Key Points

• Novo Nordisk's shares look attractive after a terrible performance over the past 12 months.

• DexCom has significant room to grow in its core market, despite disappointing results last year.

One of Warren Buffett's famous pieces of investing advice is to be greedy when others are fearful. One way to apply this wisdom is to look for companies that have lagged the market recently but still appear to be excellent long-term investment opportunities.

Two great examples today in the healthcare sector are Novo Nordisk (NYSE: NVO) and DexCom (NASDAQ: DXCM). Although these two corporations have encountered significant headwinds since last year, they could deliver market-beating returns to investors who initiate positions today and stick with them for at least a decade.

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1. Novo Nordisk

Novo Nordisk is coming off clinical setbacks and unimpressive financial results, at least by its lofty standards. The stock has significantly underperformed the market over the trailing-12-month period. But after this beating, the company's shares look attractive. Here are several reasons why.

First, although Novo Nordisk's eternal rival, Eli Lilly, appears to be taking the lead in the fast-growing weight management market, the former still has excellent prospects in this rapidly expanding therapeutic area.

Novo Nordisk's Wegovy continues to grow its sales at a good clip, and the company is awaiting approval from the U.S. Food and Drug Administration for an oral formulation of this popular medicine. Further, Novo Nordisk has promising internally developed pipeline candidates, such as amycretin, which recently entered phase 3 studies.

The Denmark-based drugmaker has also enhanced its pipeline in this area, thanks to licensing deals and acquisitions.

Second, Novo Nordisk has been working on diversifying its lineup and currently has promising pipeline candidates outside of its core treatment areas of diabetes and obesity. Novo Nordisk is developing medicines for conditions including hemophilia, Parkinson's disease, sickle cell disease, Alzheimer's disease, and others.

Third, after being southbound for the past 12 months, Novo Nordisk's shares look reasonably valued. The company's forward price-to-earnings ratio is 16.8, compared to the 16.3 average for the healthcare industry. Novo Nordisk's financial results over the past year have been terrific by industry standards, but not quite what the market expected. That may have justified the sell-off, but at current levels, the stock looks attractive.

Finally, Novo Nordisk is a solid dividend-paying company. It has increased its annual dividend per share by almost 284% over the past decade, while offering a forward yield of 2.3%. That's not exceptional, but it's above the S&P 500 index's average of 1.3%. Novo Nordisk is well-positioned to bounce back and deliver strong returns in the next decade as it rides weight management (and other) tailwinds.

2. DexCom

DexCom is a leading diabetes-focused medical device company. It develops continuous glucose monitoring (CGM) systems that help diabetics with constant blood sugar level measurements. DexCom has been successful thanks to the increased adoption of this innovative technology. Unlike blood glucose meters that are manually operated, use pesky and painful fingersticks, and can only tell a person's sugar level at one point in time, CGM devices are constantly monitoring things and automatically make measurements as often as every five minutes.

Rrevenue and earnings have grown rapidly over the past decade, but the company hit a speed bump last year when its top-line growth slowed considerably, partly due to higher-than-expected rebates in the U.S., resulting in lower revenue per patient. That said, these are short-term issues that do little to impact the company's long-term prospects. And on that front, there are still plenty of reasons to be excited about DexCom's future.

Consider that the company has ample room to grow, even in the U.S., a country that enjoys higher CGM penetration than most others. However, as DexCom has consistently pointed out, the population of patients who use CGM continues to lag behind those who are eligible for third-party coverage -- in other words, many people could obtain the technology paid for by insurers but have not yet opted in.

Further, there is a vast worldwide opportunity, since only a tiny percentage of the diabetics in the world use CGM technology. Though many are in countries where DexCom does not do business, the company has generally increased its addressable market by entering new geographies. In the next 10 years, expect the company to do the same while benefiting from greater insurance coverage for CGM -- third-party payers, including governments, have been more willing to foot the bill because of the technology's benefits.

All that should lead to consistent revenue and earnings growth for the medical device specialist. The stock has crushed the market in the past decade using this formula. In my view, it is well-positioned to do the same through 2035.

Should you invest $1,000 in Novo Nordisk right now?

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The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Novo Nordisk wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $699,558!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $976,677!*

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Prosper Junior Bakiny has positions in Eli Lilly and Novo Nordisk. The Motley Fool recommends DexCom and Novo Nordisk and recommends the following options: long January 2027 $65 calls on DexCom and short January 2027 $75 calls on DexCom. The Motley Fool has a disclosure policy.

Key Points

• Healthcare giants AbbVie and Abbott Laboratories are both Dividend Kings.

• They should maintain their dividend growth habits for a long time to come.

• That's thanks to their solid businesses and promising product pipelines.

In 2013, AbbVie (NYSE: ABBV) became a publicly traded corporation after splitting from its former parent company, Abbott Laboratories (NYSE: ABT). Since then, both have produced strong returns and have been great picks for income-seeking investors, thanks to consistent payout hikes. That likely won't change soon.

These healthcare leaders should continue to perform well and reward shareholders with dividend increases for a long time. Read on to find out more.

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1. AbbVie

AbbVie is a pharmaceutical leader with a large portfolio of approved products, none more important than a duo of immunology medicines: Skyrizi and Rinvoq. In the first quarter, the company's revenue increased by 8.4% year over year to $13.3 billion, while its adjusted earnings per share came in at $2.46, 6.5% higher than the year-ago period. These results are all the more impressive considering AbbVie faced a major patent cliff just two years ago; however, it has since recovered, largely thanks to Skyrizi and Rinvoq.

The former generated $3.4 billion in sales during the period, representing a 70.5% year-over-year increase. Rinvoq's revenue came in at $1.7 billion, 57.2% higher than the year-ago period. Management predicts their combined annual sales will exceed $31 billion by 2027. Not only is that significantly higher than the $17.7 billion they racked up last year, it's also $4 billion higher than their previous guidance.

Skyrizi and Rinvoq are expected to drive top-line growth well into the 2030s. Although they will eventually lose patent protection, they demonstrate AbbVie's ability to navigate even the biggest patent cliffs, a quality that is essential for any pharmaceutical company to thrive over the long term. AbbVie has other products that help drive revenue growth, and, equally important, it has a deep pipeline that it routinely strengthens through acquisitions.

In March, the company announced a licensing deal with Denmark-based Gubra A/S for GUB014295, an investigational weight management therapy. AbbVie paid $350 million up front for this candidate, with potential milestones of $1.9 billion, not including royalties. AbbVie entered the fast-growing weight loss market with this move; GUB014295 might not pan out, but AbbVie's large pipeline, with approximately 90 products in development, should allow it to launch brand-new products frequently, navigate patent cliffs, and remain successful over the long run.

Now turning to the company's dividend, AbbVie has increased its payouts by 310% since 2013. And counting the time it spent under Abbott Laboratories' name, AbbVie is a Dividend King with 53 consecutive years of payout increases. These facts, from AbbVie's underlying business to the company's dividend track record, point to a company capable of sustaining a passive income program for a long time.

2. Abbott Laboratories

Abbott Laboratories is best known for its leadership in the medical device space, where it markets dozens of products across multiple therapeutic areas. The company also operates a diagnostic business and has a presence in the pharmaceutical and nutrition industries. Abbott Laboratories' operations are diversified, which can help it overcome challenges in specific segments. That's one of the company's strengths.

Here's another: Abbott Laboratories has been a leader in the highly regulated healthcare sector for decades. The company has built a solid reputation with physicians and consumers, all of whom are more likely to gravitate toward the brands they know and trust. In the medical device field, Abbott is a trusted brand. And thanks to its vast portfolio, it generates consistent revenue and earnings.

Abbott's biggest growth driver in recent years has been its diabetes care segment, led by its continuous glucose monitoring (CGM) franchise, the FreeStyle Libre. As the company noted, the FreeStyle Libre has become the most successful medical device in history in terms of dollar sales. That's no small feat. Yet there is still massive whitespace ahead, since only a small portion of the world's diabetics use CGM technology despite its advantages.

Abbott's work in this niche should provide a powerful long-term tailwind, but there will be many others. The company boasts other growth drivers, including its structural heart segment, where it markets a range of successful devices, such as its MitraClip device, a leader in its mitral valve repair niche. Beyond any single product, Abbott Laboratories has a proven track record as an innovator and should continue launching newer and better ones.

Lastly, Abbott is also a Dividend King, and over the past decade, it has increased its payouts by almost 146%. Abbott Laboratories' business is built to last. Investors who purchase the company's shares today can expect consistent dividend growth over the long term.

Should you invest $1,000 in AbbVie right now?

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The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and AbbVie wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $699,558!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $976,677!*

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Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AbbVie and Abbott Laboratories. The Motley Fool has a disclosure policy.

Key Points

• Netflix and Roku are longtime streaming leaders with excellent prospects.

• Both companies should benefit as streaming viewing hours increase.

• They can deliver above-average returns over the next decade.

Streaming giants Netflix (NASDAQ: NFLX) and Roku (NASDAQ: ROKU) have a lot in common. The former was an early investor in the latter. They both dominate their respective niches in the streaming industry and have produced market-beating returns over the long term.

Here's one more thing Netflix and Roku have in common: excellent long-term prospects that could lead to substantial gains over the next decade. Here's the bull thesis for these market leaders.

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1. Netflix

Netflix has been firing on all cylinders thanks to its excellent financial results. In the first quarter, the company's revenue increased by 12.5% year over year to $10.5 billion. Netflix's earnings per share of $6.61 was up 25%, while its free cash flow came in at $2.7 billion, 24.5% higher than the year-ago period.

Image source: Getty Images.

Netflix is posting strong financials despite mounting competition in the streaming industry, which some thought would eventually erode its market share. But as evidence of the strength of its brand power, the company recently increased its prices once again. Netflix's ability to thrive even as new streaming services keep popping up says a lot about its prospects.

Streaming still has significant room to grow as the switch from cable continues. The company estimates a $650 billion revenue opportunity, which dwarfs its trailing-12-month revenue of $40.2 billion.

Over the next decade, it could make significant headway into this enormous, untapped potential. If Netflix can grab 10% of its total addressable market, its top line should grow at a good clip through 2035. The company's strategy to achieve that feat should remain the same: Create content that viewers love to watch and that spreads through word of mouth, leading to more paid subscribers on its platform, more data to help guide content production, and even better content.

