As you get older, it’s generally a good rule of thumb to start lowering your portfolio’s risk profile. But that doesn’t mean you should swap out all of your stocks for lower-risk investing vehicles like CDs or bonds. There are a fair number of low-risk stocks, after all, that offer outstanding growth prospects.
Armed with this insight, we asked three of our contributors which stocks they think might be suitable investing vechicles for senior citizens. They recommended Celgene (NASDAQ:CELG), Nucor (NYSE:NUE), and Cardinal Health (NYSE:CAH). Here’s why.
This biotech offers unusual levels of growth with far less risk than you’d expect
George Budwell (Celgene): The large-cap biotech stock Celgene probably isn’t even on your radar if you’re a senior citizen. After all, this company operates in a particularly high-risk industry (biopharmaceuticals), and its stock can hardly be construed as a value play at present; Celgene’s shares are currently trading at a price-to-sales ratio of 8.8 and a sky-high price-to-earnings ratio of 51.
But there’s a lot more than meets the eye with this top biotech stock.
First off, Celgene’s 20%-plus compound annual growth rate (CAGR) for its top line over the past three consecutive years makes it one of the fastest-growing companies in the world. Most importantly, though, this astonishing level of growth isn’t expected to taper off in a significant manner until the mid-2020s at the earliest.
The commercial launch of its latest blockbuster drug, Otezla — which is indicated for psoriatic arthritis and plaque psoriasis — is still in the early stages of its commercial launch, and the company’s blockbuster-in-waiting ozanimod is successfully winding its way through a late-stage clinical program for relapsing multiple sclerosis and ulcerative colitis.
The point is that Celgene’s ultra-high growth appears to be sustainable for…