LLY Rises More Than 4% in a Week: How to Play the Stock

Core Viewpoint - Eli Lilly and Company has shown strong performance in its stock price following the announcement of its fourth-quarter results, with a notable focus on the sales outlook for 2025 and the performance of its key products, Mounjaro and Zepbound [1][2][22] Financial Performance - Lilly's fourth-quarter results included a sales outlook for 2025, projecting revenues between $58.0 billion and$61.0 billion, reflecting a year-over-year growth of 32% [2] - Earnings per share for 2025 are expected to be in the range of $22.50 to$24.00 [2] - The stock price has increased by 4.3% since the earnings report and has risen 15.2% over the past year, outperforming the industry which saw a 1.8% increase [1][15] Product Performance - Mounjaro and Zepbound have become significant revenue drivers, generating combined sales of $16.5 billion in 2024, accounting for approximately 36$23 billion since 2020 to enhance manufacturing capacity for these products in the U.S. and Europe [6] Pipeline and Future Growth - Lilly has received approvals for several new drugs, including Omvoh, Jaypirca, Ebglyss, and Kisunla, which are expected to contribute to sales growth in 2025 [10][11] - The company is also advancing its pipeline in obesity, diabetes, and Alzheimer's, with several mid to late-stage readouts anticipated in 2025 [11] - Competition in the obesity market is intensifying, with expectations for the market to reach $100 billion by 2030 [12] Capital Allocation - In 2024, Lilly returned$3 billion to shareholders through share repurchases and dividends, and announced a new $15 billion stock buyback plan along with a 15% increase in its quarterly dividend [24]