5 Best Stagflation Stocks To Buy

2. Eli Lilly and Company (NYSE:LLY)

Number of Hedge Fund Holders: 75

Eli Lilly and Company (NYSE:LLY) is an American company that discovers, develops, and markets human pharmaceuticals worldwide. Healthcare stocks are defensive in nature, making them one of the best picks for a stagflation environment. 

Berenberg analyst Kerry Holford on November 22 raised the price target on Eli Lilly and Company (NYSE:LLY) to $375 from $345 and kept a Buy rating on the shares. Despite currency headwinds, Eli Lilly and Company (NYSE:LLY)’s “underlying performance remains strong,” the analyst wrote in a research note. The analyst said initial signs from the Mounjaro diabetes launch are positive and a label expansion to include an obesity indication is now expected before the end of next year.

According to Insider Monkey’s data, 75 hedge funds were long Eli Lilly and Company (NYSE:LLY) at the end of the third quarter of 2022, compared to 70 funds in the prior quarter. Rajiv Jain’s GQG Partners is a notable position holder in the company, with 1.6 million shares worth $515.5 million. 

Here is what ClearBridge Global Growth Strategy has to say about Eli Lilly and Company (NYSE:LLY) in its Q3 2022 investor letter:

“In the U.S., we initiated a position in pharmaceutical maker Eli Lilly (NYSE:LLY) as it brings out new drug candidates for diabetes and Alzheimer’s disease. New drugs impact diabetes but have also demonstrated significant weight loss for patients who are overweight and have other co-morbidity issues as a result. Lilly is one of the two key players in diabetes care and we believe the potential market opportunity is much higher than the consensus forecasts as we are seeing evidence of accelerating adoption.”