This Cheap Stock to Buy Is Up 65% in 2025

Crispr Therapeutics is having quite a year: The pure-play gene editing company’s stock is up 65% year to date through Sept. 30. Yet even after its runup, this top-performing stock is trading 40% below our $106 fair value estimate. We expect this early-stage biotechnology company to achieve positive net income in 2029. We assign Crispr a Very High Uncertainty Rating, given the regulatory hurdles its early-stage pipeline faces. Even so, at today’s price, we think this undervalued stock is a buy for long-term investors who don’t mind taking on some risk. Crispr appears on Morningstar’s list of The Best Biotech Stocks to Buy. It’s also among Morningstar Chief US Market Strategist Dave Sekera’s 5 Stocks to Buy Before They Climb Higher.

Crispr Therapeutics is focused on developing and commercializing novel therapies to treat rare diseases or other disorders caused by genetic mutations. The company’s Crispr/Cas9 platform offers the ability to precisely cut DNA to disrupt, delete, correct, and insert genes to treat genetically defined diseases. We think Crispr’s proprietary technology has the potential to build blockbusters in rare diseases with limited treatment options available. Its first approved product, Casgevy, was developed in collaboration with Vertex Pharmaceuticals to treat transfusion-dependent beta thalassemia and sickle cell disease. The rest of Crispr’s pipeline is in relatively early stages of development.

Key Morningstar Metrics for Crispr

• Fair Value Estimate: $106
• Star Rating: 4 Stars
• Economic Moat Rating: None
• Uncertainty Rating: Very High

Economic Moat Rating

As an emerging biotech company, Crispr does not possess an economic moat. We think it has the funding and technological capabilities to potentially bring several of its pipeline programs to market. However, we see a very high level of uncertainty related to regulatory approvals for the company’s early-stage portfolio and a range of potential outcomes. We are closely watching the commercial launch of Casgevy and the development of its largely early-stage pipeline for signs of the company’s competitive advantages. Crispr has multiple pipeline opportunities under its belt, and we await additional clinical trial data to help determine the company’s true commercial potential as a key player in gene editing.

Read more about Crispr’s moat rating.

Fair Value Estimate for Crispr Stock

We assign Crispr a fair value estimate of $106 per share. Casgevy is launching in several key markets around the globe. We think its high selling price and the significant unmet medical need for treating sickle cell disease and transfusion-dependent beta thalassemia will help it become a blockbuster drug during our 10-year forecast period. Vertex will receive 60% and Crispr will receive 40% of Casgevy’s profits under their agreement. The rest of Crispr’s pipeline is in relatively early stages of development, and we do not anticipate any of these treatments to reach the market until at least 2028. Given Crispr’s very high uncertainty and wide range of potential outcomes due to its early-stage pipeline, we use an 11% cost of equity. This is higher than the typical 9% cost of equity for other biotechs we cover.

Read more about Crispr’s fair value estimate.

Risk and Uncertainty

We see significant uncertainty related to regulatory approvals for Crispr’s early-stage pipeline candidates and a range of potential outcomes. Failure to adhere to extensive regulations can lead to expensive recalls, increased regulatory scrutiny, and lawsuits from affected customers. Additionally, there are risks of lawsuits related to patent rights and potential patent infringements. Crispr’s sales will depend on reimbursements from third-party payers, such as Medicaid or Medicare, private insurers, and national healthcare systems. Attempts by governments to contain healthcare costs could result in pricing pressure and lead to reduced profit margins.

Read more about Crispr’s risk and uncertainty.

Crispr Bulls Say

• Partnerships allow Crispr to receive milestones and economic benefits from drug candidate progression while offsetting some of the clinical development costs.
• The Crispr/Cas9 platform has the potential to develop highly efficacious and curative treatments for rare genetic diseases with high unmet needs, which will likely lead to pricing power.
• Crispr’s diverse pipeline with lengthy patents has the potential to become a strong intangible asset if successful in trials and regulatory approvals.

Crispr Bears Say

• Much of Crispr’s pipeline is in the early stages of development and years away from potentially receiving approval.
• Many other companies are also investing in novel gene editing therapies, which could create competitive pressure.
• Crispr’s very high level of uncertainty highlights the risks associated with its early-stage pipeline and the range of potential outcomes for the company.

This article was compiled by Susan Dziubinski and Sylvia Hauser. Data as of Sept. 30, 2025, close unless otherwise noted.