A lot may happen in the next five years. And that is exactly why it’s an excellent idea to hold stocks for that length of time. That way, you have the chance to benefit from a company’s increasing sales, new products or expansion into other markets. Many times, a company’s good news takes a while to transition into share gains.
These two healthcare stocks have what they need to produce a lasting revenue growth in the next five years and eventually, very large share-price increases. That means that they very well may turn $10,000 into $50,000.
The Covid-19 pandemic equaled exponential growth for Teladoc Health. People raced to the company’s platform for online patient visits, revenue, and online medical visits, and the stock price soared.
As vaccination rates started to rise and the pandemic got better, investors were concerned business at Teladoc would drop. And that is why the shares have suffered so much this year, falling 28% so far.
However, Teladoc is proving that it is not a pandemic-only stock. People have went back to work, and healthcare facilities have started returning to normal operations, yet its revenue and patient visits are still climbing.
In the most recent report, Teladoc stated that quarterly revenue increased 81% and patient visits rose 37%, surpassing 3.9 million. The company even raised the lower end of its yearly revenue guidance. It expects there will be a minimum of $2.015 billion in revenue during 2021, and next year’s revenue may hit $2.6 billion.
This shows us that Teladoc’s success in 2020 wasn’t just a one time occurrence. Instead, it was the beginning of a much longer story.
Vertex Pharmaceuticals value suffered after two candidates failed in clinical trials. They have declined 29% since the first failure a little over a year ago. As of today, the shares trade at only 14 times forward earnings estimates.
Why should you be optimistic about Vertex? First, the company rakes in billions of dollars in revenue and profit yearly from its portfolio of cystic fibrosis drugs.
It is the worldwide cystic fibrosis leader and thinks that will continue until at least the late 2030s.
With that being said, investors are concerned Vertex is struggling to grow beyond CF. Recent news shows this view might be overly pessimistic. This year, Vertex revealed positive trial data from a candidate that may be a game changer. Vertex’s gene-editing candidate for blood disorders had positive results in follow up of at least three months.
Vertex recently reported positive phase one of two trial data from an investigational stem-cell-derived treatment for type 1 diabetes. It also said it had made a “breakthrough” in research on a possible treatment for the 10% of cystic fibrosis patients who are not candidates for its commercialized CF medicines. Vertex’s shares might not look very dynamic right now, but if it goes as planned, the shares could soar in the not too distant future.
Author: Blake Ambrose