BofA’s Top 10 Growth Stocks with The Fastest Projected EPS Growth Rates

4. Eli Lilly and Company (NYSE:LLY)

Number of Hedge Fund Holders In Q2 2024: 100

Projected EPS Growth Rate: 50.6%

Eli Lilly and Company (NYSE:LLY) is a mega pharmaceutical company that sells diabetes, obesity, and cancer medicines. These expose it to some of the hottest markets of the pharma industry and its success in the obesity market has also translated into share price tailwinds. LLY shares are up 53% year-to-date However, with weight loss drugs now being a key part of its hypothesis, any threat from competitors means that the shares are hit hard. This was the case between mid-July and early August when LLY stock bled 19% after investors reacted to favorable weight loss drug developments from Roche and Viking Therapeutics. To ensure that it remains a leading player in the market, Eli Lilly and Company (NYSE:LLY) is currently working on Orforglipron, which is cheaper and easier to produce than current treatments. This is key especially as generic weight loss drugs can further dilute the market.

Baron Funds mentioned Eli Lilly and Company (NYSE:LLY) in its Q2 2024 investor letter. Here is what the fund said:

“In biopharmaceuticals, we remain bullish on the market opportunity for new diabetes and obesity medicines. In June at a medical meeting, the principal investigators of the SURMOUNT-OSA trial presented the full data which demonstrated that Eli Lilly and Company’s Tirzepatide reduced obstructive sleep apnea in adults with obesity by up to 62.8%, and up to 51.5% of participants met the criteria for disease resolution. This impressive data set paves the way for Tirzepatide to be used as a treatment for obstructive sleep apnea in overweight and obese individuals.”