| Stock | Price | 52 Week Range | Marketcap | EPS | Dividend Yield | Chart (24H) | Sector | Employees | Last Updated |
|---|---|---|---|---|---|---|---|---|---|
| $703.21 | 630.40B | 15.29 | 0.86% | Healthcare | 47,000 | 3 hours ago | |||
| $571.78 | 60.60B | 39.66 | 0.61% | Healthcare | 15,158 | 3 hours ago | |||
| $390.76 | 100.19B | 14.07 | 0.00% | Healthcare | 6,100 | 3 hours ago |
As we dive into the summer months, investors always look for solid bets that don’t require too much overthinking. The biotech sector, with its promising drug pipelines and cutting-edge treatments, offers some attractive choices. Here are three biotech stocks—Eli Lilly, Regeneron Pharmaceuticals, and Vertex Pharmaceuticals—that stand out as no-brainer picks for July. Each one of these companies is primed for exceptional growth, so let’s dig into why they should be on your radar.
Editor's Note: Analysis and insight for this article were originally sourced from our friends at The Motley Fool
When you’re looking at a stock that has the potential to push beyond the trillion-dollar mark, you can’t overlook Eli Lilly. This staple in the pharmaceutical sector is teetering on the edge of greatness, thanks to its compelling array of growth catalysts. Let’s break down why Eli Lilly makes an excellent choice this July.
Mounjaro and Zepbound Leading the Charge
Eli Lilly’s diabetes and weight loss drugs, Mounjaro and Zepbound, are nothing short of revenue machines. These drugs have managed to bring in a staggering $2.3 billion in just three months. Mounjaro has even outpaced Trulicity to become the company’s top-selling drug. That’s not just a number—it’s a sign of robust, sustainable growth.
Blockbuster Weight Loss Products in the Pipeline
The company’s growth machine shows no signs of slowing. Eli Lilly has two more promising weight-loss products on the horizon: Retatrutide and orforglipron. Currently in phase 3 trials, Retatrutide has been delivering impressive weight loss results, helping patients shed 24% of their weight. If the drug gets the green light, it could be the best weight-loss treatment yet.
Alzheimer’s Treatment (Kisunla): Another Feather in the Cap
Eli Lilly’s recent FDA approval for its Alzheimer’s drug, Kisunla, is expected to be another blockbuster. As the aging population swells, a viable treatment for Alzheimer’s will be sought after, and Eli Lilly stands to gain tremendously.
Stock Performance and Outlook
Eli Lilly’s stock has surged, nearly doubling in the last 12 months. Anticipation is building around the company’s next earnings report in August, which is likely to bring more good news. Investors have every reason to be optimistic as the company edges closer to a trillion-dollar valuation. The timing couldn’t be better to buy Eli Lilly in July.
Analyst Ratings and Outlook
| Consensus Rating | Average Price Target | Current Price | Potential Gain | Number of Ratings |
|---|---|---|---|---|
| Strong Buy | $889.41 | $918.00 | -3.12% | 19 |
The consensus among analysts is that Eli Lilly (LLY) has a strong buy rating, based on 16 buy ratings, 3 hold ratings, and 0 sell ratings. The average price target for LLY over the next 12 months is $889.41. The stock’s expected performance is supported by a strong track record of beating earnings per share (EPS) and sales estimates, outperforming its industry in both categories over the past year.
Regeneron Pharmaceuticals isn’t just another player in the biotech game; it’s a titan of innovation. Over the past five years, Regeneron has consistently delivered above-average returns, thanks to its innovative capabilities. Here’s why you should consider Regeneron as a must-buy this July.
Dupixent to Broaden Horizons
Dupixent has been a substantial growth driver for Regeneron and it’s about to become even more valuable. The company is seeking to expand its label to include the treatment of COPD, a move that could potentially add $3.5 billion to its revenue. This expansion aligns well with the U.S. Food and Drug Administration’s expected label decision by late September.
Eylea: A Leader in Ophthalmology
Eylea continues to dominate as a leading treatment for wet age-related macular degeneration. Given the demographic trends favoring increased ophthalmic treatments, Eylea remains a robust revenue generator for Regeneron.
