A stock that runs up 1,000% can really increase your net worth.
Suppose you invest in all three of these healthcare companies, and two of them go belly up. But one of them increases 1,000%. Even though your accuracy is horrible (you're wrong about 66% of them), that one winner means that your overall portfolio has tripled in value. One big winner can make up for a lot of bad picks.
A sleeping giant
George Budwell (Intellia Therapeutics): If you're on the hunt for a stock that can produce life-changing gains over the next five years, the beaten-down biotech industry is definitely a good place to start your search. In particular, the cadre of next-generation gene-editing companies -- a field that has only recently started to yield significant amounts of human clinical trial data -- could be set to go on an explosive run in the not-so-distant future. That being said, there will almost certainly be a major disparity in share price appreciation between the best-in-class gene-editing companies and the second-tier players in the space.
Which gene-editing company could be the biggest winner? While it is still far too early to make any concrete predictions on this front, Intellia Therapeutics, a CRISPR-based
The feel-good healthcare choice
Patrick Bafuma (TransMedics): When it comes to looking for 10x potential over the next five years, TransMedics makes the shortlist. The organ transplantation company is filling a much-needed void in organ transplant transportation, sales growth is strong, and there is optionality into adjacent markets. Put it together, and this $800 million healthcare company is a strong candidate to become a 10-bagger.
TransMedics makes an Organ Care System (OCS) that can transport a variety of organs for transplant, such as the heart, lungs, and liver. Whereas the other systems on the market are specialized to an individual organ, with the TransMedics solution, one machine can transport different types of organs. This makes it the only FDA-approved multi-organ platform. Not only that, but this healthcare company's OCS device roughly triples the number of organs that can be appropriately transplanted while reducing complication rates by roughly half.
Since its first FDA approval in 2018 for lung transplant transportation, TransMedics has racked up positive data across multiple organs. It recently raised fiscal year 2022 revenue guidance from $49 million to $55 million to $59 million to $65 million. This represents an impressive 95% to 115% growth compared to the company's prior-year net revenue. The good times may continue, as TransMedics believes the total addressable market to be over $8 billion combined for OCS for heart, lung, and liver combined. Add in the possibility of bringing in its own surgeons to perform organ retrieval, as well as actual transportation and logistics from one hospital to the next, and there is significant optionality for this small-cap healthcare company.