Should You Invest $1,000 in Eli Lilly today?
From Nasdaq: 2025-06-05 04:15:00
Eli Lilly (NYSE: LLY) is a pharma giant with a diverse portfolio, including weight loss drugs like Mounjaro and Zepbound, driving double-digit revenue growth. Both drugs bring in billions annually, leading Lilly to dominate the weight loss market alongside Novo Nordisk. The company’s progress on an oral weight loss candidate could further solidify its position.
Goldman Sachs Research has lowered its forecast for global sales of anti-obesity medicines to $95 billion by 2030, down from $130 billion, due to challenges like lower prices and reimbursement. However, this market still offers significant growth potential, with Lilly’s weight loss drugs generating over $11 billion and $4.9 billion in sales last year, driving double-digit total sales growth.
Lilly’s stock is trading at 34 times forward earnings estimates, similar to top tech companies delivering double-digit revenue growth. With a presence in the high-growth weight loss market and offering stability and dividend growth, Lilly stands out. Despite potential challenges, investing $1,000 in Lilly offers growth akin to tech companies and the safety of a pharmaceutical stock.
The Motley Fool’s Stock Advisor team did not include Eli Lilly in their 10 best stocks to buy now. The top 10 stocks identified have the potential for significant returns, with historical outperformance compared to the S&P 500. Considering past recommendations like Netflix and Nvidia, joining Stock Advisor could lead to substantial investment gains.
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