10 Best Stocks to Invest in According to Billionaire Cliff Asness

7. Eli Lilly and Company (NYSE:LLY)

AQR Capital Management’s stake as of Q3: $591.7 million

Eli Lilly and Company (NYSE:LLY) is a global leader in pharmaceuticals, offering treatments for diabetes, oncology, rheumatoid arthritis, psoriasis, migraines, and more. Its flagship products include Humalog, Trulicity, Alimta, and Taltz. The company has also emerged as a leader in the growing obesity treatment market, with its GLP-1 class drugs, Mounjaro and Zepbound, driving prescription growth and solidifying its competitive edge.

To support its growth ambitions, Eli Lilly and Company (NYSE:LLY) is investing heavily in manufacturing. It has committed an additional $1.8 billion to expand facilities in Limerick and Kinsale, Ireland, to meet rising demand for incretin therapeutics and produce Kisunla, its recently approved Alzheimer’s treatment.

On December 20, Citi reiterated its Buy rating on Eli Lilly and Company (NYSE:LLY) with a $1,250 price target. This outlook followed Novo Nordisk’s phase 3 REDEFINE-1 study results in the obesity market, which showed 22.7% weight loss at 68 weeks, below the anticipated 25% target. In comparison, Eli Lilly’s tirzepatide demonstrated 20.9% weight loss. Citi views Novo’s lower-than-expected results as favorable for Eli Lilly, strengthening its competitive position, especially among patients with higher body mass indexes.

Eli Lilly’s Q3 2024 revenue surged 42%, driven by strong U.S. demand for Mounjaro and Zepbound. Non-incretin product revenue increased by 17%, with the gross margin reaching to 82.2%. Likewise, Eli Lilly’s EPS rose significantly to $1.18, up from just $0.10 in Q3 2023. The company also returned $1.6 billion to shareholders while increasing R&D spending by 13%.