A wonderful network effect has powered Netflix's success for a while now. There will be some challenges, including more competition and economic issues that might make people hesitant to put up with its price hikes, among others. However, Netflix has consistently demonstrated its ability to perform well despite these challenges, and I expect the company to continue doing so over the next decade.

The stock is still worth buying after the impressive run it has had over the past year. With $5,000, investors can afford three of the company's shares.

2. Roku

Roku's platform enables people to access most of the major streaming services, making the company's ecosystem an attractive hub for advertisers to target consumers. That's how Roku makes the lion's share of its revenue. Although it has encountered some headwinds in recent years -- including a slowdown in ad spending and declining average revenue per user (ARPU) -- Roku has somewhat recovered over the trailing-12-month period.

In the first quarter, the company's revenue increased by 16% year over year to approximately $1 billion. Roku's streaming hours were 35.8 billion, 5.1 billion more than the year-ago period. However, Roku remains unprofitable, although it is also making progress on the bottom line. The streaming leader's net loss per share in the period came in at $0.19, much better than the $0.35 reported in the prior-year quarter.

Although long-term investors may be concerned about the persistent red ink on the bottom line, recent developments show why Roku is a promising stock to hold onto. The company signed a partnership with Amazon, another leader in the connected TV (CTV) space. The two will grant advertisers access to their combined audiences, comprising 80 million households in the U.S. and more than 80% of the CTV market, through Amazon's demand-side ad platform.

This initiative will give advertisers far more bang for their buck, as early tests of the integration show. It also highlights the value of Roku's ecosystem, the leading one in the CTV space in North America. Over time, the company's platform will attract more advertising dollars, especially as streaming viewing time continues to increase. That's why investors should look past the red ink, for now. Roku's long-term prospects remain intact.

Even its ARPU decline in recent quarters was due to its focus on expanding its audience in certain international markets; it is still early in its monetization efforts in those regions. As Roku's initiatives in these places ramp up, while the company continues to make headway in more mature markets, Roku should eventually become profitable and deliver strong returns along the way.

The stock is worth investing in today for the next decade, and $5,000 is good for 56 shares of the company with some spare change.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Prosper Junior Bakiny has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Netflix, and Roku. The Motley Fool has a disclosure policy.

Key Points

• Investing in attractive dividend growth stocks can lead to superior long-term returns.

• The two healthcare companies below generally deliver excellent returns and dividend growth.

• Both have long-term tailwinds that can allow them to maintain solid performances over the long run.

For investors focused on the long game, there is little reason to sell -- at least, so long as a company generates solid returns through consistently improving financial results, regularly increases its dividend (if it pays one), and maintains strong growth prospects. Although it's sometimes difficult to find corporations that can do all that over long periods, stocks of this caliber do exist.

Consider the following two healthcare leaders: Zoetis (NYSE: ZTS) and Eli Lilly (NYSE: LLY). They have checked all of those boxes over the past decade, and there are good reasons to believe they can continue to do so for a very long time, making them excellent "forever" stocks. Read on to learn more about these companies.

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1. Zoetis

Zoetis is a leading animal health company with a diverse portfolio of products spanning various categories, including livestock, companion animals, and more. The company has 15 products that generate over $100 million in annual sales and consistently grows its revenue at a rate faster than most of its peers. Between 2014 and 2023, the company's top line increased at a compound annual growth rate of 8%, compared to the 5% the industry average.

The company has encountered some headwinds recently. Most notably, recent drug approvals by competitors could challenge the market share of one of Zoetis' most significant growth drivers, Apoquel, which helps treat allergic itch in dogs. Even so, Zoetis has dealt with competition for years and has still performed well. Although this issue may somewhat affect its results in the short term, the company's prospects look attractive for several reasons. First, Zoetis will continue to launch newer products.

It has proven itself to be an innovative leader in the animal health industry. Some of Zoetis' recent approvals, such as Solensia (first approved in 2022) and Librela (first approved in 2023) -- which treat osteoarthritis pain in cats and dogs, respectively -- are already helping drive sales growth. There will undoubtedly be plenty more such commercial launches in the future.

In the long run, Zoetis will benefit from the growth in the pet population, which has been ongoing for several decades in countries like the U.S., as well as other trends such as increased demand for protein sources due to human population growth, resulting in a greater need for products that help care for livestock. Zoetis can ride these tailwinds for a very long time.

Finally, the company offers a solid dividend program, despite a forward yield of just 1.3%, which is equal to the average yield for the S&P 500 index. Still, Zoetis' payouts have increased by an impressive 502% over the past decade. Yet its payout ratio of 31.6% remains conservative. There is ample space for more dividend hikes for Zoetis. Expect the company to offer consistent payouts and solid returns over the long run.

2. Eli Lilly

Eli Lilly has garnered significant attention in the past five years for its work in weight management, but the company has also quietly increased its dividends at a steady pace. The drugmaker's payouts have doubled over the past five years. That's not surprising. Eli Lilly's business seems to be firing on all cylinders. Revenue and earnings have been growing rapidly. The company's first-quarter top line jumped 45% year over year to $12.7 billion.

Most similarly sized pharmaceutical leaders would be thrilled to increase their revenue by a third of that percentage. That speaks volumes about Eli Lilly. And while its recent clinical and regulatory successes in the anti-obesity space are doing most of the heavy lifting, the company isn't a one-trick pony. Eli Lilly has blockbuster medicines in other areas, such as immunology -- with Taltz -- and oncology, thanks to Verzenio.

Even the company's pipeline is diversified across multiple therapeutic areas. It has recent approvals, too. Such products as Kisunla, which treats Alzheimer's disease, could eventually generate more than $1 billion in annual sales. Here's the point: Eli Lilly is an incredibly innovative company with a leadership position in diabetes and obesity, as well as significant footprints in other fields. The company is well positioned to develop new and improved products while generating above-average returns over the long term.

That's why dividend investors shouldn't be turned off by the company's low 0.8% forward yield. Eli Lilly's solid track record and modest cash payout ratio of 44% tell us plenty. That, combined with Eli Lilly's strong underlying business, makes it an attractive buy-and-hold option.

Should you invest $1,000 in Eli Lilly right now?

Before you buy stock in Eli Lilly, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Eli Lilly wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $699,558!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $976,677!*

Now, it’s worth noting Stock Advisor’s total average return is 1,060% — a market-crushing outperformance compared to 180% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 30, 2025

Prosper Junior Bakiny has positions in Eli Lilly. The Motley Fool has positions in and recommends Zoetis. The Motley Fool has a disclosure policy.

Key Points

• Iovance Biotherapeutics has proven to be an innovative biotech.

• However, the stock has declined significantly over the past year, partly due to its risk profile.

• Too much would have to fall Iovance's way for the stock to be a millionaire maker.

Over the past two years, Iovance Biotherapeutics (NASDAQ: IOVA), a small-cap biotech company, has made significant clinical and regulatory progress. However, the stock has also plunged over this period -- shares are currently trading for less than $2 apiece. Penny stocks tend to be risky, but Iovance Biotherapeutics has an exciting approved product and several potential catalysts that could jolt its stock price.

If Iovance Biotherapeutics' long-term plans come to fruition, the stock could skyrocket from current levels and deliver the kinds of returns over the next two decades (or so) that could help one become a millionaire. How likely is that to happen? Let's find out.

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An innovative approach to treating cancer

Iovance Biotherapeutics' claim to fame is that it developed Amtagvi, a medicine for advanced melanoma (skin cancer). There are at least two important things to note about this product. First, it is manufactured from patients' tumor-infiltrating lymphocytes (TILs), a type of white blood cell that destroys cancer cells. Second, Amtagvi became the first medicine of its kind approved by the U.S. Food and Drug Administration for the treatment of metastatic melanoma.

It's not surprising, then, that Amtagvi's sales have been growing at a good clip. Iovance Biotherapeutics expects to generate $275 million this year (at the midpoint) after racking up $164.1 million in revenue last year. The company's long-term strategy seems simple enough. It is currently seeking approval for Amtagvi in other regions, after which it will look to earn label expansions for the medicine.

Then, Iovance Biotherapeutics will work on developing other TIL-based therapies. If all of that happens without a hitch, Iovance Biotherapeutics could, indeed, generate life-changing returns from its current levels.

Will Iovance's breakthroughs be enough?

Suppose one invests $100,000 in Iovance Biotherapeutics today. It will take a compound annual growth rate of 12.2% to get to $1 million in 20 years, which is above the S&P 500's historical return. It's hard to bet on Iovance Biotherapeutics accomplishing such a feat despite its Amtagvi-related success. The medicine was a significant breakthrough and could achieve blockbuster status at some point. Even so, one issue with Amtagvi is that it is a complex medicine to administer.

The procedure requires collecting patients' cells, which are used to manufacture the therapy. It takes 34 days for the manufacturing work to be completed. Further, Iovance Biotherapeutics recently revised its guidance downward from between $400 million and $450 million for fiscal year 2025. It did so because it had miscalculated the timeline for the activation of authorized treatment centers where Amtagvi is administered.

Launch dynamics are complex for any medicine, but they are even more so for therapies like Amtagvi. This factor significantly complicates matters for Iovance Biotherapeutics, making the stock less attractive, as it impacts its revenue and earnings potential. In the meantime, the company estimates that it only has sufficient cash to keep the lights on until the second half of 2026. That's before we account for other obvious potential issues.

Consider that a lot would have to go right for Iovance Biotherapeutics to perform well through the next two decades. It will need to record consistent clinical and regulatory wins. Setbacks, particularly with otherwise promising products or pipeline candidates, will sink its stock price. That's the risk biotech investors have to live with, and the risk is far higher when dealing with a smaller drugmaker like Iovance. Perhaps Iovance Biotherapeutics will perform well regardless, but it's hard to bet on that happening, considering it has yet to establish itself.

The company currently has only two products on the market, remains unprofitable, and has only enough cash for the next two and a half years, facing some uncertainty due to the complexity of the therapies it markets. Between potential clinical trial failures, regulatory rejections, and the possibility that Iovance Biotherapeutics may have to resort to dilutive financing, the stock appears far too risky for most investors. It's worth keeping Iovance Biotherapeutics on your watchlist and considering investing small sums in the stock if its prospects improve.

