I have repeatedly suggested over the past few months that pharmaceutical companies would be a logical place to invest if the rest of the market began to slow down or hit a rocky patch. Seems I may have been on to something. Eli Lilly & Co. (LLY) reported Q2 earnings and revenue that crushed expectations, highlights Keith Fitz-Gerald, editor of 5 With Fitz.
The company also hiked its full-year revenue outlook by $3 billion. Lilly expects revenue for the year to come in between $45.4 billion and $46.6 billion, an increase of $3 billion at both ends of the range.
Eli Lilly & Co. (LLY)
(Editor’s Note: Keith Fitz-Gerald is speaking at the 2024 MoneyShow Orlando, which runs Oct. 17-19. Click HERE to register)
Should you buy Lilly? I wouldn’t hold it against you if you did. It’s a great company and a popular choice. Personally, I prefer three other pharma choices because they’ve all got substantially higher True Shareholder Yields, but that’s just me.
Keep in mind: AI is going to change the business model, so I encourage you to have at least one big pharma choice in your portfolio. Just make it a good one. I think prices move sharply higher over the next few years and, not for nothing, the cold hard cash they kick off in dividends is pretty nifty, too.
