5 Best Counter Cyclical Stocks To Buy Now

3. Eli Lilly and Company (NYSE:LLY)

Number of Hedge Fund Holders: 76

Eli Lilly and Company (NYSE:LLY) discovers, develops, and markets human pharmaceuticals worldwide. Apart from COVID-19 antibodies, Eli Lilly and Company (NYSE:LLY)’s revenue in Q4 2022 increased 5%, or 10% on a constant currency basis, supported by volume growth of primary growth products, partially offset by lower Alimta revenue. Excluding COVID-19 antibodies, total worldwide volume in Q4 2022 increased 13%. It is one of the top counter cyclical stocks to invest in. 

On March 13, Wells Fargo upgraded Eli Lilly and Company (NYSE:LLY) to Overweight from Equal Weight with a price target of $375, up from $360. Despite recent weakness in the shares, the firm believes that Eli Lilly and Company (NYSE:LLY)’s fundamentals have remained the same, making it a good buying opportunity. The risk/reward into the donanemab Alzheimer’s trial may be in favor of the upside, as per the firm. Additionally, Wells Fargo noted that the stock is down 18% from its peak without any fundamental change, which makes it a good opportunity to invest in the highest growth stock in the large pharma sector.

According to Insider Monkey’s fourth quarter database, 76 hedge funds were long Eli Lilly and Company (NYSE:LLY), compared to 75 funds in the prior quarter. Rajiv Jain’s GQG Partners is the biggest position holder in the company, with 1.6 million shares worth $602.80 million. 

Baron Funds made the following comment about Eli Lilly and Company (NYSE:LLY) in its Q4 2022 investor letter:

“Eli Lilly and Company (NYSE:LLY) is a large-cap pharmaceutical company. Shares increased on investor optimism about Lilly’s new product pipeline, which includes Mounjaro for diabetes and obesity and Donanemab for Alzheimer’s disease. We continue to think Lilly has a healthy base business with limited near-term patent expirations, a strong pipeline, and potential for significant margin expansion, which should translate to strong revenue and earnings growth over at least the next five years.”