Think Eli Lilly Stock Has Peaked? These 10 Words From the CEO May Change Your Mind
Eli Lilly (NYSE: LLY) stock is up a mammoth 770% in five years. It is trading at new all-time highs in 2024 thanks to the incredible success and popularity of its diabetes and weight loss products, Mounjaro and Zepbound. But with the stock standing at a market capitalization of $850 billion and a mammoth price-to-earnings multiple of 117, you might think it ludicrous to expect it could still be a good buy.
Normally, I'd agree and say that at such an enormous valuation, it's just too expensive to buy the stock. But given Eli Lilly's fantastic growth prospects, an exception may be warranted in this case. And based on what the company's CEO recently said, there's plenty of reason to remain bullish on its future.
You know a company has a good product when it doesn't need to spend aggressively to market it in order to grow sales. Conversely, if a company needs to spend heavily on sales and marketing in order to generate revenue growth, that's usually a red flag for investors. That could mean aggressive discounts and promotional activities are needed to get customers to place orders. But that isn't the case with Eli Lilly.
Source Fool.com
