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The countdown has begun. Not the countdown to 2023. Instead, the countdown to recovery for so many top companies hurt by the bear market. Three good examples are Teladoc Health (TDOC -4.73%), Nike (NKE -1.13%), and Crispr Therapeutics (CRSP -1.17%). Of course, we don’t know exactly when their stock performance will take off. But we do know these players have what it takes to drive share gains over time.
Why buy these players before 2023? They’re trading at bargain prices. And catalysts for growth lie ahead. So now, as you prepare your portfolio for next year, is a great time to pick up these top stocks.
Two billion-dollar noncash goodwill impairment charges hurt Teladoc’s earnings this year — and investor sentiment. These indicated Teladoc paid too much for its acquisition of chronic care specialist Livongo back in 2020. And they brought Teladoc further from the goal of profitability.
But this doesn’t change Teladoc’s bright long-term growth prospects. The telemedicine market is growing in the double digits, and Teladoc is a leader. More than half of Fortune 500 companies are clients.
Teladoc’s sales and visits soared during the pandemic. But they already were on the rise prior to the health crisis. So Teladoc wasn’t just a pandemic story. The company also has grown important metrics like the number of U.S. paid members and revenue per member every quarter over the past year.
And the third quarter brought more good news; Teladoc’s loss narrowed. The company also said its average deal size was 50% larger than the same period last year. We also can see that clients more frequently are seeking out a complete service like Teladoc’s — one that offers a broad range of care including mental and physical health.
Teladoc stock is trading for about 2 times sales. That’s its lowest-ever ratio by that measure. As the economy improves, deals should accelerate — and that should boost revenue and share price. That’s why now looks like the perfect time to buy Teladoc.
Rising inflation, a stronger dollar, and coronavirus restrictions in its key market of China have weighed on Nike this year. Nike’s paying more to transport goods, sales made abroad are worth less after currency exchanges, and COVID disruptions hurt store operations and sales in China.
As a result, Nike’s stock lost 32%.
And the shares are trading at 31 times trailing-12-month earnings. That’s down from more than 80 last year.
So why should we buy Nike? The above challenges are difficult right now. But it’s important to keep in mind that economic troubles and the pandemic are temporary situations. So, as long-term investors, we should look ahead to Nike’s prospects once these troubles are over.
And here, there are reasons to be positive. Even amid today’s troubles, Nike has managed to grow sales. In fact, excluding the impact of currency exchanges, digital sales, Nike direct sales, and total revenue, each climbed in the double digits in the recent quarter. The athleticwear giant also continues to be a favorite brand in North America and China — its major markets.
Finally, Nike recently showed confidence in its own business — and a willingness to reward investors — by raising its quarterly dividend 11%. This represents its 21st straight year of increasing its dividend.
So buying Nike shares now puts you on track to benefit from a recovery in earnings — and recurrent passive income.
Crispr shares are heading for a 28% loss this year. At the same time, this biotech company may soon reach an enormous milestone: commercialization of its first gene-editing treatment.
It hasn’t happened yet. But it may be on the way. Crispr and partner Vertex Pharmaceuticals are submitting exa-cel, a gene-editing treatment for blood disorders, to regulators in the U.S., Europe, and the U.K. right now. The U.S. submission is expected to be completed in the first quarter of next year.
Exa-cel is a one-time curative treatment candidate for beta thalassemia and sickle cell disease. Today, treatment options for these illnesses are limited. So the idea of a curative treatment is big — and could produce blockbuster revenue.
Potential regulatory decisions on exa-cel clearly could drive Crispr shares higher in the coming year. Crispr and Vertex also are conducting exa-cel phase 3 trials in pediatric patients. If data are positive, this could result in expanded indications and more revenue for exa-cel down the road.
Crispr also has another late-stage candidate in the pipeline. It’s studying immuno-oncology treatment CTX-110 in a pivotal trial. And the company plans to start phase 1 trials for another immuno-oncology candidate in the first half of next year.
All of this means 2023 could be a big year for Crispr — and investors who get in on the stock early.
Adria Cimino has positions in Nike and Vertex Pharmaceuticals. The Motley Fool has positions in and recommends Crispr Therapeutics Ag, Nike, Teladoc Health, and Vertex Pharmaceuticals. The Motley Fool has a disclosure policy.
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