Two Outstanding Shares Worth Investing in, Approaching Their Yearly Low Points
In the world of investing, some folks believe the real profit lies in purchasing a stock, not in selling it. The reasoning behind this notion is simple: acquiring the right stock at the right moment, and holding onto it for a while, can lead to stellar returns. So, when a company is nearing its 52-week low, it's not a signal to steer clear – it might be the perfect time to dive in, especially if there are persuasive reasons to anticipate a comeback.
Let's take a gander at two such companies currently crawling near their 52-week lows, yet still brimming with potential: CRISPR Therapeutics and Amgen.
1. CRISPR Therapeutics
CRISPR Therapeutics is a mid-stage biotech specializing in genome editing. Although it has just one product, Casgevy, in the market, treating rare blood disorders like beta-thalassemia and sickle cell disease, it managed to make history as the first gene-editing treatment using the Nobel Prize-winning CRISPR technique.
Notably, Casgevy isn't generating revenue yet, but there are plenty of promising aspects to consider. For starters, the market for this gene-editing treatment is virtually untapped with little competition, providing ample room for growth. Second, Casgevy's potential market is enormous, with a target population of at least 58,000 patients and a given price of $2.2 million in the US. Also, the therapy should rake in over $1 billion in sales at its peak.
CRISPR's pipeline boasts several promising candidates, with CTX112 earning the Regenerative Medicine Advanced Therapy (RMAT) designation from the US Food and Drug Administration (FDA). This rare recognition goes to investigational medicines targeting severe or life-threatening illnesses and showing early signs of efficacy, accelerating the development process. If CRISPR's pipeline programs deliver and sales for Casgevy leap forward, the stock price might soar.
That being said, it's worth noting that biotech companies, especially smaller ones like CRISPR, often face the risk of their research and development efforts failing. However, for those willing to take the leap, the potential rewards are substantial.
2. Amgen
Amgen's stock has been struggling as a consequence of MariTide, its leading weight loss candidate, underperforming during a mid-stage study. But recently, the stock managed to rebound slightly, as it's still far from its 52-week low. Although MariTide didn't exceed expectations, it still led to a 20% weight loss after 52 weeks with no plateau observed. Amgen still requires phase 3 studies to confirm MariTide's efficacy, but if the trials yield positive results, the treatment could garner a modest foothold in the growing weight loss market.
But Amgen has more advantages. Its financial performance remains robust, with a 23% year-over-year revenue growth to $8.5 billion, and its Tepezza sales are rising quickly. The product, the only treatment for thyroid eye disease approved by the FDA, will likely see label expansions due to a successful phase 3 study. From a long-term perspective, Amgen is an excellent choice for income-seeking investors, with a forward yield of 3.63% in comparison to the S&P 500's 1.27%.
In conclusion, while both CRISPR Therapeutics and Amgen are currently trading near their 52-week lows, their strong financial positions, promising pipelines, and strategic partnerships put them in a favorable position for potential growth and investment opportunities, even amidst market challenges and regulatory hurdles.
- Given the current situation of CRISPR Therapeutics, now might be an opportune moment for investors to put their money into this mid-stage biotech company. Its unique offering, Casgevy, though not yet generating revenue, has a virtually untapped market with ample room for growth and a huge potential patient population.
- Amgen's stock may have seen a dip due to MariTide's underperformance, but its robust financial performance and successful products like Tepezza, along with promising phase 3 studies, make it an attractive investment opportunity for income-seeking investors, despite the challenges in the weight loss market.