Top Investment Picks for Early 2025's Stock Market
It's a fresh start in 2025, and what better time to stock up on investments that could skyrocket your portfolio in the coming years? The healthcare sector is an excellent place to find these gems, offering both growth and security. You'll discover up-and-coming biotechs pioneering groundbreaking tech, as well as established pharmaceutical and medical device giants providing blockbuster drugs and dependable dividends.
The key to a successful investment portfolio lies in selecting quality companies and diversifying across themes like growth and security. A well-balanced selection of these types of businesses ensures your portfolio will thrive in any market environment and provide robust returns over the long term — that is, at least five years. So, without further ado, let's dive into my top five stocks to buy now, in this exciting year of 2025.
1. Pfizer
Pfizer (PFE 1.75%) has caught our eye due to its impressive coronavirus offerings and a collection of blockbuster drugs. But, as the demand for coronavirus vaccines and treatments plummets and some of Pfizer's older blockbusters lose their exclusivity, what appears to be a stumbling block could turn out to be an opportunity. Pfizer's strategic focus on launching an unprecedented number of new products and its commitment to enhancing its oncology division provides it with a considerable boost, positioning it for another era of growth.
Pfizer aims to deliver at least eight oncology blockbusters by 2030, potentially generating billions of dollars in revenue. This makes the stock, currently trading at a modest 9 times forward earnings estimates, a lucrative investment opportunity for value-conscious investors.
2. Eli Lilly
Eli Lilly (LLY 1.61%) shines with its diverse range of drugs that cater to various treatment areas. However, its weight loss drugs, including Tirzepatide, approved for both weight loss and type 2 diabetes under the names Zepbound and Mounjaro, have played a significant role in driving growth.
Despite surpassing medical demand since their launch, Lilly's phenomenal manufacturing investments through the years have equipped the company to fully address market demands. Market analysts predict the obesity drug market could reach a staggering $100 billion by decade's end, exemplifying the market potential Lilly is poised to tap into.
3. Abbott Laboratories
Abbott Laboratories (ABT 4.53%) is a secure healthcare investment due to its diversified presence across four businesses – medical devices, diagnostics, nutrition, and pharmaceuticals. The flexibility of having different business units allows for stability, as one can offset any potential losses from another, as demonstrated by the impact of declining coronavirus testing on Abbott's diagnostics division.
In addition, Abbott maintains an impressive record of dividend growth, being categorized as a Dividend King – a company that has increased its dividend payment for a minimum of 50 years straight. With $6 billion in free cash flow on hand, Abbott remains committed to rewarding its shareholders and continuing its dividend growth.
4. Intuitive Surgical
Intuitive Surgical (ISRG -0.41%) leads the way in robotic surgery, giving it a substantial edge in the healthcare sector. This dominance is partly due to surgeons being trained mainly on Intuitive's da Vinci robot, making it the technology of choice for them. Moreover, hospitals that invest in da Vinci systems are likely to stick with them to recoup their investment.
A unique characteristic of Intuitive is its recurring revenue structure, earning a significant portion of its revenue by selling the instruments and accessories needed for each da Vinci procedure. This model reaps consistent income for the company as each surgical robot sale propels regular revenue over time.
5. CRISPR Therapeutics
CRISPR Therapeutics (CRSP -0.04%) stormed onto the scene with its gene-editing treatment Casgrevy, designed to address blood disorders. While sales skyrocketed following its introduction, the market hit a roadblock upon the product's launch, causing share values to tumble.
However, this could be a window of opportunity to enter the market at a lower price as new growth opportunities loom. With Casgrevy expected to spark revenue and a full pipeline of promising gene-editing candidates, blessed by the same technology utilized in this approved product, CRISPR Therapeutics could soon emerge as an absolute game-changer for investors.
These five healthcare stocks are primed for long-term success, boasting diversified business models, robust financial performance, and promising growth prospects. It's time to seize the opportunity by investing wisely in this remarkable year of 2025.
Incorporating more investments into your portfolio in 2025, consider focusing on the finance sector. With companies like Pfizer, they not only have blockbuster drugs but also a strategic focus on new product launches and oncology division growth, making it a potential profit generator for value-conscious investors.
When investing in finance, it's crucial to consider companies with a diversified presence to ensure stability and growth, such as Abbott Laboratories, which has profitable divisions in medical devices, diagnostics, nutrition, and pharmaceuticals.
