These companies also present opportunities for retail investors, as shareholders can benefit from the rapid appreciation of share prices when takeover offers are made. Just look at Hargreaves Lansdown stock, which jumped 51% last year after the board agreed to a takeover in August.

So, here are two companies that I think could be takeover targets in 2025.

This gene-editing leader looks cheap

CRISPR Therapeutics (NASDAQ:CRSP) could be an attractive takeover target due to its low valuation and strong balance sheet. It’s also a world leader in gene therapies, with an approved gene-editing treatment, Casgevy, which could generate up to $3.9bn in annual revenue. In addition to Casgevy — the world’s first approved gene therapy — the company has a strong pipeline of treatments in development, including those targeting cancers and diabetes.

The above certainly suggests that CRISPR Therapeutics is undervalued, with a market cap only around $3.3bn. This relatively low valuation makes it an appealing acquisition target for larger healthcare companies looking to enter the gene-editing market. Moreover, with $1.9bn in cash and $200m in debt, this stock’s enterprise value is just $1.6bn.

What’s more, some analysts suggest there is a ready-made buyer in CRISPR’s partner on Casgevy, Vertex Pharmaceuticals. Now Vertex is a massive company with a market cap of $106bn and more than $6bn in cash. With Vertex responsible for 60% of Casgevy costs and set to take 60% of earnings, it may be something of a no-brainer to consolidate control over the programme — and the pipeline — through a takeover.

CRISPR is a stock I own, and while I’m tempted to buy more, my holding already represents significant exposure to the gene editing sector.

Discounted stock, full-price fashion

Most investors will be familiar with Burberry’s (LSE:BRBY) challenges over the past 12 months. The stock slumped on falling sales and challenges in China, where the economy appears to be missing its target.

With the share price significantly down from its highs — albeit up from recent lows — the stock is still being touted as a takeover target. In fact, in November 2024, there were rumours that the Italian skiwear company Moncler was interested in acquiring the British luxury brand Burberry.

In addition to its brand strength and unique positioning in British luxury, a takeover sounds feasible given the consolidation that already exists within the industry. Fashion houses like LVMH and Kering have acquired a host of luxury brands over the years, delivering economies of scale and synergies between things like skincare brands and high-end Belmond hotels.

Having rode Burberry shares to the peak, sold, and then bought again at a much lower price only to see them fall further (I sold again), I’m staying away from this iconic brand. However, I’m sure some investors will see an opportunity.

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Gene-editing

First up is biotech firm Crispr Therapeutics (NASDAQ: CRSP) which pioneered the Nobel Prize–winning CRISPR/Cas9 technology to edit genes.

A year ago, it had its first treatment, Casgevy, approved for sickle cell disease and beta-thalassemia, rare blood disorders that are often debilitating for sufferers.

Crispr Therapeutics and its partner Vertex Pharmaceuticals have started to collect cells from 50 patients. These will be edited outside the body and reinfused into the patient with the aim of curing them. The NHS is currently rolling out Casgevy.

Looking ahead, the two companies have identified some 58,000 patients in the US, Europe and the Middle East. At a cost of around $2.2m a patient, the revenue opportunity over the next few years could be in the billions (Crispr will get 40% of sales with the rest going to Vertex).

The firm also has a promising gene-editing candidate for blood cancers in the clinic, as well as a potentially revolutionary treatment for type 1 diabetes that aims to restore insulin production.

Naturally, the biotech’s vulnerable to setbacks in these clinical trials. And given the firm’s lack of revenue, never mind profits, the negative impact on the share price would likely be sizeable.

Nevertheless, the company had $1.9bn in cash toward the end of last year, which is enough to fund its exciting pipeline of treatments.

With the share price down 39% over one year, and the firm sporting a modest $1.5bn enterprise value, I think Crispr Therapeutics stock is worth considering.

Ready for lift-off?

Next up is Archer Aviation (NYSE: ACHR), which is racing to commercialise electric vertical takeoff and landing (eVTOL) aircraft. These take off vertically like helicopters but are near-silent and far greener, making them perfect for congested urban cities (Los Angeles, New York, Tokyo, Abu Dhabi, etc).

