Here are my top growth stocks to buy right now

I freely admit that in the past I have picked some what I thought were growth stocks, but they didn’t produce significant growth. But the good news is that in the long run, the winners far outweigh the losers.

One of my mistakes was relying on wishful thinking. I’ve been buying stocks that have potential but are still far from profitable and at valuations that can’t be easily justified. A more sensible approach, based on my experience, is to consider the possibilities, benefits, and Affordable price. My top growth stocks to buy now — vertex pharmaceuticals (VRTX 0.05%) — all three.

money earned from monopoly

Vertex will soon report 2023 sales, which are expected to reach $10 billion. Big biotech companies will likely post annual profits of about $3.6 billion. And it will almost certainly have an additional $13.6 billion in cash reserves, including cash, cash equivalents and marketable securities, as of the end of the third quarter of 2023.

You could say that Vertex is putting in “monopoly” money. The company enjoys a monopoly in treating the root cause of cystic fibrosis (CF) with CFTR modulator therapy. No other drug manufacturer is in a position to compete with Vertex in the CF market. Vertex expects his full-year sales to be $10 billion in 2023, almost all of which will come from his CF franchise.

Vertex isn’t resting on its laurels, however. Late-stage results of a new combination CF therapy featuring vanzacaftor are forthcoming. This triple combination of his drugs, along with his more convenient once-daily dosing, could offer patients greater efficacy than his CF products, which the company has already approved. Van the Kaftor’s triple could also become his Vertex’s most profitable CF therapy to date, as the royalty burden is significantly lower.

There are still more than 5,000 CF patients who cannot benefit from CFTR modulators, and Vertex is working with them. moderna The aim is to develop a messenger RNA (mRNA) therapy (VX-522) that can help these patients.

Treatment (and cure) of other diseases

Vertex’s CF franchise gives the company the potential for returns and further growth that I expect from a growth stock. But the bigger opportunity for the company lies in expanding beyond CF.

You don’t have to wait until this expansion begins.vertex and partner CRISPR Therapeutics Kasugevy has already received regulatory approval in the US and UK for the treatment of sickle cell disease and transfusion-dependent beta-thalassemia. In fact, this gene editing therapy has effectively cured her two rare blood diseases in many patients. goldman sachs Analysts believe Kasgeby could achieve peak annual sales of about $4 billion.

Vertex expects to soon announce results from a late-stage study of VX-548 to treat moderate to severe acute pain without the use of opioids. The clinical data reported so far gives investors reason to think those results are positive. VX-548 doesn’t have the nasty side effects or addictive properties of opioids, so if it’s approved (as Vertex expects it to be) it should present a huge commercial opportunity. The company is also evaluating experimental drugs in the treatment of peripheral neuropathic pain, which represents another large unmet market.

Looking a little further down the line, Vertex could have an even bigger blockbuster on its hands. The company is currently evaluating inaxaprine in a pivotal clinical study in APOL1-mediated kidney disease (AMKD). The disease affects an estimated 100,000 patients worldwide, compared to 92,000 patients with CF. If approved, inaxaprin could be the first drug to treat the root cause of AMKD.

There is a possibility that inaxaprin will not be approved. However, the fact that Vertex is advancing this investigational drug into Phase 3 testing, combined with the company’s track record of success in late-stage programs, gives me a high level of confidence in this drug. Masu.

Vertex’s pipeline also includes several promising early-stage programs. VX-993, like VX-548, is a non-opioid painkiller. VX-670 targets the root cause of myotonic dystrophy type 1 (DM1), a type of muscular dystrophy. VX-880 and VX-264 are experimental cell therapies that have the potential to cure type 1 diabetes. Such early-stage pipeline candidates are naturally riskier than later-stage programs. But not all of that has to be a success for Vertex to see tremendous growth over the next decade.

Attractive valuation

Even though the stock has doubled since the start of 2022, Vertex stock is cheap given its growth prospects. The company has a price-to-earnings (PEG) ratio of just 0.61. A PEG multiple below 1.0 is typically considered an attractive valuation.

The attributes I have identified for good growth stocks can be referred to as the “three Ps”: potential, profitability, and price. In my opinion, Vertex accomplishes these three P’s better than any other stock.