NVO

Novo Nordisk A/S

102.55
USD
2.93%
102.55
USD
2.93%
91.51 122.16
52 weeks
52 weeks

Mkt Cap 181.78B

Shares Out 1.77B

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3 Stocks to Buy and Hold Forever

Buy and hold. It's an easy strategy to understand. But it's a really hard one to consistently follow for many investors. However, with the right stocks, the approach can generate tremendous long-term returns. Three Motley Fool contributors have identified stocks to buy and hold forever. Here's why they chose Eli Lilly (NYSE: LLY), Novo Nordisk (NYSE: NVO), and Vertex Pharmaceuticals (NASDAQ: VRTX). A solid business with strong growth potential David Jagielski (Eli Lilly): If you're planning to hold a stock forever, then you need to be comfortable with its growth potential. And that's exactly why Eli Lilly belongs on this list. The company not only has many top drugs in its portfolio today, but it also has a promising future that could drive revenue for the business for years to come. The company recently released its second-quarter results. Multiple drugs generated growth of at least 25% or more. The list includes Lilly's top-selling diabetes medication, Trulicity. Through the first six months of the year, the company's total sales increased by 6% year over year and operating profits jumped by 41%. Eli Lilly's stability is a key reason why it has been a safe stock to hold this year -- it's up close to 10% while the S&P 500 has nosedived more than 10%. But what investors should be most bullish about is Lilly's future. The U.S. Food and Drug Administration (FDA) recently issued two key approvals for the company: Olumiant (baricitinib) for treatment of alopecia areata (patchy hair loss) and Mounjaro for treating diabetes. In addition, four other of Lilly's candidates are under regulatory review, including experimental Alzheimer's disease drug donanemab, which is among the company's most promising experimental therapies. Lilly also has another 20-plus trials ongoing that are in phase 3. Lilly's strong financials can help accelerate its business prospects even further. The company is highly profitable, with profit margins of around 20% of revenue. That's important because it allows Lilly to be able to use those profits and reinvest in its business over time or pursue acquisitions. Those strong fundamentals should give investors confidence that this is a safe stock to invest in for the long haul. A storied past and a promising future Prosper Junior Bakiny (Novo Nordisk): Drugmakers like Novo Nordisk have a distinct advantage in staying relevant in challenging economic times and over the long run. Whereas many industries can fall out of favor as time goes by, lifesaving medicines will remain in high demand. Still, to remain profitable, Novo Nordisk will have to continue innovating. There is ample evidence that the Denmark-based pharma giant can do that. Novo Nordisk has been a leader in the market for diabetes drugs for a long time. As of May, it held a 31% share of this market, an increase of 1.4% compared to May 2021. And Novo Nordisk executive Camilla Sylvest said on the company's second-quarter earnings call that its market share in GLP-1 (glucagon-like peptide-1) diabetes drugs tops 61%. Novo Nordisk has also delivered superior market returns over the past several decades, partly thanks to its strong position in diabetes care. There are excellent reasons to think it can continue down that path as it boasts several promising candidates in its main therapeutic area. The company recently announced solid results from a clinical trial for icodec, a potential once-weekly insulin product for type 2 diabetes. Patients typically take insulin daily. A once-a-week option could make their lives substantially easier. Novo Nordisk's prospects in this field look even brighter, considering researchers have projected that the percentage of the population with diabetes will rise rapidly in the coming decades. This unfortunate fact emphasizes the need for innovation in diabetes care, and Novo Nordisk is arguably at the forefront of that. Meanwhile, the company has sought to increase its presence in other therapeutic areas. It is currently running eight late-stage studies targeting Alzheimer's, hemophilia, and other indications not related to diabetes or obesity. All these things (and more) point to an exciting future for this top drugmaker. A game-changing big biotech Keith Speights (Vertex Pharmaceuticals): It's no exaggeration to say that Vertex Pharmaceuticals has been a game changer for thousands of cystic fibrosis (CF) patients across the world. The company's CF drugs are the only ones approved to treat the underlying genetic I think this biotech stock can be a game changer for investors who buy and hold as well. Vertex is already trouncing the broader market in 2022 thanks in large part to its strong revenue and earnings growth. But the company has a lot more growth likely on the way. As a case in point, Vertex and CRISPR Therapeutics expect to file for regulatory approvals in Europe by year-end for exa-cel. The companies are in discussions with the FDA about regulatory submissions. Exa-cel holds the potential to provide a one-time cure for patients with two rare blood