Let’s get down to it: why should investors consider pharma stocks? Primarily, it comes down to the permanence of the underlying narrative. So long as humans are afflicted by various diseases, there will be a need for advanced pharmaceutical solutions. Therefore, money has been flowing into the broader biotechnology space and that will probably not fade anytime soon.

The second reason? Pure numbers. According to Grand View Research, the global biotech market reached a valuation of $1.55 trillion last year. Between 2024 and 2030, analysts project that the sector will expand by a compound annual growth rate (CAGR) of 13.96%. At the culmination point, the ecosystem could be worth $3.88 trillion. That’s a good enough reason right there.

Plus, as an American investor, you’re in luck. Just the U.S. sector itself reached a valuation of $246.18 billion last year. By 2033, the domestic space could be worth $763.82 billion. On that note, below are compelling pharma stocks to consider.

Vertex Pharmaceuticals (VRTX)

Based in Boston, Massachusetts, Vertex Pharmaceuticals (NASDAQ:VRTX) engages in the development and commercialization of therapies for treating cystic fibrosis. It also features partnerships with advanced biotech firms such as Crispr Therapeutics (NASDAQ:CRSP) – which is one of the top pharma stocks in its own right – to forward innovative healthcare solutions.

Financially, Vertex is notable for generating consistently solid performances. During the past four quarters, it generated earnings per share of $4.16. That was better than analysts’ expectations calling for an average EPS of $3.94. This print translated to an earnings surprise of 5.65%.

Now, it must be said that VRTX stock trades at a premium of 12.04X trailing-year sales. In the past year, this metric sat at 10.12X. However, in the training 12 months (TTM), Vertex generated sales of $10.18 billion. Further, in the most recent quarter, its sales growth rate (year-over-year) stood at 13.3%.

For fiscal 2024, experts project revenue of $10.75 billion, up 16.6% from the prior year. Therefore, VRTX could have some room to run, making it one of the top pharma stocks to consider.

Regeneron (REGN)

Headquartered in Tarrytown, New York, Regeneron (NASDAQ:REGN) received a nice boost of awareness during the Covid-19 crisis. Following the pandemic, however, the company has focused back on its core therapeutics. These include its EYLEA injection to treat wet age-related macular degeneration and diabetic macular edema. It also provides solutions for atopic dermatitis and asthma in adults and pediatrics.

Financially, the company is generally very consistent. Unfortunately, it did miss slightly in the first quarter of this year. However, even with that blot, the average EPS during the past four quarters came out to $10.81. In contrast, analysts were targeting on average $10.35. This performance translates to an earnings surprise of 4.33%.

In the TTM period, Regeneron posted net income of $3.86 billion or $33.90 cents per share. Revenue hit $13.1 billion. Both stats are somewhat disappointing, especially the earnings. However, a recovery may start taking place at the end of this year and next. By the end of fiscal 2025, EPS could be $47.97 on sales of $14.96 billion.

That contrasts to 2023’s print of $44.29 EPS on revenue of $13.12 billion. It’s one of the pharma stocks to keep on your radar.

Intellia Therapeutics (NTLA)

Operating out of Cambridge, Massachusetts, Intellia Therapeutics (NASDAQ:NTLA) is a genome editing firm. Specifically, it focuses on the development of curative therapeutics. Some of its advanced solutions include treatment candidates for hereditary angioedema. In addition, it features prospective therapeutics for certain types of lung disease. It leverages the CRISPR/Cas9 technology to address various autoimmune conditions.

As one of the higher-risk, higher-reward pharma stocks, Intellia doesn’t offer the most robust financials. For example, in the past four quarters, the company posted a loss per share of $1.34. However, this beat expectations calling for an average loss of $1.41 per share. Therefore, the “earnings” surprise came out to 5%.

In the TTM period, Intellia incurred a net loss of $485.5 million or $5.37 per share. Revenue hit $52.6 million, which is what many speculators are focused on. That’s because in fiscal 2024, analysts believe that the pharma could generate revenue of $70.78 million. If so, that would be up 95.1% from last year’s haul of $36.27 million.

Further, the high-side estimate calls for $131 million. If you want to gamble on pharma stocks, NTLA could be it.

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.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.