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Roche Holding (SWX:ROG) Invests US$550 Million In Indianapolis Diagnostics Expansion
Roche Holding (SWX:ROG) Invests US$550 Million In Indianapolis Diagnostics Expansion

Yahoo

time12-05-2025

  • Business
  • Yahoo

Roche Holding (SWX:ROG) Invests US$550 Million In Indianapolis Diagnostics Expansion

Roche Holding recently announced a significant investment of $550 million in its Indianapolis Diagnostics site to expand its continuous glucose monitoring systems, a move set to create thousands of jobs and significantly impact diabetes management in the U.S. Over the past month, the company's stock experienced a 6% rise. While this expansion underscores Roche's commitment to healthcare innovation and may have added positive weight to its share price movement, broader market trends, like the recent easing of U.S.-China tariffs, have likely also influenced this upward trajectory amid a strong overall market performance. Every company has risks, and we've spotted 4 risks for Roche Holding you should know about. Rare earth metals are an input to most high-tech devices, military and defence systems and electric vehicles. The global race is on to secure supply of these critical minerals. Beat the pack to uncover the 23 best rare earth metal stocks of the very few that mine this essential strategic resource. The recent announcement of Roche Holding's $550 million investment in its Indianapolis Diagnostics site for continuous glucose monitoring systems could have significant implications for its narrative. This development reinforces Roche's commitment to innovation in the healthcare sector and may bolster its long-term revenue and earnings potential, particularly within the U.S. market for diabetes management. Such an expansion is likely to enhance Roche's diagnostics revenue, augmenting the company's comprehensive offering in both pharmaceuticals and diagnostics, potentially driving sustained revenue growth. Roche's shares demonstrated a 16.82% total return over the last year, showcasing a robust performance over this longer-term period. This suggests that the company's strategic initiatives, including investment and growth in its diagnostics division, have been well-received in the market. When compared to the Swiss Market's 2.2% return and the Swiss Pharmaceuticals industry's 7.1% over the past year, Roche's performance stands out as strong relative to both its market and industry peers. In terms of revenue and earnings forecasts, this strategic investment potentially supports the anticipated 3% annual revenue growth over the next three years. At the same time, Roche aims to nearly double earnings to CHF16.3 billion by May 2028. Analysts expect these financial maneuvers to help justify a consensus price target of CHF305.08, approximately 11.7% above the current share price of CHF269.3. This investment may play a crucial role in boosting investor confidence, aligning future earnings with these optimistic projections. Click here and access our complete financial health analysis report to understand the dynamics of Roche Holding. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include SWX:ROG. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Roche Holding (VTX:ROG) Is Increasing Its Dividend To CHF9.70
Roche Holding (VTX:ROG) Is Increasing Its Dividend To CHF9.70

Yahoo

time20-03-2025

  • Business
  • Yahoo

Roche Holding (VTX:ROG) Is Increasing Its Dividend To CHF9.70

The board of Roche Holding AG (VTX:ROG) has announced that it will be paying its dividend of CHF9.70 on the 31st of March, an increased payment from last year's comparable dividend. This makes the dividend yield 3.2%, which is above the industry average. Check out our latest analysis for Roche Holding While it is great to have a strong dividend yield, we should also consider whether the payment is sustainable. The last payment made up 93% of earnings, but cash flows were much higher. In general, cash flows are more important than earnings, so we are comfortable that the dividend will be sustainable going forward, especially with so much cash left over for reinvestment. Over the next year, EPS is forecast to expand by 109.9%. Under the assumption that the dividend will continue along recent trends, we think the payout ratio could be 45% which would be quite comfortable going to take the dividend forward. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. The company has a sustained record of paying dividends with very little fluctuation. Since 2015, the annual payment back then was CHF8.00, compared to the most recent full-year payment of CHF9.70. This works out to be a compound annual growth rate (CAGR) of approximately 1.9% a year over that time. While the consistency in the dividend payments is impressive, we think the relatively slow rate of growth is less attractive. Investors who have held shares in the company for the past few years will be happy with the dividend income they have received. However, things aren't all that rosy. Roche Holding has seen earnings per share falling at 8.0% per year over the last five years. Declining earnings will inevitably lead to the company paying a lower dividend in line with lower profits. However, the next year is actually looking up, with earnings set to rise. We would just wait until it becomes a pattern before getting too excited. Overall, we always like to see the dividend being raised, but we don't think Roche Holding will make a great income stock. The company is generating plenty of cash, but we still think the dividend is a bit high for comfort. We would be a touch cautious of relying on this stock primarily for the dividend income. Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. For instance, we've picked out 4 warning signs for Roche Holding that investors should take into consideration. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Trump has companies in Europe and Asia walking a DEI tightrope
Trump has companies in Europe and Asia walking a DEI tightrope

