Among the most difficult endeavors when it comes to deciphering the best retirement planning stocks is to identify companies that will remain relevant for years, if not decades to come. While no guarantees exist for anything, those who focus on investing in biotech own a clear advantage. Almost surely, the underlying sector – which falls under the broad healthcare industry – is permanently relevant.
Further, I submitted a query on ChatGPT to extract key reasons why biotech stocks for retirement make sense. Primarily, the artificial intelligence-powered chatbot pointed to the potential for long-term growth. Given that the industry commands the forward capabilities of developing innovative treatments and therapies for various diseases and medical conditions, the top biotech enterprises enjoy ongoing pertinence.
Second, ChatGPT identified demographic trends. Per the chatbot, “[a]s the global population continues to age, there is an increasing demand for healthcare and medical solutions. Biotech companies are at the forefront of developing novel drugs, therapies, and diagnostics to address these needs.” Because of the underlying relevance, the biotech space offers some of the most secure retirement stocks available.
Amgen (AMGN)
One of the powerhouses among biotech stocks for retirement, Amgen (NASDAQ:AMGN) is a top-level independent biotechnology firm. At the moment, the company commands a market capitalization of just over $122 billion. Since the start of this year, AMGN has been on shaky ground, losing about 13% of its equity value.
Nevertheless, ChatGPT states that Amgen has a strong track record of developing innovative therapies for various diseases. It features a diversified portfolio of drugs, including treatments for cancer, rheumatoid arthritis, and osteoporosis. Also, the company has a history of consistent revenue growth and has demonstrated stability in the biotech sector. Thus, it’s an appropriate idea for retirement planning stocks.
Financially, Amgen benefits from a decent Piotroski F-Score of 7 out of 9, indicating high operational efficiency. In addition, the company prints a trailing-year net margin of 30.23%, above 95.48% of its rivals. Finally, it presents a solid discount. Right now, the market prices AMGN at a forward multiple of 12.9. As a discount to projected earnings, Amgen ranks better than 63.85% of the competition.
Gilead Sciences (GILD)
Another high-level entity among retirement planning stocks in the biotech sphere, Gilead Sciences (NASDAQ:GILD) focuses on researching and developing antiviral drugs. During the early months of the Covid-19 crisis, Gilead’s name popped up as a possible treatment provider for the underlying disease. Currently, the company carries a market cap of almost $99 billion. Since the start of the year, GILD dipped over 7%.
Despite the red ink, ChatGPT identifies Gilead as a great candidate for those investing in biotech stocks for retirement. Specifically, the company has a robust pipeline of products and a strong financial position. As well, Gilead has a history of generating significant cash flow, which can be attractive for retirement investors seeking stability and dividend potential.
Speaking of which, Gilead carries a forward yield of 3.8%. This rates much higher than the healthcare sector’s average yield of 1.58%. Further, the payout ratio – or the amount of earnings after tax that are paid out to shareholders – sits at a very sustainable 41.69%. Lastly, Gilead enjoys eight years of consecutive annual dividend increases.
Vertex Pharmaceuticals (VRTX)
A high-flying example of retirement planning stocks, Vertex Pharmaceuticals (NASDAQ:VRTX) is one of the first biotechs to use an explicit strategy of rational drug design rather than combinatorial chemistry, according to its public profile. Presently, Vertex carries a market cap of just under $90 billion. Since the beginning of this year, VRTX gained over 22% of its equity value.
Seemingly, VRTX continues to rise from strength to strength, gaining over 39% in the trailing one-year period. Thus, it’s an enticing candidate for high-growth biotech stocks. Per ChatGPT, the biotech has been successful in bringing innovative therapies to market that have significantly improved the lives of cystic fibrosis patients. In addition, Vertex has a dominant position in the CF market and continues to invest in research and development, making it a potential long-term growth opportunity for those investing in biotech stocks for retirement.
As expected, Vertex financially benefits from strong top and bottom-line performances. Its three-year revenue growth rate on a per-share basis hits 29.2%, above 74.54% of its peers. Its trailing-year net margin stands at an impressive 35.4%.
