Are you reluctant to invest in stocks right now? That’s understandable. Fear, uncertainty, and doubt have become the norm in early 2025 with rising stock market volatility.
However, three Fool.com contributors think there are some unstoppable stocks you can buy right now without any hesitation. Here’s why they like Eli Lilly (LLY 1.48%), Novo Nordisk (NVO 1.66%), and Vertex Pharmaceuticals (VRTX 0.37%).
Eli Lilly is a growth beast with plenty of upside
David Jagielski (Eli Lilly): A top pharma stock that I wouldn’t hesitate to buy right now and hold for years is Eli Lilly. There is no shortage of reasons to be bullish on the stock, as it looks poised to eventually become the first healthcare company to top a $1 trillion valuation. It’s simply that unstoppable.
Many investors are bullish on the business because of its highly popular GLP-1 drugs, Mounjaro (approved for diabetes) and Zepbound (approved for weight loss). These drugs are already generating billions in sales and were a key reason the company reported 45% revenue growth in its most recent quarter, which ended on Dec. 31, 2024. But the company’s growth opportunities are even broader than that, as it also has an approved Alzheimer’s treatment in Kisunla, which can also rake in billions in the future.
Eli Lilly’s profits doubled last year to $10.6 billion, so it’s little wonder why it increased its dividend yet again by 15% — the seventh straight time it has done so. Not only is the business a growth machine, but its payouts have also soared. Its current quarterly dividend of $1.50 is double what it was paying its shareholders back in 2020.
What may dissuade some investors from loading up on the pharma stock today is that it appears expensive, trading at 70 times its trailing earnings. That may seem steep but when you look at its modest price-to-earnings-growth (PEG) multiple of 1.2, it is a much more attractive option for long-term investors. PEG multiples of around 1 or less indicate good value for growth stocks. And if you’re looking for a stock you can buy and hold, Eli Lilly is a great option to consider right now.
Buy the dip on this innovative pharma stock
Prosper Junior Bakiny (Novo Nordisk): It might come as a surprise to some, but the famed drugmaker Novo Nordisk is not far from its 52-week low.
Recent market volatility contributed to its poor performance, but the pharmaceutical giant’s issues predate recent macroeconomic developments. Novo Nordisk has faced clinical setbacks and financial results, which, while excellent for almost any other similarly sized peers, weren’t quite up to par considering investors’ high expectations for the Denmark-based company. Despite all that, Novo Nordisk remains an excellent stock to buy, at least for investors thinking long term.
One reason is the company’s best-known product, semaglutide, sold under the brands Wegovy and Ozempic. This compound is still undergoing several clinical trials that could add important label expansions. Two of these potential indications, Alzheimer’s disease and metabolic dysfunction-associated steatohepatitis, look particularly promising since these are areas with high unmet needs and few approved medicines. Beyond semaglutide, Novo Nordisk is developing other drugs in its core areas of diabetes and weight loss.
The company’s pipeline features several promising compounds, including Amycretin. Novo Nordisk’s significant experience in developing therapies in these fields should allow it to remain one of the leaders. It has, after all, dominated the diabetes drug market for decades. Further, the company is branching into even more areas, with candidates that target such rare conditions as sickle cell disease and beta-thalassemia.
Novo Nordisk’s current lineup can still drive strong results, especially as it earns label expansions for its key growth drivers. Considering Novo Nordisk’s pipeline and proven innovative abilities, the future looks equally bright. So, despite recent setbacks, Novo Nordisk remains a no-brainer stock for pharmaceutical investors.
A company that’s helping patients (and investors) breathe easier
Keith Speights (Vertex Pharmaceuticals): Only five drugs are approved to treat the underlying cause of cystic fibrosis (CF), a rare genetic disease that affects the lungs and other organs. Vertex Pharmaceuticals markets all of them. But this big drugmaker isn’t just helping CF patients with breathing problems; it’s helping investors breathe easier, too.
While the overall stock market has fallen significantly so far this year, Vertex’s shares have soared. I think one reason for this outperformance is that many investors recognize how resilient the company’s business is. Even if a full-blown trade war erupts that leads to a global recession, Vertex’s therapies will still enjoy strong demand.
Another reason behind Vertex’s recent gains, though, is that the biotech company now has three promising new products on the market. Casgevy, the first approved CRISPR gene-editing therapy, is picking up momentum in treating sickle cell disease and transfusion-dependent beta-thalassemia. The U.S. Food and Drug Administration (FDA) approved CF drug Alyftrek in December 2024. Vertex also won FDA approval in January for Journavx, a non-opioid targeting acute pain.
I’m especially optimistic about the commercial prospects for Journavx. It’s the first new class of pain medication approved in over two decades. Vertex is already making great progress with payers in adding Journavx to their formularies and with retail pharmacies in stocking the new drug.
I predict that Casgevy, Alyftrek, and Journavx will all become blockbuster drugs for Vertex. The company could have other big winners on the way, too. Its pipeline features four late-stage programs, including a potential cure for severe type 1 diabetes.
