Latest news with #EliLilly
Business Insider
16 hours ago
- Business
- Business Insider
Winners and Losers: Energy Stocks Soared and Healthcare Crashed in May
May was a month to remember for the U.S. stock market as the benchmark S&P 500 index posted a gain of 6% and had its best showing since 1990. But, as always, there were winners and losers among equities. Confident Investing Starts Here: The big winners among U.S. stocks during May were energy and technology stocks that are helping to power the artificial intelligence (AI) revolution. Specifically, NRG Energy (NRG) saw its share price rise 42% in the month and Constellation Energy (CEG) was close behind with a 37% gain. Both companies power AI data centers through cleaner energy sources such as natural gas. Other big winners in May were previously downtrodden technology stocks that are also associated with AI. These include data storage firm Seagate Technology (STX), whose share price increased 37% and outpaced AI chipmaker Nvidia (NVDA). Super Micro Computer (SMCI), which makes AI servers that run Nvidia microchips, also had a big month, with its stock running 26% higher. Healthcare Loses Out On the flipside, healthcare was the worst-performing sector of the market in May. The declines were led by insurer UnitedHealth Group (UNH), whose share price fell 27% amid worries after the company slashed its full-year guidance. Also dragging healthcare lower was pharmaceutical giant Eli Lilly (LLY), whose stock dropped 18% after the Trump administration said it wants prescription drug prices lower. Other healthcare stocks that took a drubbing in May include retail pharmacy chain CVS Health (CVS), and healthcare insurer Humana (HUM). The lone bright spot among healthcare stocks was Insulet (PODD), whose share price vaulted 29% higher on strong financial results. The stock has been on an upswing since the U.S. Food and Drug Administration (FDA) approved its insulin system for Type 2 Diabetes last summer. Is LLY Stock a Buy? The stock of Eli Lilly has a consensus Strong Buy recommendation among 18 Wall Street analysts. That rating is based on 16 Buy, one Hold, and one Sell recommendations issued in the last 12 months. The average LLY price target of $1,003.14 implies 34.82% upside from current levels.
Yahoo
17 hours ago
- Business
- Yahoo
Was Jim Cramer Right About Eli Lilly and Company (LLY)?
We recently published a list of In this article, we are going to take a look at where Eli Lilly and Company (NYSE:LLY) stands against other stocks that Jim Cramer discusses. In that episode, a caller asked about Eli Lilly and Company (NYSE:LLY), particularly in relation to the competition with Novo Nordisk and its weight-loss drugs at the time. Cramer was enthusiastic back then, saying: 'We had this group 100X on the other day and they did a study about how people feel about Lilly versus Wegovy — about how they feel about Zepbound versus the product from Novo Nordisk — and without a doubt, in a head-to-head contest, Lilly is so far and away the winner. I just say you've got to own the stock. Let's hope it comes in so we can buy more.' Cramer's bullish stance was premature as Eli Lilly fell 11.72%. Eli Lilly and Company (NYSE:LLY) remains a leader in obesity and diabetes treatment innovation, with Zepbound driving major growth in the pharmaceutical pipeline. Despite the setbacks, Cramer recently advised a caller of the show to buy more. Here's what he said on May 12: 'I want you to buy more… The reason why you want to buy it is because there was definitive data that came out last night about Novo Nordisk not being anywhere near as good as Eli Lilly when it comes to weight loss, which is what a lot of people are in the GLP for. And it was not reflected because the things were so crazed because of what the president announced. I think the stock could be up a hundred points when people realize, wait a second, it is definitively better than Novo. I would buy Eli Lilly handover fist.' Overall, LLY ranks 2nd on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of LLY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than LLY and that has 100x upside potential, check out our report about this cheapest AI stock. cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
a day ago
- Business
- Yahoo
3 American Growth Giants to Invest in for the Long Haul
These three businesses are based in the U.S. and have experienced significant growth. What's more, they all still possess strong growth prospects in the years ahead. All generate strong profit margins, which can help them weather a challenging economy. 10 stocks we like better than Nvidia › Many of the best growth stocks in the world are based out of the U.S. This is the land of both opportunity and innovation. Warren Buffett has always been bullish on betting on the U.S. because he's a big believer in American business. If you want to follow suit and invest in some of the country's best growth stocks, there are three excellent names that I don't think you can go wrong with in the long term: Nvidia (NASDAQ: NVDA), Eli Lilly (NYSE: LLY), and Palo Alto Networks (NASDAQ: PANW). These three stocks are growth beasts, and they still have plenty more room to run over the long haul. Chipmaking giant Nvidia, one of the most valuable companies in the world, is based out of Santa Clara, California. Its history goes back more than 30 years to 1993. One of the remarkable features of this business is that it has had only one CEO, Jensen Huang, who co-founded the company. That's a good sign of continuity and underscores just how stable the business has been over the years. In its most recent fiscal year, which ended on Jan. 26, the company reported $130 billion in revenue, which was more than double the $61 billion it posted a year earlier, as demand for its artificial intelligence (AI) chips remains robust. But what impresses me most is just how incredible its profit margins are: typically well north of 50%. Nvidia is based in the U.S. but it isn't immune to the