3 Magnificent Stocks to Buy and Hold Forever

Core Viewpoint - Eli Lilly, Novo Nordisk, and Vertex Pharmaceuticals are identified as long-term investment opportunities in the healthcare sector due to their strong growth prospects and innovative pipelines. Eli Lilly - Eli Lilly is characterized as a growth powerhouse with robust financials, a solid drug pipeline, and a growing dividend, making it a reliable long-term investment [2][3]. - The company anticipates revenue between $58 billion and$61 billion for 2025, reflecting a growth rate of 32% [3]. - Eli Lilly has a profit margin exceeding 20%, allowing for reinvestment into research and development [4]. - The company has doubled its dividend payout in five years, despite a payout ratio over 80%, which is expected to decrease as operations scale [5]. - The stock has appreciated 240% over the past three years, although it trades at more than 80 times earnings, which is considered justifiable given its growth potential [6]. Novo Nordisk - Novo Nordisk has faced recent challenges, but its strong financial results and innovative pipeline present a long-term investment opportunity [7][9]. - The company’s next-gen weight loss drug, CagriSema, achieved a mean weight loss of 22.7% in trials, slightly below expectations, impacting stock performance [8]. - Novo Nordisk continues to innovate, with promising results from a phase 1b/2a study for subcutaneous amycretin and recent approvals for new products [10][11]. - The company has a strong drug discovery engine that has historically dominated the diabetes market, positioning it for future growth [11]. Vertex Pharmaceuticals - Vertex Pharmaceuticals is the sole provider of therapies for cystic fibrosis, with recent approval of Alyftrek enhancing its product offerings [12]. - The company is expanding its focus beyond cystic fibrosis, developing non-opioid pain relief alternatives and targeting APOL1-mediated kidney disease [13]. - Vertex is also pursuing potentially curative therapies for type 1 diabetes, with two candidates in clinical development [14]. - The company has partnered with CRISPR Therapeutics to develop gene-editing therapies, showcasing its innovative capabilities [15].