disorders, sickle cell disease and transfusion-dependent beta-thalassemia. Vertex also has two other promising programs that are either already in or soon will be in late-stage development. Inaxaplin (VX-147) targets APOL1-mediated kidney disease. This indication has a bigger patient population than CF does. The company is branching out beyond genetic diseases with VX-548, a non-opioid treatment for acute pain. Don't overlook Vertex's early-stage type 1 diabetes program, though. The company believes that it will eventually be able to cure the disease that impacts close to 2 million Americans. Last, but not least, Vertex still has opportunities in CF. Currently, a little over half of the estimated 83,000 patients with CF benefit from the company's therapies. Vertex expects to significantly increase its market share over the next few years by securing additional reimbursement deals and winning new regulatory approvals. It's also developing a new gene-editing therapy that could treat the 5% of CF patients who can't benefit from its current drugs. 10 stocks we like better than Vertex Pharmaceuticals When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and Vertex Pharmaceuticals wasn't one of them! That's right -- they think these 10 stocks are even better buys. *Stock Advisor returns as of July 27, 2022 David Jagielski has no position in any of the stocks mentioned. Keith Speights has positions in Vertex Pharmaceuticals. Prosper Junior Bakiny has positions in Vertex Pharmaceuticals. The Motley Fool has positions in and recommends CRISPR Therapeutics and Vertex Pharmaceuticals. The Motley Fool recommends Novo Nordisk. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Today’s Big Picture Asia-Pacific equity indexes ended today’s session down across the board. India’s Sensex ended the day essentially flat, down 0.06%, China’s Shanghai Composite and Australia’s ASX All Ordinaries declined 0.54% and 0.55%, respectively while Japan’s Nikkei fell 0.65%, Taiwan’s TAIEX dropped 0.74% and South Korea’s KOSPI declined 0.90%. Hong Kong’s Hang Seng led the way, down 1.96% on a broad selloff led by Health Technology and Health Services names while Transportation and Communications sectors provided the only relief. By mid-day trading, major European equity indices are down across the board and U.S. futures point to a positive open later this morning. At 8:30 AM ET, the much anticipated July Consumer Price Index (CPI) report was released: The headline figure for the month was expected to fall to 8.7% from June’s blistering 9.1% reading with core CPI that excludes food and energy ticking higher to 6.1% in July vs. 6.0% the prior month. The actual numbers show that inflation hit 8.5%, and core inflation was 5.9%. With the national average retail price for a gallon of gas falling through late June and July from its June 14 high of $5.016 per gallon per data from AAA, forecasters had expected the month over month decline in the headline CPI for July. The July Employment Report also showed wage inflation ran hotter than expected during the month. Let’s also keep in mind that we will be facing a “wash, rinse, repeat” cycle when it comes to inflation data and expectations for the Fed given tomorrow’s July Producer Price Index report. Data Download International Economy Producer prices in Japan rose by 8.6% YoY in July, compared with market forecasts of 8.4% and following an upwardly revised 9.4% the prior month. While marking the 17th straight month of producer inflation, the latest reading was the softest since last December. China's annual inflation rate rose to 2.7% in July from 2.5% in June and compared with market forecasts of 2.9% but even so the July figure marked the highest reading in the last year. The country’s Producer Price Inflation figure for July eased to a 17-month low of 4.2% YoY from 6.1% the prior month and less than the market consensus of 4.8%. Annual inflation rate in Germany was confirmed at 7.5% YoY for the month of July, down slightly from June’s 7.6% reading but still above the March and April figures of 7.3%-7.4%. The annual inflation rate in Italy slowed to 7.9% YoY in July from June’s 8% reading matching expectations for the month. While energy prices declined, prices for food and transportation rose at a faster pace. Domestic Economy This morning we have the usual Wednesday weekly reports for MBA Mortgage Applications and Crude Oil Inventories from the U.S. Energy Information Administration. At 10 AM ET, Wholesale Inventories for June will be published, and the figure is expected to rise 1.9%. While investors and economists will keep more than a passing interest in those reports and data, as we discussed above, it will be the July Consumer Price Index report at 8:30 AM ET that will shape not only how the US stock market opens today, but also expectations for the Fed’s next course of monetary policy action. The U.S. Energy Information Administration (EIA) expects domestic production of crude oil, natural gas and coal will all increase next year compared with this year. It forecast US crude production rising 6.7% to an all-time annual high 12.7M bbl/day in 2023 from 11.9M bbl/day in 2022, US natural gas output climbing to 100B cubic feet (cf)/day from 97B cf/day, and