Pharma giant Eli Lilly (NYSE: LLY) has become an unstoppable stock to own lately. Year to date, its share price is up more than 50%. And despite trading at a hefty 130 times earnings, investors continue to buy up more shares of the company. Although it may seem like the stock is approaching a peak, here are two reasons why Eli Lilly's valuation is likely to rise even higher in the future.

Eli Lilly has some incredibly popular treatments in Mounjaro (diabetes) and Zepbound (weight loss). Demand has been exceeding the available supply by a wide margin. That has been the case with other popular drugs as well. The good news is that Eli Lilly is investing in growing its capacity to meet the high levels of Demand.

The company doesn't believe it will be able to meet demand even by next year, because its products are highly sought-after. It has invested billions into growing its capacity, with $9 billion alone dedicated to a new manufacturing plant in Indiana, which is the largest such investment in Eli Lilly's history.

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Source Fool.com