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Profitable gene editing stocks make increasingly compelling investments as therapies get commercialized.
Gene editing utilizes enzymes to cut parts of the DNA strand, allowing for the insertion of replacement DNA. Several approaches to gene editing have been developed, the most well-known of which is CRISPR-Cas9. It is the most accurate, quickest, and least expensive method. Developments in the gene editing space have led to valuable stocks with strong ratings, which are worthy of investment.
However, not all of these companies are profitable. Most of the gene editing stock opportunities lie in the promise of growth that will create future profitability, rather than current solid fundamentals. This can be problematic, as many companies never fulfill their potential. Therefore, it’s wiser to identify gene editing stocks that are either currently profitable or show the potential to become so soon.
Let’s delve into three gene editing stocks that check these critical boxes.
Editor’s Note: Analysis and insight for this article were originally sourced from our friends at InvestorPlace
CRISPR Therapeutics (CRSP): Leading the Gene Editing Revolution
CRISPR Therapeutics (NASDAQ:CRSP) is the original developer of the predominant gene editing technology. Their FDA-approved Casgevy is a game-changer for the treatment of sickle cell disease and transfusion-dependent beta-thalassemia.
Why CRSP is a Strong Contender:
The company’s investment in research and development and market expansion is ambitious, leading to a doubling of net losses in the first quarter, reaching $116.6 million. However, with over $2 billion in cash reserves, CRISPR Therapeutics is strongly positioned for the future.
Priced at approximately $2.2 million per dose, Casgevy holds immense opportunity. Sickle cell disease affects more than 100,000 Americans and over 2 million people worldwide. This should give readers an idea of the immense opportunity ahead of the company.
The company is expected to commercialize other CRISPR-Cas-9 based therapeutics moving forward, reinforcing its central role in the gene editing market. These factors underscore why CRSP stock is highly rated.
Analyst Ratings for CRSP:
Consensus Rating | Average Price Target | Current Price | Potential Gain | Number of Ratings |
---|---|---|---|---|
Moderate Buy | $79.13 | $54.01 | 46.51% | 17 |
Summary: Analysts are predominantly optimistic about CRSP, with a consensus rating of Moderate Buy. For the next 12 months, the average price target stands at $79.13, representing a potential gain of 46.51% from the current price of $54.01. This indicates that, according to analysts, the stock has significant upside potential.
Sources:
- Yahoo: Overview of CRSP Stock and Market Trends
- Yahoo detailed the stock’s analyst ratings and provided updates on market performance.
- Zacks Investment Research: CRSP Price Targets
- Zacks reported 22 short-term price targets with an average of $86.68, indicating a strong positive outlook.
- Wall Street Journal: CRISPR Therapeutics AG Analyst Estimates
- This article provided an update on CRSP’s analyst ratings, stock prices, and earnings estimates.
- TipRanks: Crisp Therapeutics AG Stock Forecast
- TipRanks analyzed 21 Buy Ratings, 6 Hold Ratings, and 1 Sell Rating, citing an average 12-month price target of $79.13.
- DigiTimes: CRISPR Therapeutics AG Price Targets
- This source reported short-term price targets offered by 20 analysts with an average of $90.70.
Vertex Pharmaceuticals (VRTX): Solid Fundamentals and Consistent Profits
Vertex Pharmaceuticals (NASDAQ:VRTX) is currently rated as a buy by analysts.
Why VRTX is a Must-Watch:
Together with CRISPR Therapeutics, Vertex launched gene therapies for inherited blood disorders, leading to strong fundamentals. Vertex received FDA approval for Casgevy to treat rare inherited blood disorders earlier this year, succeeding a December approval for sickle cell disease. Expectations for Casgevy’s peak sales reach $400 million annually.
Vertex’s strong fundamental performance is noteworthy. The company has consistently produced net profits over the past five years and beyond. This blend of strong fundamentals and the ability to bring gene editing to commercial viability make Vertex Pharmaceuticals a strong investment.
Analyst Ratings for VRTX:
Consensus Rating | Average Price Target | Current Price | Potential Gain | Number of Ratings |
---|---|---|---|---|
Moderate Buy | $467.00 | $463.42 | 0.83% | 17 – 5 – 2 |
Summary: Analysts have a Moderate Buy consensus rating for Vertex Pharmaceuticals (VRTX). The average price target is $467.00, which is slightly higher than the current stock price of $463.42. This indicates a potential gain of approximately 0.83% if the stock price reaches the average target.
Sources:
- Investing.com: Detailed forecasting and price targets based on consensus analyst predictions.
- Nasdaq: Analyst research and ratings consensus summary provides insights into stock price targets.
- TipRanks: Detailed analysis of analyst ratings, forecasts, and recommendations for stocks, including VRTX.
- Yahoo Finance: Historical stock prices, including earnings and revenue forecasts, which help analyze analyst outlook.
Schrödinger (SDGR): Innovating with AI to Fuel Big Gains
Schrödinger (NASDAQ:SDGR) has harnessed the power of AI in its business, setting itself apart in the gene editing landscape.
Why SDGR Should Be On Your List:
Schrödinger is a software and drug discovery firm that has developed a physics-based computational platform for discovering novel molecules. This platform not only builds its own clinical programs but is also sold to other pharmaceutical firms, creating multiple revenue streams.
Schrödinger’s software is widely applicable across the gene editing and pharma sectors. While the company doesn’t disclose sales at the company level, it’s highly likely that Schrödinger is collaborating with multiple gene editing firms.
The stock is highly regarded by analysts with consensus estimates forecasting significant growth, potentially doubling in value. Given its innovative approach and broad applicability in the sector, Schrödinger remains a highly touted investment.
Analyst Ratings for SDGR:
Consensus Rating | Average Price Target | Current Price | Potential Gain | Number of Ratings |
---|---|---|---|---|
Moderate Buy | $35.17 | $19.34 | 81.85% | 6 |
Summary: Analysts for SDGR have a consensus rating of Moderate Buy, reflecting a mix of “buy,” “hold,” and “sell” recommendations. The average 12-month price target stands at $35.17, indicating an impressive potential gain of 81.85% from the current price of $19.34.
Sources:
- TechCrunch: Discusses Yahoo’s brand portfolio and provides options for users to manage their privacy settings, including a link to privacy policies and cookie policies.
- Nasdaq Analyst Research: Provides analyst research for SDGR, including ratings consensus and stock price targets.
- TipRanks: Contains analyst forecasts and price target predictions for SDGR, along with a breakdown of the overall industry performance compared to SDGR’s historical performance.
- Morningstar: Displays historical stock performance data, including total returns for SDGR.
- WSJ: Offers a summary of SDGR’s analyst estimates and ratings, including updates on stock price targets.