US coal production inching up to 601M short tons in 2023 from an expected 599M this year. The EIA also modestly increased its 2022 average nationwide gasoline price forecast to $4.07/GALLON vs. $4.05 if called for last month. It now also sees 2023 prices at $3.59/GAL vs. its previous forecast of $3.57. Markets Stocks continued in their holding pattern waiting for the latest CPI print save for some fundamental stories pushing Technology names and small caps around. The Dow and the S&P 500 were down slightly at 0.18% and 0.42%, respectively while the Nasdaq Composite dropped 1.19% and the Russell 2000 closed down 1.46% on the day. Energy names led the way yesterday but were overpowered by Technology and Consumer Discretionary sectors. Here’s how the major market indicators stack up year-to-date: Dow Jones Industrial Average: -9.81% S&P 500: -13.51% Nasdaq Composite: -20.14% Russell 2000: -15.83% Bitcoin (BTC-USD): -52.08% Ether (ETH-USD): -55.38% Stocks to Watch Before trading kicks off, CyberArk (CYBR), Fox Corp. (FOXA), Jack in the Box (JACK), Nomad Foods (NOMD), Vita Coco (COCO), Tufin Software (TUFN), and Wendy’s (WEN) will be among the companies issuing their latest quarterly results and guidance. At 9 AM ET, Samsung (SSNLF) will hold its Galaxy Unpacked 2022 at which it is expected to introduce new Galaxy foldable smartphone models, a new Galaxy Watch, and Galaxy Buds. Shares of advertising technology platform company The Trade Desk (TTD) jumped after the company reported quarterly results that topped expectations and guided current quarter revenue above the consensus forecast. The RealReal (REAL) reported a smaller than expected bottom line loss for its June quarter as revenue for the period rose 47.2% YoY to %154.44 million, topping the $153.99 million consensus. However, the company issued downside guidance for both the current quarter and 2022. Revenue for the September quarter is now expected to be $145-$155 million vs. the $164.3 million consensus; for the full year of 2022, revenue is forecasted to be $615-$635 million vs. the $653.7 million consensus. Shares of Coinbase Global (COIN) moved lower after it reported June quarter results that missed top and bottom line expectations. Revenue for the quarter fell 63.7% YoY as Total trading volume fell 53.0% YoY and 29.8% sequentially to $217 billion. Monthly Transacting Users (MTUs) grew 2.3% YoY but fell 2.2% sequentially to 9.0 million. For the current quarter, Coinbase sees the number of MTUs trending lower sequentially and total trading volume to be lower compared to the June quarter. Shares of Sweetgreen (SG) tumbled in aftermarket trading last night after the company missed quarterly revenue expectations, lowered its 2022 forecast, announced it will lay off 5% of its workforce, and downsize to smaller offices. ChipMOS TECHNOLOGIES (IMOS) reported its July revenue was $65.1 million, a decrease of 19.4% YoY and down 7.7% MoM. Taiwan Semiconductor (TSM) reported its July revenue increased 49.9% YoY to NT$186.76 billion, which equates to a 6.2% MoM improvement. Electric vehicle subscription startup Autonomy placed a $1.2 billion order for 23K electric vehicles with 17 global automakers, including BMW (BMWYY), Canoo (GOEV), Fisker (FSR), Ford (F), General Motors (GM), Hyundai (HYMTF), Lucid Group (LCID), Mercedes-Benz (DDAIF), Polestar (PSNY), Rivian (RIVN), Stellantis (STLA), Subaru (FUJHY), Tesla (TSLA), Toyota Motor (TM), VinFast, Volvo Car (VLVOF) and Volkswagen (VLKAF). IPOs As of now, no IPOs are slated to be priced this week. Readers looking to dig more into the upcoming IPO calendar should visit Nasdaq’s Latest & Upcoming IPOs page. After Today’s Market Close Bumble (BMBL), CACI International (CACI), Coherent (COHR), Dutch Bros. (BROS), Red Robin Gourmet (RRGB), and Walt Disney (DIS) are expected to report their quarterly results after equities stop trading today. Those looking for more on which companies are reporting when, head on over to Nasdaq’s Earnings Calendar. On the Horizon Thursday, August 11 Germany: Thomson Reuters Ipsos Monthly Global Primary Consumer Sentiment Index - August US: Weekly Initial & Continuing Jobless Claims US: Producer Price Index – July US: Weekly EIA Natural Gas Inventories Friday, August 12 Japan: Thomson Reuters Ipsos Monthly Global Primary Consumer Sentiment Index - August China: China Thomson Reuters Ipsos Monthly Global Primary Consumer Sentiment Index - August Eurozone: Industrial Production - June US: Import/Export Prices – July US: University of Michigan Consumer Sentiment Index (Preliminary) – August Thought for the Day “The release date is just one day, but the record is forever.” ~ Bruce Springsteen Disclosures Tufin Software (TUFN), CyberArk (CYBR) are constituents of the Foxberry Tematica Research Cybersecurity & Data Privacy Index Canoo (GOEV), Fisker (FSR), Lucid Group (LCID), Rivian (RIVN), Tesla (TSLA), Vita Coco (COCO) are constituents of the Tematica BITA Cleaner Living Index Canoo (GOEV), Fisker (FSR), Lucid Group (LCID), Rivian (RIVN), Tesla (TSLA), Vita Coco (COCO) are constituents of the Tematica BITA Cleaner Living Sustainability Screened Index The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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