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3 Stocks That Could Trounce the Market in 2025
LLYLilly(LLY) The Motley Fool·2025-02-17 09:32

Group 1: Eli Lilly - Eli Lilly has consistently outperformed the market, with a stock increase of over 32% last year compared to the S&P 500's 23% [2] - Over the past five years, Eli Lilly's stock has risen nearly 500%, while the S&P 500 has increased by 82% [2] - The company reported a 45% increase in sales, reaching 13.5billioninthelastquarterof2024[3]TheGLP1diabetesdrugMounjarogenerated13.5 billion in the last quarter of 2024 [3] - The GLP-1 diabetes drug Mounjaro generated 3.5 billion in revenue, with a year-over-year growth rate of 60% [4] - Zepbound, a GLP-1 weight loss treatment, brought in over $1.9 billion and has potential to become the top-selling product [4] - Eli Lilly is also developing retatrutide, which may offer greater weight loss benefits, with clinical trial data expected later this year [5] - Strong financial results and potential new drug data could lead to another year of significant outperformance against the S&P 500 in 2025 [6] Group 2: Summit Therapeutics - Summit Therapeutics experienced a remarkable stock increase of 584% last year, with a peak of 1,120% year-to-date at one point [7] - The company is expected to outperform the market again in 2025 due to an upcoming announcement of top-line data from its phase 3 Harmoni clinical trial for ivonescimab in non-small cell lung cancer (NSCLC) [8] - Positive results from a late-stage study of ivonescimab as a first-line treatment for NSCLC were reported by partner Akeso, showing better progression-free survival compared to Merck's Keytruda [9] - If late-stage results are positive, Summit plans to file for U.S. regulatory approval for ivonescimab as a second-line treatment for NSCLC [10] - The company is also advancing ivonescimab into additional studies for first-line therapy and as a monotherapy [10] Group 3: Vertex Pharmaceuticals - Vertex Pharmaceuticals has performed well over the past decade, primarily due to its focus on cystic fibrosis (CF) treatments [12] - The company has recently received approvals for Casgevy for sickle cell disease and beta-thalassemia, marking a diversification in its product offerings [13] - In January 2025, Vertex received regulatory approval for Journavx, a non-opioid medicine for acute pain, indicating a shift away from reliance solely on CF [14] - Vertex is expected to make significant pipeline progress in various areas, including type 1 diabetes and kidney diseases, over the next 11 months [14] - The company has shown strong performance this year and is likely to continue delivering solid financial results and clinical advancements [15] - Vertex is considered an attractive long-term investment due to its strong track record and innovative capabilities [16]