Eli Lilly's Growth Prospects Just Got a Huge Upgrade
It can be hard to make the case that a stock which is trading at more than 120 times earnings is still a good buy, and that its growth prospects still look strong enough to justify its current valuation. But that's what I'm going to try to do with Eli Lilly (NYSE: LLY) stock right now. There's no doubt that it's expensive and that investors are paying a premium for it. But here's why you may want to buy it anyway.
Eli Lilly has been generating some strong growth this year as it benefits from the success of two new drugs: Zepbound (approved for weight loss) and Mounjaro (approved for diabetes). During the first three months of the year, the company's revenue rose by 26% year over year to $8.8 billion, largely as a result of those products.
But there could soon be another product which generates significant revenue for its operations: donanemab. Donanemab is the company's early Alzheimer's treatment which is still waiting for approval from regulators, but there's a positive sign that it could be coming soon.
Source Fool.com
