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 (LLY +2.37%), Novo Nordisk (NVO +1.29%), and Vertex Pharmaceuticals (VRTX +3.08%).
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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.
NYSE: LLY
Key Data Points
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.
NYSE: NVO
Key Data Points
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.
NASDAQ: VRTX
Key Data Points
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.
