Must-See: Jim Cramer’s 10 Best Stock Picks for Investors Right Now

2. Eli Lilly and Company (NYSE:LLY)

Number of Hedge Fund Holders: 100

Jim Cramer highlighted that JPMorgan has increased its price target for Eli Lilly and Company (NYSE:LLY) shares from $1,050 to $1,100. This adjustment reflects anticipated developments for Eli Lilly and Company (NYSE:LLY)’s rapidly growing obesity drug business. JPMorgan has also maintained its buy-equivalent rating on the stock, which is part of the Investing Club’s portfolio.

“JPMorgan nudged up its Eli Lilly price target to $1,100 a share from $1,050 ahead of what analysts see as looming catalysts for its fast-growing obesity drug franchise. The firm kept its buy-equivalent rating on the Club stock. On Thursday, the drugmaker announced more investment to expand manufacturing capacity for obesity drugs as well as its recently FDA-approved Alzheimer’s therapy.”

Eli Lilly and Company (NYSE:LLY) presents a strong investment opportunity, bolstered by its impressive Q2 2024 earnings. Eli Lilly and Company (NYSE:LLY)  saw a 36% increase in revenue year-over-year, reaching $11.3 billion, driven mainly by its diabetes and obesity treatments, with Mounjaro leading the way. Eli Lilly and Company (NYSE:LLY) also raised its revenue forecast for 2024 to between $45.4 billion and $46.6 billion, reflecting confidence in its promising drug pipeline. This includes new treatments for obesity, diabetes, and cancer. Analysts share this positive outlook, with target prices around $1,060, indicating strong market confidence in the company’s future growth.

Baron Health Care Fund stated the following regarding Eli Lilly and Company (NYSE:LLY) in its Q2 2024 investor letter:

“Shares of global pharmaceutical company Eli Lilly and Company (NYSE:LLY) increased on continued investor enthusiasm around GLP-1 drugs for diabetes and obesity. We remain shareholders. Lilly’s Mounjaro/Zepbound not only offers superb blood sugar control for diabetics but can drive 20%-plus weight loss and likely improve cardiovascular outcomes in both diabetic and non-diabetic obese patients.

Lilly is developing next generation drugs, including retatrutide, which drives approximately 25% weight loss, and orforglipron, a daily pill that produces approximately 15% weight loss. In the U.S. alone, there are 32 million Type 2 diabetics and an additional 105 million obese patients who we estimate would qualify for GLP-1 drugs.

Although supply and access are limited near term, we think GLP-1 drugs will become standard of care for both diabetes and obesity and will become a $150 billion-plus category. We see Lilly setting a high efficacy bar and capturing significant long-term market share. We think the adoption of GLP-1s will drive Lilly to triple total revenue by 2030.”