Even though the stock market has rallied since the start of the year, with the S&P 500 and the Nasdaq rising by double-digit percentages, some stocks haven’t benefited from the positive momentum. And among these stragglers, you might find great deals. Certain companies with solid long-term prospects have seen their shares drop or simply stagnate. Biotech players CRISPR Therapeutics (CRSP -2.92%), Axsome Therapeutics (AXSM), and Moderna (MRNA -2.39%) are perfect examples.
Think of what they might accomplish over time — and how that may boost your portfolio. You don’t even have to invest a lot to get in on these players; less than $100 will do. And that’s why they’re no-brainer stocks to pick up right now.
1. CRISPR Therapeutics
CRISPR Therapeutics is getting closer and closer to a transformative moment: Regulators at the U.S. Food and Drug Administration soon will decide on what may become the company’s first commercialized product. They’re set to issue decisions on the gene-editing therapy exa-cel, for sickle cell disease in December and for beta thalassemia in March.
This could be big for CRISPR Therapeutics for two reasons. First, exa-cel uses the company’s CRISPR gene-editing technology, a platform applied throughout its pipeline, so a nod would serve as a key vote of confidence. Second, exa-cel, designed as a curative treatment, could result in significant demand — especially since options to address these blood disorders are limited. And that should equal blockbuster revenue.
Meanwhile, CRISPR Therapeutics has several other programs in the pipeline, including an immuno-oncology therapy that may also be nearing the finish line. That candidate is involved in a phase 2 trial that could support a regulatory submission.
CRISPR shares were trading for just under $40 each on Friday — significantly less than their level a couple of years ago, when visibility on the future wasn’t as clear.
2. Axsome Therapeutics
Axsome Therapeutics launched its first two products over the past year: Sunosi for sleep disorders, a product acquired from Jazz Pharmaceuticals, and Auvelity, an Axsome-developed antidepressant. Both have been performing well, and Axsome has high hopes for these and other products it expects to launch in the coming years.
The company predicts peak annual sales in the U.S. of as much as $3 billion for Auvelity and as much as $500 million for Sunosi. Axsome, a specialist in central nervous system conditions, aims to release four additional products over the coming two years. And these and other launches should represent U.S. peak sales of more than $11 billion, according to the company’s forecasts.
What’s encouraging is that Axsome’s pipeline is late-stage, meaning all of the candidates are in phase 2 development or farther along. Of course, failure could happen at any moment, but the company has at least passed some of the major safety and efficacy hurdles. That reduces some of the risk of investing in this potentially high-growth biotech stock.
Finally, Axsome, trading for a little more than $60 a share, has reached nearly a record low price-to-sales ratio — making now a great moment to buy.
3. Moderna
Moderna tumbled to $80 a share in recent days after coronavirus vaccine rival Pfizer cut its vaccine sales forecast for the year. Investors are worried that Moderna, too, may post lower-than-expected vaccine revenue.
Even if that happens, though, Moderna still makes a compelling buy today. Here’s why: The biotech is very close to becoming a multi-product company, possibly generating billions of dollars in annual revenue. Moderna aims to launch as many as 15 products in the coming five years, with the next up being potential vaccines for respiratory syncytial virus (RSV) and influenza.
These two will join the coronavirus vaccine to form a respiratory vaccine franchise, and Moderna expects this business to generate as much as $15 billion in revenue later this decade. The company predicts all of the potential new releases could result in as much as $30 billion in revenue, far surpassing the coronavirus vaccine’s peak revenue of $18.4 billion last year.
If even a small percentage of Moderna’s candidates make it to the finish line, the company could be looking at significant revenue over the coming years. Today, Moderna trades for about 8 times forward earnings estimates. That’s a steal, considering its earnings potential over the long term.
Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Axsome Therapeutics, CRISPR Therapeutics, and Pfizer. The Motley Fool recommends Moderna. The Motley Fool has a disclosure policy.
