3 Biotech Stocks Set to Double by 2028


  • Below are the top three biotech stocks for investors to get rich in 2024 and beyond. 
  • Novo Nordisk (NVO): NVO’s monstrous FCF and market share in GLP-1 therapies are a huge competitive advantage. 
  • Vertex Pharmaceuticals (VRTX): Diversifying away from CF into new pipeline opportunities creates an exciting time for shareholders. 
  • Health Care Select Sector SPDR Fund (XLV): XLV is a diversified and cost-effective way to gain exposure to the major biotech players.
Biotech stocks - 3 Biotech Stocks Set to Double by 2028

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Biotech stocks offer the possibility of groundbreaking medical advancements alongside the potential for explosive growth. While the sector carries inherent risks, a select group of biotech companies possesses the potential to deliver substantial returns in the coming years. 

It is no surprise that investors continue to turn to this sector as advancements in technology strengthen its growth prospects. From revolutionary gene therapies to cancer research, the possibilities are endless. Furthermore, the convergence with other fields like artificial intelligence and nanotechnology amplifies the opportunities for transformative growth. That is great news for biotech enthusiasts looking to outperform the market through 2028. 

Now, let’s discover the top biotech stocks poised to double in the next four years!

Novo Nordisk (NVO)

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Novo Nordisk (NYSE:NVO), a titan in the diabetes treatment market, isn’t leaving any stones unturned in 2024. The company is coming off a record year, and this year’s growth will continue to accelerate.

Novo Nordisk commands a dominant market share with its revolutionary GLP-1 therapies like Ozempic and Rybelsus. These drugs work by stimulating insulin production and have become blockbusters in the fight against type-2 diabetes. However, the drug now has a new use case in the weight loss market, which is red hot. Apart from Ozempic, Novo Nordisk has Wegovy, which has gained notable traction in the weight loss and obesity market in the 2023 fiscal year. In FY23, the company’s revenue swelled to a record $232.26 billion, with EPS up 52% to $18.62 per share. Wegovy was approved in the U.S. last month, which will continue to be a major catalyst for the company’s growth in the 2024 fiscal year. That makes NVO stock one of the best biotech stocks to buy for upside in 2024 and beyond.

Vertex Pharmaceuticals (VRTX)

Vertex Pharmaceuticals (VRTX) logo visible on display screen
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Vertex Pharmaceuticals (NASDAQ:VRTX) is a force to be reckoned with in the world of cystic fibrosis (CF). The company holds a monopoly in the treatments addressing this genetic disorder and has other novel therapies in its pipeline to drive long-term growth.

Vertex Pharmaceuticals is one of the biggest sleeper biotech stocks to buy in 2024. The company’s drug portfolio generates billions in annual revenue and boasts a rich pipeline of potential next-generation therapies. Over the last several years, Vertex saw an acceleration in revenue growth and profitability. While Trikafta, its novel therapy for CF, has been a cornerstone for the company’s success, it is diversifying into new disease areas. That includes VRTX’s exa-cel treatment for sickle cell disease, recently approved by the FDA. Additionally, its VX-548 treatment for moderate to severe acute pain is in Phase 3 and ready for FDA submission. If approved later this year, it could add billions to the company’s top line, and further accelerate its cash flow generation. 

Health Care Select Sector SPDR Fund (XLV)

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Health Care Select Sector SPDR Fund (NYSEARCA:XLV), while not an actual company, can be a great pathway for investors seeking broader exposure to the biotech sector. The exchange-traded fund (ETF) tracks a broad range of healthcare stocks, including major biotech players.

XLV offers several advantages, mainly its broad diversification across the healthcare sector. It is one of the largest biotech ETFs in the entire stock market that seeks to track the performance of the healthcare sector of the S&P 500. The ETF format makes it easy for investors to gain exposure to a highly specialized sector. It’s important to note that XLV will not necessarily double in value by 2028. However, an opportunity exists for the more conservative investors to benefit in a relatively cost-effective way to participate in the upside. Before investing in biotech stocks, it’s important to acknowledge the risks involved and take the best route that suits your investing style and long-term goals.

On the date of publication, Terel Miles did not hold (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.

Terel Miles is a contributing writer at InvestorPlace.com, with more than seven years of experience investing in the financial markets.

Article printed from InvestorPlace Media, https://investorplace.com/2024/04/3-biotech-stocks-set-to-double-by-2028/.

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