Should you invest $1,000 in Iovance Biotherapeutics right now?

Before you buy stock in Iovance Biotherapeutics, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Iovance Biotherapeutics wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $699,558!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $976,677!*

Now, it’s worth noting Stock Advisor’s total average return is 1,060% — a market-crushing outperformance compared to 180% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

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*Stock Advisor returns as of June 30, 2025

Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Iovance Biotherapeutics. The Motley Fool has a disclosure policy.

Key Points

• CRISPR Therapeutics could stage a comeback thanks to clinical and commercial progress.

• Viking Therapeutics looks like a good bet on the fast-growing weight management market.

There are many promising corporations that investors can buy on a dip due to recent market volatility or company-specific issues that predate this year. Take, for instance, CRISPR Therapeutics (NASDAQ: CRSP) and Viking Therapeutics (NASDAQ: VKTX), two mid-cap biotech companies that have lagged broader equities over the trailing-12-month period.

Even with these poor performances, however, there are solid reasons to consider investing in these stocks, especially at current levels. Read on to find out more.

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1. CRISPR Therapeutics

CRISPR Therapeutics made a breakthrough when it created Casgevy, the first gene-editing medicine that used the Nobel Prize-winning CRISPR technique to earn approval. The stock performed well from its 2016 initial public offering (IPO) until about 2021 but has been on a downward trajectory ever since for three reasons.

First, clinical progress is one of the most significant drivers of the performance of smaller biotech stocks. Once they start hitting major milestones, investors tend to take some profits.

Second, Casgevy is a gene-editing therapy that's complex to administer. Despite earning approval in late 2023, the therapy hasn't yet contributed much to CRISPR Therapeutics' results.

Third, the company is unprofitable. That's a big no-no in the current precarious market environment.

That said, CRISPR Therapeutics' next breakthrough could help the stock bounce back. The company is developing several promising medicines and expects data readouts for ongoing clinical trials as early as this year.

CRISPR Therapeutics is targeting challenging areas. The biotech is looking to develop medicines for type 1 diabetes, some hard-to-treat cancers, and other areas. Progress on these fronts could send the stock soaring.

Furthermore, Casgevy will ultimately have a significant impact on CRISPR Therapeutics' financial results. The company will share the profits from this medicine with giant drugmaker Vertex Pharmaceuticals, its collaborator in the development of this medicine, but CRISPR Therapeutics' partnership with Vertex was a net positive for the smaller biotech.

For one, CRISPR Therapeutics probably would not have earned approval for the treatment as quickly as it did in some places, including some countries in the Middle East, where the medicine boasts a more substantial commercial opportunity for Casgevy than the U.S. Securing approval and commercialization in the Middle East alone would have been far too expensive for a smaller drugmaker. Second, partly due to its long-standing partnership with Vertex, CRISPR Therapeutics has a substantial amount of liquidity, ending the first quarter with $1.86 billion in cash and equivalents.

Lastly, Casgevy has blockbuster potential. It costs $2.2 million per treatment course in the U.S., while the two partners estimate about 60,000 patients in their target geographies. Between Casgevy's long-term potential and the company's innovative pipeline, CRISPR Therapeutics could eventually recover and deliver exceptional returns to investors who stay the course.

2. Viking Therapeutics

Viking Therapeutics was a relatively unknown biotech until last year, when it produced strong phase 2 results for VK2735, an investigational weight management therapy. Although the stock soared following this data readout, it hasn't performed well since.

Nothing has gone wrong with Viking Therapeutics' leading candidate -- it's just another case of investors taking some profits. However, Viking Therapeutics looks attractive for several reasons.

The market for anti-obesity therapies is rapidly growing. There are scores of investigational therapies in this field, but most haven't delivered the kind of mid-stage data VK2735 has. The biotech company also has an oral formulation of VK2735 that's currently in Phase 2 studies.

Furthermore, Viking Therapeutics has several other candidates in development. The company's VK2809 is a potential treatment for metabolic dysfunction-associated steatohepatitis, which is also entering phase 3 studies after completing mid-stage trials.

Lastly, Viking's VK0214 is being developed for X-linked adrenoleukodystrophy, a rare genetic disorder affecting the nervous system. VK0214 has earned the orphan drug designation from the U.S. Food and Drug Administration, an honor reserved for medicines that have shown promising clinical data for the treatment of an orphan (or rare) disease with unmet needs.

Viking Therapeutics' pipeline is impressive for a biotech company worth just $3 billion. If it achieves clinical and regulatory successes in the coming years, its share price will likely skyrocket.

There is some risk involved here, as is always the case with clinical-stage biotechs. The stock could drop if it encounters setbacks, particularly with its leading candidate, VK2735. It's important to keep that in mind. But investors comfortable with the volatility should strongly consider initiating a small position in Viking Therapeutics.

Should you invest $1,000 in CRISPR Therapeutics right now?

Before you buy stock in CRISPR Therapeutics, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and CRISPR Therapeutics wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $697,627!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $939,655!*

Now, it’s worth noting Stock Advisor’s total average return is 1,045% — a market-crushing outperformance compared to 178% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

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*Stock Advisor returns as of June 30, 2025

Prosper Junior Bakiny has positions in Vertex Pharmaceuticals and Viking Therapeutics. The Motley Fool has positions in and recommends CRISPR Therapeutics and Vertex Pharmaceuticals. The Motley Fool recommends Viking Therapeutics. The Motley Fool has a disclosure policy.

Getting investing ideas and inspiration from the most successful money managers on Wall Street isn't a bad approach, but you should still do your due diligence before pressing the buy button. Let's apply that strategy by looking at Pershing Square Capital Management, a hedge fund led by the billionaire Bill Ackman.

A sizable percentage -- 41.6%, to be exact -- of the hedge fund's portfolio is in three companies: Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), Uber Technologies (NYSE: UBER), and Chipotle Mexican Grill (NYSE: CMG). Should you consider following Ackman's lead with these stocks? In my view, the answer is a resounding yes for all three.

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Alphabet -- 14% of portfolio

About 14% of Ackman's portfolio is invested in Alphabet, including more than 5.7% in the class A shares that grant its holders voting rights, and nearly 8.3% in the non-voting class C shares. Alphabet was not a great stock to hold in the first half of the year. Even considering market volatility, shares underperformed the broader market by a significant margin.

However, this isn't because the company's financial results aren't strong. It's more likely that the market is pricing in several specific risks Alphabet faces, including the possibility that U.S. regulators will succeed in forcing it to get rid of its Chrome web browser following an antitrust lawsuit.

Still, there are good reasons to be optimistic about Alphabet's future, particularly when you consider its cloud computing and artificial intelligence (AI) businesses. According to Amazon CEO Andy Jassy, both industries are still in their early innings. Alphabet is a leader in both, and should benefit as these markets embark on a journey of significant long-term growth.

The company can also rely on its streaming ambitions with YouTube, one of the most popular platforms around. Furthermore, Alphabet benefits from a wide moat thanks to network effects and switching costs. Even with the antitrust threat, the company looks attractive once we focus on its growth opportunities and consistent earnings and cash flow.

If you're a long-term investor, I think you should seriously consider adding the stock to your portfolio.

Uber Technologies -- 18.5% of portfolio

As of the first quarter, Uber Technologies was Pershing Square Capital Management's largest holding. In fact, the fund opened its position in the ride-hailing specialist during the period, acquiring some 30.3 million shares of the company.

Now is as good a time as any to get on the Uber bandwagon. Over the past couple of years, it has evolved into a profitable company that also generates substantial cash flow. In the first quarter, Uber's revenue grew by a solid 14% year over year to $11.5 billion. Net income was $1.8 billion compared to a net loss of $654 million in the year-ago period, while free cash flow soared by 66% year over year to $2.3 billion.

More important than its recent results, though, are Uber's still-strong prospects, thanks in part to its platform's network effect. More drivers within its ecosystem make it more attractive to clients. Uber may have competition for its services, but its trips and gross bookings far exceed those of its biggest direct challenger, Lyft. That says something about the company's competitive edge.

Uber has substantial long-term prospects. One reason is that younger generations are driving less, which will, over the long run, create a greater need for the kinds of services the company offers. While Uber's stock has performed well this year, it's not too late to get in on the act yet.

Chipotle Mexican Grill -- 9.1% of portfolio

Chipotle comes in at roughly 9% of Pershing Square Capital Management's portfolio. Here's another company that has not performed well in 2025, partly because of the potential impact of tariffs on its financial results. Chipotle imports ingredients for its famous bowls from various places around the world, and President Donald Trump's trade agenda could lead to cost increases for the restaurant chain.

Even beyond that, Chipotle's first-quarter results were not a hit due to weak foot traffic within its stores.

Do these issues justify giving up on the stock? My view is that they don't. Chipotle is a consistently profitable business with strong restaurant-level margins and attractive growth prospects. Economic conditions are likely affecting consumers' decisions to pull away from Chipotle right now, but that won't last forever.

Meanwhile, the company continues to add new locations; it opened 57 restaurants during the first quarter. Chipotle's long-term goal is to get to 7,000 locations in the U.S. and Canada; it currently has 3,800 restaurants worldwide. Its expansion plans in the U.S., Canada, and elsewhere provide significant long-term growth potential.

Chipotle might be struggling right now, but for long-term investors, the recent dip is an excellent opportunity to buy its shares.

Should you invest $1,000 in Uber Technologies right now?

Before you buy stock in Uber Technologies, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Uber Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $713,547!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $966,931!*

Now, it’s worth noting Stock Advisor’s total average return is 1,062% — a market-crushing outperformance compared to 177% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

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*Stock Advisor returns as of June 23, 2025

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors.

Prosper Junior Bakiny has positions in Amazon. The Motley Fool has positions in and recommends Alphabet, Amazon, Chipotle Mexican Grill, and Uber Technologies. The Motley Fool recommends Lyft and recommends the following options: short June 2025 $55 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.

