Stocks Built for the Long Haul: Navigating the Everchanging Landscape

In the dynamic world of investing, the conventional wisdom often centers around the importance of timing - when to buy and when to sell. However, a select few stocks possess the resilience and adaptability to transcend the need for constant monitoring and trading. Three Motley Fool contributors delve into the reasons why AbbVie (ABBV), Eli Lilly (LLY), and Vertex Pharmaceuticals (VRTX) are healthcare stocks that can be considered as long-term holds.

Weathering the Storm: Stocks Designed for Longevity

AbbVie: Mastering the Art of Adaptation

The key to longevity in the business world lies in the ability to adapt to a rapidly changing environment. AbbVie, a pharmaceutical powerhouse, has demonstrated this skill with remarkable precision. In the years leading up to the patent expirations of its top-selling product, Humira, the company invested heavily in research and development, as well as strategic acquisitions. These proactive measures have paid off handsomely, as Humira now accounts for only 19.5% of AbbVie's total revenue, down from a staggering 57% in 2013. Despite this shift, the company has managed to increase its overall revenue by over 42% in the first half of this year compared to 2013. This remarkable feat underscores AbbVie's unwavering commitment to innovation and its ability to navigate the ever-evolving healthcare landscape. Investors can take solace in the fact that AbbVie is a Dividend King, boasting a forward dividend yield of 3.2%, ensuring that shareholders are rewarded handsomely along the way.

Eli Lilly: A Timeless Growth Story

Eli Lilly, a pharmaceutical giant with a rich history spanning over a century, is a stock that can be considered a true long-term hold. The company's impressive fundamentals, coupled with its broad business encompassing various therapeutic areas, make it a compelling investment proposition. Lilly's top-selling products, Zepbound for weight loss and Mounjaro for diabetes, are expected to maintain their dominance in the foreseeable future. However, the company's unwavering focus on innovation is what sets it apart. With a strong pipeline in areas such as cancer, immunology, neurodegeneration, and pain, Lilly is well-positioned to continue its growth trajectory. The company's ability to generate impressive profit margins of around 20% allows it to accumulate the necessary cash to pursue strategic acquisitions and further strengthen its position. This culture of growth, exemplified by CEO David Ricks' ambition to "exploit" the company's lead in obesity treatment, instills confidence in Lilly's ability to remain a top growth stock for decades to come.

Vertex Pharmaceuticals: A Visionary Approach to Tackling Serious Diseases

Vertex Pharmaceuticals, a leading biotech company, has set out to develop medicines for serious diseases, particularly those with limited treatment options. This visionary approach has paid dividends, as the company has maintained a monopoly in the treatment of cystic fibrosis (CF) for over a decade, despite fierce competition from larger pharmaceutical players. Vertex's ability to execute on its strategy is equally impressive, as demonstrated by its groundbreaking CF-related breakthroughs. The company is now expanding beyond its core expertise, with the recent launch of Casgevy, a gene-editing treatment for two rare blood diseases. Vertex's pipeline is brimming with promising candidates, including a therapy for acute pain currently under regulatory evaluation. While the future is never guaranteed, Vertex's past performance and underlying strengths suggest that it is poised to continue delivering important medical breakthroughs, strong financial performance, and excellent stock market returns over the long run. This makes Vertex Pharmaceuticals a fantastic stock to buy and hold forever.