Eli Lilly (LLY): Why It’s Finally an A-rated Buy
Most investors know Eli Lilly (NYSE: LLY) for one thing: GLP-1 weight-loss drugs like Mounjaro and Zepbound.
But the real story is much bigger … and whether you care about obesity drugs or not, it’s impossible to ignore what Lilly is becoming:
One of the most powerful and profitable drug companies of the next 10–20 years.
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Lilly is A-rated according to our Zen Ratings system, and in an A-rated industry: Drug Manufacturers. Despite already being an $800B giant, the growth story is still accelerating.
On the technical front, LLY also looks like it’s finally breaking out of a bull flag (orange) after consolidating for over a year:
The GLP-1 Market Leader … With a New Pill on the Way
GLP-1 drugs are changing modern medicine. And not just for obesity, but diabetes, heart disease risk, fatty liver disease, sleep apnea, and more.
Right now, most GLP-1s are injections. But Lilly is preparing something that could reshape the market again.
I’m talking about Orforglipron: Lilly’s once-daily oral GLP-1 pill:
- No food or water restrictions
- Stronger results than Novo Nordisk’s oral semaglutide
- Analysts project $10B+ annual sales by early 2030s
If injectables like Zepbound and Wegovy were Phase 1 of the GLP-1 boom … oral GLP-1s are Phase 2, and Lilly is ahead.
This is why LLY continues to outgrow nearly every other pharma stock despite a massive market cap.
A Growth Engine Hidden Inside a Pharma Blue Chip
Lilly recently posted:
- 38% revenue growth YoY
- 61% EPS growth YoY
- 83% gross margins
For a company founded in the 1800s, this looks less like a mature pharma giant and more like a cash-flow machine with growth rates rivaling tech. And the GLP-1 franchise is only the beginning.
New Pathways for Expansion: Walmart Partnership & Direct-to-Consumer
The news cycle has been full of bullish developments for Lilly:
Walmart partnership: Starting mid-November, patients can pick up Zepbound vials at Walmart for 50%+ off the list price … the first retail pickup option through LillyDirect.
LillyDirect’s explosive growth: More than one-third of new Zepbound prescriptions now come through Lilly’s own direct-to-consumer platform … bypassing PBMs and squeezing margins higher.
Alignment with TrumpRx drug-pricing strategy: Lilly is in discussions with the administration about integrating discounted drugs into the TrumpRx platform. This keeps the company positioned favorably in a shifting policy environment.
All of this expands access, demand, and brand dominance, especially compared to Novo Nordisk (NYSE: NVO), which has been slower to adopt D2C distribution.
Beyond GLP-1s: A Deep Pipeline in Oncology, Immunology, and Neuroscience
One thing many retail investors miss: Lilly isn’t a “one-drug story.”
Its pipeline includes:
- Novel cancer therapeutics
- Immunology drugs
- Neurodegenerative disease candidates
- New metabolic and weight-related treatments beyond GLP-1s
Lilly is already investing billions into new U.S. manufacturing hubs to keep up with future demand … a rare sign of confidence for a company this size.
The GLP-1 franchise is massive, but the next wave of growth will not be limited to weight loss.
Why I’m Watching This Name
Eli Lilly is the rare mega-cap that still has the growth profile of a much smaller company.
Here’s the core thesis:
Lilly already dominates the GLP-1 market … and its upcoming oral GLP-1 could unlock an entirely new patient segment, strengthening its lead for years. Add in a deep pipeline, rising margins, D2C distribution, and smart partnerships like Walmart, and you have one of the cleanest long-term compounders in healthcare.
In a sector dealing with political pressure and pricing concerns, Lilly stands out as the A-rated name in an A-rated industry … with a growth runway most pharma companies would kill for.
No wonder it’s scoring a B in both our Value and Growth Component Grades right now:
Bottom line? LLY is a solid GARP (growth at a reasonable price) name … and it’s rare to have reasonable valuation built in when buying growth stocks, especially in today’s market.
LLY also scores an A in one of our component grades. Click here to see which one.
Click here to add LLY to your watchlist.
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