Since 2022, Nvidia shares have more than doubled, making it one of the hottest stocks. Technology isn't the only location to locate good investments. Since 2022, TransMedics Group (NASDAQ: TMDX), Eli Lilly (NYSE: LLY), and Verona Pharma (NASDAQ: VRNA) have outperformed Nvidia. Here's how these stocks have done, why, and if they're still excellent buys.
TransMedics Group: 369% TransMedics, a $2.5 billion medical device company, is small. The company has an FDA-approved organ care technology that can transport numerous organs. This is the only multi-organ platform allowed by regulators. It can improve patient outcomes and transform the business.
TransMedics has been boosting its top line for years, and its stats are excellent. As of Monday, the company's 2023 fourth-quarter sales was $81.2 million, up 159% year over year. Profit for TransMedics was $4 million. TransMedics estimates full-year revenue of $360 million to $370 million in 2024, up 50%. Despite its strong gains, the healthcare stock may still be worth investing in due to its future potential.
2. Eli Lilly: 183% Eli Lilly is the world's largest healthcare stock after nearly doubling since 2022. Tirzepatide, the active ingredient in Mounjaro, its diabetic medicine, and Zepbound, its weight reduction drug, is responsible for its recent success. Patients who made major lifestyle modifications while using tirzepatide lost 26.6% of their body weight in clinical trials.
Eli Lilly has a game changer, and anti-obesity therapy excitement has driven its surge in recent years. Analysts estimate tirzepatide may earn $68 billion annually at its peak. Its approval for further indications will determine its final number. In clinical trials, tirzepatide has treated fatty liver disease, and comparable medications have reduced obesity-related cardiovascular risk.
Eli Lilly's stock could rise further because to tirzepatide. Eli Lilly may be the first healthcare stock to reach a $1 trillion valuation, despite its high price of over 100 times earnings.
3. Verona Pharma: 156% This list concludes with Verona Pharma, up 156% since 2022. It's the riskiest stock on this list because it doesn't have an approved medicine, although ensifentrine is near. The FDA's PDUFA date for the company's chronic obstructive pulmonary disease application is June 26.
The $1.4 billion stock might be a blockbuster if regulators approve the medicine, with analysts predicting $1.5 billion in annual revenue at its peak. Verona will continue to lose money and burn through cash without an approved product to generate income. Ensifentrine's clinical trials are promising, thus approval may happen this year.
If you're not comfortable with risk, Verona Pharma stock may fall if regulators reject the medication, causing a sudden sell-off.
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