It's the start of a new year, and that makes now the perfect time to load up on stocks that could boost your portfolio in 2025 and over the long term. The healthcare space is a great place to look for these sorts of players because here you'll find all that you need to gain in both growth and security -- from young biotechs developing game-changing technologies to big pharma or medical device players selling blockbuster drugs and paying out dividends to investors.
If you select quality companies and diversify across these themes of growth and security, your portfolio could shine during any market environment -- and, most importantly, offer you solid returns over the long term. By this, I mean at least five years. Considering all of this, let's check out my top five stocks to buy now, in early 2025.
Image source: Getty Images.
1. Pfizer
Pfizer(NYSE: PFE) stood out a few years ago thanks to its coronavirus products and a portfolio of blockbuster drugs. Today, demand for coronavirus vaccines and treatments is on the decline -- and some of Pfizer's older blockbusters are heading for losses of exclusivity.
But here's the good news. Pfizer is approaching a whole new era of growth after launching a record number of new products and putting a focus on its oncology business. The new products across treatment areas and the oncology unit could offer the company a significant boost in the years to come. For example, Pfizer aims to deliver at least eight oncology blockbusters by 2030, representing billions of dollars in revenue.
That's why the stock, trading just under 9 times forward earnings estimates right now, looks like a great bargain that value investors won't want to miss.
2. Eli Lilly
Eli Lilly(NYSE: LLY) sells a broad variety of drugs across treatment areas, but one particular portfolio has driven growth in recent times -- and this is likely to continue. I'm talking about Lilly's weight loss drugs. The company sells tirzepatide, approved for weight loss under the name Zepbound and approved for type 2 diabetes under the name Mounjaro. Doctors have prescribed both for weight loss, and these products have generated blockbuster revenue.
Demand for the drugs has surpassed supply since launch, but Lilly's investments in manufacturing infrastructure in recent times mean the company now is ready to fully address this demand -- and that should result in more revenue growth. And analyst forecasts suggest ongoing momentum: Morgan Stanley Research predicts the obesity drug market may surpass $100 billion by the end of the decade.
So, by investing in Lilly, you'll benefit from the security of its entire portfolio -- and the weight loss drug growth opportunity.
3. Abbott Laboratories
Abbott Laboratories(NYSE: ABT) represents a secure healthcare investment thanks to this company's diversification across four businesses and its solid history of dividend growth. This player's units include medical devices, diagnostics, nutrition, and established pharmaceuticals. What's great about this is, if one business reaches a stumbling block, one of the other businesses may compensate.
We've seen this recently as declines in coronavirus testing hurt sales in diagnostics -- while medical devices sales roared higher. This offers the company, and you, a safety net.
Abbott also is a buy for its dividend strength. As a Dividend King it's raised its dividend for more than 50 consecutive years, suggesting that rewarding shareholders is important to the company. And Abbott's $6 billion in free cash flow shows it has the financial situation to continue along this path.
So, owning Abbott offers you the potential for stock performance following steady earnings growth and the ticket to passive income every year.
Image source: Getty Images.
4. Intuitive Surgical
Intuitive Surgical(NASDAQ: ISRG) is the global leader in robotic surgery, and this business has helped the company grow revenue into the billions of dollars. The growth may just be getting started thanks to Intuitive's solid moat, or competitive advantage, and as the world moves toward using robotics more and more to gain in efficiency and quality.
Here, let's focus on the moat. And that's the fact that most surgeons are trained on Intuitive's flagship da Vinci robot so they probably will want to continue using a platform they know well. Second, after investing in da Vinci systems, hospitals are likely to stick with them to amortize the purchase.
Another reason to like Intuitive: It has a recurrent revenue stream. The company actually generates the lion's share of its revenue by selling the instruments and accessories needed for each da Vinci procedure. So, the sale of a surgical robot leads to regular revenue for the company over time.
All of this makes Intuitive a player that could offer you both security and growth this year and beyond.
5. CRISPR Therapeutics
CRISPR Therapeutics(NASDAQ: CRSP) stock has been in the doldrums over the past year, down more than 30%. The stock had soared quite a bit prior to the launch of the company's first product, Casgvey, a gene-editing treatment for blood disorders -- then fell in the months following the launch.
This looks like a case of investors betting on this player in its earliest days and then locking in profits after it reached a major goal. A turnaround may not happen overnight, but down the road, this innovative company could score a win for investors who get in on it today. That's because CRISPR Therapeutics soon will generate revenue from Casgevy, and this biotech also has a full pipeline of promising candidates based on the same gene-editing technology used in this approved product.
So, right now is a great time to buy this biotech on the dip and potentially gain as a new wave of this growth story unfolds.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
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Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.
Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Abbott Laboratories, CRISPR Therapeutics, Intuitive Surgical, and Pfizer. The Motley Fool has a disclosure policy.
