Prediction: This Is What a $5,000 Investment in Eli Lilly Will Be Worth in 2031
Hint: It's a good idea to buy the stock today.
Overview
If you had invested $5,000 in Eli Lilly (NYSE: LLY) five years ago, you'd be sitting pretty today. The stock has delivered a compound annual growth rate (CAGR) of 35.86% over this period (as of writing), turning $5,000 into about $23,143. This is much better than the S&P 500's 12.82% CAGR since 2021, which would have grown $5,000 into $9,139. While Eli Lilly's performance in recent years has been impressive, it's much more important to try to determine whether the drugmaker can also beat the market going forward. Here's my prediction for Eli Lilly through 2031.
Image source: The Motley Fool.
One interesting feature of the pharmaceutical industry is that companies often experience substantial gains from clinical and regulatory progress before even generating significant sales for leading candidates. That's what happened to Eli Lilly. Even before tirzepatide's approval, analysts had high hopes for the medicine. Tirzepatide is currently Eli Lilly's most important growth driver and is sold under the brand names Mounjaro (for diabetes) and Zepbound (for weight management in some regions).
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Originally published at www.fool.com.