Archer intends to launch an Uber-like air taxi service and also sell EV aircraft directly to third-party customers. For example, it recently entered a strategic partnership with Anduril Industries to develop hybrid aircraft for military applications (reconnaissance, for example, given how quiet they are).

Now, the thing here is that the company still hasn’t had its aircraft, called Midnight, fully approved by the Federal Aviation Administration (FAA). It expects to achieve this later in 2025, but there could be regulatory delays (or worse). So this stock’s highly speculative at this stage.

However, there are a few things I like here. First, Archer has nearly completed phase three of the FAA’s four-phase certification process, while making progress through the final stage. And it’s on course to launch a commercial air taxi service in Abu Dhabi later this year.

Next, it has just finished construction of a high-volume, 400,000 sq ft manufacturing facility. With backing from car giant Stellantis, it intends to scale up to 650 aircraft annually by 2030. Archer’s currently well-capitalised and its order book now exceeds $6bn.

Finally, Morgan Stanley estimates the eVTOL market could top $1trn in 15 years! Archer Aviation’s market-cap today is $4.3bn. At $8, I think the stock’s worth considering for adventurous investors.

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In early 2021 it soared to a ridiculous $200, despite the gene-editing biotech having no products or revenue at the time. Fast-forward to today though, I can pick up the stock for just $39.

Importantly, Crispr Therapeutics had its first treatment approved a year ago. Perhaps this is why Wall Street analysts currently have an $80 price target on the stock — 105% higher than the present level!

The lowdown

CRISPR–Cas9 gene editing is a revolutionary technology that allows scientists to precisely modify DNA in organisms to fix mutations and potentially cure diseases.

In late 2023, Crispr Therapeutics and its partner Vertex Pharmaceuticals had the world’s first such therapy approved to treat sickle cell disease and transfusion-dependent beta-thalassemia.

This once-and-done treatment is called Casgevy, and sales will be split 60-40 in favour of Vertex, which is doing most of the commercial heavy lifting.

Despite this historic milestone, the stock has since fallen by 40%. That’s because Casgevy involves the infusion of genetically modified stem cells taken from the patient, and this takes time.

However, some 40 patients had begun to have their cells collected by mid-October. And the two firms see an addressable market of 35,000 patients in Europe and the US, with a further 23,000 in Saudi Arabia and Bahrain.

At a cost of about $2.2m per patient, with a recent plan announced to help US patients on Medicaid afford it, there’s significant revenue growth potential over the next few years.

Indeed, analysts forecast $1bn in revenue in 2027, up from basically nothing today. For context, the company’s market cap is currently a modest $3.5bn.

Risks to consider

Of course, there’s no guarantee that Wall Street targets come to fruition. If the innovative biotech suffers a setback in one of its ongoing clinical trials, the stock could fall sharply, along with brokers’ price targets.

Remember, gene-editing is truly revolutionary because it allows the alteration of the fundamental building blocks of life. Beyond eradicating diseases, it offers the potential to influence traits or even create entirely new organisms.

As Jennifer Doudna, the Nobel Prize-winning co-developer of this technology, wrote: “The power to control our species’ genetic future is awesome and terrifying. Deciding how to handle it may be the biggest challenge we have ever faced.”

Back in 2018, a rogue Chinese scientist used this technology to create the world’s first genetically edited babies that were, he claimed, immune to HIV. Crispr stock dropped around 40% after this bombshell. Something similar could happen again.

Finally, the company is expected to plough all available resources into progressing its pipeline. Therefore, the business is in no way optimised for profits yet. Investing in a loss-making firm obviously adds risk.

I’m bullish

What I like here, though, is the firm’s cash position of $1.9bn in September. That’s a big cushion, especially if Casgevy revenue starts coming in every quarter. It should be enough to fund the drugmaker’s existing pipeline for several years.

Speaking of which, this includes two cancer treatments and a potential functional cure for type 1 diabetes. That could be a big deal one day.

I’m considering buying a few shares later this month.

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Here, I’ll outline a high-risk, high-reward stock that’s recently piqued my interest.

An exciting gene-editing platform

The share is CRISPR Therapeutics (NASDAQ: CRSP). This biotech firm is focused on developing gene-editing therapies using CRISPR technology to treat genetic diseases, such as sickle cell disease and cancer.