Japan Times

time18-03-2025

  • Business
  • Japan Times

Trump has companies in Europe and Asia walking a DEI tightrope

U.S. President Donald Trump's executive order dismantling diversity, equity and inclusion efforts is making waves at international companies in Europe, Asia and beyond — but only on the surface. Quietly, many businesses are standing firm on diversity initiatives. Companies from Roche Holding to Nissan Motor have backpedaled on DEI policies in the U.S. But the Swiss drugmaker says it has no plans to change its inclusion efforts elsewhere, while the Japanese carmaker has left its international websites untouched. Volvo AB is going further: The car company hires "based on meritocracy, not quotas,' its spokesperson said, adding that positive action programs such as its tecHER program will continue. It's what you might call DEI by stealth — an approach that, in various forms, has started to become the new normal for global companies outside the U.S. since Trump issued an executive order on Jan. 20 entitled "Ending Illegal Discrimination and Restoring Merit-Based Opportunity.' For American companies, there's a degree of uncertainty around the directive. While U.S. federal agencies and their suppliers are required to end any form of what Trump calls "illegal DEI,' such as affirmative action in hiring, the order doesn't definitively say what measures companies are no longer permitted to take. And with robust federal anti-discrimination statutes still in place, it's not even clear that the directive is lawful. Outside of the U.S., the picture is even more complicated. Companies may wish to avoid unwanted scrutiny from the Trump administration, but complying with the spread of international diversity regulations is not negotiable. In jurisdictions from the U.K. and the EU to Australia and Hong Kong — where inclusion measures have primarily focused on gender rather than race — companies are legally required to meet targets for board diversity, gender pay gaps, pay transparency and reintegration of employees after long-term leave. Various countries have other requirements too. In Japan, top publicly listed companies must aim to promote women to 30% of director roles by 2030, up from about 16% last year. In the Netherlands, the financial sector is expected to consider accessibility to ensure older people are not cut off from basic services. Nevertheless, few companies want to put their head above the parapet in the U.S., especially those with lucrative government contracts to lose. On top of the executive order, the president's demand that U.S. government agencies identify as many as nine potential civil compliance investigations in the private sector lit a tinderbox. No company wants to be the first to be accused of breaking the law. Trump signs executive orders at the presidential inauguration parade in Washington on Jan. 20. | Bloomberg More than 15 U.S. companies have already altered language around diversity in their annual reports, while European companies are increasingly avoiding the topic on earnings calls. "Ultimately, people are trying to pivot. They're trying to keep up with what's going on but without losing sight of that ultimate goal of inclusive workplaces,' said Zamena Ladak, senior vice president for DEI and business development at Assemble HR Consulting, a New Jersey-based talent strategy and leadership development consultancy. Bloomberg contacted more than a dozen companies with headquarters around the world that make a significant portion of their revenue in the U.S. about their diversity, equity and inclusion plans. Few issued a public statement. But it's clear that boardrooms are under increasing pressure — from lawyers as well as staff — to work out how to tread the DEI tightrope. Legal obligations Supporters argue that DEI strategies are about business survival and economic growth, as well as benefits for individual workers. Companies with more gender diversity are more likely to innovate, according to research published in the journal Innovation: Management, Policy & Practice. However, while many firms say they have recruited without bias for decades, few can boast a representative workforce — in fact, many initiatives have led to even more homogeneity, according to analysis by academics Frank Dobbin and Alexandra Kalev. Countries where a significant portion of women are economically inactive or underactive are missing a growth opportunity, a particular problem for countries with an aging or shrinking population such as Germany, Spain, Italy, Japan and South Korea. In Japan, where a third of the population will be over 65 years old by 2040, the economy is already