No one knows what the market will do in 2024, but discovering fantastic stocks that can last doesn't have to be hard. Strong financial footing, big and growing addressable markets, and large moats help great organizations survive in many economic circumstances. You wish to buy and add to those firms over time. Thus, if you have $1,000 to invest in stocks now, examine these two great companies.
1. UnitedHealth Group UnitedHealth Group (NYSE: UNH) is one of the world's major healthcare organizations, serving providers and consumers' full range of needs. Company has two main business segments.
UnitedHealthcare sells insurance to organizations and people worldwide. Optum offers in-person and in-home healthcare, software, consulting, analytics, pharmacy care, and more to consumers, care providers, and government bodies.
Due to the strength of its key business sectors, the company is profitable and rising revenue. UnitedHealth Group reported $372 billion in revenue and $32 billion in operating income in 2023, up 15% and 14%, respectively. In 2023, the company's operating cash flow was $29 billion and its return on equity was 27%. UnitedHealth pays dividends consistently. It yields 1.6%, like the average S&P 500 stock. The corporation has paid dividends for 35 years, increasing 400% in the past decade.
UnitedHealth Group holds 15% of the U.S. health insurance market. That space is expected to be worth $2.5 trillion by 2030. With its presence in almost every facet of healthcare, this company has lots of space to grow.
2. Vertex Pharma Vertex Pharmaceuticals (NASDAQ: VRTX) is having a great 2024, and it's only the first quarter. Due to its successful cystic fibrosis medicine franchise, the company has enjoyed continuous sales growth and profitability. The business has long been the only one with pharmaceuticals to treat cystic fibrosis's fundamental cause, helping it dominate the market and revolutionize the disease's treatment.
Vertex earned 90% of its income in 2023 from Trikafta, its best-selling medicine. Although patent protection on that product lasts over a decade, Vertex is focusing on fresh product introductions that could lead to its next growth phase. It just received approval for Casgevy, a gene-editing medicine with blockbuster potential, with CRISPR Therapeutics.
Casgevy, licensed in the U.S., U.K., and EU, may cure transfusion-dependent beta-thalassemia and sickle cell disease once. Since the gene-editing medicine would cost $2.2 million per treatment, Vertex has been working with private and public payers worldwide to secure patient access. Each patient's cells are taken, altered, and reinfused to make the right amount of fetal hemoglobin, which takes time.
Other late-stage candidates in the company's pipeline have blockbuster potential. VX-548, a non-opioid for acute pain, and a new triple combination therapy for cystic fibrosis are the two. Vertex aims to offer five additional products by 2028. The first two Casgevy approvals were for transfusion-dependent beta-thalassemia and sickle cell disease, and these other two would follow.
Much to enjoy about this company's direction. Vertex's focus on underserved rare illness therapeutic markets with few promising treatment choices affords it growth potential as it builds on its existing footprint. It may be time to reconsider this stock.
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