Dividend investors loathe payout cuts, but sometimes they are necessary for a corporation facing significant headwinds to get back on track. Take Medical Properties Trust (NYSE: MPW), a healthcare-focused real estate investment trust (REIT). The company has struggled over the past two years due to tenant-related issues. It had to cut its dividends twice as a result. However, MPT has made significant strides in the right direction, and the company may soon resume raising its dividends. Here's the rundown.

MPT has started righting the ship

The REIT business seems somewhat stable. These companies operate real estate properties that they rent out to businesses, collecting regular and consistent rental income. Easy enough. REITs in the healthcare sector can appear even more reliable, as medical care remains in high demand regardless of economic conditions. However, even health-focused businesses can encounter issues and go bankrupt. That's what happened to two of MPT's former tenants, including one that was, at some point, its largest. The company's financial results took a significant hit. It hasn't recovered yet. MPT's revenue is still moving in the wrong direction.

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But the comeback has already begun. MPT found multiple new tenants to occupy most of the facilities formerly rented out by its then-largest client that went bankrupt. Among other things, that means the company's portfolio is now more diversified. One or two tenants going out of business is unlikely to affect MPT as much as it did last time. The new contracts it signed with its new renters have an average lease of 18 years. Regular rental income for almost two decades provides MPT with some security, provided, of course, these new tenants don't go out of business, too. While that could certainly happen, these moves make the company far more stable than it was when its troubles first started.

Why the dividend could go up

MPT's quarterly dividend per share went from $0.29 to $0.15 to $0.08 in less than two years. Not only was it dealing with rapidly declining revenue, but it also had pressing financial obligations that needed to be addressed.

MPT has worked to solve both problems. The company's new tenants aren't paying the full rental amount due -- at least not yet. They began doing so only in the first quarter, and they are currently paying only a fraction of it.

They will gradually increase rent payments to 100% of the due amount by the fourth quarter of 2026. By the time MPT starts collecting the full amount, its revenue should move in the right direction since it expects about $160 million in rental revenue from these facilities.

In the first quarter, the company's revenue declined by 17.5% year over year to $223.8 million; $160 million represents more than half of its first-quarter revenue. Even assuming the $223.8 million included 50% of the full rental income it will receive from these new tenants by the fourth quarter of 2026 (it doesn't, the payments will reach 50% by the end of this year), it would still mean that MPT would be adding $80 million in revenue by the end of next year.

Adding that to its first-quarter revenue would have led to year-over-year top-line growth of 12% compared to the first quarter of 2024. Decent revenue growth awaits MPT, and that will allow it to improve its bottom-line numbers as well. Further, the company has improved its balance sheet. MPT sold some facilities to raise money and pay down debt, amounting to $2.2 billion between early 2023 and the end of 2024.

It's harder for a company to raise dividends when it has to worry about upcoming obligations. However, the recent moves MPT made, which also included refinancing existing debt, have granted it far more financial flexibility. The stage is set for MPT to start growing its dividend again. Don't expect a massive hike, but with a stable payout program that could start growing again next year and a 7.3% forward yield, the company is far more attractive as an income stock than it was just two years ago. Yet, the stock is still down by 51% over this period.

In my view, it's still time to buy the stock. MPT's shares should move in the right direction as its comeback continues.

Should you invest $1,000 in Medical Properties Trust right now?

Before you buy stock in Medical Properties Trust, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Medical Properties Trust wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $676,023!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $883,692!*

Now, it’s worth noting Stock Advisor’s total average return is 793% — a market-crushing outperformance compared to 173% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

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*Stock Advisor returns as of June 23, 2025

Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Growth and income investing may be two distinct styles, but it's possible to combine them by selecting the right stocks. Some corporations have excellent growth prospects and also offer dividend programs that seem at least somewhat reliable.

Two examples in that department are Meta Platforms (NASDAQ: META) and Booking Holdings (NASDAQ: BKNG). Although they are new dividend payers, these market leaders' strong underlying businesses mean they should reward shareholders with consistent dividends for a long time while also capitalizing on significant growth opportunities.

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Let me explain.

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1. Meta Platforms

Meta Platforms is the leading social media company. It boasts 3.43 billion daily active users across its websites and apps -- that's pretty close to half of the 8 billion people on Earth, a total that includes many who are too young to be on any of the company's platforms. Meta's deep ecosystem makes it an excellent target for advertisers. That's how it generates most of its sales, and that business is still booming.

In the first quarter, Meta Platforms' revenue increased by 16% year over year to $42.3 billion. The tech leader's earnings per share (EPS) came in at $6.43, 37% higher than the year-ago period.

Here's the good news for investors: Meta Platforms' business is getting even better thanks to artificial intelligence (AI). The company has used AI-powered algorithms to increase engagement on its apps. That means more time spent on Facebook and Instagram, which naturally leads to greater demand for ads and higher revenue. Meta Platforms is also utilizing AI to enhance the ad launch process. Management aims to fully automate this system by the end of 2026.

These initiatives could have a significantly positive impact on Meta Platforms' performance in the long run. That's why the company is doubling down with massive investments in AI infrastructure, to the tune of $65 billion this year, according to some reports.

The company also has other growth opportunities, including business messaging on WhatsApp. Although economic and trade concerns could continue to impact the stock -- Meta lost some ad revenue from Asia-based retailers in the first quarter -- the company should still deliver strong results thanks to the lucrative opportunities at its disposal.

Lastly, Meta Platforms initiated a quarterly dividend last year. The company offers a quarterly dividend of approximately $0.52 per share. Meta's payouts look safe, and although it doesn't have a substantial dividend history yet, investors can benefit from the growth and income it will provide in the next five years and beyond.

2. Booking Holdings

Booking Holdings helps travelers plan for their trips by providing everything from flights to accommodations, car rentals, and activities. The company operates an ecosystem of websites that includes its namesake, Priceline, as well as Kayak and others. Booking Holdings' famous brands and ecosystem grant it a network effect. The more people join one of its platforms, the more attractive it is for hotels or car rental companies, and vice versa.

That's why Booking Holdings remains one of the undisputed leaders in this niche. Financial results remain robust, too. In the first quarter, the company's revenue increased by 8% year over year to $4.8 billion. While that's not too impressive, Booking Holdings' adjusted EPS was up by a juicier 22% year over year to $24.81, while its free cash flow jumped to $3.2 billion, 23% higher than the year-ago period.

Booking Holdings' business could also be impacted by tariffs, particularly if they lead to economic issues, a decline in consumer spending, and lower travel demand. People are less likely to splurge on expensive vacations if the economy is rough. That's nothing new for Booking Holdings, though. Even if it faces some near-term uncertainty due to the state of the economy, the company's prospects are intact.

The travel and accommodation industries should maintain an upward trajectory, in the long run, thanks to factors like an increasing worldwide population and gross domestic product growth. Meanwhile, Booking Holdings is also leveraging the power of AI to enhance its business. It introduced an AI-powered travel planning tool and plans to implement many more initiatives that could make its platform even more attractive.

That's an excellent sign for the future. Booking Holdings began paying dividends last year, with an initial quarterly dividend of $8.75 per share, which has since increased to $9.60. Booking Holdings' shares aren't cheap -- they are trading for just under $5,400 apiece. Thankfully, most online brokers now offer fractional shares. Booking Holdings is worth the money for growth investors who also want some dividends on the side.

Should you invest $1,000 in Meta Platforms right now?

Before you buy stock in Meta Platforms, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Meta Platforms wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $891,722!*

Now, it’s worth noting Stock Advisor’s total average return is 995% — a market-crushing outperformance compared to 172% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 9, 2025

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Prosper Junior Bakiny has positions in Meta Platforms. The Motley Fool has positions in and recommends Booking Holdings and Meta Platforms. The Motley Fool has a disclosure policy.

Popular themes on Wall Street today include artificial intelligence (AI), the market for weight management medicines, and the potential impact of tariffs on broader equities and the economy. In 10 years, there will probably be a different set of trending topics on The Street, but those changes won't stop the market from delivering competitive returns over the next decade.

Those who want to cash in on that can purchase exchange-traded funds (ETFs) that track the performance of some major index, or invest in individual companies that are likely to perform better than the market in the next 10 years. For those opting for the second method, two great picks are Shopify (NASDAQ: SHOP) and Vertex Pharmaceuticals (NASDAQ: VRTX).

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1. Shopify

It's been 10 years since Shopify went public. In that time, the company has crushed the market, although it's been a bit of a volatile ride. While a lot has changed since 2015, Shopify's basic investment thesis remains the same: It is a leader in its niche of the fast-growing e-commerce market and boasts a strong moat.

Let's unpack that a little more. Shopify helps merchants build and customize online storefronts.

It offers them practically everything they need to run their stores, including inventory management, payment processing, the ability to cross-sell across social media websites, and much more. At the end of 2024, Shopify commanded more than 12% of the U.S. e-commerce market by gross merchandise volume.

Shopify's competitive edge comes from at least two sources: switching costs and network effects. Since merchants spend a significant amount of time building online stores on the company's platform and doing the necessary marketing work to attract clients, they won't want to switch and risk disrupting their day-to-day operations. That means Shopify is likely to keep most of its clients.

Elsewhere, the company has an app store with thousands of options that help merchants customize their websites. The more developers seek out the company's app store for their creations, the more attractive it is to merchants.

Turning to Shopify's long-term opportunity, the e-commerce market is on a growth path since it grants merchants a far larger pool of potential consumers, and vice versa. But more than 80% of retail transactions still happen offline, even in the U.S.

All these factors paint a bright picture for Shopify's future. Some might point out that the company still isn't profitable or that its forward price-to-sales multiple of almost 13 is more than six times higher than where the undervalued range starts, usually at 2 and under. However, Shopify has made significant changes to its business in recent years, which have helped boost its margins, including eliminating its expensive logistics business. The company should become consistently profitable within a few years.

Lastly, the stock is worth a premium considering its prospects. Although it may be volatile in the short term due to its rich valuation metrics, Shopify should deliver superior returns over the next decade. That's why the stock is a buy today.

2. Vertex Pharmaceuticals

Over the past year, Vertex Pharmaceuticals, a leading biotech, dealt with clinical setbacks and illegal copies of some of its medicines in Russia, which led to lower sales than it expected. Further, one of the company's newer approvals, Casgevy, still isn't generating much in revenue, despite first earning the green light in late 2023.

