LLY - Move Over Eli Lilly: Amgen Could Be The Next Obesity Wonder Stock

2024-03-31 11:15:13 ET

Summary

• Eli Lilly's stock has seen significant growth due to the success of its obesity drug, "Zepbound," but its high valuation and upcoming competition make it less attractive.
• Amgen, with its obesity candidate MariTide and other promising treatments in its pipeline, could potentially surpass Eli Lilly in the obesity market.
• Amgen's stock is undervalued compared to Eli Lilly, offers a dividend yield of 3.2%, and has the potential for significant growth if its obesity treatments are successful.

Eli Lilly ( LLY ) has been a phenomenal stock to own over the past couple of years. In early 2022, it was trading for about $230 per share, but today it trades for nearly $800. This huge run is largely due to the success of its obesity drug, "Zepbound". Eli Lilly shares now trade with a whopping price to earnings ratio of around 60. Analysts expect Eli Lilly to earn about $12.47 per share, in 2024. For 2025, the earnings estimates are at $18.16, and for 2026 the estimates are at $23.60....

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