12 Stocks to Buy That May Be Splitting Soon

2. Eli Lilly And Co. (NYSE:LLY)

Share Price as of March 17: $813.48

Surge in Share Price in 5 Years: 564.61%

Stock Split Confirmed: No

Number of Hedge Fund Holders: 115

Eli Lilly And Co. (NYSE:LLY) discovers, develops, and markets human pharmaceuticals. Its portfolio includes treatments for diabetes, obesity, oncology, autoimmune diseases, and neurological conditions. It serves patients across the US and internationally through various collaborations and partnerships.

The company’s Cardiometabolic segment is driven by incretin medications and contributes majorly to the company’s growth. Full-year 2024 overall revenue for the company surged 32% year-over-year to over $4 billion above initial guidance, with Q4 2024 alone seeing a 45% increase. Mounjaro sales hit $3.5 billion in Q4, while Zepbound’s US sales reached $1.9 billion, making it the top anti-obesity drug by new prescriptions.

The company is expanding production to meet demand, aiming for a 1.6x increase in incretin salable doses in H1 2025 compared to H1 2024. It’s also advancing its pipeline, with multiple Phase III trials underway. Eli Lilly And Co. (NYSE:LLY) now forecasts 2025 revenue between $58 billion and $61 billion, which represents 32% growth. It plans to launch Mounjaro in new international markets and continue investing in R&D, with several regulatory submissions expected.

Parnassus Core Equity Fund sees Eli Lilly And Co. (NYSE:LLY) as a strong long-term investment due to its GLP-1 franchise and innovation, capitalizing on a sell-off to buy at an attractive valuation. It stated the following in its Q4 2024 investor letter:

“Eli Lilly and Company (NYSE:LLY) stock declined following worse-than-expected third quarter results for its weight-loss drug segment. We initiated our position partway through the quarter, after the drawdown and in time for a partial rebound, and our average underweight for the quarter led to a relative contribution.

In the Health Care sector, we added drugmaker Eli Lilly, which has an exceptional GLP-1 franchise and a strong track record of innovation, which position the company for long-term growth. A rare revenue miss and President-elect Trump’s health secretary nomination sparked a sell-off, providing a window of opportunity to gain exposure to the drugmaker’s attractive product suite and pipeline at an attractive valuation.”