5 Best Pharmaceutical Stocks to Invest In

1. Eli Lilly and Company (NYSE: LLY)

Number of Hedge Fund Holders: 64

Eli Lilly and Company (NYSE:LLY) is an American pharmaceutical company. It is known for introducing insulin to the market. Also, it has many medications to treat an array of different psychiatric conditions. It is ranked first on our list of 15 best pharmaceutical stocks to invest in. The stock has returned over 79.97% to investors over the course of the past year.

On August 3, Eli Lilly and Company (NYSE:LLY) posted earnings for the second quarter of 2021, reporting earnings per share of $0.22, missing estimates by $0.02. The revenue over the period was around $6.74 billion, up 22.56% year-over-year.

At the end of the second quarter of 2021, 64 hedge funds in the database of Insider Monkey held stakes in the company, worth $2.9 billion, up from 55 funds in the preceding quarter.

On August 9, Argus reiterated a Buy rating on Eli Lilly and Company (NYSE:LLY) while raising its price target to $300 from $225, noting a possible revenue stream from its Alzheimer’s medication donanemab for which Eli Lilly and Company (NYSE:LLY) will be seeking FDA approval.

In the Q2 2021 investor letter of Baron Funds, the fund mentioned Eli Lilly and Company (NYSE: LLY). Here is what the fund said:

 “We started a position in Eli Lilly and Company, a large-cap pharmaceutical company. We 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 high single-digit revenue growth and mid-teens earnings growth over the next five years. Lilly’s pipeline includes donanemab, a potential blockbuster drug which the company is developing for Alzheimer’s disease and which recently received Breakthrough Therapy Designation by the FDA.”

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