effects of tariffs or trade wars, especially with China being a key market for its operations. But with such high profit margins, it's in much better shape than other companies to be able to absorb higher costs and headwinds related to economic uncertainty. That's why this can be a no-brainer growth stock to buy right now. Indianapolis-based Eli Lilly is another great American growth stock to buy and hold. Founded in 1876, its history goes back nearly 150 years. And for decades, the business has been developing vital medicines for people to help improve their lives. One of the more exciting ones of late has been related to weight loss and obesity. Its GLP-1 drug Tirzepatide resulted in two highly successful products for Eli Lilly: Zepbound for weight loss and Mounjaro for diabetes. Together, those drugs generated more than $6 billion in sales through the first three months of 2025, representing nearly half of the top line, which rose by 45%. What's exciting here is that there is still so much potential for these drugs to generate more growth since they are still in their early stages. Plus, there are studies suggesting that GLP-1 drugs could even help with substance abuse by curbing addictions, which means there may be even more indications that tirzepatide is approved for in the future. And yet, Eli Lilly's business goes beyond just GLP-1, which is why this can be a fantastic growth stock to buy and hold. Tariffs could increase its costs, and a global trade war would affect its bottom line. But it, too, has some solid profit margins at around 22%. Rounding out this list of impressive American growth stocks is Palo Alto Networks, a cybersecurity company founded 20 years ago. Like Nvidia, its headquarters is also in Santa Clara. And as all things related to AI grow, businesses and consumers alike will need to ramp up their cybersecurity. Since the need for cybersecurity is ongoing, the company benefits from a large chunk of its top line being from recurring revenue. Its subscription and support segment generated $1.8 billion in sales for the quarter ended April 30, which accounted for 80% of its top line (product revenue made up the rest). And while overall revenue rose by 15%, the annualized recurring revenue for the company's next-generation security rose by 34%. Palo Alto's profit margin of 15% is light when compared to the other stocks on this list, but that's still a solid percentage of revenue flowing through to its bottom line. And it's a big improvement from just a few years ago when the business was still in the red. Results for the company's fiscal 2025 third quarter (ended April 30) included revenue of $2.3 billion, up from $2 billion a year ago. GAAP net income was unchanged at $300 million for the quarter. Palo Alto has come a long way in recent years, and while it may look like an expensive stock, trading at more than 100 times its trailing earnings, that valuation should improve as it continues to scale up and its margins get even better. While Palo Alto may experience a slowdown in business if a trade war affects spending, its top line relies heavily on software and support services, making it less vulnerable to tariffs than other stocks. For long-term investors, this can be another solid stock to own given the huge opportunities in cybersecurity in the years ahead. Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,761!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $826,263!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 170% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool recommends Palo Alto Networks. The Motley Fool has a disclosure policy. 3 American Growth Giants to Invest in for the Long Haul was originally published by The Motley Fool
Globe and Mail
a day ago
- Business
- Globe and Mail
3 American Growth Giants to Invest in for the Long Haul
Many of the best growth stocks in the world are based out of the U.S. This is the land of both opportunity and innovation. Warren Buffett has always been bullish on betting on the U.S. because he's a big believer in American business. If you want to follow suit and invest in some of the country's best growth stocks, there are three excellent names that I don't think you can go wrong with in the long term: Nvidia (NASDAQ: NVDA), Eli Lilly (NYSE: LLY), and Palo Alto Networks (NASDAQ: PANW). These three stocks are growth beasts, and they still have plenty more room to run over the long haul. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » Nvidia Chipmaking giant Nvidia, one of the most valuable companies in the world, is based out of Santa Clara, California. Its history goes back more than 30 years to 1993. One of the remarkable features of this business is that it has had only one CEO, Jensen Huang, who co-founded the company. That's a good sign of continuity and underscores just how stable the business has been over the years. In its most recent fiscal year, which ended on Jan. 26, the company reported $130 billion in revenue, which was more than double the $61 billion it posted a year earlier, as demand for its artificial intelligence (AI) chips remains robust. But what impresses me most is just how incredible its profit margins are: typically well north of 50%. Nvidia is based in the U.S. but it isn't immune to the effects of tariffs or trade wars, especially with China being a key market for its operations. But with such high profit margins, it's in much better shape than other companies to be able to absorb higher costs and headwinds related to economic uncertainty. That's why this can be a no-brainer growth stock to buy right now. Eli Lilly Indianapolis-based Eli Lilly is another great American growth stock to buy and hold. Founded in 1876, its history goes back nearly 150 years. And for decades, the business has been developing vital medicines for people to help improve their lives. One of the more exciting ones of late has been related to weight loss and obesity. Its GLP-1 drug Tirzepatide resulted in two highly successful products