suffering, while Germany needs an influx of hundreds of thousands of migrant workers a year simply to prevent its labor force from shrinking. By helping companies close the gender pay gap and finding other ways to make the workplace more equitable, DEI teams help to keep women working or increase their hours, according to a 2020 report by Mercer. They can help companies meet their legal obligations too. In the U.K., companies' responsibilities include avoiding discrimination in hiring and taking "reasonable steps' to prevent sexual harassment. Doing so effectively means firms need to educate staff about what discrimination, harassment and victimization — which can be subtle or inadvertent — look like. "Having DEI programs helps them comply,' said Georgina Calvert-Lee, an employment lawyer at Bellevue Law. But training on controversial topics like unconscious bias has in some cases already been rebranded. Now, there's "less emphasis on this idea that we're all biased or terrible people,' said Kate Dodd, an employment lawyer at Pinsent Masons and head of the firm's Brook Graham diversity and inclusion consultancy. Instead, the focus is on using data to examine why specific minority groups may progress through a firm more slowly or exhibit higher attrition rates. Many international companies are viewing the DEI retreat in the U.S. through the lens of a four-year presidential term, according to Alexandra Evreinoff, managing director at INvolve, a London-based diversity and inclusion consultancy that has worked with clients such as Boston Consulting Group, HSBC Holdings and Standard Chartered. Two large European multinational companies that work with the federal government said they won't alter DEI policies unless the executive order is enforced. The move is seen as being in the best interests of customers and staff, according to a person familiar with the matter who did not wish to speak publicly for fear of reprisals. Accenture was one of the first non-U.S.-headquartered companies to ditch its DEI policies. | Bloomberg While Sumitomo Mitsui Financial Group wiped references to DEI from its American websites, the Japanese company left its international websites untouched, describing the U.S. changes as part of a global digital restructure "after many months of planning.' UBS Chief Executive Officer Sergio Ermotti said last month that the Swiss bank was making no changes to its DEI policies — but its sustainability and annual reports, published Monday, no longer refer to "DE&I.' And several banks headquartered outside the U.S., such as HSBC, Deutsche Bank, Barclays, and Banco Santander, have publicly reaffirmed their commitments to DEI and workforce representation targets, even as some Wall Street banks have backpedaled. In its annual report, HSBC described having a workforce that reflects society as a "strategic priority.' In January, Deutsche Bank CEO Christian Sewing called DEI "integral' to the company. "I know what diversity has brought us on the management board at the top reporting level,' he said. "That's why we are strong supporters of these programs.' In fashion and retail — sectors where women make up an important part of the consumer base — companies including Germany-based Adidas, Hennes & Mauritz and Ikea have explicitly retained their DEI focus. "Our commitments in this area remain unchanged and are closely connected with our company's purpose,' a spokesperson for H&M said. Some European pharmaceutical companies are pushing on too with a commitment to inclusive clinical trials, according to people familiar with the situation. Their position is grounded in science as well as business: Testing the efficacy and side effects of new products requires women and individuals from underrepresented groups to take part in drug trials. "We need to have a continuous focus on this,' Martin Holst Lange, Novo Nordisk's development chief, said this month. It's also important to include patients of diverse socioeconomic status, he said. In other sectors, the outlook is more mixed. Consulting giant McKinsey & Co. sent a carefully crafted memo to staff emphasizing that the company is still focused on inclusion, while noting that it abides by local law — a strong hint that it's complying with anti-DEI measures in the U.S. Deloitte looked ready to drop its diversity policies globally before its partnerships in the U.K. and Australia said they wouldn't make any changes locally. Meanwhile, Accenture was among the first non-U.S.