Early Bird Prime for September 15, 2024

Eli Lilly (NYSE: LLY) is having one of its best years yet, and if you’re an investor, you might be feeling great. The stock is up 55.98% in 2024.

The primary reason for Eli Lilly’s meteoric rise is the runaway success of its diabetes and weight loss drugs, Mounjaro and Zepbound. These wonder drugs are flying off the shelves. With the obesity crisis showing no signs of slimming down, the demand for these medications is soaring.

Adding fuel to the fire, analysts at Citi gave Eli Lilly a glowing buy recommendation this week. Citi is particularly impressed with Eli Lilly’s GLP-1 pipeline, which includes its promising obesity drugs. 

Not to be outdone, Morgan Stanley has also reiterated Eli Lilly as a top pick. They’re not sweating the competition and love the company’s focus on diabetes and obesity treatments. 

But hold your horses, because it’s not all sunshine and rainbows for Eli Lilly. There are some storm clouds on the horizon. Competition is heating up, and long-term demand for these drugs is a bit of a question mark.

The stock hit an all-time high in August, but it’s been on a rollercoaster since then, going negative in the last 30 days. The big question is whether Eli Lilly can keep up this high rate of growth or if it’s going to slump.

So, what should investors do now with Eli Lilly? Should you buy the stock, a healthcare juggernaut that’s riding the wave of the obesity crisis? Should you sell or avoid the stock? Well, here’s the answer: