1 Growth Stock That Could Turn $1,000 Into $2,500 by 2030
Growth stocks are back in style after getting hammered in 2022, and many investors are rushing to buy shares of recovering growth-oriented companies. But why not go for one that never went out of style in the first place? That's the case with Eli Lilly (NYSE: LLY), one of the best-performing biotech giants in recent years. After crushing the market over the past year, Eli Lilly has what it takes to do it all over again. Here's why the company could turn an initial investment of $1,000 into $2,500 by 2030 -- a compound annual growth rate (CAGR) of nearly 16%.
Eli Lilly is primarily known for its work in diabetes and obesity care, areas with severe and growing needs. Obesity is a worsening global health crisis. According to some projections, the demand for medicines that address these conditions will skyrocket through the end of the decade and beyond. Analysts at J.P. Morgan recently projected that the market for obesity drugs could reach as much as $100 billion by 2030 -- up from just $2.9 billion last year
Eli Lilly and its biggest competitor in this field, Novo Nordisk, should be the biggest winners. Estimates tend to vary; some may think those for the obesity drug market sound like a pipe dream. However, early evidence strongly supports the claim that this market will skyrocket. Eli Lilly earned approval for Mounjaro, a diabetes medicine, last year. Mounjaro isn't yet indicated as a weight loss medicine.
Source Fool.com
