There are many $1,000 spending ideas. One may buy a new flat-screen TV, play the lottery, or save it. If investors can choose the appropriate company, investment in stocks trumps all three strategies for increasing capital. For $1,000, consider Vertex Pharmaceuticals (NASDAQ: VRTX) and HCA Healthcare (NYSE: HCA) as long-term investments.
1. Vertex Pharma Biotech businesses succeed by developing new medications that improve care. Vertex excels at this. The pharmaceutical sells the only genetically targeted cystic fibrosis (CF) treatments. Other companies have tried to solve this problem, but all have failed. That demonstrates Vertex's innovation. Biotech was rewarded for its struggles. Profits, revenue, and free cash flow have risen substantially.
Vertex Pharmaceuticals isn't slowing. New CF medicines are being developed by the business. Biotech revealed phase 3 findings from a novel CF medication in February that indicated non-inferiority to Trikafta, its flagship drug. This novel medication reduced sweat chloride (CF patients have greater amounts) more than Trikafta.
Despite the newer medicine's easy once-daily dosing—Trikafta is taken twice a day. Along with increasing its lineup, Vertex Pharmaceuticals hopes to treat CF patients who aren't eligible for its drugs. The firm is also on that project. In other areas, the biotech is expanding. Casgevy, a gene editing medicine for two blood disorders, was approved late last year.
It also reported favorable late-stage findings for VX-548, a pain therapy, in January. Several more candidates in mid- and late-stage testing should make significant progress in the next several years, transforming the lineup and improving financial returns in five to 10 years. At $414, $1,000 buys two shares.
2. HCA Healthcare Leading hospital chain HCA Healthcare has facilities around the U.S. Due to the company's business, newcomers are unlikely threats. Building dozens of hospitals is difficult. It requires regulatory compliance and millions of cash, but that's just step one. Next, establish partnerships with doctors, communities, and third-party payers. All that was done by HCA Healthcare.
This gives the company a major advantage over new competitors. Even against current competitors, HCA Healthcare has gained market share. It rose from 23% to 28.5% between 2011 and 2022. Naturally, HCA Healthcare's excellent position has led to strong financial performance.
HCA Healthcare's income model relies on occupancy and procedure rates, which were affected by the epidemic. Its expenses and bottom line were also hurt by the economy. HCA Healthcare has mostly recovered. Rare headwinds have plagued it recently.
They won't permanently change HCA Healthcare's progress. An older population that needs more medical care will boost the company's demand. HCA Healthcare's strong industry position should translate to long-term returns. Investors can buy three shares for $1,000 at slightly under $322 each.
stay turned for development