Eli Lilly (LLY) Stock: 1 Compelling Reason to Buy Now

Pharma giant Eli Lilly just flashed a buy signal—here's why Wall Street can't look away.

The GLP-1 Gold Rush

While meme-stock traders chase vaporware, Lilly's diabetes and obesity drugs are printing real revenue—with demand outstripping supply. Their GLP-1 agonists aren't just prescriptions; they're cultural phenomena rewriting healthcare economics.

Pipeline Over Hype

Unlike crypto pumps, Lilly's 2025 pipeline features actual FDA-approved molecules—not whitepaper promises. Alzheimer's candidates could be the next blockbusters, assuming the SEC doesn't classify them as 'unregistered securities' too.

One thing's certain: in a market high on speculation, Lilly delivers the rarest drug of all—fundamentals. (But let's see how long that lasts before hedge funds algorithmically trade it into oblivion.)

Image source: Getty Images.

Of course, not every drug will become a best-seller -- and some never even get approved. Eli Lilly reported some disappointing results for its weight loss drug orforglipron recently, which sent its shares downward -- even though patients taking it did lose significant weight.

So what's the red flag? Well, it's Eli Lilly's valuation. With a recent price-to-earnings (P/E) ratio of 61, well above its five-year average of 50, the stock seems a bit richly priced -- though not wildly overpriced. You could still load up on it if you're a long-term investor, or you could buy into the stock gradually over time. Note, too, that President Trump's threatened tariffs could hurt pharmaceutical companies in general.