Its breakthrough medicine, Casgevy, has now been approved in multiple countries. Developed in collaboration with Vertex Pharmaceuticals, this therapy treats sickle cell disease and transfusion-dependent beta thalassemia. Both are rare, debilitating blood disorders.

The treatment works by removing stem cells from a patient’s bone marrow, editing the faulty gene in a lab, then re-infusing the modified cells into the patient. It’s no exaggeration to call this transformative.

In August, the NHS announced it will begin rolling out Casgevy for beta thalassemia. There are about 460 patients in England potentially eligible for the treatment. It will cost about £1.65m ($2.09m) per patient.

Limited competition

CRISPR and Vertex see an addressable market of 35,000 patients in Europe and the US, with another 23,000 in Saudi Arabia and Bahrain.

Given the treatment costs $2m-$2.2m in Europe and the US, that’s a significant revenue opportunity. Vertex, with whom the firm will share product revenue, is predicting a “potential multi-billion opportunity”.

Better still, the therapy currently has no competition in Europe and the Middle East. In the US, it has a rival in the shape of Bluebird Bio, which has an approved sickle cell disease treatment. So that’s worth noting.

However, the market doesn’t seem to rate Bluebird’s prospects, given the stock is down 84% in one year and is priced at just $0.50. It has limited funds and its treatment is uncompetitively priced at $3.1m.

As of mid-July, Vertex had activated more than 35 treatment centres globally to collect patients’ cells. But since revenue is only recognized once patients receive their treatment, commercialisation is still in its early stages.

So while sales are expected to motor higher from 2025, potential delays could always arise.

Indistinguishable from magic

CRISPR stock skyrocketed to $199 in 2021, but has since fallen 74% to its current price of $50. This gives the firm a $4.3bn market cap.

For comparison, Vertex Pharmaceuticals is now a $123bn company after its share price surged around 4,350% over the past two decades. This shows what’s possible if a small biotech gets it right.

CRISPR ended Q2 with $2bn in cash and equivalents, so remains well-capitalised to advance its five other gene-editing medicines in clinical trials. Naturally though, there’s a risk some or all of these could fail.

Also, since these treatments are designed to be one-time cures, they’re unlikely to generate recurring sales like medications that require continuous use. Investors obviously favour recurring revenue.

Still, the high upfront price and likely expansion into other areas could drive significant financial success. Therefore, I think the stock could rocket in the years ahead and I’m considering buying it.

British science fiction writer Arthur C. Clarke once said: “Any sufficiently advanced technology is indistinguishable from magic.” This revolutionary gene-editing technology is akin to magic, in my opinion.

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The gene-editing pioneer is currently trading for $45 a share, and that’s down from $200 a share in late 2021.

So, is this stock really in bargain basement territory?

A true pioneer

CRISPR therapeutics uses a revolutionary gene-editing technology called (no surprise) CRISPR — clustered regularly interspaced short palindromic repeats — that allows precise modification of DNA to treat genetic diseases.

The process actually takes place naturally in bacteria, and the two scientists who discovered it recently received a Nobel Prize in Chemistry.

It’s a fascinating technology that has two active parts: a guide RNA to target specific genes for disruption, deletion, correction or insertion, and the Cas9 enzyme, which acts as “molecular scissors” to cut the DNA.

A revolution in medicine

Thousands of scientists around the world believe this technology will revolutionise survival rates for various diseases and conditions, several of which have previously been very hard to treat.

And this is demonstrated CRISPR Therapeutics’s first approved therapy, CASGEVY, which treats people suffering from sickle cell disease (SCD) and transfusion-dependent beta-thalassemia.

Before CRISPR, the treatment was typically regular transfusions to replace irregular blood cells with donor ones.

The potential is clearly huge. While CRISPR and its peers have focused on these blood disorders, the technology shows promise for treating a huge range of disease caused by genetic mutations, including cancers.

The value proposition

Most of the analysis I’ve seen concerning the firm has focused on its CASGEVY therapy, which is 60% owned by pharma giant Vertex and is slowly being rolled out in the US. At the last update, which was approximately eight months after regulatory approval was granted, there were 20 enrolled patients.

