1. Eli Lilly And Co. (NYSE:LLY)
Share Price as of August 30: $940.20
Number of Hedge Fund Holders: 100
Eli Lilly And Co. (NYSE:LLY) is an American pharmaceutical company with offices in 18 countries, known for developing and manufacturing a range of prescription drugs for various medical conditions. Some of its products include insulin, antidepressants, and treatments for cancer, diabetes, and autoimmune diseases, sold in over 125 countries.
The company has a very strong position among investors, with 100 hedge funds holding long positions as of June 30. The highest stake has a value of $4,426,141,743 and is held by Fisher Asset Management.
The company has a history of stock splits with 4 2-for-1 splits implemented in the late 1900s. Considering that its share price soared by 71.57% in one year, it might just be time for another stock split.
Eli Lilly And Co. (NYSE:LLY) is focused on manufacturing expansion and is increasing global access to Lilly medicines. In Q2, revenue grew 35.98%, with a total value of $11.30 billion, and new products generating nearly $3.5 billion. The earnings per share were $3.92.
US demand for Mounjaro and Zepbound remains strong, and despite early-year prescription volatility, supply improvements are promising. Non-incretin growth was 17% globally and 25% in the US. Lilly is adding 11 new obesity treatments and investing $5.3 billion in Indiana manufacturing.
Since 2020, the company has invested over $18 billion in US and European facilities, and now production is ramping up, including at Concur North Carolina, which starts in late 2024.
Recent milestones include Kisunla’s Alzheimer’s approval, Jaypirca’s Japan approval, tirzepatide’s submissions for sleep apnea, and positive Phase 3 results in heart failure and obesity.
In July, it agreed to acquire Morphic, which develops oral therapies for chronic diseases. At the same time, management announced that Zepbound’s new doses were coming.
Its strong financial performance, innovative drug pipeline, and strategic investments position it as a leading player in the healthcare market. Revenue guidance is up $3 billion for the full year 2024.
Baron Health Care Fund stated the following regarding Eli Lilly and Company (NYSE:LLY) in its Q2 2024 investor letter:
“Shares of global pharmaceutical company Eli Lilly and Company (NYSE:LLY) increased on continued investor enthusiasm around GLP-1 drugs for diabetes and obesity. We remain shareholders. Lilly’s Mounjaro/Zepbound not only offers superb blood sugar control for diabetics but can drive 20%-plus weight loss and likely improve cardiovascular outcomes in both diabetic and non-diabetic obese patients. Lilly is developing next generation drugs, including retatrutide, which drives approximately 25% weight loss, and orforglipron, a daily pill that produces approximately 15% weight loss. In the U.S. alone, there are 32 million Type 2 diabetics and an additional 105 million obese patients who we estimate would qualify for GLP-1 drugs. Although supply and access are limited near term, we think GLP-1 drugs will become standard of care for both diabetes and obesity and will become a $150 billion-plus category. We see Lilly setting a high efficacy bar and capturing significant long-term market share. We think the adoption of GLP-1s will drive Lilly to triple total revenue by 2030.”
While we acknowledge the growth potential of LLY, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than the ones mentioned on our list but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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