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USA Today
28-06-2025
- Business
- USA Today
Real estate vs. stocks: Which investment builds more wealth over time?
Putting money into real estate and stocks are two popular ways to grow your wealth. Home values have risen significantly, especially with demand being hot in the past few years. A red-hot housing market has inflated values across the globe. And while things have cooled of late, prices are still much higher than they were just a few years ago. But which of these investment options is better for the long haul: real estate or stocks? Here's what the data says. The stock market has been the winner, and it's not even close According to data going back to the start of 1995, the Case-Shiller Home Price Index, which tracks housing prices, has risen by more than 310%. By comparison, the S&P 500 index has increased by more than 1,200%. And when you include reinvested dividends, the total returns are more than 2,200%. S&P 500 vs the housing market data by YCharts Different housing markets, will, of course, experience different returns. But when taking a broad look at the two investments, it's evident that the stock market as a whole is generally the better long-term investment than real estate. Profits on real estate can look incredible, and that's because to buy a home you're investing hundreds of thousands of dollars into it. In some markets, you might not be able to even buy a home for less than $1 million. With so much invested into an asset, the profits can be significant, whereas with stocks, investments are typically smaller. But if, for example, you invested $500,000 into the S&P 500 and it simply rose at its long-run average of 10% for five years, then you'd be sitting on a profit of more than $300,000. If you invested $1 million, then the profit would be more than $600,000. Now these kinds of profits start to become more eye-catching, and that's because the original investment is so significant. Why investing in stocks can make more sense than investing in real estate The large numbers from real estate profits can make it seem as though investing in housing can yield better returns. But when you adjust for the size of the investment and you strictly look at the percentage return, the story looks much different, and it makes it more evident that investing in stocks may be the better option. But there are also other factors that tip the scale in favor of stocks, including liquidity. With stocks, it can be easy to get in and get out of an investment while incurring minimal costs. Investing in real estate, however, can be both time-consuming and costly. Plus, you are tying up money into a single asset whereas with stocks you can diversify across multiple companies or through 500 of the leading stocks as with the S&P 500 index. Investing in the stock market has yielded better returns over the years and it's a safer long-term strategy. Even if you're not sure what to invest in, tracking the S&P 500 through an exchange-traded fund can be an easy way to invest in the stock market while taking on minimal risk. David Jagielski has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. The Motley Fool is a USA TODAY content partner offering financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY. Where to invest $1,000 right now Offer from the Motley Fool: When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 831%* — a market-crushing outperformance compared to 175% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you joinStock Advisor. See the stocks »
Globe and Mail
16-06-2025
- Business
- Globe and Mail
3 Growth Stocks You Can Buy Right Now Without Any Hesitation
You're unlikely to have a warm-and-fuzzy feeling after buying some stocks. Instead, some stocks can keep you awake at night because of their high volatility and risk. The good news, though, is that there are plenty of growth stocks you can buy without any hesitation or trepidation. Three Motley Fool contributors believe they've found stocks that fit the bill. Here's why they picked Eli Lilly (NYSE: LLY), Novo Nordisk (NYSE: NVO), and Vertex Pharmaceuticals (NASDAQ: VRTX). A growth beast with loads of potential David Jagielski (Eli Lilly): One of the best healthcare stocks to own is Eli Lilly, no question about it. Not only is the business firing on all cylinders right now, but the best may still be to come for the company. Eli Lilly already has a couple of top GLP-1 drugs that help patients with diabetes (Mounjaro) and weight loss (Zepbound), but this is a business that's relentless in its pursuit of growth. The big catalyst could be coming next year, which is when Eli Lilly expects it might obtain approval for a GLP-1 weight loss pill (orforglipron), which not only is a more attractive treatment option for patients than its current injectable GLP-1 medicines, but is also easier to produce at scale. And what's promising about