That might sound like a slow start, but analysts expect this figure to grow substantially over the next couple of years, with more than 100,000 eligible patients globally.

However, there are several things to consider.

Firstly, the treatment costs $2.2m. That’s below the average cost of a lifetime of transfusions, and substantially cheaper than Bluebird Bio‘s therapy that gained approval at the same time and came with a safety notice. Nonetheless, the price tag could result in slower payer approval times.

It’s also the case that CASGEVY puts a lot of pressure on the body. Following cell collection, patients have to wait months for their cells to be edited before undergoing chemotherapy to kill existing stem cells.

The bottom line

Wall Street currently says the stock is undervalued by 64% — that suggests bargain basement territory.

However, I accept that this is one of my more speculative investments because I’m very aware that the technology is still in its early stages, with many unknowns regarding long-term safety and efficacy.

So, why did I invest?

I wanted exposure to this revolutionary technology that will hopefully change lives for the better.

After much research, I decided that CRISPR Therapeutics, with its advanced pipeline and commercialisation prospects, was the best pick.

It currently represents around 3% of my portfolio, reflecting my hopes for the company, but also my acceptance that things don’t always go to plan.

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Back in 2021, shares of the biotech pioneer surged to $200 as investors got excited about its revolutionary potential in the gene-editing space. Since then, it’s slumped 76% to $47.

Yet the firm’s exciting potential remains. So, should I consider buying this fallen star? Let’s find out.

Editing DNA

Despite the name, CRISPR Therapeutics has nothing to do with Doritos and Monster Munch — unless you’re dreaming of genetically engineering potatoes to make them crisper!

No, the firm is pioneering the future of medicine by advancing a type of gene editing. Mercifully shortened to just CRISPR, this technique stands for ‘clustered regularly interspaced short palindromic repeats’.

The goal is to edit faulty genes at their core to treat rare diseases. Indeed, by leveraging this revolutionary technology, the company aims to offer lifelong cures for patients.

A high price

In 2023, the UK approved the world’s first CRISPR-based gene-editing therapy (Casgevy), which aims to cure sickle cell disease and beta-thalassemia. These are genetic blood disorders causing abnormal red blood cells, leading to pain and often requiring regular blood transfusions.

This approval represented a major landmark for the company and its partner Vertex Pharmaceuticals. Further approvals for this breakthrough treatment have since followed worldwide.

But here’s the catch: this therapy was a decade in the making and costs a cool $2.2m per patient. This high price might pose challenges during the payer approval process, potentially leading to slower-than-expected uptake. That’s a risk to consider.

Moreover, each procedure takes months because the cells are collected, edited, then returned to the patient in qualified treatment centres. This isn’t like a new pill where revenue is booked straight away.

Large market opportunity

Still, the total addressable market is significant. It includes about 35,000 potential patients in the US and Europe, with a further 23,000 identified in Saudi Arabia and Bahrain, where Casgevy is also approved and faces no competition.

As of mid-July, only about 20 patients have had their cells collected across all regions. However, Vertex Pharmaceuticals predicts this is a “potential multi-billion opportunity”.

The ownership split between the two firms is 40% for CRISPR Therapeutics and 60% for Vertex. Yet the former also has other treatments, ranging from oncology to autoimmune diseases.

At the end of June, the company had approximately $2bn in cash on the balance sheet. So it’s well-funded to advance its leading pipeline candidates, though of course some (or all) of these could ultimately fail.

One to watch

The stock is down around 17% since Casgevy got the green light. That’s somewhat surprising given that the company is poised to share sales of this likely blockbuster drug.

Wall Street sees revenue growing from about $256m in 2025 to as much as $1bn by the end of 2027. Profits aren’t expected by then but the growth story here could support a much higher share price.

In fact, the consensus price target is $80, which is 70% higher than today’s level. Of course, that’s a target and not guaranteed.

Is this a bargain? It’s impossible to tell without regular sales or earnings. But this $4bn stock could have explosive potential at $47. I’m watching it like a hawk.

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In the meantime, I’m focusing on smart investments and developing skills that will pave the way for future financial opportunities.