Casgevy is a gene-editing treatment for a pair of rare blood diseases. Gene-editing therapies are notoriously complex to administer, which is why it's taking a long time to ramp up revenue for this product.

Even so, Vertex Pharmaceuticals looks attractive. It is still the only game in town for patients with cystic fibrosis (CF), a rare lung disease. Vertex is the only biotech that has cracked the code so far, and it manufactures medicines that target the underlying causes of this condition, rather than just its symptoms.

Vertex's success in the CF field should continue to drive top- and bottom-line growth. Elsewhere, the company can count on other newer approvals.

In January, the U.S. Food and Drug Administration gave the nod to Journavx, the first oral non-opioid pain inhibitor. Even without potential label expansions, this medicine can achieve some decent success, considering there is a high unmet need for new, non-opioid pain treatments. According to some estimates, it could generate $2.9 billion in revenue by 2030.

The company should also continue expanding its lineup. It plans on sending applications for Zimislecel, a potential treatment for type 1 diabetes, to regulators next year. The drugmaker has several other promising early- and late-stage programs. Between Vertex's strong CF franchise, the multiple new products it is launching, and its solid pipeline, the stock should deliver superior returns through 2035.

Should you invest $1,000 in Shopify right now?

Before you buy stock in Shopify, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Shopify wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $658,297!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $883,386!*

Now, it’s worth noting Stock Advisor’s total average return is 992% — a market-crushing outperformance compared to 172% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 9, 2025

Prosper Junior Bakiny has positions in Shopify and Vertex Pharmaceuticals. The Motley Fool has positions in and recommends Shopify and Vertex Pharmaceuticals. The Motley Fool has a disclosure policy.

Shares of Viking Therapeutics (NASDAQ: VKTX), a mid-cap biotech, are down by 34% this year. This poor performance may suggest that recent company-specific developments have rendered the stock less attractive or that it is being affected by broader market issues. The latter is true, at least to some extent, but Viking Therapeutics' thesis has not changed significantly this year. The drugmaker remains attractive compared to most of its similarly sized peers. Here is why.

Why the stock looks promising

Viking Therapeutics is a clinical-stage biotech. That means the company has no product on the market, generates no revenue, and is consistently unprofitable. Investors aren't too keen on buying shares of companies that fit this profile when broader equities are experiencing significant volatility due to potential macroeconomic issues. In fairness, that makes sense. Clinical-stage biotechs carry above-average risk. Their products may never see the light of day outside the clinic, and even when they do, many do not generate substantial revenue.

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However, Viking Therapeutics is a bit different. The company is developing medicines across several areas with high unmet needs. First, there is the drugmaker's work in the weight management space. The anti-obesity drug market has experienced significant growth in recent years. Yet, analysts continue to predict that the best is yet to come. Viking Therapeutics' leading candidate in this area, VK2735, is a dual GLP-1/GIP agonist. The only approved medicine of this kind on the market is Eli Lilly's Zepbound, an undisputed leader.

Being in the same class as Zepbound doesn't guarantee VK2735's success, but it's still worth pointing out that a similar mechanism of action that led to Zepbound's breakthrough and efficacy could also prove successful for Viking Therapeutics' crown jewel. And more importantly, the investigational medicine has produced better results than almost any other mid-stage candidate in weight management, outside of those being developed by Eli Lilly and Novo Nordisk. That's impressive for a mid-cap biotech, considering significantly larger drugmakers with far more resources are trying to dominate this market.

Viking Therapeutics' other mid-stage program, VK2809, performed well in patients with metabolic dysfunction-associated steatohepatitis (MASH), a disease with obesity as one of the main risk factors and whose prevalence is on the rise. However, the U.S. Food and Drug Administration approved just the first MASH medicine last year, although that will likely change soon.

The point, though, is that VK2809 could join a relatively young market in a few years and generate massive sales down the road. These two candidates set Viking Therapeutics apart from other clinical-stage biotech companies. It's also worth noting that Viking Therapeutics recently signed a multiyear manufacturing agreement with privately held CordenPharma for VK2735. Per the terms of the deal, CordenPharma will manufacture more than a billion oral formulations of the medicine annually, as well as over 100 million autoinjectors and another 100 million syringes per year.

Viking Therapeutics will make payments to CordenPharma, totaling $150 million through 2028. This deal highlights that Viking Therapeutics is already planning some post-commercial activity for its leading candidate. That's a great sign for investors.

Read the fine print

Viking Therapeutics is developing other candidates, including another weight management product that is still in preclinical studies. Following a similar blueprint, this product is a dual agonist that mimics the action of not just one but two gut hormones: amylin, which helps regulate blood sugar, and calcitonin, which regulates calcium levels. There is slow progress on that front, but Viking Therapeutics' commitment to innovation is impressive for such a small biotech. Now, Viking Therapeutics' most advanced programs could fail in phase 3 studies. If that happens, especially with VK2735, the stock price is likely to plummet.

That's a significant risk to consider. That's why the stock is probably not suitable for risk-averse investors. However, those who are comfortable with volatility should strongly consider initiating a small position in the stock. If the business goes under, which isn't that rare for smaller biotech companies, your losses will be relatively small so long as the company makes a tiny portion of your overall portfolio. But there is significant upside potential that those who invest in Viking Therapeutics today could enjoy over the long run.

Should you invest $1,000 in Viking Therapeutics right now?

Before you buy stock in Viking Therapeutics, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Viking Therapeutics wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $868,615!*

Now, it’s worth noting Stock Advisor’s total average return is 792% — a market-crushing outperformance compared to 171% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 2, 2025

Prosper Junior Bakiny has positions in Eli Lilly, Novo Nordisk, and Viking Therapeutics. The Motley Fool recommends Novo Nordisk and Viking Therapeutics. The Motley Fool has a disclosure policy.

Investors looking to cash in on the fast-growing market for weight management medicines will naturally turn to the two leaders in this area, Eli Lilly and Novo Nordisk. However, several other companies seem to have somewhat promising prospects in this field. This group includes Amgen (NASDAQ: AMGN) and Viking Therapeutics (NASDAQ: VKTX), two drugmakers that have produced phase 2 clinical trial data for their leading weight management candidates.

Despite these positive clinical developments, Amgen and Viking Therapeutics have performed poorly on the stock market in the past 12 months, though progress in this area might eventually help them bounce back. But which of these two biotechs should investors trying to profit from the rapid spending on anti-obesity medicines put their money in?

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The case for Amgen

Amgen's leading weight loss candidate is called MariTide. In November, the biotech reported that in a phase 2 study, the medicine led to an average weight loss of about 20% in overweight or obese patients after 52 weeks, with no weight loss plateau observed. Importantly, MariTide is administered subcutaneously once a month -- the current weight management leaders are taken once weekly. A less frequent dosing could appeal to many patients.

The market expected greater weight loss in this study. That's why Amgen's shares fell after it released its phase 2 results. However, the company's data still makes it somewhat likely that it will go on to carve out a solid niche in the rapidly growing weight loss area, although it won't dethrone the leaders.

Further, Amgen's prospects go well beyond its work in the anti-obesity market. The company's deep lineup allows it to generate consistent revenue and profits. In the first quarter, Amgen's sales increased by 9% year over year to $8.1 billion, while its adjusted earnings per share came in at $4.90, 24% higher than the year-ago period. Amgen has several growth drivers. Tezspire, an asthma medicine, is performing well, as is Prolia, a treatment for osteoporosis (a bone disease) in postmenopausal women.

Amgen also has a deep pipeline of investigational products besides MariTide that will eventually lead to brand-new medicines. Lastly, it is an excellent dividend stock. It offers a forward yield of 3.5% -- compared to the S&P 500 index's average of 1.3% -- and has increased its payouts by 201.3% in the past 10 years. Amgen could generate strong returns over the long run even if MariTide doesn't pan out.

The case for Viking Therapeutics

Viking Therapeutics is a clinical-stage biotech. The company's VK2735, its weight management candidate, looks promising. Last year, it reported that at the highest dose, the drug led to a placebo-adjusted mean weight loss of 13.1% (or 14.7% from baseline) after a mere 13 weeks. VK2735 is in the same class of drugs as Eli Lilly's Zepbound. It mimics the action of two gut hormones: GLP-1 and GIP. That doesn't guarantee that it will achieve the same kind of success, but so far, the data looks highly encouraging.

Viking Therapeutics has other candidates. The company's VK2809 targets metabolic dysfunction-associated steatohepatitis. It delivered solid phase 2 results last year. Viking Therapeutics is also developing an oral formulation of VK2735 that is currently in mid-stage studies, while VK0214 is an investigational treatment for a rare, nervous system disorder called X-linked adrenoleukodystrophy.

There is no approved treatment for the disease yet. Viking Therapeutics carries above-average risk, as do all biotech companies without a single product on the market. But if VK2735 aces phase 3 results and earns approval -- and Viking's other candidates pan out as well -- the stock could deliver substantial returns.

The verdict

Amgen is a well-established company that generates consistent financial results. It also pays a dividend. It is a far better option for low-risk, income-seeking investors. There is no contest there. However, Viking Therapeutics has far more upside potential. If the smaller biotech can deliver solid pipeline and regulatory progress in the next few years, its shares will likely skyrocket. Note that the company also has significant potential drawbacks. It could be more appealing for investors with a higher tolerance for volatility.

Should you invest $1,000 in Amgen right now?

Before you buy stock in Amgen, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Amgen wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $644,254!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $807,814!*

Now, it’s worth noting Stock Advisor’s total average return is 962% — a market-crushing outperformance compared to 169% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of May 19, 2025

Prosper Junior Bakiny has positions in Eli Lilly, Novo Nordisk, and Viking Therapeutics. The Motley Fool has positions in and recommends Amgen. The Motley Fool recommends Novo Nordisk and Viking Therapeutics. The Motley Fool has a disclosure policy.

When investing in dividend stocks, paying attention to the right things is essential. A high yield can be attractive, but the most critical factor to consider is a company's underlying operations.

Businesses that are solid enough to perform well over extended periods, while consistently raising their payouts, are precisely what income investors should gravitate toward. Here are two corporations which fit that description: AbbVie (NYSE: ABBV) and Gilead Sciences (NASDAQ: GILD).

