Eli Lilly Expects Up to $87 Billion in 2026 Revenue. Here's Why the Stock Still Looks Undervalued.
Key PointsEli Lilly dominates the weight loss drug market and is delivering explosive revenue growth.
Eli Lilly, a major pharmaceutical company, has experienced an astonishing 400% increase in its stock price over the last five years. Although the stock's momentum has slowed slightly in early 2023, it is now on the rise again, gaining 25% in the past six months. This resurgence is primarily driven by optimism surrounding Lilly's portfolio of weight loss drugs.
The company is the creator of two widely used drugs, tirzepatide sold as Mounjaro for type 2 diabetes and Zepbound for weight loss. These blockbuster products have been instrumental in generating explosive revenue growth for Lilly. The demand for such drugs has been high globally, and Lilly has emerged as the market leader, outpacing Novo Nordisk.
Lilly's positive outlook has been further bolstered by its forward-looking expectations. The company now anticipates generating up to $87 billion in revenue this year, a significant jump from the $65 billion it earned last year. Despite the stock's impressive growth, analysts consider Lilly stock to be a reasonable investment at its current valuation.
This article delves into the reasons why Lilly's stock remains undervalued despite its soaring performance.
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