Last year, the Federal Reserve began hiking interest rates in an effort to slow down the economy. Today, interest rates are at their highest levels since the early 2000s. For many businesses, an increase in interest rates has led to investors feeling less bullish on their stocks as borrowing costs rise and growth becomes more difficult.

But three stocks that are up big even as the Fed began hiking rates are Eli Lilly (NYSE: LLY), Axsome Therapeutics (NASDAQ: AXSM), and TransMedics Group (NASDAQ: TMDX). Let's see what their prospects look like from here -- and whether they can continue the momentum.

Since March 2022, shares of Eli Lilly are up close to 130%. Rising interest rates simply haven't been enough to slow down this business -- and for good reason. Lilly generates strong financial results that allow it to manage rising interest costs. Its profit margin, for instance, is fairly high at 16% of revenue. Last year, the company also generated $4.6 billion in free cash flow.

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Source Fool.com