-headquartered companies in any sector to ditch its global DEI policies. All three have a lot to lose by defying Trump. Their combined revenues as federal government contractors were in excess of $7.8 billion in the fiscal year to Sep. 30, according to Bloomberg data. Conservative activism While companies are now scrambling to find the right language to describe their plans around diversity, equity and inclusion, the president's crusade can't have come as a total surprise. During his presidential campaign, Trump railed against "anti-white racism' and "illegal' DEI measures. A blizzard of conservative activism and lawsuits also raged in the lead-up to the elections. In 2023, the U.S. Supreme Court effectively ended affirmative action concerning race in college admissions, after lawyer and anti-affirmative action activist Edward Blum sued Harvard. Even though the ruling didn't extend to businesses, it created a chilling effect around race-related measures in recruiting. The Supreme Court is now hearing a discrimination case brought forward by a white woman who claims she was first denied a promotion and then later demoted because she is heterosexual. If successful, the case could pave the way for more discrimination suits from members of majority groups. In the short term, lawyers are urging global companies with an American presence to "hit the pause button' on any programs in the U.S. that might benefit specific demographics, according to INvolve's Evreinoff. Global companies are looking for "a good balance between the regional approach and the global strategy,' said Evreinoff, given the legal requirements they still have to meet abroad. Even so, in the U.K. at least, conversations with professionals in DEI-related roles indicate a subtle shift has taken place over the past two years. The country is among the most advanced in terms of DEI development, but a worsening economic outlook has led to something of a pullback. A 2024 survey by campaign group Reboot found that about 40% of respondents at financial services firms said budget cuts had hampered DEI efforts. "This is where we see who was really committed to diversity, equity, inclusion and for whom this was a matter of compliance,' said Michael Smets, professor of management at Oxford University's Saïd Business School. Sense of unease In the U.K., diversity-focused roles in human resources departments, while below a peak in 2020, have remained steady since 2022, according to the job search website Indeed. But the number of senior roles, particularly chief diversity officer, has "fallen off a cliff" in Europe, the Middle East and Africa over the last 18 months, according to Raj Tulsiani, CEO of Green Park, a U.K.-based recruitment firm that specializes in more equitable leadership. And DEI teams have shrunk at many firms, according to Pinsent Masons' Dodd. Right-leaning U.K. newspapers such as the Daily Mail and the London-based Times have described DEI roles in public organizations such as the police or universities as wasteful spending. Kemi Badenoch, the leader of the opposition Conservative party, last month described diversity programs as "the real poison of left-wing progressivism.' Given the pace of the retreat in the U.S., it remains to be seen what the next 12 months will look like for diversity, equity and inclusion around the world. In an interview, conservative activist Robby Starbuck, who has pressured a number of U.S. companies to cancel inclusion programs, called DEI and ESG policies "anti-Western' and suggested that he has broader ambitions overseas. "We pushed this out there and it's our responsibility to bring it back in,' he said. Yet the U.S. and other countries may be on a path to diverge further still. The British government has plans to extend mandatory pay gap reporting to ethnic minority workers, while a series of lawsuits over equal pay promises to force companies to consider gender disparity in specific roles, not just across the business. Meanwhile, companies with EU staff are gearing up for pay transparency disclosures from next summer, which will require firms to address any gaps larger than 5%. Either way, a sense of unease remains pervasive. At one European multinational with a large U.S. presence and a federal contract, there's a rumor doing the rounds that bots are crawling the websites of private companies, searching for DEI buzzwords that might breach the president's executive orders. In early February, the company tore down various DEI-related webpages, before reinstating them a few days later, absent some key phrases and terms. Still, the company has no grander plans to change its inclusion strategy. For a lot of companies outside the U.S., the focus now is merely "repositioning,' said INvolve's Evreinoff. "It would be complete nonsense to say we're scrapping everything that's DEI,' she said. "That's not true.'

