Eli Lilly: On the Way to the $1 Trillion Club

The investment legend Berkshire Hathaway recently surpassed the historic mark of 1 trillion US dollars in market value, an unprecedented achievement in the non-technology sector. Despite recent price losses and a return below this threshold, it remains a remarkable accomplishment. Another non-technology stock that could reach this milestone in the near future is Eli Lilly. The healthcare giant currently boasts a market capitalization of over 800 billion US dollars, making it the most valuable stock in this segment after Berkshire. Experts see a good chance that Eli Lilly could surpass the trillion-dollar mark as early as next year. This year alone, the Eli Lilly stock rose by about 60%, achieving an impressive 730% increase over the past five years. The price surge is primarily attributed to the success of the drug Tirzepatide, included in products such as Mounjaro for diabetes and Zepbound for weight loss, the latter of which was recently approved. Revenue expectations for Tirzepatide are high, with peak values of 50 billion US dollars, which may still be conservative. If Tirzepatide is approved for additional indications such as sleep apnea and heart failure, the sales potential could further increase. The continuous expansion of the product line, as well as investments in the expansion of Mounjaro and Zepbound, could propel the stock further in the coming months. Eli Lilly only requires a roughly 20% price increase to reach the 1 trillion US dollar mark. Eli Lilly attracts growth investors with strong sales figures. In the most recent quarter ending June 30, revenue rose by 36% compared to the previous year, reaching 11.3 billion US dollars, with a year-over-year revenue increase of 31%. The approval of a new Alzheimer's early treatment called Kisunla could accelerate growth in the coming quarters. Despite a valuation of more than 110 times the earnings of the last twelve months, many investors are willing to pay a premium for the vast growth prospects. With a price-earnings-growth ratio of less than one, Eli Lilly still offers good value for long-term investors, according to analysts. Even if 2025 proves economically challenging, Eli Lilly is likely to achieve impressive results due to its strong growth prospects, thus continuing to reach high valuations. The stock remains an excellent investment for long-term-oriented investors.