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These two healthcare dividend payers are worth investing in this month since they have the profile of "forever" stocks, in addition to above-average yields. Read on to learn more about these companies.

Image source: Getty Images.

1. AbbVie

There are hundreds of dividend-paying stocks on equity markets, and a select few have earned the title of Dividend Kings after raising their payouts for at least 50 consecutive years. AbbVie is part of this elite group.

The company's streak stands at 53 years when factoring in the time it spent as a division of its former parent company, Abbott Laboratories. That alone makes AbbVie worth serious consideration for income investors, but there's more to this company.

AbbVie markets drugs across a range of therapeutic areas but is best known for its work in immunology. Its two top-selling medicines, Skyrizi and Rinvoq, are both immunosuppressants.

These therapies are surprising even AbbVie's management with how fast their sales are growing. After losing patent exclusivity for its former top-selling drug in 2023, rheumatoid arthritis medicine Humira, AbbVie predicted it would return to top-line growth this year. However, it happened last year, ahead of schedule, thanks largely to Skyrizi and Rinvoq.

Recently, management increased its 2027 combined guidance for these medicines to more than $31 billion from the previous projection of about $27 billion.

Besides these two products, AbbVie's lineup features a slew of other key medicines, including its Botox franchise. More importantly than any single medicine, though, AbbVie proved it can survive any patent cliff by navigating one for the most lucrative drug in history, Humira.

That speaks volumes about the company's underlying business. Its pipeline boasts dozens of programs that should lead to more key approvals and label expansions in the future.

AbbVie has an impeccable dividend track record and a rock-solid business. Its forward yield tops 3.5%, well above the S&P 500's average of 1.3%. AbbVie has the makings of a dividend stock that's worth holding forever.

2. Gilead Sciences

Gilead Sciences is another leading drugmaker. The company made its name, in part, due to its dominance in the market for HIV medicines, where it's the leader. Gilead's work in HIV continues to be its most important. In the first quarter, the company's sales remained flat, compared to the year-ago period of $6.7 billion. That was due to lower sales from its coronavirus medicine Veklury.

However, the company's HIV business grew its revenue by 6% year over year to $4.6 billion. Biktarvy remains the top prescribed HIV regimen in the U.S., while Descovy for PrEP is among the leading therapies in its niche.

Though Gilead relies quite a bit on its HIV business, it's working on diversifying its portfolio. Veklury was the first therapy for COVID-19 to earn approval in the U.S. and has been a net benefit for the company, despite its somewhat unpredictable year-to-year trajectory. Without it, the biotech's financial results in the past five years would have been worse, and it has remained effective despite evolving strains of the virus.

Gilead is looking to build a strong oncology business, too. Over a third of the company's 58 pipeline programs are in this area. The company will continue to make innovations within HIV as it has for a long time. The stock should perform well in the long run, thanks to its innovative abilities and well-established position in the difficult-to-navigate healthcare industry. It should also be able to sustain its dividend program.

Gilead Sciences' forward yield is 3.2%, and its dividends increased by almost 84% in the past 10 years. This is another stock that long-term income-seeking investors can't go wrong with today.

Should you invest $1,000 in AbbVie right now?

Before you buy stock in AbbVie, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and AbbVie wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $614,911!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $714,958!*

Now, it’s worth noting Stock Advisor’s total average return is 907% — a market-crushing outperformance compared to 163% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of May 5, 2025

Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AbbVie, Abbott Laboratories, and Gilead Sciences. The Motley Fool has a disclosure policy.

It finally happened. Warren Buffett, the longtime CEO of Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B), announced during the company's recent annual meeting that he would be stepping down as head of the conglomerate by year-end. Buffett is 94 years old, so his decision can't be too much of a surprise.

However, some investors are worried. Buffett's leadership is one of the key reasons Berkshire Hathaway has produced market-beating returns over the past few decades. The man earned the title of the greatest investor of all time for a reason. How will things evolve once he is no longer at the head of the company? Can it still produce excellent returns to loyal shareholders?

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These fears are what likely led to the conglomerate's shares falling by 5% after Buffett broke the news. However, my view is that Berkshire Hathaway remains an excellent "forever" stock, even as Buffett is stepping down.

Image Source: The Motley Fool.

Different leader, same philosophy

The man set to become the next CEO of Berkshire Hathaway is Greg Abel, the current VP of the company's non-insurance operations. Buffett didn't simply pick a random name out of a hat to replace him during the annual meeting. He made this choice long ago, back in 2021. By then, Abel had been with Berkshire Hathaway for 21 years. Buffett had had time to impart his knowledge and observe Abel enough to make him the heir apparent to Berkshire Hathaway.

There are likely many factors that led to Abel being picked as Buffett's successor, but one of them is, without a doubt, the belief that Abel is capable of and will keep applying the fundamental philosophy and investing principles that have made the business so successful since the '60s. That's what Abel plans to do. During the company's annual meeting, when Buffett broke the news, Abel said the following:

It's really the investment philosophy and how Warren and the team have allocated capital for the past 60 years. Really, it will not change. And it's the approach we'll take as we go forward.

Abel's mention of Berkshire Hathaway's "team" is another crucial point. Buffett was not the only one responsible for the company's success. He had a longtime partner in Charlie Munger, who died in 2023. Similarly, more than one man now occupies a high position within the company and has gobbled up Buffett's wisdom and investing acumen.

Berkshire Hathaway's team will still feature other famous names, including Ajit Jain, the vice chairman of the company's insurance operations. There are several others. The team that will carry the torch after Buffett steps down as CEO will inherit something else besides Buffett's investing philosophy: an incredibly strong and diversified business.

The closest stock to an ETF you can buy

One of the reasons Berkshire Hathaway has crushed the market over the long term is its impressive mix of stocks. The list of the company's subsidiaries is long and includes businesses across many sectors and industries, from railroads and energy to insurance and manufacturing. True, some of the company's segments are far more important than others. Berkshire Hathaway's insurance business carries a lot more weight than most other individual units.

However, overall, the company's operations are incredibly diversified, much more than any other publicly traded corporation. Some of Berkshire Hathaway's subsidiaries might not perform well at any given point, but they won't all be affected the same by economic or marketwide challenges.

That's a significant strength, and that's before we factor in Berkshire's investment portfolio. Here, too, the company is somewhat diversified across consumer goods, consumer staples, financial services, energy, and more.

Beating the market is notoriously challenging, partly because major indexes are well diversified. That's why many investors opt to buy exchange-traded funds (ETFs) that track the performance of these indexes. Berkshire Hathaway is the next best thing, and it is even better because it was put together by the best investor of all time.

Buffett might be stepping down, but his style and philosophy will long outlive him within a company he has already set up for long-term success. Berkshire Hathaway was an excellent buy-and-forget stock before Buffett announced he would be stepping down. It remains so today.

Should you invest $1,000 in Berkshire Hathaway right now?

Before you buy stock in Berkshire Hathaway, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Berkshire Hathaway wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $617,181!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $719,371!*

Now, it’s worth noting Stock Advisor’s total average return is 909% — a market-crushing outperformance compared to 163% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of May 5, 2025

Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool has a disclosure policy.

Some research has shown that dividend-paying stocks significantly outperformed their non-dividend-paying peers over the past few decades, and that the lion's share of market returns can be attributed to reinvested dividends and compounding. Those are excellent arguments for investing in dividend stocks and holding on to them for a long time.

However, not all dividend-paying companies are equally attractive. Which ones should you consider? Two excellent options right now are Amgen (NASDAQ: AMGN) and Microsoft (NASDAQ: MSFT). Here's why these two income stocks are worth sticking with for good.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Image source: Getty Images.

1. Amgen

It's never a bad idea to turn to leading drugmakers like Amgen when looking for forever stocks. The business of developing and marketing innovative therapies for serious, sometimes life-threatening diseases will never go out of style until we find all-purpose cures for all conditions.

While individual drugmakers could fail, Amgen's business looks strong enough to avoid that fate for a long time. It boasts an extensive lineup of medicines, with over 10 that each generated upwards of $1 billion in sales in 2024. In the first quarter, revenue increased by a strong 9% year over year to $8.1 billion.

Amgen's lineup is diversified across several therapeutic areas, including oncology, immunology, rare diseases, and respiratory diseases. Key growth drivers (not an exhaustive list) include Tezspire, an asthma medication; Repatha, which treats high cholesterol; and blood-cancer medicine Blincyto.

Like every drugmaker, Amgen will, at some point, face patent cliffs that will erode sales of important products. The way to get around this issue is to develop newer medicines. Looking at the company's pipeline, it seems more than capable of doing so. It boasts a few dozen programs that should lead to label expansions and brand-new approvals.

The company has been working on a promising weight management candidate, MariTide. Though this product somewhat disappointed in phase 2 studies, it's still in the running to reach the market and generate decent sales, considering how rapidly the anti-obesity space is growing. Besides, Amgen is developing another weight loss candidate that's still in phase 1 studies.

Weight loss isn't the only area the biotech is going after; it has exciting products across others. In the biosimilar realm, it recently launched Pavblu, a competitor to Regeneron Pharmaceuticals' blockbuster, Eylea, which treats an eye condition called wet age-related macular degeneration. Amgen should be able to overcome future losses of patent exclusivity for key products, even if it goes through periods of declining sales as a result.

The stock should perform well in the long run and continue rewarding shareholders with regular dividends. The company has increased its payouts by 201% in the past decade so it currently offers a forward yield of 3.4% -- while the average for the S&P 500 is 1.3%. Amgen might not be as exciting as certain tech companies, but the stock looks like a strong buy-and-forget pick.

2. Microsoft

Microsoft's shares struggled for much of the year. The threat of tariffs and the fear that they could lead to an inflationary environment or a recession (or both) weighed on many tech giants, including Microsoft.

However, the company more or less put those fears to bed (for now) with its latest quarterly update, for the third quarter of its fiscal year 2025, ending March 31. Revenue jumped by 13% year over year to $70.1 billion.

The tech leader can thank its cloud computing arm, Microsoft Azure, for that performance; the segment's revenue jumped by 33% (or 35% in constant currency) compared to the year-ago period. And there's more where that came from. In its fourth quarter, Microsoft expects Azure revenue to increase 34% to 35% in constant currency.

