We recently published a list of 10 Best Long Term Growth Stocks to Buy According to Billionaires. In this article, we are going to take a look at where Insmed Incorporated (NASDAQ:INSM) stands against other best long term growth stocks to buy according to billionaires.
As per Barclays, the US administration announced numerous executive orders with reforms associated with world trade, immigration, and global geopolitics, resulting in elevated levels of uncertainty and volatility, with markets witnessing a range of policy changes. The firm’s research analysts opine that higher uncertainty comes at a cost to global growth. In the US, there has been a decline in consumer confidence, while personal spending remains weak, and GDP forecasts declined sharply, says the firm.
What’s Ahead for US Economy?
S&P Global believes that the Trump administration’s shifting policy mix continues to result in a faster decline in growth in 2025. While the firm’s full-year growth rate remains unchanged at 1.9% (mainly because of higher base effects from a strong end to 2024), it expects a downshift in growth to 1.6% by Q4. It expects unemployment to drift higher, peaking at 4.6% by midyear 2026, with the public sector likely to limit the payroll expansion. This contrasts with strong contributions to job growth over the past 2 years.
S&P Global expects inflation to remain closer to 3.0% in 2025 as tariffs result in higher prices along the domestic supply chain and for end consumers. Therefore, the company anticipates one 25-basis-point federal funds rate cut for 2025, closing the year at the 4.00%-4.25% range.
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.
US Economy to Grow in 2025, Says Russell Investments
For 2025, Russell Investments expects a soft landing for the US economy. It assumes that the new administration will ease the more aggressive stances on tariffs and immigration. As per the firm, the US economy is projected to grow at a trend-like pace of 2.0% in 2025. The Trump administration’s policies exhibit a delicate balancing act. The firm believes that tax reforms and deregulation can help stimulate growth, mainly in domestic and cyclical sectors. Its working assumption is focused on the new administration not aggressively pursuing policies that result in inflation risk.
While the tariffs and immigration controls are likely to be implemented, the firm opines that the extent is expected to be constrained by the inflation outlook. Overall, Russell Investments expects the policy mix to support business confidence, which can fuel a resurgence in capital markets and offer favorable tailwinds for private assets.
Our Methodology
To list the 10 Best Long Term Growth Stocks to Buy According to Billionaires, we used a screener and Insider Monkey’s exclusive database of billionaire stock holdings to shortlist the companies that have exhibited at least ~20% revenue growth over the past 5 years. For the stocks with the same number of billionaire holdings, we have used the number of hedge fund investors as a secondary metric to rank the stocks, as of Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A biopharmaceutical research team taking notes in front of a laboratory’s microscope.
Insmed Incorporated (NASDAQ:INSM)
5-Year Revenue Growth: ~21.6%
Number of Billionaire Investors: 14
Number of Hedge Funds: 72
Insmed Incorporated (NASDAQ:INSM) develops and commercializes therapies for patients with serious and rare diseases. Analyst Andrew Fein from H.C. Wainwright reiterated a “Buy” rating on the company’s stock with the price objective of $90.00. The analyst’s rating is backed by a combination of factors demonstrating the company’s growth potential and market position. As per the analyst, looking ahead, the potential market for brensocatib in treating Chronic Rhinosinusitis without Nasal Polyps (CRSsNP) provides a growth opportunity. Notably, the Phase 2b BiRCh study of brensocatib in patients with chronic rhinosinusitis without nasal polyps (CRSsNP) remains on track to report topline results by 2025 end.
Insmed Incorporated (NASDAQ:INSM)’s success throughout all the areas of business in 2024—mainly in the delivery of positive data from the landmark Phase 3 ASPEN study of brensocatib in bronchiectasis—placed it to potentially reach several other patients suffering from serious diseases and resulted in strong value creation. Notably, Brensocatib can become the first and only approved treatment for bronchiectasis and the first in a new class of medicines called dipeptidyl peptidase 1 (DPP1) inhibitors for treating neutrophil-mediated diseases.
Baron Funds, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“We added to the position in Insmed Incorporated (NASDAQ:INSM), a biopharmaceutical company with three lead drugs that we believe could collectively generate over $8 billion of peak sales. The company expects to launch Brensocatib for non-cystic fibrosis bronchiectasis (NCFBE) in 2025. In a Phase 3 clinical trial, the drug achieved a 20% reduction in pulmonary exacerbations and an improvement in lung function. We think there could be as many as 500,000 NCFBE patients in the U.S. and that the disease is widely underdiagnosed (or rather, mis-diagnosed as asthma/COPD) given there are no approved treatments. In addition, brensocatib is a pipeline in a product. It’s a DPP1 inhibitor that is very potent against neutrophil serine proteases. Neutrophil serine protease activity is key in the cycle of inflammation and lung damage in bronchiectasis and is also known to play an important role in chronic rhinosinusitis without nasal polyps. In addition, another drug, Arikayce is on-market to treat refractory MAC lung disease and will likely get a front-line label with Phase 3 data expected in 2025. A third drug candidate, TPIP, is in the early stage but shows impressive efficacy/safety in PAH/PH-ILD and could be a best-in-class option.”
Overall, INSM ranks 7th on our list of best long term growth stocks to buy according to billionaires. While we acknowledge the potential of INSM as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for a deeply undervalued AI stock that is more promising than INSM but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.