This Biotech Stock Could Be the Best Investment of the Decade
This Biotech Stock Could Be the Best Investment of the Decade

Yahoo

time07-03-2025

  • Business
  • Yahoo

This Biotech Stock Could Be the Best Investment of the Decade

It's typically not too difficult to find a company that should perform well for the next couple of years. Two years isn't very long, after all, and the stock market's dynamics tend to dictate performance more. Identifying a stock that's likely to lead a marketwide charge for a decade is a different story. The organization in question must be able to offer something that's not only marketable for a long while, but also no other outfit can mimic. Such companies are relatively rare. There is one such stock to consider buying into sooner rather than later, though. That's a biotech company called Recursion Pharmaceuticals (NASDAQ: RXRX). And you can still plug into the ticker at a nice discount. Never heard of it? It would be a bit surprising if you had. Its market cap is a mere $3 billion, and it only did $58 million worth of business last year. And like many other young players in the biotechnology business, this one's also still booking sizable losses, adding to investors' general disinterest. What this company lacks in size and profits, though, it more than makes up for in potential. Just as the "Pharmaceuticals" in its name suggests, Recursion is a drug developer -- chiefly of therapies for more complicated (and expensive) ailments. For instance, its candidate REC-617 is being tested as a treatment for a number of difficult-to-treat solid tumors. REC-994 is being developed as a therapy for a condition called cerebral cavernous malformation, which can cause bleeding in the brain. Although both are in early-stage trials, given the lack of real alternatives, hopes for them and for the company's eight other pipeline candidates are high. It's not the drugs, however, that make Recursion such a compelling investment prospect. Rather, it's how these drugs were designed. The company is using its own proprietary artificial intelligence (AI) platform -- called Recursion OS -- to predesign and pretest these treatments, to determine the odds of success before committing time and money to a project. More importantly for interested investors, Recursion is now essentially sharing revenue-bearing access to this powerful software with other drug companies, creating a massive opportunity that's just now beginning to gel. It's not just an interesting business idea, to be clear. Major pharmaceutical names like Roche Holding, Bayer, Germany's Merck KGaA, Sanofi, and Rallybio are all on board, using Recursion OS to develop some of their next drugs. And well they should, given the time and cost involved in developing any new pharmaceutical and then getting it approved. Most estimates put the average cost at somewhere between $1 billion and $2 billion per drug, while the typical development time is in the ballpark of a decade. A lot can happen over that much time, and should a new drug fail in the latter stages of its trials, it can be an expensive misstep. Using a platform like Recursion OS, though, much of the cost-based risk can be sidestepped. The software also means drugmakers don't waste time, preventing competitors from developing an alternative drug in the meantime. And the difference is stark: With Recursion OS, what once required years and millions of dollars to figure out now only takes weeks and thousands of dollars. Perhaps even more promising is the fact that this biotechnological tool allows the pharmaceutical industry to investigate new research and development ideas that simply weren't possible to explore before. Industry research outfit Global Market Insights predicts the AI-powered drug discovery business will grow at an annualized pace of nearly 30% through 2032, jibing with a similar outlook from Straits Research. The underlying idea just holds too much promise to not pan out. Given the power of its proprietary platform and the sheer competitiveness and rising cost of being in the pharmaceutical business, Recursion is positioned to capture more than its fair share of this growth. That's the bullish argument. But if there's so much promise here, why is Recursion Pharmaceuticals' stock stuck near its record low, following a peak reached in mid-2021 soon after it went public? There's a perfectly good answer: Like so many other technology and biopharma stocks of its ilk and age, Recursion soared on hype before the world was fully ready to embrace its solution. Interest eventually waned -- ironically just shortly before the company became ready, willing, and able to deliver as promised. Analysts expect top-line growth of 75% this year, to be followed by sales growth of more than 37% next year. That still won't be enough to push the company out of the red, which may not happen for the next few years. A swing to a profit is on the radar within the next 10 years, however, and could be an explosive catalyst for the stock whenever it happens. Of course, simply making progress toward that finish line is likely to be good for the stock in the meantime, even if there's sure to be plenty of continued volatility between now and then. The analyst community's current consensus one-year price target stands at $8.60 per share, more than 30% above the present price. Just bear in mind that with this ticker's above-average potential reward, you'll get above-average risk. Manage it accordingly. Before you buy stock in Recursion Pharmaceuticals, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Recursion Pharmaceuticals wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $718,876!* Now, it's worth noting Stock Advisor's total average return is 873% — a market-crushing outperformance compared to 170% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of March 3, 2025 James Brumley has no position in any of the stocks mentioned. The Motley Fool recommends Roche Holding AG. The Motley Fool has a disclosure policy. This Biotech Stock Could Be the Best Investment of the Decade was originally published by The Motley Fool

This Biotech Stock Could Be the Best Investment of the Decade
This Biotech Stock Could Be the Best Investment of the Decade

