Does a 100% return in less than seven years sound pretty good? Most investors would probably say so. But which stocks are good candidates to achieve such a gain?
Three Motley Fool contributors think they’ve found magnificent stocks that could double or more by 2030. Here’s why they picked 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 (CRISPR Therapeutics): A promising stock that has a lot of runway for future growth is CRISPR Therapeutics. Its market cap is around $5.1 billion today, but it’s not hard to see how it could surge to more than $10 billion by the start of the next decade.
The healthcare company is in the early stages of its growth, as the Food and Drug Administration (FDA) recently approved a gene therapy it’s been working on with its development partner, Vertex Pharmaceuticals; this is the first approved treatment in CRISPR Therapeutics’ portfolio. And the FDA granted the treatment approval for not just one but two indications. Casgevy treats transfusion-dependent beta-thalassemia and sickle cell disease — two types of blood disorders. The treatment is a functional cure for both, and is such a game changer for people with these illnesses that healthcare experts say it’s cost-effective even with a price of more than $2 million per treatment.
There are two ways I can see CRISPR Therapeutics’ valuation doubling by 2030. One is through sheer organic growth. While the company will share in the profits of Casgevy with Vertex, it also has other gene-therapy treatments in development. But with such a high price tag for Casgevy, the profits alone on that treatment could be substantial, and potentially provide a path for the company to achieve profitability (last year it incurred a net loss of $153.6 million). Analysts believe that at its peak, Casgevy could generate close to $4 billion in annual revenue.
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The other path is via acquisition. Many healthcare companies are growing increasingly interested in gene therapy, and…
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