John Smith, a financial analyst at XYZ Investments, said “Eli Lilly has been a standout in the pharmaceutical industry over the past 12 to 18 months, largely due to the success of its GLP-1 drugs, which have significantly boosted revenue and earnings.”
In the first nine months of 2024, Eli Lilly’s revenue rose by 20% year-over-year to $11.4 billion. Excluding revenue from the sold olanzapine portfolio, used to treat schizophrenia and bipolar disorder, the company’s top line actually increased by 42% year-over-year. A major component of their success is tirzepatide, the active ingredient in their leading drugs Mounjaro (for diabetes) and Zepbound (for weight loss).
Positive phase 3 trial results have shown significant reductions in risks associated with type 2 diabetes and heart failure. Sales of Mounjaro increased by more than 121% year-over-year to $3.1 billion in Q3, while Zepbound brought in $1.3 billion in sales. Other major contributors include the cancer drug Verzenio, which generated $1.37 billion in sales, and the autoimmune disease drug Taltz, with $879.6 million in sales.
Although Eli Lilly’s shares are not cheap, its consistent annual dividend and strong global presence make it a worthwhile investment for those with a long-term horizon. Monday.com is another growth stock that has caught the attention of Wall Street analysts.
Eli Lilly’s standout pharmaceutical performance
The company is a low-code and no-code platform designed to help organizations build custom work management tools and applications. Monday.com has shown promising performance, with shares increasing approximately 50% over the past 12 months. Since its founding in 2012, the company has continued to grow, with management estimating a potential market valuation of $150 billion by 2026.
In financial terms, Monday.com reported a 33% revenue increase year-over-year to $251 million for Q3, surpassing the $1 billion annual recurring revenue mark. The company’s net dollar retention rate went up to 111%, while the retention rate for customers paying over $100,000 annually reached 115%. The number of customers in this high-paying category rose by 44% from last year.
Even though Monday.com is not yet profitable by generally accepted accounting principles, it reported $82.4 million in free cash flow and $86.6 million in net cash from operating activities in Q3. This positive cash flow highlights the company’s potential for future profitability. For investors willing to take on the risk associated with software stocks, Monday.com presents a promising opportunity for inclusion in a well-diversified portfolio.
