We just covered the 14 Best Low Risk High Growth Stocks to Buy Right Now and Eli Lilly and Company (NYSE:LLY) ranks 2nd on this list.
Eli Lilly and Company (NYSE:LLY) is often referred to as the leading contender to become the first trillion-dollar pharmaceutical company. Following its massive transformation into a cardiometabolic leader, Lilly is seen as a growth stock in a value sector. This growth is currently being powered by a historic duopoly in the obesity and diabetes markets. In February, Lilly issued 2026 revenue guidance of $80–$83 billion, nearly 4% above consensus. This is driven by the unprecedented demand for Mounjaro and Zepbound. In March, Lilly released Phase 3 data for Foundayo, its once-daily obesity pill. Analysts view this as a massive growth kicker, as it broadens the market to patients who prefer a pill over an injection, significantly increasing the total addressable market. Recent Phase 3 results for retatrutide showed weight loss of up to 16.8%, reinforcing Lilly’s pipeline dominance through the end of the decade.
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For risk-averse investors, the balance sheet and margins of Eli Lilly and Company (NYSE:LLY) provide a tech-like safety net. The firm maintains an elite 83% gross profit margin and a 97% return on equity. This level of profitability allows it to absorb pricing pressures and self-fund its $7 billion+ annual capital expenditures. With a Beta of 0.50, the company is roughly half as volatile as the broader S&P 500. It acts as a defensive safe-haven during market downturns while still offering growth-stock returns. In early 2026, Lilly announced a $3.5 billion investment in a new Lehigh Valley facility. By owning its supply chain, Lilly de-risks itself against the shortages that have plagued competitors like Novo Nordisk.
While we acknowledge the potential of LLY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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