A 100% return in less than seven years sounds appealing to most investors. But which stocks have the potential to achieve such significant gains?
Three Motley Fool contributors have identified promising stocks that could double or more by 2030. Here’s why they’ve chosen CRISPR Therapeutics (NASDAQ: CRSP), Eli Lilly (NYSE: LLY), and Viking Therapeutics (NASDAQ: VKTX).
A ton of upside for CRISPR Therapeutics in the long run
David Jagielski sees CRISPR Therapeutics as a promising investment with significant growth potential. With a current market cap of around $5.1 billion, Jagielski believes it could easily surpass $10 billion by the early 2030s.
CRISPR Therapeutics recently received FDA approval for its gene therapy, Casgevy, developed in partnership with Vertex Pharmaceuticals. This groundbreaking treatment addresses transfusion-dependent beta-thalassemia and sickle cell disease, representing a significant advancement in healthcare. Despite its high price tag of over $2 million per treatment, Casgevy is considered cost-effective due to its potential to provide a functional cure for these conditions.
Jagielski outlines two paths for CRISPR Therapeutics to achieve a valuation doubling by 2030. Firstly, through organic growth driven by Casgevy’s profits and the development of other gene therapy treatments. Analysts estimate Casgevy could generate close to $4 billion in annual revenue at its peak. Secondly, through potential acquisition, as the company’s strong financial position and growing reputation in the gene therapy industry make it an attractive target. With no long-term debt and over $2 billion in cash, CRISPR Therapeutics could become highly sought-after in the healthcare sector.
Overall, Jagielski is optimistic about CRISPR Therapeutics’ future prospects, believing it has the potential to double in value by 2030.
The first trillion-dollar healthcare stock?
Prosper Junior Bakiny sees potential for Eli Lilly, despite its large market cap of $725 billion, to double in value over the next six years. Bakiny acknowledges that smaller companies often offer more upside, but highlights Eli Lilly’s recent success and significant developments in its pipeline.
Eli Lilly has made notable advancements in diabetes medications, maintaining its position as a leader in this market. Additionally, the company is expanding into the growing weight-loss sector with Zepbound, a medicine approved late last year. Bakiny anticipates Zepbound to be a key driver of growth for Eli Lilly in the coming years. Furthermore, Eli Lilly’s diverse portfolio includes promising treatments across oncology, immunology, and neuroscience, indicating further potential for growth.
One of Eli Lilly’s upcoming potential blockbusters is donanemab, a medication for Alzheimer’s disease. While awaiting regulatory approval, the prospects for donanemab appear promising, despite the challenges historically associated with developing effective Alzheimer’s treatments.
Bakiny emphasizes that Eli Lilly’s growth prospects extend beyond any single drug approval or rejection. He anticipates the company achieving outstanding top- and bottom-line growth through 2030, positioning it to potentially become the first healthcare stock to reach a market cap of $1 trillion. Despite its size, Eli Lilly is viewed as having the potential to double or more in value over the next six years.
A small biotech that should grow much larger
Keith Speights sees Viking Therapeutics from a perspective of potential growth rather than its current market cap of nearly $8 billion, which some may find expensive for a clinical-stage biotech. Speights believes Viking has the potential to become much larger.
Viking’s stock has surged this year following positive updates on two pipeline candidates. In February, the company announced impressive results from a phase 2 study of the injectable version of obesity drug VK2735. A month later, promising data from a phase 1 study evaluating an oral formulation of the drug was reported.
Goldman Sachs forecasts that the global obesity drug market could surpass $100 billion by 2030, positioning Viking well to capture a significant portion of this market with VK2735, assuming successful late-stage testing.
Furthermore, Viking has another potential blockbuster in its pipeline with VK2809, targeting nonalcoholic steatohepatitis (NASH) and fibrosis. The biotech reported positive top-line results from a phase 2b study of the drug in the second quarter of 2023.
NASH/MASH represents another substantial market opportunity for Viking, with estimates suggesting it could also exceed $100 billion by 2030.
Given these factors, Speights believes Viking’s stock could double well before the end of the decade. Additionally, he anticipates the company becoming an attractive acquisition target in the near future.
