
NYSE:LLY
This summary was created by AI, based on 28 opinions in the last 12 months.
Eli Lilly & Co. (LLY) is regarded as a leading contender in the GLP-1 (glucagon-like peptide-1) drug market, primarily for weight loss and related conditions. Experts highlight its significant pipeline of drugs, including recent acquisitions like Centessa, which broaden its therapeutic reach. While LLY has faced some downward pressure due to competition, particularly from Novo Nordisk (NVO), many affirm that LLY’s diversification and superior execution position it well for future growth. Some analysts express caution over current valuation metrics, indicating it may be overpriced relative to peers, but long-term growth prospects remain robust, particularly with the anticipated oral version of its weight loss drugs. Overall, LLY is viewed as a robust growth stock with substantial potential in the healthcare sector.
Looking at the growth rate ahead, still not expensive. Diversified segments, including Alzheimer's. Good promising pipeline. One of the leaders in diabetes and weight-loss management. Demographics mean that more people will need treatment. Gross and operating margins remain very strong, over 30%. So profitability is still excellent. Yield is 0.6%.
Still sees 30+% earnings growth rate for 2025.
The GLP-1 weight loss companies are really in the sweet spot. For example for LLY, a very large holding for him, the opportunity for them is a very large marketplace. Getting approval for a broader range of uses.
He also owns ISRG, which will help with the cost of healthcare, a very big growth opportunity. He owns MCK too.
Those 3 names together make up a 5% weight for him, which is underweight the market.
Doesn't know NVO well enough nor their drug pipeline. Yes, their weight-loss drug has done well, but he doesn't own this or LLY. Their valuations have priced in the weight-loss drugs. He prefers Amgen, because their weight-loss drug is under trial and not priced into the stock yet. And it trades at a lower PE than these peers.
It rallied today on news that it was buying a biotech; they expand into drugs to treat the inflammatory bowel space. They lead in this space. Unlike their peers in weight-loss drugs, LLY has a strong balance sheet and multi-billion dollar plants that can pump out the drug. Production capacity is the key to beating competition. That's why he hasn't taken profits. In the pipeline includes an Alzheimer's drug.