GLP-1 treatments is that their benefits can extend well beyond just weight loss. While that is the most alluring reason for many people to use them today, studies have shown they may be able to reduce the risk of heart failure and even curb substance abuse. There's so much potential for the business, which is why I wouldn't hesitate to simply buy this stock and forget about it. Eli Lilly already has fantastic financials, which enable it to invest heavily into its pipeline. Last year, its revenue totaled $45 billion (which was up 32% year over year), and it generated $10.6 billion in profit. With excellent margins and strong growth prospects, this is an ideal growth stock to buy and hold for the long haul. Look beyond the recent storms Prosper Junior Bakiny (Novo Nordisk): Denmark-based pharmaceutical giant Novo Nordisk has struggled over the past year. The company's shares fell 44% as its financial results failed to meet expectations, while it also faced challenges related to clinical and regulatory issues. Meanwhile, the company's biggest competitor in the market for diabetes and obesity medicines, Eli Lilly, has earned significant wins. Although investors shouldn't ignore these issues, they are already reflected in Novo Nordisk's stock price. The company's forward price-to-earnings ratio of 18.6 is not far off from the average of 16.2 for the healthcare sector, and this for a company that generally grows its revenue and earnings faster than most similarly sized peers. Novo Nordisk's shares look more than reasonable at current levels, especially considering its prospects. Despite some clinical setbacks, Novo Nordisk's lineup features Ozempic and Wegovy, two medicines that generate healthy sales. The company's pipeline remains robust and continues to improve, thanks to various licensing deals it has recently signed. In March, it acquired a promising investigational diabetes and weight management medicine called UBT251 from a China-based drugmaker. UBT251 is a triple agonist, mimicking the actions of three different gut hormones, which could confer increased efficacy. Novo Nordisk has several internally developed candidates in its core area of expertise, including some early-stage compounds that have yielded encouraging results in clinical trials. Beyond diabetes and weight management, Novo Nordisk has been steadily building a pipeline in other promising areas, including rare diseases, Alzheimer's, Parkinson's, and others. Despite recent headwinds, expect the company to deliver consistent results over the long run and to produce excellent returns. That's why the stock is still a no-brainer buy. This drugmaker has a crystal-clear path to growth Keith Speights (Vertex Pharmaceuticals): Vertex Pharmaceuticals' share price has skyrocketed more than 9,800% since its initial public offering in 1991. I think this drugmaker still has a crystal-clear path to growth over the next decade and beyond. Let's start with the area where Vertex has already achieved most of its success: cystic fibrosis (CF). The company won U.S. Food and Drug Administration (FDA) approval for its newest CF therapy, Alyfrek, in December 2024. Alyftrek is at least as effective as Vertex's top-selling CF drug, Trikafta. It's also available in a more convenient dosing for patients. Perhaps most importantly for investors, Vertex won't have to pay as much in royalties for Alyftrek as it does for its other marketed CF therapies, which will make it more profitable. Speaking of recent FDA approvals, Vertex scored another big one in January 2025 for Journavx in treating acute pain. Journavx isn't an opioid, a huge plus since opioid addiction is a big issue in the U.S. and other countries. I predict this will quickly become another blockbuster drug in Vertex's lineup. Meanwhile, Vertex's gene-editing therapy, Casgevy, continues to pick up momentum in treating sickle cell disease and transfusion-dependent beta thalassemia. The company's pipeline also features several promising candidates. Three are in late-stage clinical studies: inaxaplin in treating APOL1-mediated kidney disease, povetacicept in treating IgA nephropathy, and zimislecel in treating severe type 1 diabetes. Should you invest $1,000 in Eli Lilly right now? Before you buy stock in Eli Lilly, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Eli Lilly wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,702!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $870,207!* Now, it's worth noting Stock Advisor 's total average return is988% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025 David Jagielski has positions in Novo Nordisk. Keith Speights has positions in Vertex Pharmaceuticals. Prosper Junior Bakiny has positions in Eli Lilly, Novo Nordisk, and Vertex Pharmaceuticals. The Motley Fool has positions in and recommends Vertex Pharmaceuticals. The Motley Fool recommends Novo Nordisk. The Motley Fool has a disclosure policy.
