3 health actions that can double your money in 2021
SmileDirectClub (NASDAQ: SDC), Editas Medicine (NASDAQ: MODIFY), and BioNTech (NASDAQ: BNTX) have made some investors very wealthy over the past year. Related to S&P 500‘s 16% yield, all three stocks are up between 32% and 164%. And I think they have even more potential to generate big returns for their shareholders in 2021.
When it comes to investing at the start of a new bull market cycle, it pays to buy stocks with high growth potential. Today, let’s take a look at why the dentistry company, gene-editing biotechnology, and coronavirus vaccine maker are among the top healthcare stocks investors can buy right now.
With a 96% customer satisfaction rate on over 90,600 Google reviews, SmileDirectClub is one of the country’s leading tele-orthodontics services. It operates more than 6,800 sites across the country as well as a digital segment, and has served over a million patients with its 3D printed tooth aligners since its inception.
In the third quarter of 2020, the company’s revenue fell 6.5% year-over-year to $ 165.8 million due to disruptions to its retail stores caused by the COVID pandemic -19. However, its effectiveness has increased significantly. The company is now breaking even in terms of free cash flow, compared to a loss of $ 122.3 million in the third quarter of 2019. The broader adaptation of telehealth since the start of the pandemic, along with cost savings, are one of the main drivers of cost reduction. the closure of several points of sale.
After the pandemic ends, the company predicts it can achieve 20-30% year-over-year revenue growth, improve gross margins to 85%, and increase non-cash operating margin at 30%. These are great metrics, especially considering the company only has a valuation of seven times its revenue. Meanwhile, major telemedicine companies like Teladoc Health (NYSE: TDOC) and Am fine (NYSE: AMWL) are trading between 20 and 26 times the sales.
For investors looking for a top quality digital orthodontic company at the right price, consider SmileDirect. As telemedicine and teledenistry become major players in the lives of patients after COVID, the stock is set to double from its current level.
2. Editas Medicine
Don’t be appalled at first glance by Editas’ seemingly immutable market cap of $ 4.8 billion. It is one of the most popular gene editing stocks currently available. Over the past year, stocks have already gained 147%.
Investors are rightly optimistic about its future; the title has made impressive gains even though it has only one candidate at an early stage in clinical trials. Preclinical data showed that the company’s gene editing methods were effective in combating inherited blindness and the lack of oxygen-carrying proteins in the blood. Over 100,000 patients suffer from these conditions in the US and EU Although the study was only preliminary, it yielded superb results. Genetic modifications were successful in over 90% of an experimental mouse population; edited cells showed significant improvements over deformed cells.
Currently, Editas has eight or nine CRISPR therapeutic candidates in discovery or pending clinical trial authorization. It holds 70 patents for its technology, with 600 more pending applications.
It is essential to examine the ownership of developing biotechnologies by institutional investors. These companies typically have teams of dedicated healthcare analysts and experts who have already performed a due diligence to determine whether or not a company’s applicants can pass clinical testing, saving investors the trouble of making the guess. work themselves. Editas easily crosses this threshold. Almost 88% of the business is controlled by large financial companies. If you are looking for a long term bet on the CRISPR sector in general, Editas is an excellent choice.
Together with Pfizer (NYSE: PFE), BioNTech brought the world’s first coronavirus vaccine to market after just 10 months of development and testing. In clinical studies, the vaccine has been shown to be 95% effective in preventing COVID-19. The vaccine had no serious side effects, except for minor cases of headache or fatigue during testing.
Additionally, a study found that the Pfizer-BioNTech vaccine effectively protects individuals against strains of the coronavirus that first appeared in the UK and South Africa. Right now, the company has over 1 billion orders for its coronavirus vaccine, along with customer options to purchase an additional 400 million doses.
Priced at $ 14.70-19.50 per dose, BioNTech has revenue of around $ 7.4-9.8 billion after factoring in its 50-50 gross profit-sharing deal with Pfizer. The amount is significant considering BioNTech’s IPO last year and currently has a market cap of $ 26.1 billion.
This year, the company has even more growth potential. It plans to increase its joint production capacity to 2 billion doses per year. In addition to the coronavirus vaccine, BioNTech also has 11 clinical stage therapeutics in its immuno-oncology pipeline. For those looking for rapid, emerging growth biotechnology stocks, look no further than BioNTech.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.