make up the majority of its net income, which amounted to more than $1.7 billion in the second quarter alone, it can sell its products at razor-thin margins and still make money. coming out easily. And until there is reason to believe that Costco is letting its customers down, the evidence indicates that it will continue to be a great investment.

Should you invest $1,000 in Vertex Pharmaceuticals right now?

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Alex Carchidi holds positions at Apple, Costco Wholesale and Microsoft. The Motley Fool holds positions and recommends Apple, Costco Wholesale, Microsoft, Nvidia and Vertex Pharmaceuticals. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

Did you miss the “Magnificent Seven”? Try Buying These 3 Forever Stocks Instead was originally published by The Motley Fool

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