So, despite economic uncertainty, the company is doing fine. The important lesson here isn't that its quarter was strong. It's that even during challenging times, Microsoft can perform relatively well. That's why the stock has thrived for decades, making longtime shareholders much wealthier.

Microsoft's ability to navigate tough periods is one factor that makes it an attractive forever stock. Here are two more. First, the company has a strong moat from its brand name and switching costs within its cloud and software productivity businesses. Second, it has attractive long-term growth opportunities; cloud computing and artificial intelligence (AI) are the most exciting of the bunch.

That means that even with a market capitalization above $3 trillion, Microsoft still has a bright future, and the company's dividend looks safe. It might only have a forward yield of 0.8%, but the rock-solid underlying business, ability to generate plenty of cash, and consistent dividend growth record (it's increased its payouts by 168% over the past 10 years) more than make up for the low yield.

Microsoft is a top stock to hold on to for growth and income investors alike.

Should you invest $1,000 in Amgen right now?

Before you buy stock in Amgen, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Amgen wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $623,103!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $717,471!*

Now, it’s worth noting Stock Advisor’s total average return is 909% — a market-crushing outperformance compared to 162% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of May 5, 2025

Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amgen, Microsoft, and Regeneron Pharmaceuticals. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

President Donald Trump's macroeconomic policies are taking center stage on Wall Street. The 47th U.S. president has decided to implement aggressive tariffs on imported goods from most countries, although he recently paused these plans for 90 days. Regardless, corporations are looking for ways to avoid paying these tariffs.

That includes two pharmaceutical leaders: Johnson & Johnson (NYSE: JNJ) and Novartis (NYSE: NVS). The industry has so far escaped Trump's tariffs, but that might not last for much longer, which makes these drugmakers' plans critical to monitor. Should investors still consider purchasing shares of Johnson & Johnson and Novartis in this environment?

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1. Johnson & Johnson

One way to avoid tariffs is to manufacture locally. That's what Johnson & Johnson plans on doing more of. The healthcare giant had already been shoring up its manufacturing capacity in the United States, but in March, it announced it would increase these investments. It plans to spend over $55 billion in the U.S. over the next four years, which is 25% more than it spent in the previous four years. J&J will build new facilities and expand some existing ones.

But it will take time for the company to move more of its manufacturing back into the U.S., and in the meantime, it could feel the impact of the tariffs. That's besides other issues the drugmaker faces in the medium term. It's still dealing with thousands of talc-related lawsuits. Furthermore, with the Inflation Reduction Act (IRA), a law passed in the U.S. in 2022 that granted Medicare the power to negotiate the prices of certain drugs, Johnson & Johnson will generate lower revenue from some products.

That said, there are plenty of things to like about J&J's business. Its significant investment in the U.S. to avoid tariffs demonstrates its ability to adapt to changing economic conditions. And that adaptability is precisely what makes this corporation massively successful. No pharmaceutical company generates more in annual revenue. Considering that, it's unsurprising the pharmaceutical company has existed for more than a century. Whether it's dealing with the IRA or some other legal challenge, the smart money is on Johnson & Johnson overcoming it.

It has done so plenty of times throughout its history. The pharmaceutical leader also boasts an AAA rating from Standard & Poor's -- that's a higher credit rating than the U.S. government's. The current legal challenges won't be its undoing.

Meanwhile, it continues to generate strong financial results. Growth in revenue and earnings isn't spectacular, but is steady and reliable. J&J has a deep pipeline of investigational drugs and a diversified medical device business.

Lastly, as more evidence of a robust business, it has now increased its payouts for 63 consecutive years, making it a Dividend King. Rather than avoiding Johnson & Johnson, investors seeking reliable income payers in these volatile times should seriously consider buying its shares.

2. Novartis

Novartis is also shoring up its U.S. manufacturing footprint. The company will invest $23 billion over five years to build seven new facilities and expand three more. In the end, it expects to locally manufacture 100% of the medicines it sells in the U.S. That's all good news for shareholders, as it shows that even if Trump's tariffs outlast his administration, Novartis is well-positioned to mitigate their impact.

The drugmaker expects to grow its revenue at a compound annual growth rate (CAGR) of 5% through 2029, a decent performance for a pharmaceutical giant. Novartis will lose U.S. patent exclusivity for some major products, including heart failure medicine Entresto, this year. Entresto generated $7.8 billion in sales last year, up 30% year over year, so this will be a significant loss.

However, Novartis will eventually fill the gap thanks to newer products. Fabhalta, first approved in the U.S. in 2023 to treat a rare blood disease called paroxysmal nocturnal hemoglobinuria, could generate peak sales of $3.6 billion according to some estimates. There will be others that will allow Novartis to clock that CAGR of 5% through 2029, despite its best-selling drug going off-patent in the U.S. this year. Beyond the next four years, the company's ability to generate consistent earnings, its existing lineup, and its deep pipeline should allow the stock to perform well.

Additionally, Novartis has increased its payouts for 28 consecutive years, a strong streak that makes it attractive to income-oriented investors. Despite the threat of tariffs, I think this dividend stock is a buy.

Should you invest $1,000 in Johnson & Johnson right now?

Before you buy stock in Johnson & Johnson, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Johnson & Johnson wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $594,046!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $680,390!*

Now, it’s worth noting Stock Advisor’s total average return is 872% — a market-crushing outperformance compared to 160% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 21, 2025

Prosper Junior Bakiny has positions in Johnson & Johnson. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.

What should investors do during a stock-market correction? One great strategy is to go shopping. A bull market will eventually follow the challenging and volatile times we face, and, based on history, this bull run is likely to be longer than the current ordeal. Furthermore, companies often end up trading for steep discounts during corrections, since many investors are unable to resist the urge to panic-sell -- one more reason why fortunes are made during downturns.

With that in mind, let's consider two stocks down 17% and 36%, respectively, this year that are worth investing in right now: Regeneron Pharmaceuticals (NASDAQ: REGN) and Moderna (NASDAQ: MRNA).

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1. Moderna

Moderna made a name for itself by quickly developing and marketing an effective COVID-19 vaccine when the world needed it most. Although it made a small fortune in this area, the biotech has been struggling since the pandemic started to recede. Moderna's revenue declined substantially while it returned to being unprofitable. The current volatile environment isn't helping the stock, either.

MRNA Revenue (Annual) data by YCharts.

But there is some good news: Moderna has made significant clinical progress in the past couple of years. It earned approval for a vaccine for the respiratory syncytial virus (RSV), mRESVIA, while it aced phase 3 studies for a combination coronavirus/influenza vaccine that could earn the green light sometime this year. This combo vaccine would be the first to inoculate patients against both COVID and flu, showing Moderna's innovative abilities once again.

The company consistently targets areas with high unmet needs, including some where no approved vaccines exist. Its late-stage pipeline features a potential vaccine for cytomegalovirus (CMV) -- there are currently none -- and a personalized cancer vaccine that could help significantly decrease the risk of recurrence or death in eligible patients. Moderna's early-stage pipeline boasts other ambitious candidates. The field of mRNA-based vaccines, in which the biotech specializes, is still relatively new -- but it looks incredibly promising.

Traditional vaccines are made from weakened viruses or bacteria, a process that takes time. While mRNA ones need the genetic code of the target infectious agent, they're faster and cheaper to develop. Moderna is proving to be an innovative player in this growing field, and it has a deep pipeline that should lead to more significant clinical milestones down the line.

So, despite the company's struggles over the past three years, it could have a bright future. That's why it's worth it to purchase Moderna's shares, as they're down by 36% this year.

2. Regeneron Pharmaceuticals

Regeneron Pharmaceuticals, a leading biotech company, faces some uncertainty. While its financial results looked strong last year, Eylea, a medicine for wet age-related macular degeneration co-marketed with Bayer, is facing biosimilar competition. Even though Regeneron earned approval for a new formulation of Eylea in late 2023, the old version continues to generate significant sales for the drugmaker.

That, combined with marketwide volatility, is what's causing Regeneron's shares to perform poorly; the stock is down 17% year to date. However, there are some key factors to consider.

First, Regeneron's most important medicine is Dupixent, an eczema treatment it co-markets with Sanofi. Dupixent was already among the world's best-selling medicines before it earned a label expansion in treating chronic obstructive pulmonary disease (COPD) late last year, which could add several billion dollars in sales of the therapy.

Second, the newer version of Eylea should continue stealing patients away from the older version, thanks to its more convenient dosing schedule. That should help smooth out losses from biosimilar competition.

Third, Regeneron has an exciting pipeline. It's growing its presence in oncology, has made moves in the weight loss market, and is developing a highly promising gene therapy for hearing loss that's posted excellent results in early-stage studies.

Finally, Regeneron recently initiated a dividend in addition to its already attractive share-buyback program; the company clearly intends to reward its shareholders. That's another good reason to invest in the stock.

Should you invest $1,000 in Moderna right now?

Before you buy stock in Moderna, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Moderna wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $594,046!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $680,390!*

Now, it’s worth noting Stock Advisor’s total average return is 872% — a market-crushing outperformance compared to 160% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 21, 2025

Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Regeneron Pharmaceuticals. The Motley Fool recommends Moderna. The Motley Fool has a disclosure policy.

Eli Lilly (NYSE: LLY) has been growing its sales at a good clip over the past year. This is partly thanks to Zepbound, a weight loss medicine that's already generating more than $1 billion in quarterly sales, although it was approved only in late 2023.

Zepbound's prospects still look bright, but some recent developments point to another weight loss drug that could become yet another powerful growth driver for Lilly. Let's look deeper into the pharmaceutical giant's latest clinical win and what it could mean for investors.

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Eli Lilly breaks new ground -- again

The active ingredient in Zepbound is tirzepatide, the first dual GLP-1/GIP agonist to earn approval from the U.S. Food and Drug Administration. Like its biggest rival on the market, Wegovy, Zepbound is administered via subcutaneous injection once a week.

However, some patients don't like to poke needles into their skin and would prefer an oral pill instead, even if they have to take it daily. That's why many drugmakers have been looking to develop an effective oral weight loss option, and Eli Lilly might have just done it.