Pipeline and Early-Stage Innovations
Beyond its blockbuster products, Regeneron has a pipeline teeming with promise. One particularly exciting early-stage program involves a gene therapy for genetic deafness that has already shown promising results—restoring hearing in one patient and significantly improving it in another. This is just one among more than four dozen candidates in development.
Continuous Innovation and Growth
Regeneron’s consistent ability to innovate is its strongest asset, ensuring long-term financial growth and robust stock performance. For investors looking for a mixture of stability and cutting-edge innovation, Regeneron offers an ideal balance. This makes it a no-brainer choice for your portfolio this July.
Analyst Ratings and Outlook
| Analyst Rating | Average Price Target | Current Price | Potential Gain | Number of Ratings |
|---|---|---|---|---|
| Strong Buy | $1,068.10 – $1,082.80 | $1,052.25 | 0.40% – 3.02% | 21 – 23 |
Analysts have a strong positive outlook for Regeneron Pharmaceuticals (REGN). The consensus is that it is a good investment with a strong buy rating from most analysts. The average price target ranges from $1,068.10 to $1,082.80, showcasing a moderate to high potential gain. The current outlook is driven by strong predictions of revenue growth and positive earnings surprises over the next year.
Vertex Pharmaceuticals isn’t just another biotech company; it’s a powerhouse that continues to excel, especially in the realm of cystic fibrosis (CF). Here’s why Vertex is a standout stock to consider buying this July.
Trikafta/Kaftrio: Unmatched in the CF Market
Vertex’s flagship product, Trikafta/Kaftrio, holds a dominant position in the CF market, effectively treating the underlying causes of the disease. The absence of direct competition in this space makes Vertex a standout.
Upcoming Approvals and Revolutionary Products
One to watch is the FDA’s pending decision on Vanzacaftor (expected by January 2, 2025), which could further bolster Vertex’s stronghold in the CF market. Moreover, Vertex has a newly approved product, Casgevy, which stands to be a game-changer. Casgevy is the first CRISPR gene-editing therapy approved for sickle cell disease and transfusion-dependent beta-thalassemia.
Pipeline Developments: Many Irons in the Fire
Vertex has other promising candidates in its pipeline. Suzetrigine (VX-548), which is likely to be approved for acute pain, is also advancing into phase 2 trials targeting peripheral neuropathic pain. Meanwhile, Inaxaplin, a late-stage program targeting APOL1-mediated kidney disease, holds significant commercial potential.
Strategic Acquisitions to Bolster Pipeline
Adding to its strategic advantages, Vertex is also on the verge of acquiring Alpine Immune Sciences, which would bring in a versatile “pipeline-in-a-product” with its candidate povetacicept—a potential treatment for kidney disease. This acquisition will only broaden Vertex’s already impressive array of offerings.
Analyst Ratings and Outlook
| Source | Consensus Rating | Average Price Target | Current Price | Potential Gain | Number of Ratings |
|---|---|---|---|---|---|
| Investing.com | Outperform | $468.27 (Avg), $577.00 (High), $325.00 (Low) | $468.27 | -1.33% downside | 31 |
| Tipranks | Moderate Buy (17 Buy, 5 Hold, 2 Sell) | $467.00 | $468.27 | None reported | 59 |
| Nasdaq | Moderate Buy | $467.00 | $468.27 | None reported | – |
| Yahoo | N/A | N/A | $468.27 | N/A | – |
The analysts have a generally positive outlook for Vertex Pharmaceuticals (VRTX). The consensus is that the stock is worth investing in, with a moderate buy or outperform rating. Despite a slight downside potential based on the average price target, Vertex has consistently outperformed its EPS and sales estimates, beating them 100% and 75% of the time, respectively, over the past year.
In summary, these biotech giants—Eli Lilly, Regeneron Pharmaceuticals, and Vertex Pharmaceuticals—are stellar picks for any investor looking to inject some reliable, high-potential stocks into their portfolio this July. With impressive pipelines, promising treatments, and strong market positions, these companies are prepped and primed for growth. As always, stay informed and make your moves wisely. Happy investing!