close
close
migores1

1 Unstoppable Stock That Could Join the $1 Trillion Club in 2025

Eli Lilly stock may seem expensive, but that may not be the case in a few years as the business is growing at a rapid pace.

Berkshire Hathaway recently surpassed the $1 trillion market cap, becoming the first non-tech stock to do so. While the stock has given back some gains in recent days and dipped below that threshold, it’s still an incredible achievement.

But there’s another non-tech stock that could be worth $1 trillion in the near future, and that’s it Eli Lilly (LLY -0.13%). The healthcare giant has a market capitalization of more than $800 billion and is currently the second most valuable stock after Berkshire. That’s why it wouldn’t be a surprise if it hits the $1 trillion mark as early as next year.

Why Eli Lilly Stock Could Remain a Hot Buy in 2025

This year, Eli Lilly shares are up about 60%, and over a five-year period, the stock has posted gains of more than 730%. There is a little secret to the stock’s success, as the company has an incredibly popular and successful drug in tirzepatide. It is the active ingredient in its diabetes product (Mounjaro) and has recently been approved for weight loss as well and is branded as Zepbound for this indication.

Analysts have struggled to determine how much revenue tirzepatide could generate for Eli Lilly, but it’s fair to say it will be massive. Peak sales estimates of $50 billion may be modest, especially if tirzepatide accumulates more indications (such as for sleep apnea and heart failure), which could push its sales potential to new heights.

New indications for tirzepatide, along with Eli Lilly investing more in the continued launch of Mounjaro and Zepbound (of which there are shortages) could be catalysts for the stock to rise in the coming months. And it’s not like Eli Lilly needs to double for it to reach a $1 trillion market cap; its shares would need to rise a relatively modest 20% to reach that stage.

Eli Lilly’s growth rate is accelerating

One way Eli Lilly can attract the attention of growth investors is to deliver stronger sales numbers, which it has. In its most recent quarterly results, which ended June 30, the company reported sales of $11.3 billion, which were up 36 percent compared to the year-ago period. And on a year-to-date basis, sales are up 31%. The healthcare company achieved much stronger growth numbers than in the past.

LLY Revenue Chart (Quarterly Yearly Growth).

LLY (quarterly year-on-year growth) revenue data by YCharts.

Between the continued rollout of Zepbound and Mounjaro and the recent regulatory approval of early Alzheimer’s treatment Kisunla, it’s not hard to see why this growth rate could accelerate in the coming quarters.

Should You Buy Eli Lilly Stock?

One reason investors may be hesitant to buy Eli Lilly stock is because of its relatively high valuation — it trades at more than 110 times its trailing earnings. But that reflects the price premium investors are willing to pay for the stock given its mammoth growth prospects. The stock is trading at a price-to-earnings-growth (PEG) multiple of less than one, indicating good value here for investors who are willing to buy and hold the stock for the long term.

While Eli Lilly’s stock may not have as strong a year in 2025 if the economy enters a recession, given its strong growth outlook, it would be surprising if it were unable to deliver still results impressive enough to send its valuation toward $1 trillion. Either way, this can be a fantastic stock for long-term investors to hold in their portfolios for years.

David Jagielski has no position in any of the listed stocks. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool has a disclosure policy.

Related Articles

Back to top button