Top 3 Unstoppable Stocks to Buy Aggressively in April

Top 3 Unstoppable Stocks to Buy Aggressively in April

The postman “. Some stocks have it. Others don’t. But when you find stocks with the “IT factor,” you’ll want to stock up on it.

Three Motley Fool contributors believe they have identified three stocks that fit these criteria. Here’s why they think CRISPR therapeutics (NASDAQ:CRSP), Elie Lilly (NYSE:LLY)And Vertex Pharmaceuticals (NASDAQ:VRTX) are unstoppable stocks to buy hand in hand in April.

There are no limits for this emerging biotechnology

Thrive Junior Bakina (CRISPR Therapeutic): If one were to make a list of top biotech companies, CRISPR Therapeutics would almost certainly not make the cut. The gene-editing specialist has just one product on the shelves and a market capitalization of $5.6 billion. However, given the progress the company has made over the past few years, CRISPR Therapeutics appears to have substantial upside potential.

CRISPR Therapeutics created Casgevy, a gene-editing treatment for sickle cell disease (SCD) and transfusion-transmissive beta-thalassemia (TDT) that has gained approvals in various countries since the end of last year. Management wisely partnered with a biotech giant, Vertex Pharmaceuticals, to develop and commercialize this therapy. Although this means that CRISPR Therapeutics will only get 40% of the profits associated with Casgevy, through the partnership it has been able to obtain regulatory approvals in places that it probably would not have pursued – or would have done so much more late.

Smaller biotech companies tend to focus almost exclusively on the more lucrative U.S. market. Casgevy is approved in the United States, Great Britain, the European Union, Saudi Arabia and Bahrain. Casgevy is also the first CRISPR-based gene editing therapy on the market. The pioneers of this technique won a Nobel Prize in chemistry. CRISPR Therapeutics’ pipeline includes several other gene editing programs.

CRISPR Therapeutics has seen strong momentum over the past year. Expect the company to continue generating strong returns for a long time.

Eli Lilly is a growth machine that isn’t stopping anytime soon

David Jagielski (Eli Lilly): Eli Lilly is a stock that seems unstoppable these days. Although its share price has soared 130% in the last 12 months alone, the stock still has plenty of long-term upside potential. Given the growth opportunities on the horizon, I wouldn’t be surprised if the stock joins the $1 trillion club before the end of the year.

The buzzword in the health industry these days is weight loss. Companies are working feverishly to bring a drug to market, which is shaping up to be a big battle ahead.

The first favorite that won’t be easy to beat is Eli Lilly’s Zepbound. If you haven’t heard his name as much as Ozempic, that’s because he wasn’t approved until last year. But during clinical trials, the drug’s potential proved to be nothing short of impressive.

With tirzepatide, the active ingredient in Zepbound and Mounjaro (approved for diabetes), patients were able to lose almost 27% of their body weight by making lifestyle changes and taking the drug. And that’s just the average weight loss over a period of 84 weeks; some patients lost even more weight.

With peak sales of over $68 billion (according to analysts) coming from these drugs in the future, it’s difficult to put a cap on Eli Lilly’s potential. Add in the potential approval of its early Alzheimer’s treatment, donanemab, and in a few years you may regret not buying the stock at its current price. Although its earnings multiple of 133 seems obscene right now, considering the earnings growth Eli Lilly could generate in the future, it could still prove to be a cheap buy today.

A huge biotechnology likely to grow

Keith Speights (Vertex Pharmaceuticals): Success in treating cystic fibrosis (CF) has helped Vertex Pharmaceuticals become a huge biotech. I expect it to gain momentum over the next few years.

CF should provide part of this anticipated growth. Vertex enjoys a monopoly in treating the underlying cause of this rare genetic disease. The company plans to file for approval for its three-drug combination vanzacaftor this summer. I predict this drug will become Vertex’s biggest money maker to date.

As Prosper noted above, Vertex and CRISPR Therapeutics have a potential winner on their hands with Casgevy in treating SCD and TDT. Gene editing therapy is Vertex’s first big win outside of cystic fibrosis, but I don’t think it will be biotech’s last.

Vertex has high hopes for its painkiller VX-548. The company is on track to file for approval in the United States in mid-2024. Since VX-548 does not have the addictive qualities or negative side effects associated with opioids, it could have enormous commercial potential.

I’m also optimistic about another late-stage program from Vertex. Inaxaplin targets APOL1-mediated kidney disease (AMKD). There are currently no approved treatments to treat the underlying cause of the disease. AMKD affects more patients worldwide than cystic fibrosis, resulting in another massive potential market for Vertex.

Last but not least, Vertex is currently evaluating two cell therapies in early-stage testing that could potentially cure type 1 diabetes. If these programs are successful, Vertex could well become one of the five largest drugmakers in the world over the next decade.

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David Jagielski has no position in any of the stocks mentioned. Keith Speights holds positions at Vertex Pharmaceuticals. Thrive Junior Bakina holds positions at Vertex Pharmaceuticals. The Motley Fool ranks and recommends CRISPR Therapeutics and Vertex Pharmaceuticals. The Motley Fool has a disclosure policy.

3 Unstoppable Stocks to Buy Hand Over Fist in April was originally published by The Motley Fool

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