Yahoo
22-04-2025
- Business
- Yahoo
3 Relatively Safe Healthcare Growth Stocks You Can Buy and Hold
When the stock market is highly volatile, many investors flock to assets that offer stability but dismal growth prospects. However, you don't necessarily have to sacrifice growth for safety. Three contributors believe they've identified relatively safe growth stocks in the healthcare sector that you can buy and hold. Here's why they picked Amgen (NASDAQ: AMGN), Eli Lilly (NYSE: LLY), and Vertex Pharmaceuticals (NASDAQ: VRTX). Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » David Jagielski (Amgen): Given the fragility of the markets of late, investors should be paying close attention to valuations, especially for growth stocks. Drugmaker Amgen may be an optimal one to be hanging on to right now, due to the strong mix of value, growth, and dividends it offers. The stock trades at a modest 14 times its estimated future earnings (based on analyst expectations). It pays a dividend that yields 3.3%, and it has a diverse business with some promising long-term growth prospects. It has dozens of phase 3 trials currently ongoing, spanning multiple therapeutic areas, including neuroscience, inflammation, oncology, and others. One drug that investors are watching particularly closely is MariTide, a GLP-1 treatment for obesity that in a phase 2 trial helped participants lose 20% of their body weight. It only needs to be taken on a monthly basis, which can make it a much more attractive option for patients than the weekly GLP-1 injections currently approved on the market. In 2024, Amgen reported $4 billion of profit on sales totaling $33.4 billion, for a solid profit margin of 12%. It also generated free cash flow totaling $10.4 billion. Year to date, the biotech stock has risen by more than 12% and has been outperforming the broader market. That's a trend that could continue in the future, given its strong growth prospects and fundamentals. Prosper Junior Bakiny (Eli Lilly): Due to President Trump's macroeconomic policies, major indices have declined significantly this year. It might be hard to consider any stock "safe" in this environment, but some corporations, like Eli Lilly, seem relatively safe for those focused on the long game. Eli Lilly's revenue has been growing at no less than 20% year over year since mid-2023, which is outstanding for a pharmaceutical giant. Though it owes this performance to its diabetes and weight management medicines, it would be a mistake to reduce Eli Lilly to these areas -- important though they may be. In the past few years, the drugmaker has earned approvals for key medicines in other fields that will help drive top-line growth for a while. These include Kisunla in Alzheimer's disease; Ebglyss, an eczema treatment; and ulcerative colitis therapy Omvoh. Further, Eli Lilly has an incredibly deep pipeline. Yes, here too, the company's work in diabetes and anti-obesity is grabbing much of the attention. But once again, Eli Lilly's business goes beyond that. The company is making strides in oncology, while its early-stage investigational gene therapy for deafness looks promising. Eli Lilly should maintain strong financial results and its excellent dividend program even in this shaky environment. The pharmaceutical leader has increased its payouts by 200% in the past decade. Growth- and income-oriented investors will find what they seek here, even as broader equities continue to drop. If anything, now is as good a time as ever to initiate a position in Eli Lilly. Keith Speights (Vertex Pharmaceuticals): Most biotech stocks are anything but safe. However, Vertex Pharmaceuticals is an exception. The company commands a virtual monopoly in treating the underlying cause of cystic fibrosis (CF). Vertex is a cash cow, raking in $11 billion in sales last year. Even better, though, this big biotech innovator has multiple growth drivers. One of those growth drivers is in Vertex's core CF market. The company won U.S. regulatory approval of Alyftrek in December 2024. Alyftrek is as effective as Vertex's top-selling CF drug, Trikafta, with a more convenient once-daily dosing. Vertex also doesn't have to pay as much in royalties on the new drug as it does on its older CF therapies. I'm even more bullish about Vertex's opportunities beyond CF, though. Momentum is picking up for its gene-editing therapy, Casgevy. Vertex recently launched non-opioid painkiller Journavx, which I predict will easily become another blockbuster drug for the company. More good news could be on the way over the next few years, too. Vertex's pipeline features four programs in phase 3 clinical testing. The company hopes to pick up a new indication for Journavx in treating painful diabetic peripheral neuropathy. It has two experimental drugs targeting kidney diseases: inaxaplin for APOL1-mediated kidney disease, and povetacicept for IgA nephropathy. Vertex is also evaluating zimislecel in late-stage testing as a potential cure for several kinds of type 1 diabetes. Maybe some of these candidates will be unsuccessful. Even if that's the case, though, Vertex is a relatively safe growth stock to buy and hold thanks to its already approved therapies' strong growth prospects. Before you buy stock in Vertex Pharmaceuticals, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Vertex Pharmaceuticals wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $532,771!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $593,970!* Now, it's worth noting Stock Advisor's total average return is 781% — a market-crushing outperformance compared to 149% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 21, 2025 David Jagielski has no position in any of the stocks mentioned. Keith Speights has positions in Vertex Pharmaceuticals. Prosper Junior Bakiny has positions in Eli Lilly and Vertex Pharmaceuticals. The Motley Fool has positions in and recommends Amgen and Vertex Pharmaceuticals. The Motley Fool has a disclosure policy. 3 Relatively Safe Healthcare Growth Stocks You Can Buy and Hold was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