By prioritising my growth, I aim to create a solid foundation that will eventually lead to that coveted second income.

Playing it safe

There are many approaches to investing in the stock market. Some novice investors may take too many risks, putting their money into a small number of stocks.

Others like to play it safe, investing in low-cost tracker funds as an entry point to this occasionally confusing world.

Personally, I prefer a balanced approach. I combine individual stock selections with exchange-traded funds (ETFs) and bonds to diversify my portfolio while still allowing for targeted investments in areas I believe have strong potential.

This strategy enables me to benefit from the stability and diversification of ETFs while also taking advantage of specific opportunities with individual stocks.

Big wealth with small investments

As such, if I were investing £500 a month, I may want to focus on building a small portfolio of funds, ETFs and stocks, and top up those positions when I have the funds available.

For context, the average annualised return of the FTSE 100 over the past decade is approximately 5.22%. But Brexit, Covid and the cost-of-living crisis have pulled it back.

Assuming investors can actualise an average return of 10% going forward, £500 a month could become £1.13m after 30 years. That’s enough to deliver at least £56,400 a year as a second income.

Tracker vs researched investments

Interestingly, over the past decade, an S&P 500 tracker would have delivered just over 10% annualised growth. And this is why it pays to have a diversified portfolio, even when we’re talking about index trackers.

However, I always believe that well-researched investments can beat the index. For example, I’ve doubled my money on several investments over the past year including Abercrombie & Fitch, AppLovin, Celestica, Nvidia, Powell Industries, and Rolls-Royce.

One for growth

As such, novice investors may want build a portfolio that leans on trackers and funds, but also leaves room for some growth-focused investments. One growth-oriented stock that continues to catch my eye at the moment is CRISPR Therapeutics (NASDAQ:CRSP).

I’ve owned shares in this Swiss gene-editing company for over a year, and it’s been pretty wild. Up 60% in January, I’m now back where I started despite no change in the company’s prospects.

CRISPR’s arguably the most advanced in this field of medicine, with world-first gene editing therapies now in use for the treatment of sickle cell disease (SCD) and beta-thalassemia.

Uptake’s likely to be start slowly, given the $2.2m price tag and the time it will take to set up of treatment centres. However, the therapy cost’s actually lower than the assumed lifetime cost of treating SCD and transfusion dependent beta-thalassemia.

It’s a stock I think should be on everyone’s watchlist, and with the price falling, I’m considering topping up my position. However, this is arguably the most speculative of my investments, given its in an early-sales phase.

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Obviously, building the perfect portfolio for my age group and risk profile requires me to pick my stocks carefully. And by investing in US markets, I have much greater choice when it comes to growth-oriented investments.

So here’s one incredible growth stock that’s actually dipped in recent weeks. It’s gene therapy leader CRISPR Therapeutics (NASDAQ:CRSP).

What is gene editing?

Gene editing is a novel technology that offers us the opportunity to treat a range of illnesses that were previously untreatable and gives us a new tool to tackle conditions like cancer and heart disease.

CRISPR Therapeutics uses a gene-editing technology with the name’s acronym standing for ‘clustered regularly interspaced short palindromic repeats‘.

Inspired by bacteria’s built-in editing tools, the technology used by this Swiss firm allows scientists to design custom-guide sequences that precisely target specific regions of DNA.

It’s incredibly complex, utilising RNA and a Cas9 — CRISPR-associated protein 9. The RNA’s job is to recognise the target DNA and Cas9 snips it at the right juncture.

After the snip’s been made, scientists can then add or remove bits of genetic material, and the cell’s repair machinery takes over, patching things up.

There are still plenty of things we don’t know about CRISPR treatments, but trial data suggests it’s safe and effective. CRISPR Therapeutics isn’t the only company using gene editing therapies, but it’s the first to market.

It’s also worth noting that peer Beam Therapeutics uses something called base editing technology. It’s more nascent, but supposedly safer as it only modifies a single chemical unit (a base) within the DNA code.

First to market

Early CRISPR treatments have targeted sickle cell disease (SCD) and beta-thalassemia. Both SCD and beta-thalassemia are caused by mutations in a single gene.

