2 Growth Stocks to Hold for the Next Decade (Hint: These Aren’t AI Stocks)
These drugmakers are capitalizing on their pipeline successes.
When contemplating the most promising growth stocks for the next decade, it's wise to look beyond the AI sector. Two healthcare stocks that stand out are Axsome Therapeutics (AXSM) and Eli Lilly (LLY). Let's explore why.
Axsome Therapeutics is a biotech company focused on developing medicines for central nervous system conditions. Although not yet profitable, it has shown impressive sales growth. In Q2, revenue increased by 46% year-over-year to $218.4 million. The company's net loss per share slightly widened, but this is expected given its aggressive growth trajectory.
A key driver is its Auvelity drug, approved for depression and recently expanded to treat Alzheimer's agitation. With an aging population and high unmet needs, Auvelity's sales prospects appear promising. Additionally, Axsome has a robust pipeline with several promising Phase 3 programs and a product, AXS-12, already proven in Phase 3 studies for narcolepsy. This strong pipeline could sustain healthy top-line growth and profitability through 2036.
Eli Lilly is currently leading in weight loss and diabetes treatments. Its Mounjaro and Zepbound drugs have shown remarkable sales and earnings growth. In Q2, revenue rose 48% year-over-year to $23 billion, and non-GAAP net earnings per share increased 33% to $8.38. While competition looms in these markets, Lilly's pipeline offers hope.
Retatrutide, in particular, shows promise in obesity treatments and could benefit patients unresponsive to other therapies. Eloralintide, another weight loss candidate, may have fewer side effects. Beyond diabetes and weight loss, Lilly's diverse portfolio in oncology, immunology, and neuroscience could help it maintain its market dominance despite increasing competition.
Interestingly, despite its impressive performance, Eli Lilly's dividend yield is modest at 0.5%, but its dividend has surged by 103.5% over the past five years, indicating strong commitment to returning value to shareholders.
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