Eli Lilly and Company discovers, develops, and markets human pharmaceuticals worldwide. The company offers Basaglar, Humalog, Humalog Mix 75/25, Humalog U-100, Humalog U-200, Humalog Mix 50/50, insulin lispro, insulin lispro protamine, insulin lispro mix 75/25, Humulin, Humulin 70/30, Humulin N, Humulin R, and Humulin U-500 for diabetes; Jardiance, Mounjaro, and Trulicity for type 2 diabetes; and Zepbound for obesity. It also provides oncology products, including Alimta, Cyramza, Erbitux, Jaypirca, Retevmo, Tyvyt, and Verzenio. In addition, the company offers Olumiant for rheumatoid arthritis, atopic dermatitis, severe alopecia areata, and COVID-19; Taltz for plaque psoriasis, psoriatic arthritis, ankylosing spondylitis, and non-radiographic axial spondylarthritis; Omvoh for ulcerative colitis; Cymbalta for depressive disorder, diabetic peripheral neuropathic pain, generalized anxiety disorder, fibromyalgia, and chronic musculoskeletal pain; Ebglyss for severe atopic dermatitis; and Emgality for migraine prevention and episodic cluster headache. Further, it provides Cialis for erectile dysfunction and benign prostatic hyperplasia; and Forteo for osteoporosis. The company operates Lilly Seaport Innovation Center (LSC), a research and development facility in the Boston Seaport to advancing Lilly's efforts in RNA and DNA-based therapies as well as discovering new drug targets to create life-changing medicines across several disease states, including diabetes, obesity, cardiovascular diseases, neurodegeneration, and chronic pain. It has collaborations with Incyte Corporation; Boehringer Ingelheim Pharmaceuticals, Inc.; F. Hoffmann-La Roche Ltd and Genentech, Inc.; Biologics, Inc., AbCellera Biologics Inc.; and Chugai Pharmaceutical Co., Ltd. The company was founded in 1876 and is headquartered in Indianapolis, Indiana.

Eli Lilly appears to be a high-quality but already very expensive asset: operating efficiency and earnings growth are impressive, yet the market valuation is running ahead of fundamental improvements. Revenue has been steadily increasing in recent periods, while EBITDA, operating income, and net income have shown strong momentum, confirming robust demand for the company’s products and the scalability of the business. Gross margin of around 82.8%, operating margin of 42.2%, and net margin of 33.5% are very strong levels for a pharmaceutical company and an important plus for business quality. ROE of 92.5%, ROA of 22.0%, and ROI of 37.6% also point to exceptional returns on capital and assets, although part of this effect is supported by high financial leverage. On the other hand, the debt burden is noticeably above the industry median: debt/equity of 1.41, long-term debt of $47.9 billion, and total liabilities of $108.4 billion create a valuation risk, especially at such a high market capitalization. Liquidity does not look weak, but the current ratio of 1.35 and quick ratio of 1.10 are below industry benchmarks, so the margin of safety in working capital is limited. The main restraining factor is valuation multiples: P/E of 38.8, P/S of 14.9, P/B of 32.3, and P/FCF of 57.1 are significantly above the sector median, leaving little room for error in growth rates. At the same time, the dynamics of the multiples do not provide a convincing signal of further valuation expansion: they remain high even after some pullbacks, meaning the market is already pricing in strong future growth. The dividend yield of 0.15% is very low and has declined compared with previous periods, so the dividend factor contributes almost nothing to the investment case. Growth in assets, equity, and cash is a positive signal, but it does not fully offset the expensiveness of the stock relative to already strong financial results. In the end, the fundamentals are excellent, but the current price likely already reflects a significant portion of that quality, so the upside from re-rating appears limited. For an investor, this is more a story of high quality and durable growth than of clear fundamental undervaluation.

Eli Lilly and Company

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Сильный индекс, без изменений. Рынок не поддерживает быков.

Strong index, flat. The market does not support the bulls.

Средний индекс, незначительно вырос. Отток средств из лонгов на высоком уровне.

Medium index, slightly up. Outflow of funds from longs at a high level.

LLY demonstrates outstanding profitability and growth, but trades at very high multiples, with weak dividend support and a significant debt burden.