In a phase 3 study, orforglipron, a once-daily weight management candidate, delivered excellent results in patients with type 2 diabetes. The highest dose of the therapy led to a mean weight loss of 7.9% in the trial, along with a 1.5% decrease in A1C levels over 40 weeks. As Lilly pointed out, orforglipron's performance was consistent with that of injectable GLP-1 medicines.

There are many reasons to buy

Since orforglipron is an oral pill, it will be easier (and cheaper) to manufacture in large quantities and launch in markets worldwide. That would be a meaningful advantage even if companies weren't dealing with tariff-related expenses that could increase their manufacturing costs. And since orforglipron's efficacy is consistent with that of existing injected medicines, it should capture a decent share of the market. So we can expect orforglipron to become an important part of Eli Lilly's lineup.

However, there are plenty of other reasons to invest in the stock. Lilly has outperformed the market in recent years due to its progress in diabetes and weight loss, while some of its older products continue to perform exceptionally well.

Consider Verzenio, a cancer drug. Last year, its sales soared by 37% year over year to $5.3 billion. Taltz, Lilly's immunosuppressant, reported revenue of $3.3 billion last year, 18% higher than the year-ago period. Eli Lilly isn't just a diabetes or a weight loss company. These products -- and some of the newer approvals the company has earned -- show that.

One of its more impressive achievements is the launch of Kisunla, a therapy for Alzheimer's disease (AD) -- an area that earned the nickname of a "graveyard" for investigational medicines, considering the large number of clinical failures. However, Lilly succeeded where the overwhelming majority of drugmakers failed, and Kisunla should be an important growth driver for a while.

Beyond any single medicine, though, Eli Lilly's greatest strength is proving to be its innovative abilities. Whether it's in diabetes, weight loss, Alzheimer's disease, immunology, or oncology, the pharmaceutical leader has had significant clinical and regulatory wins in recent years, adding several blockbusters -- or future blockbusters -- to its lineup. That's why revenue and earnings have recently grown rapidly, and it should maintain that pace:

LLY Revenue (Annual) data by YCharts.

Additionally, Lilly is an excellent dividend-paying stock. Its forward yield of 0.7% doesn't look particularly attractive -- the average for the S&P 500 is 1.3%. However, the company has increased its dividend by 200% in the past decade. And with a conservative payout ratio of 44%, it has room to increase its dividend even further.

Eli Lilly's shares jumped on the orforglipron news, and are now in the green for the year. But there's plenty of upside left for the stock, for those willing to hold onto its shares through volatility.

Should you invest $1,000 in Eli Lilly right now?

Before you buy stock in Eli Lilly, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Eli Lilly wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $561,046!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $606,106!*

Now, it’s worth noting Stock Advisor’s total average return is 811% — a market-crushing outperformance compared to 153% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 21, 2025

Prosper Junior Bakiny has positions in Eli Lilly. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

President Donald Trump's decision to impose sweeping tariffs on imports from nearly every country in the world has resulted in one of the worst quarters for the U.S. stock market in years. Investors fear that the impact of this move, as well as the retaliatory actions that some countries have already responded with, will take a heavy toll on the entire economy.

In this now-shaky macro environment, those who wish to buy stock may want to start by looking for companies that might not be as affected by a trade war due to the nature of their businesses. Netflix (NASDAQ: NFLX) and Visa (NYSE: V) are two great examples which fit that bill, but aren't just "tariff plays." Each can perform well in the long run.

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1. Netflix

Netflix's business is somewhat insulated from the impact of tariffs because it has no physical products. It generates most of its revenue from subscriptions. That's not to say the streaming specialist will be entirely immune from the impacts of Trump's trade war. The streamer has a fast-growing, ad-supported subscription tier. If the tariffs lead to an economic slowdown, many companies could cut their ad budgets, which would likely affect Netflix.

In addition, the streaming leader might lose paid subscribers if a recession hits. Still, Netflix should perform better than most in these challenging times since the lion's shares of its sales don't come from ads, and most companies suffer one way or another in economic downturns. Just as important, Netflix is still well-positioned to deliver strong performances long after this storm has subsided.

Netflix's subscriber base provides it with a massive amount of data on viewer habits that it can use to steer its content production decisions in the right directions. It has done that quite successfully throughout its history. Its revenue, earnings, and free cash flow have been growing at healthy clips recently, and they can keep doing so in the long run, considering the massive amount of white space still available to the company.

NFLX Revenue (Annual) data by YCharts.

Netflix estimates it has an addressable market of $650 billion in the markets where it operates -- it has only grabbed 6% of that total. While it will never capture anywhere close to all of it since the competition in streaming is fierce, Netflix remains the top dog. It should profit more than its peers from the ongoing shift in viewing away from linear TV and toward streaming. It is an excellent stock to buy and hold through this tariff-driven market meltdown and beyond.

2. Visa

Visa is a leading provider of financial services. Billions of credit and debit cards worldwide are branded with its famous logo. However, Visa does not issue these cards itself, nor does it provide the credit that underpins them -- that's the job of banks. Visa provides a network that facilitates digital transactions and charges a fee for each transaction made.

Since it does not issue the cards or lend money, it isn't subject to the risk that borrowers will default -- a threat that intensifies during recessions. If Trump's macroeconomic policies lead to a recession, Visa won't have to worry as much about that issue. Further, tariffs can lead to higher inflation, as Federal Reserve Chair Jerome Powell pointed out recently.

Inflation could be good for Visa, though. Since the fees it charges are computed as a small percentage of each transaction, people spending more money on the same items means higher revenues for Visa. With hundreds of millions of transactions on its network every day, incrementally growth in the average size of its fees starts to add up. That's why Visa could navigate the current environment just fine.

The company also has excellent long-term prospects. There is an ongoing shift in purchasing activity away from cash and checks, which still are used for trillions of dollars worth of retail activity. Meanwhile, Visa benefits from the network effect. The more consumers hold credit and debit cards with its logo, the more attractive it is for businesses to accept the brand as a payment option. And the more places Visa cards are accepted, the more appealing those cars will be to consumers. The result is a virtuous cycle that has kept the company's place in the financial landscape secure for decades.

Lastly, Visa is a terrific dividend stock. It has increased its payouts by a total of about 392% over the past decade. Visa's dividend should be safe even in challenging times. And for investors, reinvesting those growing distributions can add a boost to what should already be superior long-term returns.

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Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix and Visa. The Motley Fool has a disclosure policy.

Major stock market indexes are down significantly this year, with many of the most valuable companies in the world leading the descent. However, some companies are performing well. These include Medical Properties Trust (NYSE: MPW) and CVS Health (NYSE: CVS), two dividend payers crushing the market. CVS Health is up by 50%, while Medical Properties Trust's shares have risen 26%.

If these companies continue defying the market meltdown, they could be a great addition to any portfolio, but only if they can deliver long after the storm has subsided. Let's find out whether it's worth purchasing their shares.

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1. Medical Properties Trust

Medical Properties Trust (MPT), a healthcare-focused real estate investment trust (REIT), faced a significant headwind when one of its largest tenants, Steward Healthcare, defaulted on rent and filed for bankruptcy. The company's revenue and earnings declined, and it was forced to slash its dividends -- twice. However, the stock is rebounding this year as the rest of the market is moving south.

MPT has moved closer to putting its issues in the rearview mirror. It signed deals to place new tenants in the facilities formerly occupied by Steward Healthcare. There is still some work to do here; MPT hasn't filled all these facilities and isn't receiving all the rent revenue from the ones it has. The new tenants will slowly ramp up rent payments until they match the full amount due in the fourth quarter of 2026.

However, MPT has made significant progress. Its portfolio is now more diversified than before, with average lease lengths of 18 years for its newest tenants. Furthermore, MPT has significantly improved its financial health by selling some facilities and issuing secured notes; it will use those proceeds to deal with short-term debt, making its near-term financial profile far more attractive.

The new MPT looks healthier than it did just a couple of years ago. But despite its strong performance this year, the stock is still down massively since its troubles first started:

MPW data by YCharts.

Some investors worry that there's still significant uncertainty involved. However, it might be worth it for long-term income-seeking investors to take a chance on the company. As a REIT, Medical Properties Trust is required to distribute 90% of its earnings as dividends, and it currently offers a juicy forward yield of 6.1%. While it has cut its payouts twice recently, its stronger financial foundation means more slashes are somewhat unlikely in the foreseeable future.

MPT is slowly getting back on track. The stock has earned serious consideration for more adventurous dividend seekers.

2. CVS Health

CVS Health dealt with significant uncertainty over the past three years due to at least a couple of factors. First, the pharmacy chain leader lost revenue from the sale of coronavirus-related products as the pandemic receded. Second, and more importantly, it struggled to contain rising costs within its Medicare Advantage business, leading to lower earnings than anticipated. CVS revised its own guidance several times, and never in the right direction, much to the dismay of investors.

However, the company might be turning a new leaf. CVS is under new management. The healthcare leader appointed a new CEO, David Joyner, in October. As if to welcome its new head, the company delivered much better-than-anticipated results in the fourth quarter. It's unlikely that much of this was due to a CEO who took over while the fourth quarter was already in full swing, so the question remains: Can CVS Health right the ship?

My view is that while it's too early to say, the business has important strengths. CVS is a trusted, diversified healthcare brand with footprints beyond its pharmacy chain unit. It's a leading health insurer, has a primary care business, and recently launched Cordavis, a subsidiary that will manufacture biosimilars.

CVS could recover in the long run, but it's not clear what moves the new CEO will make to improve the business -- one of which could be to reduce the company's dividend. That's to say nothing of the competition it will continue to face from the increasingly popular Amazon Pharmacy.

Unlike Medical Properties Trust, CVS Health has yet to take tangible steps to put its challenges behind it. But given the company's pedigree, it might also be worth considering for dividend seekers who are comfortable with some risk and volatility.

Should you invest $1,000 in Medical Properties Trust right now?

Before you buy stock in Medical Properties Trust, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Medical Properties Trust wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $509,884!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $700,739!*

Now, it’s worth noting Stock Advisor’s total average return is 820% — a market-crushing outperformance compared to 158% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 10, 2025

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Prosper Junior Bakiny has positions in Amazon. The Motley Fool has positions in and recommends Amazon. The Motley Fool recommends CVS Health. The Motley Fool has a disclosure policy.