Globe and Mail

time07-03-2025

  • Business
  • Globe and Mail

This Biotech Stock Could Be the Best Investment of the Decade

It's typically not too difficult to find a company that should perform well for the next couple of years. Two years isn't very long, after all, and the stock market's dynamics tend to dictate performance more. Identifying a stock that's likely to lead a marketwide charge for a decade is a different story. The organization in question must be able to offer something that's not only marketable for a long while, but also no other outfit can mimic. Such companies are relatively rare. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » There is one such stock to consider buying into sooner rather than later, though. That's a biotech company called Recursion Pharmaceuticals (NASDAQ: RXRX). And you can still plug into the ticker at a nice discount. What is Recursion Pharmaceuticals? Never heard of it? It would be a bit surprising if you had. Its market cap is a mere $3 billion, and it only did $58 million worth of business last year. And like many other young players in the biotechnology business, this one's also still booking sizable losses, adding to investors' general disinterest. What this company lacks in size and profits, though, it more than makes up for in potential. Just as the "Pharmaceuticals" in its name suggests, Recursion is a drug developer -- chiefly of therapies for more complicated (and expensive) ailments. For instance, its candidate REC-617 is being tested as a treatment for a number of difficult-to-treat solid tumors. REC-994 is being developed as a therapy for a condition called cerebral cavernous malformation, which can cause bleeding in the brain. Although both are in early-stage trials, given the lack of real alternatives, hopes for them and for the company's eight other pipeline candidates are high. It's not the drugs, however, that make Recursion such a compelling investment prospect. Rather, it's how these drugs were designed. The company is using its own proprietary artificial intelligence (AI) platform -- called Recursion OS -- to predesign and pretest these treatments, to determine the odds of success before committing time and money to a project. More importantly for interested investors, Recursion is now essentially sharing revenue-bearing access to this powerful software with other drug companies, creating a massive opportunity that's just now beginning to gel. The industry's ready to embrace such a solution It's not just an interesting business idea, to be clear. Major pharmaceutical names like Roche Holding, Bayer, Germany's Merck KGaA, Sanofi, and Rallybio are all on board, using Recursion OS to develop some of their next drugs. And well they should, given the time and cost involved in developing any new pharmaceutical and then getting it approved. Most estimates put the average cost at somewhere between $1 billion and $2 billion per drug, while the typical development time is in the ballpark of a decade. A lot can happen over that much time, and should a new drug fail in the latter stages of its trials, it can be an expensive misstep. Using a platform like Recursion OS, though, much of the cost-based risk can be sidestepped. The software also means drugmakers don't waste time, preventing competitors from developing an alternative drug in the meantime. And the difference is stark: With Recursion OS, what once required years and millions of dollars to figure out now only takes weeks and thousands of dollars. Perhaps even more promising is the fact that this biotechnological tool allows the pharmaceutical industry to investigate new research and development ideas that simply weren't possible to explore before. Industry research outfit Global Market Insights predicts the AI-powered drug discovery business will grow at an annualized pace of nearly 30% through 2032, jibing with a similar outlook from Straits Research. The underlying idea just holds too much promise to not pan out. Given the power of its proprietary platform and the sheer competitiveness and rising cost of being in the pharmaceutical business, Recursion is positioned to capture more than its fair share of this growth. Plenty of potential upside to justify the risk and volatility That's the bullish argument. But if there's so much promise here, why is Recursion Pharmaceuticals' stock stuck near its record low, following a peak reached in mid-2021 soon after it went public? There's a perfectly good answer: Like so many other technology and biopharma stocks of its ilk and age, Recursion soared on hype before the world was fully ready to embrace its solution. Interest eventually waned -- ironically just shortly before the company became ready, willing, and able to deliver as promised. Analysts expect top-line growth of 75% this year, to be followed by sales growth of more than 37% next year. That still won't be enough to push the company out of the red, which may not happen for the next few years. A swing to a profit is on the radar within the next 10 years, however, and could be an explosive catalyst for the stock whenever it happens. Of course, simply making progress toward that finish line is likely to be good for the stock in the meantime, even if there's sure to be plenty of continued volatility between now and then. The analyst community's current consensus one-year price target stands at $8.60 per share, more than 30% above the present price. Just bear in mind that with this ticker's above-average potential reward, you'll get above-average risk. Manage it accordingly. Should you invest $1,000 in Recursion Pharmaceuticals right now? Before you buy stock in Recursion Pharmaceuticals, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Recursion Pharmaceuticals wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $718,876!* Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of March 3, 2025

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