Here’s Why Eli Lilly and Company (LLY) is on Detractors’ List of Madison Sustainable Equity Fund

Madison Investments, an investment advisor, released its “Madison Sustainable Equity Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. All equity classes experienced good results in the third quarter. During the quarter, equity markets ended on a high note, with the S&P 500 achieving a 5.89% increase, bringing the full-year performance to 22.08%. The Value outperformed growth and the market broadened outside the mega-cap tech stocks during the quarter. Against this backdrop, Madison Sustainable Equity Fund (Class Y) outperformed the S&P 500 in the quarter. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2024.

Madison Sustainable Equity Fund highlighted stocks like Eli Lilly and Company (NYSE:LLY) in the third quarter 2024 investor letter. Eli Lilly and Company (NYSE:LLY) is a pharmaceutical company, headquartered in Indianapolis, Indiana. The one-month return of Eli Lilly and Company (NYSE:LLY) was -20.01%, and its shares gained 22.71% of their value over the last 52 weeks. On November 18, 2024, Eli Lilly and Company (NYSE:LLY) stock closed at $727.20 per share with a market capitalization of $708.379 billion.

Madison Sustainable Equity Fund stated the following regarding Eli Lilly and Company (NYSE:LLY) in its Q3 2024 investor letter:

“Alphabet Inc.,Eli Lilly and Company (NYSE:LLY), Qualcomm Incorporated, Microsoft Corporation, and Apple Inc. were the largest detractors. After first half strength, Eli Lilly has traded in a range this quarter, despite dramatically raising revenues and earnings following their second quarter report. There is a lot of noise in the Diabetes-Obesity space as many companies are looking for opportunities to get into the market, which is expected to exceed $100 billion in revenues in 2030. We have not seen any competitor data that would dethrone Novo Nordisk or Lilly but are watching carefully. Manufacturing capacity is a key barrier to entry and Lilly and Novo have locked up capacity for the next several years.”

Eli Lilly and Company (NYSE:LLY) is on 19th position on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 106 hedge fund portfolios held Eli Lilly and Company (NYSE:LLY) at the end of the second quarter which was 100 in the previous quarter. While we acknowledge the potential of Eli Lilly and Company (NYSE:LLY) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed Eli Lilly and Company (NYSE:LLY) and shared the list of best low volatility stocks to invest in along with the latest updates around the market and political situation of the US. In Q3 2024, Aristotle Large Cap Growth Strategy added Eli Lilly and Company (NYSE:LLY) in its portfolio, due to its perceived growth prospects. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.