10 Best Healthcare Stocks to Buy According to Billionaires

1. Eli Lilly and Company (NYSE:LLY)

Number of Billionaire Investors: 23

Value of Billionaire Holdings: $13.7 billion

Eli Lilly and Company (NYSE:LLY), a global pharmaceutical company based in Indianapolis, develops and markets medications across the US, Europe, Japan, China, and other regions. On February 26, Eli Lilly announced plans to invest at least $27 billion in building four new manufacturing facilities in the United States to meet the growing demand for its weight loss and diabetes treatments while also advancing new drug development.

Eli Lilly and Company (NYSE:LLY) had a strong year in 2024, with annual revenue rising 32% from the previous year, surpassing its initial guidance by $4 billion. In the fourth quarter alone, revenue grew by 45%, driven by the success of newly launched products, which contributed over $3.1 billion, led by the rapid adoption of Mounjaro and Zepbound. Eli Lilly also saw solid growth in oncology, immunology, and neuroscience, while revenue from its non-incretin portfolio increased by 20%. Gross margin improved to 83.2% in the fourth quarter due to a favorable product mix. Research and development expenses rose by 18% due to investments in early and late-stage projects. Operating income more than doubled, reaching $5.6 billion, fueled by strong sales from new products.

On February 28, Eli Lilly and Company (NYSE:LLY) announced that the European Medicines Agency’s (EMA) Committee for Medicinal Products for Human Use has recommended approval of Jaypirca (pirtobrutinib), a reversible Bruton’s tyrosine kinase (BTK) inhibitor. The treatment is intended for adults with relapsed or refractory chronic lymphocytic leukemia who have previously received a BTK inhibitor. The recommendation now awaits the European Commission’s final review, which, if favorable, could serve as a significant catalyst for LLY.

Overall, Eli Lilly and Company (NYSE:LLY) ranks first on our list of the best healthcare stocks to buy according to billionaires. While we acknowledge the potential of LLY to grow, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than LLY but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.