29-03-2025
- Business
- Yahoo
3 Relatively Safe Stocks to Buy Right Now
Investing in stocks comes with risks. There's no way around that fact. However, some stocks can be less risky than others during certain market conditions. Three Motley Fool contributors think they've found relatively safe stocks to buy right now with major market indexes remaining near correction territory. Here's why they like Abbott Laboratories (NYSE: ABT), AbbVie (NYSE: ABBV), and Johnson & Johnson (NYSE: JNJ). David Jagielski (Abbott Laboratories): If you're looking for safety within the healthcare sector, a top name to consider right now is Abbott Laboratories. It's a good stock to put in your portfolio that you won't have to worry about. For starters, it offers an above-average dividend yield of 1.9% (the S&P 500 average is 1.4%). Abbott has increased its dividend for 53 consecutive years. Not only can you collect a dependable dividend with this stock, but it's also likely to grow over the years as Abbott's sales and profits rise. The big reason it makes for a stable and safe investment is because its operations are highly diverse. Last year, Abbott generated $19 billion in sales from medical devices, $9 billion from diagnostics, $8 billion from nutritional sales, and $5 billion from its established pharmaceuticals segment. Collectively, these segments make Abbott a fairly safe investment to hold on to. While its diagnostic sales were down 7% last year, largely due to higher COVID testing demand in the previous year, all of the company's other business units generated positive year-over-year growth, with the end result being an overall company growth rate of just under 5% for the full year. Shares of Abbott have risen by more than 80% over the past five years and with a modest price-to-earnings multiple of 17, it's still a good value buy. Its modest beta value of 0.69 also tells investors this isn't a highly volatile stock in relation to the markets. If you want a good, safe healthcare stock to hold, with a great dividend, Abbott can make for a no-brainer buy right now. Keith Speights (AbbVie): Big pharmaceutical companies don't have exclusivity forever for the drugs they invest heavily in developing. Eventually, those drugs lose patent protection and can experience significant sales declines as new rivals enter the market. But few have faced as scary a patent cliff as AbbVie and handled it so effectively. When AbbVie spun off from Abbott in 2013, the writing was already on the wall for its autoimmune disease drug Humira losing exclusivity. Not only did Humira rank as AbbVie's top-selling product, generating 65% of the company's total revenue by 2017, but it also ranked as the top-selling drug in the world for several years. AbbVie felt the pain when Humira began to face biosimilar competition in the U.S. in 2023. However, the company already had two successor products on the market with Skyrizi and Rinvoq. AbbVie now projects these two autoimmune disease drugs will rake in combined sales of $24 billion this year and more than $31 billion by 2027. At its peak, Humira's sales totaled $21.2 billion. I think investors can sleep peacefully at night owning shares of AbbVie. The company has proven its ability to navigate challenges. Patients will need its medications regardless of what happens with the economy. AbbVie is also a Dividend King with 53 consecutive years of dividend increases and an attractive forward dividend yield of 3.25%. Prosper Junior Bakiny (Johnson & Johnson): It might seem odd to describe Johnson & Johnson as a "safe" stock right now. The pharmaceutical giant is still dealing with thousands of lawsuits related to its talc-based products, while regulatory changes in the U.S. threaten to eat into its sales growth for some products. However, Johnson & Johnson still boasts a AAA rating -- the highest available -- from Standard & Poor's, which is robust evidence of the strength of its balance sheet. Meanwhile, the company still generates consistent revenue and earnings. The drugmaker's top line in 2024 increased by 4.3% year over year to $88.8 billion, while its earnings per share grew by 11.3% year over year to $5.79. Johnson & Johnson continues to develop newer medicines that will help it drive strong top-line growth for years and move beyond recent (and future) patent cliffs. One of the company's most exciting recent approvals is Carvykti, a cancer medicine closing in on blockbuster status. In 2024, Carvykti's sales grew by 92.7% year over year to $963 million. Several older products, such as immunosuppressant Tremfya, continue to contribute, too. Further, Johnson & Johnson has a medtech business whose sales grew slightly faster than those of its pharmaceutical medicine segment last year. Johnson & Johnson could be close to a settlement that would put the overwhelming majority of its talc lawsuits to rest. The company's deep pipeline within its medtech and pharmaceutical businesses should help it maintain strong results despite recent regulatory changes. Lastly, Johnson & Johnson is a Dividend King with 62 consecutive years of payout increases. Those worried about a recession -- or income-seekers with a long-term mindset -- can safely opt for this reliable blue chip dividend payer. Before you buy stock in AbbVie, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and AbbVie wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $682,965!* Now, it's worth noting Stock Advisor's total average return is 842% — a market-crushing outperformance compared to 165% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of March 24, 2025 David Jagielski has no position in any of the stocks mentioned. Keith Speights has positions in AbbVie. Prosper Junior Bakiny has positions in Johnson & Johnson. The Motley Fool has positions in and recommends AbbVie and Abbott Laboratories. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy. 3 Relatively Safe Stocks to Buy Right Now was originally published by The Motley Fool