for Eli Lilly: Zepbound for weight loss and Mounjaro for diabetes. Together, those drugs generated more than $6 billion in sales through the first three months of 2025, representing nearly half of the top line, which rose by 45%. What's exciting here is that there is still so much potential for these drugs to generate more growth since they are still in their early stages. Plus, there are studies suggesting that GLP-1 drugs could even help with substance abuse by curbing addictions, which means there may be even more indications that tirzepatide is approved for in the future. And yet, Eli Lilly's business goes beyond just GLP-1, which is why this can be a fantastic growth stock to buy and hold. Tariffs could increase its costs, and a global trade war would affect its bottom line. But it, too, has some solid profit margins at around 22%. Palo Alto Networks Rounding out this list of impressive American growth stocks is Palo Alto Networks, a cybersecurity company founded 20 years ago. Like Nvidia, its headquarters is also in Santa Clara. And as all things related to AI grow, businesses and consumers alike will need to ramp up their cybersecurity. Since the need for cybersecurity is ongoing, the company benefits from a large chunk of its top line being from recurring revenue. Its subscription and support segment generated $1.8 billion in sales for the quarter ended April 30, which accounted for 80% of its top line (product revenue made up the rest). And while overall revenue rose by 15%, the annualized recurring revenue for the company's next-generation security rose by 34%. Palo Alto's profit margin of 15% is light when compared to the other stocks on this list, but that's still a solid percentage of revenue flowing through to its bottom line. And it's a big improvement from just a few years ago when the business was still in the red. Results for the company's fiscal 2025 third quarter (ended April 30) included revenue of $2.3 billion, up from $2 billion a year ago. GAAP net income was unchanged at $300 million for the quarter. Palo Alto has come a long way in recent years, and while it may look like an expensive stock, trading at more than 100 times its trailing earnings, that valuation should improve as it continues to scale up and its margins get even better. While Palo Alto may experience a slowdown in business if a trade war affects spending, its top line relies heavily on software and support services, making it less vulnerable to tariffs than other stocks. For long-term investors, this can be another solid stock to own given the huge opportunities in cybersecurity in the years ahead. Should you invest $1,000 in Nvidia right now? Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,761!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $826,263!* Now, it's worth noting Stock Advisor 's total average return is978% — a market-crushing outperformance compared to170%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 19, 2025
Yahoo
2 days ago
- Business
- Yahoo
The Cigna Group (CI): A Bull Case Theory
We came across a bullish thesis on The Cigna Group (CI) on Antonio Linares' Substack. In this article, we will summarize the bulls' thesis on CI. The Cigna Group (CI)'s share was trading at $312.68 as of 22nd May. CI's trailing and forward P/E were 17.43 and 10.65 respectively according to Yahoo Finance. adriaticfoto/ Cigna's new deal with Eli Lilly and Novo Nordisk to offer capped prices for GLP-1 weight loss drugs may seem disruptive at first glance, particularly to players like Hims, but it reinforces the structural dynamics that benefit the company. As the fourth-largest pharmacy benefit manager (PBM) in the U.S., Cigna's concession reflects the intense competition between Lilly and Novo to scale their relatively undifferentiated GLP-1 offerings. While this specific deal may cap prices for GLP-1s, PBMs will likely offset this by inflating prices elsewhere, consistent with their broader business model that thrives on the complexity and pricing inefficiencies of the U.S. healthcare system. For Hims, which isn't fundamentally a GLP-1 business but rather a vertically integrated healthcare platform, the overall inflationary environment driven by PBMs enhances its value proposition—offering lower-cost, high-efficiency solutions below copay. Hims has guided for $750 million in 2025 weight loss revenue, largely from oral alternatives and generic liraglutide, both significantly cheaper than branded injectables like Wegovy. Hims's platform, which continues to evolve with personalized care and efficiency gains, is uniquely positioned to address a broad array of health needs in a way that is difficult for traditional PBM-centered models to replicate. The company's partnership with Novo and potential future deal with Lilly would further de-risk its growth. With a recent acquisition of a peptide manufacturing facility and a pipeline far beyond GLP-1s, Hims is building a scalable, cost-effective precision medicine platform. As the market remains fixated on GLP-1 narratives, Hims quietly compounds free cash flow and strategic value, offering investors an increasingly attractive long-term opportunity. We have previously covered The Cigna Group (CI) in January 2025 wherein we summarized a bull thesis by Tsachy Mishal on twitter. Mishal named Cigna (CI) a top pick, citing its stable model and low valuation. Since then, the company has completed a $3.7B asset sale and is on track to repurchase up to 12% of its shares. With political risk around PBMs easing and strong buyback execution, Cigna remains undervalued and well-positioned for continued upside. As of May 2025, the stock has risen by 13.23%. The Cigna Group (CI) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 72 hedge fund portfolios held CI at the end of the fourth quarter which was 66 in the previous quarter. While we acknowledge the risk and potential of CI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than CI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