Eli Lilly and Company’s LLY portfolio is overwhelmingly driven by its popular GLP-1 medicines, Mounjaro and Zepbound. However, the company’s broader strategy is becoming increasingly clear — leverage the substantial cash flow generated by its cardiometabolic franchise to fund strategic acquisitions, expand its pipeline, and invest in research and development aimed at creating the next generation of growth drivers. Immunology is emerging as one of the most promising areas of this diversification strategy.
Lilly’s Immunology Portfolio Delivers Steady Revenue Growth
Lilly's Immunology portfolio generated $2.6 billion in revenues in the first half of 2026, up approximately 9% year over year. This accounted for about 6.1% of the company's total revenues of $42.7 billion during the period, highlighting that Immunology remains a relatively small contributor to Lilly's overall sales but is becoming an increasingly important source of diversification.
The portfolio comprises Taltz, Ebglyss, Omvoh and Olumiant, with Taltz, an IL-17A inhibitor, remaining the largest contributor. Taltz generated $1.6 billion in revenues in the first half of 2026, accounting for roughly 62% of Lilly's Immunology sales during the period.
Lilly Advances a Diversified Immunology Pipeline
Lilly's Immunology pipeline is considerably broader than its current commercial portfolio, with several mid- and late-stage programs that could expand its presence across a range of immune-mediated and gastrointestinal disorders.
Omvoh (mirikizumab) is being studied in late-stage studies in combination with tirzepatide for ulcerative colitis and Crohn's disease, while Ebglyss (lebrikizumab) is being evaluated in late-stage studies for perennial allergens and chronic rhinosinusitis with nasal polyps (CRSwNP). In its mid-stage pipeline, the company has eltrekibart, a chemokine-targeting antibody being evaluated in hidradenitis suppurativa and ulcerative colitis; simepdekinra (DC-853), an oral immunology candidate being studied in psoriasis; and an FXR agonist/mirikizumab combination being developed for Crohn's disease.
Interestingly, Lilly is also seeking to extend the potential applications of its incretin expertise beyond obesity and diabetes into gastrointestinal disorders. The company has initiated two phase II studies of brenipatide, its GIP/GLP-1 dual agonist, in irritable bowel syndrome, evaluating the candidate separately in patients with IBS with constipation (IBS-C) and IBS with diarrhea (IBS-D).
Acquisitions Strengthening LLY’s Immunology Franchise
Lilly has also been using acquisitions to accelerate its Immunology capabilities. The $2.4 billion acquisition of DICE Therapeutics, completed in 2023, added oral IL-17 inhibitors and an oral α4β7 integrin program to Lilly's portfolio. The 2024 acquisition of Morphic Holding added MORF-057, an oral α4β7 integrin inhibitor, further strengthening Lilly's inflammatory bowel disease or IBD pipeline. Last month, Lilly announced a definitive agreement to acquire clinical-stage biotech Merida Biosciences for around $2.9 billion. The acquisition will add Merida’s lead drug, MER511, which is in phase I development for Graves' disease and thyroid eye disease. Merida also brings MER769, an early-stage program targeting food allergies, asthma and other allergic diseases.
While Immunology remains much smaller than Lilly's cardiometabolic franchise, it is becoming an increasingly meaningful source of diversification, particularly as newer products such as Ebglyss and Omvoh gain market share. Importantly, Lilly is not relying solely on its existing products. Its pipeline spans dermatology, IBD, autoimmune diseases and allergy, while the DICE, Morphic, and Merida transactions have added differentiated mechanisms and platforms. Lilly's second-quarter results also showed that revenues from its Immunology, Oncology and Neuroscience key products collectively increased 121% year over year, highlighting the rapid contribution of newer non-GLP-1 medicines.
Competition to LLY’s Immunology Products
Lilly faces strong competition across its Immunology portfolio from both established biologics and newer targeted therapies. Taltz competes with IL-17 inhibitors such as Novartis’ NVS Cosentyx and UCB’s Bimzelx, as well as IL-23 inhibitors and other biologics used in psoriasis and psoriatic arthritis. Ebglyss faces competition from Sanofi/Regeneron’s Dupixent and oral JAK inhibitors such as AbbVie’s ABBV Rinvoq and Pfizer’s Cibinqo in atopic dermatitis.
Omvoh competes in the highly competitive IBD market against products such as AbbVie’s Skyrizi and Rinvoq, Johnson & Johnson’s JNJ Tremfya and Stelara and Takeda’s Entyvio. Meanwhile, Olumiant, a JAK inhibitor, faces competition from other JAK inhibitors and biologics across its approved indications.
LLY’s Stock Price, Valuation and Estimates
Lilly’s stock has risen 4.5% so far this year compared with the industry’s increase of 10.4%.
Image Source: Zacks Investment Research
From a valuation standpoint, Lilly’s stock is expensive. Going by the price/earnings ratio, the company’s shares currently trade at 26.18 forward earnings, higher than 18.02 for the industry. However, the stock is trading below its 5-year mean of 34.56.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 has risen from $35.38 to $35.93 per share over the past 60 days, while that for 2027 has risen from $44.93 to $45.93 per share over the same timeframe.
Image Source: Zacks Investment Research
Lilly has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Eli Lilly's Immunology Push Builds New Growth Engines Beyond GLP-1s

