Three Unmissable Stock Investments for July
In the dynamic world of healthcare and pharmaceuticals, three companies stand out as attractive investment opportunities for different types of investors in July 2023. These "no-brainer" stocks, as suggested by The Motley Fool, are AbbVie, Eli Lilly, and Vertex Pharmaceuticals.
**AbbVie** offers a compelling option for a wide range of investors. As a Dividend King, it has increased its dividends for 53 consecutive years, and its forward dividend yield of 3.47% makes it especially appealing to income investors. The company's portfolio strength, with blockbuster immunology drugs like Skyrizi and Rinvoq, offsets the impact of Humira's patent expiry, making it a strong choice for growth investors as well[2][3].
**Eli Lilly** is positioned for future growth and is viewed as potentially overdue for a big rally. The company's strong earnings are driven by its blockbuster drug Mounjaro, and it maintains a robust pipeline in oncology and neurology, alongside diabetes and obesity treatments. Although there is growing competition, particularly from Novo Nordisk in obesity drugs, Eli Lilly has recently topped innovation rankings and continues investing in manufacturing expansion, signaling long-term growth potential[1][2].
**Vertex Pharmaceuticals** is entering a new, promising era. While it may appeal more to growth and innovation-focused investors, Vertex is expected to be a consistent winner based on ongoing advancements and its market position in specialized pharmaceuticals[2][4]. The company has already earned approvals for Alyftrek, a next-gen CF medicine, Casgevy, a medicine that treats two blood-related disorders, and Journavx, a therapy for acute pain. It also expects to make significant clinical progress and earn at least one brand-new approval and likely several label expansions in the next five years[2].
Investors should note that some healthcare companies developing weight loss drugs have faced challenges, such as Pfizer stopping the development of its daily weight loss pill after a trial participant experienced a liver injury, and Amgen's MariTide having high discontinuation rates due to tolerability issues. However, Vertex Pharmaceuticals and Eli Lilly, with their focus on diabetes and obesity treatments, seem to be navigating these challenges successfully.
For growth investors, AbbVie's fast-growing therapies including Rinvoq and Skyrizi are highlighted. Value investors might be interested in AbbVie's shares trading below 15.6 times forward earnings, compared to the S&P 500's forward price-to-earnings ratio of 22.4. Income investors may find AbbVie appealing due to its 53 consecutive years of dividend increases and a forward dividend yield of 3.47%.
David Jagielski suggests that Eli Lilly could be overdue for a big rally, despite growing competition in the GLP-1 space. Eli Lilly has established itself as a leader in the GLP-1 space with two products: Zepbound for weight loss and Mounjaro for diabetes. Last year, Eli Lilly obtained approval for an Alzheimer's drug, Kisunla.
In conclusion, AbbVie balances income and growth, Eli Lilly offers strong innovation and growth potential possibly poised for a rally, and Vertex is a strong contender in advanced pharma innovation, making all three stocks attractive buys in July 2023 for different investor profiles[2].
- For those interested in personal-finance and investing, AbbVie's strong dividend history and 3.47% forward dividend yield make it an appealing choice for income investors seeking a stable income stream.
- Eli Lilly, with its focus on innovation and growth, is a potential choice for investors seeking to capitalize on future growth opportunities, particularly in the GLP-1 space and Alzheimer's treatments.
- Investors focusing on finance and future advancements in medical research may find Vertex Pharmaceuticals attractive, as the company excels in specialized pharmaceuticals and is poised for ongoing advancements, especially in areas like cystic fibrosis and specialized blood disorders.
