Think Eli Lilly's Stock Is Expensive? Here's Why Selling It Now Could Be a Huge Mistake

Core Viewpoint - Eli Lilly is considered a strong buy despite its high P/E ratio of over 70, primarily due to its accelerating growth driven by popular GLP-1 drugs and potential new treatments [3][10]. Group 1: Financial Performance - Eli Lilly's revenue increased by 45% in the last quarter of 2024, largely attributed to its GLP-1 drugs, Mounjaro and Zepbound, which together generated $5.4 billion in sales, accounting for 40$780 billion, with projections suggesting it could reach a $1 trillion market value within the next one to two years, requiring less than a 30% increase in stock price [9]. Group 2: Product Development and Growth Potential - Eli Lilly is experiencing strong demand for its GLP-1 drugs, leading to production shortages, prompting significant investments to increase manufacturing capacity in Lebanon, Indiana [5]. - The company is expected to release late-stage trial data for a new oral weight loss drug, orforglipron, by April, which has shown potential for helping patients lose around 15% of their body weight [7][8]. - Approval of orforglipron could enhance Eli Lilly's market position and expand its patient base, contributing to further growth [8]. Group 3: Investment Strategy - Despite the high P/E ratio, it is suggested that investors should focus on the company's robust business model and drug portfolio rather than waiting for the P/E to decrease, as this could result in missed investment opportunities [10]. - Current shareholders are advised against selling their shares unless necessary, as the stock is expected to have significant long-term upside potential [11].