2 Top Growth Stocks That Could Get You Rich In March (And Beyond)


IIt’s easy to get caught up in market volatility. And it is normal for the wild fluctuations in the price of the securities to tempt you to get into trading. But that can also be risky, because this strategy requires you to know almost certainly if and when a stock is going to go up or down in order to make money. A safer (and, in some opinion, easier) way to grow your capital over time is to sit back and do nothing – that is, after you’ve added stocks of great companies to your portfolio.

Two excellent stocks now worth buying are the biotech giant Vertex Pharmaceuticals (NASDAQ: VRTX) and tech juggernaut Facebook (NASDAQ: FB). Both are growth stocks, which means they are likely to grow their sales or profits faster than the industry average. I think everyone has what it takes to beat the market in the long run.

Image source: Getty Images

1. Vertex Pharmaceuticals

I think Vertex is a great stock pick for at least three reasons: its current lineup, its exciting pipeline, and its growing mountain of money. Vertex Pharma primarily markets products to treat the underlying causes of cystic fibrosis (CF), a rare disease that affects around 75,000 patients in North America, Europe and Australia.

Vertex Pharma currently has no competitors in this market and there are good reasons to believe that the company will be able to dominate this segment for at least half a decade. Vertex Pharma’s earliest patent expiry will be in 2025. The patent for the company’s flagship product – Trikafta, which can be used to treat 90% of CF patients – will not expire before 2037.

And while other drug manufacturers develop CF drugs, Vertex Pharma’s established dominance in the area, even if successful, will be a powerful weapon in maintaining its lead over would-be newbies. Second, Vertex Pharma has several exciting pipeline programs. Most notably, the company is developing CTX001 for the treatment of sickle cell anemia (SCD), a rare blood disease for which there are few treatment options.

Vertex Pharma is collaborating with on this gene editing treatment CRISPR therapeutics. CTX001 has shown promise in clinical studies. In a phase 1/2 clinical study, a CTX001-treated SCD patient did not experience a vaso-occlusive crisis (VOC) – a common side effect of SCD characterized by acute pain – nine months after treatment.

Prior to treatment, this patient experienced an average of seven such crises per year (on an annual basis based on the two years prior to treatment of the patient). These results are very encouraging, even if we still have a long way to go.

Third, Vertex Pharma’s free cash flow has grown 4,420% over the past five years to around $ 3 billion. Vertex Pharma could use its growing cash supply to secure new collaboration agreements with smaller biotechs with promising pipelines, or even to acquire another company entirely.

That gives biotechnology more options for a financially lucrative future. Thanks to all these factors, Vertex Pharma sees it able to outperform the market in the future.

2. Facebook

Facebook has seen some troubles in recent years – the company’s stance on political advertising and hate speech has had its share of critics, to say the least. Facebook’s image has suffered due to these (and other) issues, but the future of its core business looks bright nonetheless.

The tech giant benefits from a competitive advantage called the network effect. This means that the value of the service has increased as more and more people use it. Facebook has more than 3 billion users on its suite of social media websites and apps, which include the website of the same name, Facebook Messenger, Instagram, and WhatsApp.

From his 2020 fourth quarter which ended on December 31, the company had 3.3 billion monthly active users, an increase of 14% over the previous year. Companies looking to reach large customers with targeted ads will continue to flock to the Facebook ecosystem, and the tech giant will attract even more advertisers as the number of users on its platform continues to grow.

Social media thumbs up.

Image source: Getty Images.

Facebook also benefits from an enormous level of brand awareness. According to Statista, the company’s main page was the third most popular in the world for monthly visits last year. Instagram was in the top 10 while WhatsApp was in the top 20.

It is likely that over 50% of the world’s population will visit one of Facebook’s apps (or websites) at least once a month for the next five years. Meanwhile, Facebook is still in the early stages of monetizing WhatsApp, which means that along with the billions (and growing) in revenue it generates each year from ads on Facebook.com, the company is nowhere near a plateau is.

Facebook posted revenue of around $ 86 billion last year, an increase of 22% over the previous year. And according to Wall Street, the Silicon Valley tech company will grow sales an average of 21.5% per year over the next five years. Increasing sales and profits as well as a strong competitive advantage should help Facebook shares continue to generate market-leading returns for the foreseeable future.

10 stocks we like better than Vertex Pharmaceuticals
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Randi Zuckerberg, former director of market development and spokesperson for Facebook and sister of CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Prosper Junior Bakiny owns shares of Facebook and Vertex Pharmaceuticals. The Motley Fool owns shares of and recommends CRISPR Therapeutics and Facebook. The Motley Fool recommends Vertex Pharmaceuticals. The Motley Fool has one Confidentiality Policy.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.

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