Vaccine stocks have been a big focus over the past couple of years. But there are plenty of other players in the healthcare space that could supercharge your portfolio. They are companies with big revenue growth today -- and even bigger prospects on the horizon. That's why it's a great idea to invest $5,000 in a basket of these growth players.
Right now, I'm thinking of a biotech company that's a leader in its field, a healthcare services company that could represent the future of medical visits -- and a pharma player that's gaining in prescription drug market share. Let's take a look at each.
1. Vertex Pharmaceuticals
Vertex Pharmaceuticals (VRTX -0.92%) recently did something it hasn't done in a long time. The company's shares surpassed Wall Street's average 12-month forecast. The stock struggled from late 2020 through last year after two clinical trial failures. So why is the stock on a roll now? Something big lies ahead: Later this year, the company plans on applying for regulatory approval for its onetime curative treatment candidate for blood disorders. Success of this potential blockbuster would prove that Vertex has what it takes to expand beyond its core business of cystic fibrosis (CF) treatments.
And speaking of CF, Vertex's leadership and blockbuster revenue there is far from over. The company expects to maintain its position until at least the late 2030s. Vertex last year generated more than $5.6 billion in sales from its star CF drug. Vertex also recently reported positive news from clinical trials on a non-opioid pain candidate and a potential treatment for type 1 diabetes.
Vertex shares have climbed 28% so far this year. This still leaves Vertex at a forward price-to-earnings ratio of less than 20. And that looks reasonable considering the company's strength in CF and opportunity in blood disorders and other areas.
2. Teladoc Health
Teladoc Health (TDOC -0.46%) hasn't yet rebounded like Vertex. The stock has lost 32% so far this year. But, as I've written earlier, I think worries about risks such as competition are overdone. So, let's focus on why Teladoc is a stock to buy now. Of course, recent declines offer a buying opportunity when it comes to price. The provider of virtual medical visits today trades at less than five times sales. That's down from 24 early last year.
But what I really like about Teladoc are the company's prospects. Teladoc aims to reach more than $4 billion in revenue in 2024. That's through growth in members and in revenue per member. Teladoc already has shown that it can grow both. And Teladoc also is gaining ground in the key area of chronic care. About 4 out of 10 adults in the U.S. suffer from two or more chronic conditions. Teladoc said in its latest earnings report that the percentage of its chronic care members enrolled in multiple programs has doubled year over year.
Teladoc's revenue soared in the early days of the pandemic when people favored staying home. But it's continued to grow in the double digits in recent times. And that's evidence that the popularity of telemedicine wasn't a temporary pandemic thing. Instead, it's here to stay.
The bad news for AbbVie (ABBV -0.55%) is that competition for its star immunosuppressive drug Humira is on the horizon. The drug that generated $20 billion in 2021 could see rivals take market share as soon as next year. But there's also plenty of good news ahead. AbbVie expects its two other immunology drugs, Rinvoq and Skyrizi, together to bring in even more revenue than Humira at its peak. Right now, the company is working on adding indications for both of those drugs.
And AbbVie's story isn't only about immunology. The company has about 20 other key products in a range of indications including oncology, aesthetics, neuroscience, and eye care. Together, these products helped AbbVie generate more than $56 billion in revenue last year. That's an increase of about 22% year over year. And AbbVie has about 60 candidates in the pipeline -- some involved in trials for multiple indications. AbbVie is set to become the top pharma company by prescription drug market share by 2026, according to Evaluate Pharma.
AbbVie trades for about 11 times forward earnings. That looks cheap compared to the average of about 24 for the healthcare industry. Considering the growth ahead, AbbVie makes an ideal stock to add to your basket of long-term pharmaceutical winners.