Value Investing in a Pricey Market
Legendary investor Warren Buffett’s massive cash stockpile is a clear indication that the market is overvalued. However, there are still some hidden gems to be found. Three Motley Fool contributors have identified Axsome Therapeutics (NASDAQ: AXSM), CRISPR Therapeutics (NASDAQ: CRSP), and Pfizer (NYSE: PFE) as bargain stocks worth considering.
A Small Biotech with Big Potential
Axsome Therapeutics has made significant progress since the start of the decade, transforming from a clinical-stage biotech to a company with two approved products on the market. With a promising late-stage pipeline and potential regulatory approvals on the horizon, Axsome’s valuation continues to lag behind its potential. Despite possible clinical and regulatory setbacks, the company’s likely successes are not yet baked into its valuation, making it an attractive buy.
A Gene-Editing Company on the Cusp of Growth
CRISPR Therapeutics has experienced a 24% decline this year, despite being on the verge of exciting growth opportunities. The FDA approval of its treatment Casgevy for sickle cell disease and transfusion-dependent beta-thalassemia could be a game-changer for the company. With a potential path to profitability and a strong partnership with Vertex Pharmaceuticals, CRISPR’s stock is trading at levels similar to 2019, making it a bargain worth considering.
A Pharmaceutical Giant with a Bright Future
Pfizer faces challenges, including declining sales of its COVID-19 vaccine and upcoming patent expirations. However, the company’s recent acquisitions and pipeline of 33 late-stage programs position it for future success. With a forward dividend yield of 5.7% and a valuation of 10.6 times forward earnings, Pfizer’s stock is an attractive value proposition. Despite its problems, Pfizer’s future is brighter than it seems, making it a bargain stock worth buying.
A Value Investor’s Dream
In a market priced for perfection, finding undervalued stocks can be a challenge. However, Axsome Therapeutics, CRISPR Therapeutics, and Pfizer offer a unique combination of potential and value. By considering these bargain stocks, investors can position themselves for long-term success and potentially reap significant returns.
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