This makes them well-suited for CRISPR’s function of editing specific DNA sequences. In fact, SCD is caused by a single, well-defined and traceable mutation in the beta-globin gene.

And CRISPR Therapeutics’s first treatment, which it owns in partnerships with Vertex (40%/CRISPR and 60%/Vertex) does indeed treat these two illnesses.

Understanding the exact commercial value of this treatment isn’t easy. It’s received regulatory approval in the UK, US, EU, and Saudi, among other places — first-to-market along with bluebird bio — but the next step is getting healthcare providers to pay for it.

I’ve seen estimates suggesting the treatment, priced at $2.2m a patient, could be worth around $70.4bn based on an initial patient cohort of 32,000 sufferers.

The company recently received a boost on reports that the US Centers for Medicare and Medicaid Services could received enhanced payments under proposed guidelines in an effort to encourage more innovation in the space.

The drawback is that we’re not sure whether these $2.2m treatments will cure sufferers for life. That said, the data has been very positive to date.

The bottom line

I’m already an investor in CRISPR Therapeutics, but I’m tempted to increase my position. The stock’s dipped because of an absence of news, rather than any negative reports.

In addition to its SCD and beta-thalassemia treatments, CRISPR Therapeutics has an attractive and innovative pipeline that could save lives and deliver commercial value in the future.

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One area of the market that’s getting a lot of attention is gene editing. It’s a breakthrough technology and after a host of regulatory approvals, the future is looking bright. So, here’s one stock I’ve bought and one stock I’m considering buying, but remain neutral on for now.

CRISPR Therapeutics

CRISPR Therapeutics (NASDAQ:CRSP) is a Swiss company at the forefront of gene editing. The company has received a host of approvals for its CASGEVY programme and has a strong portfolio of treatments in development. CRISPR is an acronym for “clustered regularly interspaced short palindromic repeats”, and it allows scientists to alter our DNA in order to treat and address the root cause of a host of illnesses.

The company’s first approval — CASGEVY — treats patients with sickle-cell disease (SCD) and transfusion‑dependent beta thalassemia. With more than 100,000 people with transfusion‑dependent beta thalassemia in the US and another 100,000 with SCD, analysts have forecasted an initial addressable market worth $70.4bn. That’s with CASGEVY price tag of $2.2m. In the long run, this addressable market could grow assuming the go-to-market strategy proves successful and health services/health insurers adopt the treatment. It’s also worth noting the prevalence of these genetic diseases in high wealth economies in the Middle East.

CASGEVY is 60% owned by CRISPR’s launch partner Vertex, but there’s still a huge and potentially under-appreciated revenue generating opportunity here. The Swiss firm also has wholly owned therapies in the developmental phase in the sphere of oncology and regenerative medicines.

What makes CRISPR interesting is that it’s one of the first to gain regulatory approval, and perhaps the first to have a truly marketable product. On the other hand, while CASGEVY trialed very successfully, we don’t know about the longevity of the cure. Nonetheless, the possible gains outweigh the risk, in my opinion.

Beam Therapeutics

Beam Therapeutics‘s (NASDAQ:BEAM) first gene editing therapy will also address SCD and beta thalassemia. And there’s a reason for this. The illnesses are like the low-hanging fruit of gene therapy because they are caused by a single and traceable mutation in the beta-globin gene.

However, it’s unlikely that Beam will deliver its treatment for regulatory approval for a couple of years, given the current state of the trial. And that gives CRISPR plenty of time to cement its position in the market. It has a real head start.

Nonetheless, there’s a reason I’m interested in Beam. And that’s its proprietary base editing technology. This differs slightly from CRISPR technology as it doesn’t cause double-stranded breaks in the DNA when cutting. This can improve the effectiveness of the treatment and prevent unwanted changes to our genetic markers.

Like CRISPR Therapeutics, Beam has other programmes in development including a treatment for T-cell cancers. However, as it’s a little further away from having a marketable treatment, I’m neutral on this one.

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[Just beginning your investing journey? Check out our guide on how to start investing in the UK.]

Crispr Therapeutics 

What it does: Crispr Therapeutics is a biotechnology firm utilising CRISPR gene editing to develop treatments. 