Regeneron Pharmaceuticals (REGN)
Another high-profile name among retirement planning stocks that attracted attention during the pandemic, Regeneron Pharmaceuticals (NASDAQ:REGN) originally focused on neurotrophic factors and their regenerative capabilities, giving rise to its name. Right now, Regeneron carries a market cap of just under $86 billion. Since the beginning of this year, REGN gained nearly 9% of its equity value.
Per ChatGPT, Regeneron forged a reputation for discovering, developing, and commercializing medicines for serious medical conditions. It has a strong research and development pipeline with a particular emphasis on monoclonal antibodies. Regeneron also has a history of successful drug launches and partnerships, making it an attractive choice for those seeking secure retirement stocks. Onto the financials, Regeneron’s greatest strength arguably lies in its excellent profitability metrics. Both its trailing-year operating and net margins clock in above 33%, well outpacing the underlying sector average rates. Also, the market prices REGN at a forward multiple of 18.63, which is ranked favorably lower than 67.86% of its peers.
Biogen (BIIB)
Headquartered in Cambridge, Massachusetts, Biogen (NASDAQ:BIIB) specializes in the discovery, development, and delivery of therapies for the treatment of neurological diseases to patients worldwide. At the moment, Biogen carries a market cap of just over $43 billion. Since the start of the year, BIIB gained over 9% of its market value. In the trailing 365 days, it skyrocketed almost 56%, making Biogen one of the high-growth biotech stocks.
According to ChatGPT, Biogen’s main specialty focuses on the treatment of multiple sclerosis. It has developed several innovative therapies for MS and other neurological disorders. Biogen has a solid financial position and a history of consistent revenue growth, which can make it suitable for those seeking secure retirement stocks.
Now, the last statement about top-line growth comes with a caveat. Since the catastrophic Covid-19 disaster in 2020, revenue growth declined. Therefore, BIIB represents more of a catch-up play. However, I am inclined to believe in the recovery story, especially if we’re talking about a years-long framework. Per Gurufocus, Biogen features operational efficiency (Piotroski F-Score of 7 out of 9) and high fiscal stability (Altman Z-Score of 4.64). Also, it commands excellent profitability metrics.
Illumina (ILMN)
Based in San Diego, California, Illumina (NASDAQ:ILMN) develops, manufactures, and markets integrated systems for the analysis of genetic variation and biological function. Per its corporate profile, the company provides a line of products and services that serves the sequencing, genotyping, gene expression, and proteomics markets. Currently, the company commands a market cap of over $33 billion. Since the Jan. opener, ILMN gained almost 5%.
According to ChatGPT, Illumina’s technology is widely adopted in research institutions and clinical laboratories worldwide. With the increasing importance of genomics in healthcare, Illumina may offer long-term growth potential. Therefore, ILMN enjoys significant relevancies as one of the top biotech retirement planning stocks. On the financial spectrum, Illumina benefits from key acquisitions to expand its footprint. In 2020, total revenue came out to $3.24 billion. By 2022, this tally jumped to $4.58 billion.
To be fair, the company’s aggressiveness has turned off some investors, leading to ILMN trading near five-year lows. Still, this could be an enticing entry point for opportunistic investors of retirement planning stocks.
Moderna (MRNA)
One of the high growth biotech stocks that stormed into the headlines during the Covid-19 crisis, Moderna (NASDAQ:MRNA) provided a vaccine for the SARS-CoV-2 virus based on advanced messenger-RNA (mRNA) technologies. However, the fading of the pandemic has brought steep challenges to MRNA stock. Since the beginning of this year, shares dropped over 27% in equity value. Right now, the company features a market cap of nearly $50 billion.
Still, ChatGPT identifies MRNA as one of the sector-related retirement planning stocks. According to the chatbot, Moderna’s success with its Covid-19 vaccine has demonstrated the potential of mRNA technology, making it an intriguing choice for retirement investors seeking exposure to cutting-edge biotech innovations. Further, the red ink doesn’t always have to imply comprehensively bad news. In part because of the fallout, Moderna appears significantly undervalued, per Gurufocus. Right now, the market prices MRNA at a trailing multiple of 11.23, ranked favorably lower than 83.27% of its peers. Also, the company features an Altman Z-Score of 8.28, indicating an extremely low risk of imminent bankruptcy.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
