Despite the advent of quick-enrichment schemes, those who want to increase their capital do not have to reinvent the wheel. Investing in stocks remains one of the best ways to do this. But not all securities are equal. With an unlimited number of investment options on the market, choosing the wrong one can mean saying goodbye to your hard-earned money.
Investing in the shares of large companies is the key to achieving your financial goals. With that in mind, here are three excellent stocks that should make you richer in the long run if you buy today: Bristol Myers Squibb (NYSE: BMY), Veeva Systems (NYSE: VEEV), en Eli Lilly (NYSE: LLY). This is why each of these companies deserves a place in your portfolio.
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Bristol Myers Squibb
The pharmaceutical Bristol Myers has a strong range of drugs, a rich pipeline and a juicy dividend, all of which can help raise incomes and earnings higher, while rewarding investors with dividend increases.
The company boasts at least eight blockbuster drugs, including the treatment of multiple myeloma Revlimid, which increased sales by 10% annually to $ 3 billion in the third quarter of 2020. Bristol Myers acquired Revlimid thanks to its acquisition of Celgene in 2019 in a $ 74 billion cash and share transaction. During the third quarter, Pomalyst’s year-on-year sales increased 17% to $ 777 million. Bristol Myers also markets the anticoagulant Eliquis, which generated revenue of $ 2.1 billion during the third quarter, up 9% from the previous year.
As for the Bristol Myers pipeline, the company has more than four dozen clinical compounds in development and at least as many ongoing clinical trials, including a series of Phase 3 studies. Newly approved products (or new indications for existing products) are likely to increase the drug manufacturer’s financial results in the coming years.
Despite the stock performing less than the broader market of late, Bristol Myers’ outlook looks enticing. The company’s revenue and earnings will continue to grow with a good cut. According to research firm Evaluate Pharma, three of its drugs, Revlimid, Eliquis and Opdivo, will be among the top five best-selling drugs in the world in 2024.
Bristol Myers also closed its latest acquisition in November: a biopharmaceutical company in the clinical stage called MyoKardia in a $ 13.1 billion cash transaction. MyoCardia’s leading candidate for pipelines is mavacamten, a possible treatment for a chronic heart disease called obstructive hypertrophic cardiomyopathy. Management believes ‘mavacamten have a potential of a billion dollars’, and this could be another long-term growth.
Finally, with a dividend yield of 2.80% (compared to a 1.55% return for the S&P 500) and a low cash payout ratio of 31.8%, investors can count on Bristol Myers to continue to increase its dividends. All of these factors make this pharmacy stock an excellent choice for 2021 and beyond.
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2. Veeva Systems
Veeva Systems’ mission is to help companies in various sectors, including the life sciences industry, market their products faster and more efficiently, while ensuring compliance. The company works with many of the leading players in the pharmaceutical and biotechnology sector, including AstraZeneca, Merck, en Vertex Pharmaceutical Products. Veeva’s founder and CEO Peter Gassner is a former CEO of the cloud-based software giant salesforce.com. Veeva Systems and Salesforce have a long-standing partnership with which the former can use the Salesforce platform to operate its cloud-based services.
Veeva’s list of products includes Veeva Vault, which helps drug manufacturers navigate the complex process of clinical trials. The company’s largest segment by revenue is subscription services. During the first nine months of its 2021 financial year, which ended October 31, Veeva Systems reported $ 1.07 billion in revenue, representing an increase of 34.8% year-on-year. The company’s revenue for enrollment services accounted for about 80% of total revenue.
Veeva has an excellent retention rate for its services. For its 2017, 2018 and 2019 years, the retention rate was 127%, 121% and 122% respectively. In addition, the company is developing newer products to better help its customers. Veeva Systems has branched out beyond the life sciences industry and into other regulated products, namely consumer packaged goods (CPG), chemicals and cosmetics.
The company’s vision for these sectors is the same as in the life sciences industry. In the first three quarters of its 2021 financial year, Veeva Systems generated approximately $ 30 million in revenue from these spaces, accounting for nearly 8% of its total revenue.
There are also more than 60 customers from these three sectors, and the company sees a growing opportunity, especially given the changing environment of the CPG, chemical and cosmetics sector through the pandemic. Veeva Systems looks set for a solid path to steady revenue and earnings growth in the foreseeable future, and the share price must continue to rise.
Eli Lilly
Eli Lilly is another pharmaceutical giant with a rich range of drugs. Some of the company’s top sellers include Trulicity, a diabetes drug that sold $ 3.6 billion for the first nine months of 2020, an increase of 22%. Other top performers include the insulin product Basaglar and Jardiance. For the first nine months of 2020, former revenue rose 5% to $ 842.3 million, while Jardiance’s year-on-year sales rose 24% to $ 840.3 million.
Lilly also has more than three dozen ongoing clinical trials. One of the company’s pipeline candidates is a potential remedy for Alzheimer’s disease called donanemab. The company recently reported positive results from a Phase 2 clinical trial. There are more than 5 million Alzheimer’s patients in the US, and there is no approved drug that can treat the cognitive decline. Although there is still a long way to go for donanemab, investors will do well to monitor its progress.
This is remarkable BiogenThe aducanumab is currently being reviewed by the Food and Drug Administration (FDA) for this indication. Both aducanumab and donanemab want to treat the disease by removing amyloid beta plates from patients’ brains, which some professionals say can help those suffering from Alzheimer’s. But as an advisory panel of experts strongly recommends the FDA not to approve the drug, Biogen’s prospects appear unfavorable.
Eli Lilly recently improved its pipeline with its planned acquisition of Prevail Therapeutics, a biotechnology company focusing on the development of gene therapies, in a cash transaction of approximately $ 880 million. Lilly has been thinking about it a lot, and this move has only made the long-term prospects even more attractive thanks to potential drugs that target Parkinson’s disease and dementia, and there are no standard treatments. In short, adding shares of this pharmaceutical giant to your portfolio will be a good step for your money.