Eli Lilly Stock

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Eli Lilly Stock

Eli Lilly Stock: Is It Still Worth Buying?

Eli Lilly is the one stock in the healthcare sector with a market cap of more than $1 trillion. The reason behind such a large market cap is its range of GLP-1 products.

The two GLP-1 drugs that dominate the market are Zepbound and Mounjaro. These drugs have helped propel the Eli Lilly share price up by 400% in the last 5 years.

Eli Lilly Continues To Dominate GLP-1 Market

There is no doubt that the GLP-1 market is too big. The research tells us that this market will be worth $185.3 billion by 2033.

But such a large market has also attracted more companies. A lot of healthcare companies are now investing heavily in the market of GLP-1 drugs. Soon, we will see a number of strong competitors, and it could affect Eli Lilly sales.

Any slowdown in sales growth could also have an impact on the Eli Lilly share price. So, that's one factor that must be considered when you look at Eli Lilly stock.

The Eli Lilly stock is trading at a trailing P/E of 40. This also tells us that Eli Lilly stock is quite expensive at its current trading price. And when we consider the risks it faces in the form of growing competition, many investors might want to stay away from Eli Lilly.

Considering everything, you should not buy Eli Lilly stock at the current price. The numbers show the company is doing well. And there is no doubt that the growth rate is also solid.

But Eli Lilly can't continue to dominate the GLP-1 drug market forever. More competition could have a negative impact on sales and revenue growth. With that in mind, you are better off looking at other healthcare stocks.

If Eli Lilly stock price goes through a correction and its P/E becomes more reasonable, only then can you consider taking a position.

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