1. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Investors: 100
Eli Lilly and Company (NYSE:LLY) is a pharmaceutical company that specializes in cancer, immunology, neuroscience, and cardiometabolism. Verzenio for cancer, Mounjaro, Zepbound, Jardiance, Trulicity, Humalog, and Humulin for cardiometabolic conditions, and Taltz and Olumiant for immunology are some of Lilly’s most important products.
LLY, the “Best GLP-1 and Weight Loss Stocks to Buy Now” and one of the top insulin producers, is involved in the drug manufacturing industry. Due to the success of its FDA-approved weight reduction and diabetic medications, Tirzepatide (Zepbound and Mounjaro), Eli Lilly’s stock has shot up by over 71% in the last year.
Baron Health Care Fund stated the following regarding Eli Lilly and Company (NYSE:LLY) in its first quarter 2024 investor letter:
“Eli Lilly and Company (NYSE:LLY) is a global pharmaceutical company that discovers, develops, manufactures, and sells medicines in the categories of diabetes, oncology, neuroscience, and immunology, among other areas. Stock performance was strong due to robust fourth quarter sales of Mounjaro/ Zepbound, better-than-anticipated initial guidance for fiscal year 2024, and ongoing enthusiasm surrounding the company’s obesity and diabetes franchises. We continue to think Lilly is well positioned to grow revenue and earnings at attractive rates through the end of the decade and beyond.”
Overall, the firm’s financial performance has been strong. Over time, the annual revenue has grown dramatically, primarily due to the high sales of FDA-approved drugs for obesity.
However, the company is currently facing a serious supply shortage as a result of its inability to construct enough facilities to produce enough dosages to meet the rapidly increasing demand. Kisunla, an Alzheimer’s drug, faces significant obstacles to success due to patient diagnosis backlogs, necessary scans and monitoring, and competitive pricing. Nonetheless, Lilly’s strong leadership in weight-loss drugs is expected to deliver industry-leading growth, with authorized drugs and well-positioned next-generation weight-loss drugs under development.
Driven by solid results from Mounjaro and Zepbound in Q2 2024, Morningstar analysts increased their estimate of Eli Lilly’s fair value to $580 from $540. However, they cautioned that the stock looks overpriced due to potential obstacles and market optimism.
Setting Eli Lilly and Company (NYSE:LLY) apart from its competitors and fostering long-term growth is the company’s inventive culture and steadfast financial commitment to creating the next generation of pharmaceuticals. Lilly can grow at the fastest rate in the market because it is releasing multiple blockbusters and its patent losses are decreasing.
Ken Fisher’s Fisher Asset Management is the largest stakeholder in the company, with 4,888,710 shares worth $4.43 billion.
While we acknowledge the potential of the 12 Best Biotech Stocks To Invest In According To Hedge Funds, our conviction lies in the belief that some 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.
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