July kicks off the latter half of 2025, and the first six months of this year have been eventful, to say the least.
Yet, the broader market is once again near all-time highs, a testament to the benefits of being an optimist with patience on Wall Street. However, that doesn't mean that there aren't opportunities. In the stock market, there's always a deal somewhere.
Two growth stocks in the healthcare industry stand out in particular.
Here is what you need to know about each one and why investors should consider buying them hand over fist in July.
Image source: Getty Images.
This pharmaceutical giant could soon take first place in the red-hot weight loss drug market
GLP-1 agonists, a type of drug used to treat diabetes and weight loss, could be the hottest growth story in healthcare today. Experts at Morgan Stanley estimate that the market could grow to a $150 billion opportunity over the next decade, representing a tenfold increase from its sales last year. Eli Lilly (LLY 1.65%) has captured approximately 35% of the GLP-1 market, alongside arch-rival Novo Nordisk, the current market leader at 65%.
However, Eli Lilly could gain on, perhaps even surpass, its rival over the coming years. The company has two potential game-changers on the way. First is Orforglipron, an oral GLP-1 pill and the first oral small-molecule GLP-1 to pass a phase 3 study. It's significant because patients may prefer a pill to an injection, which the current leading GLP-1 drugs are, and its small-molecule structure could make it easier and cheaper to produce.
NYSE: LLY
Key Data Points
Additionally, Eli Lilly is developing Retatrutide as the successor to Tirzepatide, the active drug in Mounjaro and Zepbound. Retatrutide is also in phase 3 studies, and thus far, its ability to target multiple hormones has shown significant efficacy potential. Across the aisle, Novo Nordisk is developing CagriSema, its successor to Semaglutide, the active drug in Ozempic and Wegovy. However, CagriSema has struggled to outperform its predecessor, which has worried investors and weighed on Novo Nordisk's share price.
These shifting tides in the weight loss landscape have analysts anticipating big things from Eli Lilly, including 32% annualized earnings growth over the long term. Eli Lilly's price-to-earnings (P/E) ratio is a bit steep at nearly 65. That said, the anticipated growth is sufficient to justify purchasing this winning weight loss stock, as these new drugs, barring any unexpected clinical failures, arrive on the market over the next couple of years.
This gene-editing company finally looks ready to deliver on its potential
Gene editing has been the stuff of movies and science fiction for years, but it's a very real technology. CRISPR Therapeutics (CRSP 0.95%) has been developing CRISPR-based therapies to cure or treat various health conditions and diseases since 2013. The stock has bounced around for years as a pre-revenue company, but that is starting to change.
CRISPR Therapeutics has begun ramping up commercialization efforts for Casgevy, a therapy developed in a joint venture with Vertex Pharmaceuticals, for the treatment of sickle cell disease and beta-thalassemia. It works by modifying the blood-forming stem cells in patients to produce healthy blood cells. It is the first treatment utilizing a novel genome editing technology to receive regulatory approval from the U.S. Food and Drug Administration.
NASDAQ: CRSP
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It could be a sign of what's to come. CRISPR Therapeutics currently has five additional therapies in clinical trials. Failure is common in this business, but it only takes a home run or two to transform a company like CRISPR Therapeutics, with an enterprise value of just $2.2 billion, into a massive company and a highly lucrative stock for investors.
The stock offers high-end long-term upside but trades at a reasonable price today. Analysts expect the company to achieve $173 million in revenue next year, which is less than 13 times its current enterprise value. Again, that's next year's revenue, so it's hard to say the stock is cheap. Still, CRISPR Therapeutics remains well funded with $1.8 billion in cash, so investors can afford to be patient, given the potential upside if the company succeeds in bringing more therapies to market.
