3 Stocks That Could Trounce the Market in 2024

Arguably the most important quality for any stock is whether or not it beats the market. If it doesn’t, you’d be better off putting your money in an index fund.

Three Motley Fool contributors think healthcare stocks Eli Lilly (NYSE: LLY), Novo Nordisk (NYSE: NVO), and Vertex Pharmaceuticals (NASDAQ: VRTX) will not only beat the market in 2024, but trounce it. Here’s why.

This high-flying biotech has major catalysts ahead

Prosper Junior Bakiny (Eli Lilly): It’s difficult to find many biotech stocks that have garnered more attention than Eli Lilly over the past year. It is a leader in the weight-loss drug market thanks to its highly popular treatment, Zepbound. Wall Street analysts have exceptionally high expectations for the drug, generically known as tirzepatide, which helped drive Eli Lilly’s stock price higher. And there is more where that came from.

The drugmaker is expecting data readouts from several phase 3 trials, as well as regulatory submissions for its new crown jewel this year, including as a treatment for sleep apnea. Considering how important tirzepatide is for Eli Lilly’s future, the market will be closely monitoring its clinical and regulatory progress. Positive results should help Eli Lilly’s stock move in the right direction.

The biotech could also earn approval for donanemab as a treatment for Alzheimer’s disease. It’s been hard to develop effective Alzheimer’s therapies, and the need for them is on course to get significantly greater in the years ahead as the population of seniors globally grows. Donanemab delivered excellent results in late-stage studies, meaningfully slowing cognitive decline, so it should have a great shot at approval.

Lastly, Eli Lilly’s revenue growth should be even stronger than it was last year. The company earned several new approvals that will contribute to the top line, and it will no longer have to deal with the challenging year-over-year comparisons that resulted from its COVID-19 antibody sales, which completely…