Pharmaceutical companies are typically noted for slow and steady growth, but Eli Lilly is breaking all the rules. Thanks to its landmark weight loss drugs, Mounjaro and Zepbound, the company has achieved an astonishing 90% growth in the past year. Pharma companies are somewhat less subject to volatile markets than other sectors, as people always need their medications. But it is really time to go in on Eli Lilly? Let’s take a look.
What You Need to Know About the Drugmaker
Lilly’s weight loss drugs may be all the rage, but they are hardly the only things that the company produces. Its breast cancer drug, Verzeniohttps://app.stocks.news/stock-detail?symbol=LLY, increased more than 40% in sales, reaching $1 billion in the past year. The company also has a strong portfolio of drugs for everything from neuroscience to immunology, and many are performing extremely well. This makes Lilly a much safer risk than it would be if its fortunes hung on just one or two medications. Meanwhile, its biggest challenge is ramping up manufacturing fast enough to meet surging demand for the weight loss medications.
What the Analysts Are Saying
The future continues to look bright for Eli Lilly. The weight loss market is expected to continue to grow, likely hitting $100 billion in the next five years. As long as the company can continue to meet demand, while keeping up with all of its other medications and drug trials, its current position as a market leader should keep it growing exponentially for some time to come.
Eli Lilly is currently trading at a blistering 62x forward earnings estimates. This may be too high for those looking for long-term value investments, but it’s actually a great price for those seeking aggressive growth. While nothing is ever a guarantee, Eli Lilly has all the right pieces in place.
Neither Lisa Fritscher nor Stocks.News have positions in this company.
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Contributing Writer
Lisa Fritscher has been a contributing writer for App.Stock.News since 2024. Lisa has been interested in investing since winning The Stock Market Game in high school. In more than a decade as a professional writer, she has written consumer-facing financial information and advice articles for a wide variety of publications. She has a Bachelor of Arts in Psychology from the University of South Flori...