By Dr James Fox. Crispr Therapeutics (NASDAQ:CRSP) has made headlines in recent months as it became the first company to have a gene-editing treatment approved for use in the UK, US, and elsewhere in the world. 

So why am I bullish on Crispr Therapeutics? After all, the stock is up 25.7% over the past 12 months. 

Well, I’m bullish because I don’t think the company’s future earnings have been fully priced in. Casgevy, Crispr’s treatment for sickle cell disease and beta thalassemia, is expected to cost $2.1m and is targeted toward extreme cases of the disease.

As such, assuming the first patient cohort will be around 16,000-20,000 individuals, the treatment could achieve sales in excess of $40bn. Given the 40-60 split between Crispr and Vertex, Crispr’s share of revenues would be three times its current market value. 

There are some concerns about the efficacy of Casgevy over the long run, but to date, the data suggests this treatment is going to change thousands of lives for the better. 

James Fox owns shares in Crispr Therapeutics. 

Mettler-Toledo International

What it does: Mettler-Toledo is a leading global manufacturer of precision instruments and services for use in laboratories and manufacturing.

By Ben McPoland. As I write, shares of precision instrument specialist Mettler-Toledo (NYSE: MTD) have fallen 28% in two years. They’ve struggled due to tough year-on-year revenue comparisons and a large drop-off in sales in China. There’s a risk this trend could continue as the Chinese economy remains fragile. 

However, this high-quality business should bounce back. Its largest division, Laboratory, sells things like pipettes, thermal analysis systems and other tailor-made instruments. Its Industrial unit makes vehicle scales.

Importantly, the firm’s precision weighing instruments are critical in long-term growth markets like biotech R&D and the manufacturing of semiconductors and electric vehicles. Its software analyses and transfers all this data into its customers’ management information systems.

Meanwhile, the firm remains extremely profitable. Indeed, its return on invested capital (ROIC) – which measure a company’s efficiency in generating returns – is a mind-boggling 45%. That ROIC is among the highest in the world.

Mettler-Toledo doesn’t issue dividends. Instead, it utilises its robust free cash flow to repurchase approximately 3% of its outstanding shares each year. Trading at 28 times free cash flow, the stock is currently the cheapest it’s been in years.

Ben McPoland does not own shares of Mettler-Toledo International.

Salesforce

What it does: Salesforce is a leader in enterprise cloud computing, helping to improve commerce using advanced technology.

By Oliver Rodzianko. Salesforce (NYSE:CRM) may not be a hidden investment, but it seems to be a good stock to consider buying.

Artificial intelligence is becoming more mainstream, including in retail operations. Salesforce is primed to capitalise on this.

The company has had a strong 16% annual revenue growth rate over the last three years. However, the firm’s valuation is potentially its biggest risk.

The market has priced the shares for perfection, with a price-to-earnings ratio based on future earnings estimates of around 30.

Nonetheless, I think the firm’s emphasis on data integration and artificial intelligence with customer relationships will be the key to its continued excellent performance.

I can see Salesforce continuing to do particularly well in an economy that has become more automated.

While I haven’t bought the shares yet, it’s right at the top of my watchlist. Its next earnings results should be in February; I’ll be watching closely.

Oliver Rodzianko does not own shares in Salesforce.

Uber Technologies

What it does: Uber is one of the largest providers of rideshare/mobility services in the world with around 130m users across approximately 70 countries.

By Edward Sheldon, CFA. Uber (NYSE: UBER) is a growth stock I’m really bullish on today.

For starters, profits are really starting to motor higher. This year, the company is expected to generate a net profit of $2.4bn, up from an estimate of $816m for 2023.

Secondly, the company has recently introduced digital ads within its app. I expect these advertising services to make a meaningful contribution to the company’s top and bottom line in the years ahead.

Third, the company is doing some really interesting things with self-driving cars in the US, in partnership with Alphabet‘s Waymo. In the long run, this partnership could have some exciting – and lucrative – implications.

It’s worth pointing out that Uber shares have had a great run over the last 12 months (they’ve more than doubled in price). So, there is always the chance of some profit taking in the short term.

Taking a long-term view, however, I reckon this stock has a lot of potential.

Edward Sheldon owns shares in Uber Technologies and Alphabet

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