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3 great stocks that could double or even more by 2030

Does a 100% return in less than seven years sound pretty good? Most investors would probably say that. But which stocks are good candidates to make such gains?

Three Motley Fool contributors think they’ve found great stocks that could double or more by 2030. This is why they chose CRISPR therapies (NASDAQ: CRSP), Eli Lilly (NYSE: LLY)And Viking therapies (NASDAQ: VKTX).

A lot of upside for CRISPR Therapeutics in the long term

David Jagielski (CRISPR Therapeutics): A promising stock with a lot of potential for future growth is CRISPR Therapeutics. Its market capitalization is currently around $5.1 billion, but it’s not hard to imagine how it could rise to over $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 has been working on with its development partner. Vertex Pharmaceutica; this is the first approved treatment in CRISPR Therapeutics’ portfolio. And the FDA granted treatment approval not just for 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 diseases that healthcare experts say it is cost-effective, even at a price of more than $2 million per treatment.

There are two ways I can double CRISPR Therapeutics’ valuation by 2030. One of them is through pure organic growth. While the company will share in Casgevy’s profits with Vertex, it also has other gene therapy treatments in development. But with such a high price tag for Casgevy, the profits from that treatment alone could be substantial, potentially providing a path for the company to become profitable (last year it had a net loss of $153.6 million). Analysts believe that Casgevy could generate nearly $4 billion in annual revenue at its peak.

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The other path is through acquisition. Many healthcare companies are increasingly interested in gene therapy, and as CRISPR Therapeutics is gaining a reputation in the industry, it could become a potential acquisition target. The company has no long-term debt on its books and has more than $2 billion in cash, which could sweeten the deal for a potential buyer. Assuming its financial position remains this strong, CRISPR Therapeutics could become a highly coveted company, if it isn’t already.

It seems like a bright future lies ahead. CRISPR Therapeutics is a stock that certainly has the potential to double by 2030.

The first trillion-dollar healthcare stock?

Prosper Junior Bakiny (Eli Lilly): Size matters in the stock market: smaller companies tend to have many more advantages than larger ones. So doubling a big company like Eli Lilly – with a market cap of $725 billion – over the next six years may not be the most obvious choice. But it’s a good one nonetheless. Eli Lilly has been on fire lately, delivering many major clinical and regulatory breakthroughs. It remains one of the undisputed leaders in the major diabetes drug market.

The pharmaceutical company is also establishing itself in the fast-growing weight loss field thanks to Zepbound, a drug that was greenlit late last year; expect the drug to be a major growth driver for years to come. It won’t be alone: ​​Eli Lilly’s portfolio is diversified, with exciting treatments and candidates from oncology, immunology and neuroscience.

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Lilly is currently awaiting approval for another potential blockbuster, donanemab, a drug for Alzheimer’s disease (AD). This area has been called an investigational drug graveyard because the vast majority of attempts to develop new AD therapies have been unsuccessful. Although Eli Lilly still must overcome a crucial regulatory hurdle to gain approval for donanemab, things are looking promising for the pharmaceutical giant.

However, Lilly’s prospects don’t depend on a single approval or rejection. The company should be able to deliver excellent sales and revenue growth through 2030, regardless of what happens with donanemab. The drugmaker will likely become the first healthcare stock to cross the $1 trillion mark — and continue to grow long afterward. Despite its size, Eli Lilly could double its size or more in the next six years.

A small biotech that should become much bigger

Keith Speights (Viking Therapeutics): You can view Viking Therapeutics in a number of ways. Some may consider it ridiculously expensive for a clinical-stage biotech due to its market cap of nearly $8 billion. Others could see Viking as a rising star that could become much bigger. I’m firmly in the second camp.

Viking shares have skyrocketed this year thanks to two positive pipeline updates. At the end of February, the company announced fantastic results from its Phase 2 study of the injectable version of the obesity drug VK2735. A month later, Viking reported promising data from a Phase 1 trial evaluating an oral formulation of the drug.

Goldman Sachs predicts that the global market for anti-obesity drugs could reach $100 billion by 2030. Viking appears to be well-positioned to capture a significant share of that market with VK2735, assuming there are no issues with late-stage testing of the drug.

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The company also has a potentially big winner in the pipeline with VK2809. Viking expects to announce histology results from a Phase 2b study of the drug in the treatment of non-alcoholic steatohepatitis (NASH) and fibrosis in the first half of 2024. The biotech reported positive top-line results from the study in the second quarter of 2023.

NASH, also known as metabolic dysfunction-associated steatohepatitis (MASH), is another huge market opportunity for Viking. Estimates on how big the NASH/MASH market will grow vary, but some analysts think it could also exceed $100 billion by 2030.

With two promising candidates targeting two huge markets, I think Viking stock could double well before the end of the decade. I also suspect that the company will be a major takeover target in the near future.

Should You Invest $1,000 in CRISPR Therapeutics Now?

Before you buy shares in CRISPR Therapeutics, consider the following:

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David Jagielski has no position in any of the stocks mentioned. Keith Speights holds positions at Vertex Pharmaceuticals. Prosper Junior Bakiny holds positions at Vertex Pharmaceuticals. The Motley Fool holds positions in and recommends CRISPR Therapeutics, Goldman Sachs Group, and Vertex Pharmaceuticals. The Motley Fool has a disclosure policy.

3 Great Stocks That Could Double or More by 2030 was originally published by The Motley Fool

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