Eli Lilly’s (LLY) GLP-1 Growth Made It a Core “Running Back” Stock for Jim Cramer

On September 8, CNBC's Jim Cramer praised Eli Lilly and Company (LLY) during his Mad Money segment as a "running back" stock, drawing a comparison to NFL player Jonathan Taylor. Cramer highlighted Lilly's compound growth driven by its GLP-1 weight-loss and diabetes treatments, specifically its blockbuster drugs Mounjaro and Zepbound.

These two medications generated $14.8 billion in revenue during Q2, contributing to a 48% year-over-year sales increase. The forward P/E multiple for Lilly has cooled from 45 times earnings to roughly 24x, providing a more appealing entry point for long-term investors. However, the company faces competition from rivals like Novo Nordisk, potential political scrutiny over drug pricing, and pressure from insurance providers that could impact profit margins.

While institutional support remains strong, with major asset managers treating Lilly as a core holding, there are still risks associated with its success heavily reliant on the GLP-1 franchise and potential supply chain or clinical trial issues. Despite these challenges, Lilly exemplifies Cramer's criteria for a premier portfolio compounder, characterized by reliability, steady growth, and secular demand.