1 Growth Stock That'll Beat Amazon and 1 That Probably Won't (for Now)
Given that it's a household name and one of the largest businesses in the U.S., it makes sense that Amazon (NASDAQ: AMZN) is a high performer among growth stocks. Over the last ten years, buoyed by massive sales, its shares returned above 800%, handily beating the market's rise of nearly 200%.
But, over the last few years, the company's stock performance is becoming more in line with the market's, and that could be a sign that other growth stocks will be a better place to park your money. In particular, there's a pair of biomedical businesses that have a shot at beating Amazon's returns over the next three years, though the odds of doing so are much longer -- and the potential rewards much greater -- for the smaller one. Here's why.
Vertex Pharmaceuticals (NASDAQ: VRTX) is likely to outperform Amazon because it has quite a few catalysts and milestones in the works that'll drive its share prices higher, not to mention it's also profitably raking in cash from sales of its medicines that are already on the market. Over the last three years, its trailing-12-month (TTM) net income appreciated by 49%, reaching roughly $3.2 billion, whereas Amazon's earnings were basically flat, with a rise of around 2.3%. To accomplish that, Vertex profitably sold four of its medicines for cystic fibrosis (CF), a rare hereditary pulmonary disease for which the company has so far focused on cornering the market.
Source Fool.com