Key Points
To brace against market pullbacks, add some defensive stocks or funds to your mix.
Defensive industries include healthcare, utilities, and consumer staples.
Dividend payers can be great to hold in market downturns, too.
Is a stock market crash imminent? Well, no one knows for sure, but roughly 38% of investors surveyed by the American Association of Individual Investors reported expecting the stock market to decline over the coming six months (as of early September). Another worrisome sign is the S&P 500's historically high valuation. The cyclically adjusted price-to-earnings (CAPE) ratio was recently at 41.4, far higher than its long-term average of 17.4 and close to an all-time high of 44 reached in 1999 before the dot-com bubble turned into a crash.
It's generally not smart to jump out of the market fearing a crash -- because that's market timing -- and your timing may well be off. Instead, to calm your jitters, you might just invest in some exchange-traded funds (ETFs) that are built to withstand bear markets better than average investments.
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A market crash or correction will happen one of these days. Here are some ETFs to consider, to brace against that. Each is focused on a "defensive" part of the economy -- on businesses that consumers will generally keep buying from, no matter how the economy is doing.
Vanguard Health Care Index Fund ETF
The Vanguard Health Care Index Fund ETF (NYSEMKT: VHT) is a prime example. In a recession, people will still need healthcare -- they will still buy their medications (to the degree that they're able to) and will still visit doctors. This fund recently held 417 stocks, with top holdings including Eli Lilly, Johnson & Johnson, and UnitedHealth Group. Its annual fee is just 0.09%, costing you $9 annually for every $10,000 you have invested in the fund, and its dividend yield was recently 1.5%.
State Street Utilities Select Sector SPDR ETF
The State Street Utilities Select Sector SPDR ETF (NYSEMKT: XLU) also has a low annual fee -- just 0.08% -- and its dividend yield was recently 2.8%. It's focused on utility-related companies, such as NextEra Energy, Southern Co., and Duke Energy, and it recently held about 31 of them. When the economy flags, people and businesses will still need to keep the lights on.
Vanguard Consumer Staples Index Fund ETF Shares
The Vanguard Consumer Staples Index Fund ETF Shares (NYSEMKT: VDC) specializes in consumer staples companies, recently holding 103 of them, such as Walmart, Procter & Gamble, and Coca-Cola. Its annual fee is 0.09%, and its recent dividend yield 2.1%. Clearly, no matter whether the economy is up or down, gobs of people will want to keep buying shampoo, soda, and items from Walmart.
Schwab U.S. REIT ETF
The Schwab U.S. REIT ETF (NYSEMKT: SCHH) is another defensive ETF, in that it holds many real estate investment trusts (REITs) -- companies that buy properties and lease them out. These are typically multiyear leases, if not multidecade, so that income is likely to keep rolling to the REITS. The ETF's annual fee is just 0.07%, and its recent dividend yield 2.8%. Its recent 117 holdings included Prologis, American Tower, and Realty Income.
Schwab U.S. Dividend Equity ETF
A solid dividend-focused ETF such as the Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) is also worth considering. (There are other good dividend ETFs, too, of course.) Why? Because dividend-paying companies tend to be established and profitable, with relatively dependable income. So they're more solid than the average stock. This ETF has an ultra-low annual fee of 0.06% and a recent dividend yield of 3%. Its top holdings (out of 98) recently included Merck, Chevron, and Verizon Communications.
Dividend income is particularly nice during recessions because while some stocks may be stagnating, healthy dividend payers will keep delivering cash to shareholders.
Whether the stock market pulls back this year, next year, or the year after, these ETFs will likely keep growing -- and delivering a little income regularly, too. Take a closer look at any of these funds that intrigue you.
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Selena Maranjian has positions in American Tower, NextEra Energy, Procter & Gamble, Realty Income, Schwab U.S. Dividend Equity ETF, and Verizon Communications. The Motley Fool has positions in and recommends American Tower, Chevron, Eli Lilly, Merck, NextEra Energy, Prologis, Realty Income, and Walmart. The Motley Fool recommends Duke Energy, Johnson & Johnson, UnitedHealth Group, and Verizon Communications. The Motley Fool has a disclosure policy.

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Wednesday, September 9, 2026
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Eli Lilly and Co. (LLY), Palo Alto Networks, Inc. (PANW) and Texas Instruments Inc. (TXN), as well as a micro-cap stock Stratus Properties Inc. (STRS). The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.
These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Ahead of Wall Street
The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens, attempting to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.
You can read today's AWS here >>> Pre-Markets Trade Lower Ahead of Inflation Data Thursday, Friday
Today's Featured Research Reports
Eli Lilly’s shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+49.9% vs. +34.7%). The company has seen extraordinary momentum in its cardiometabolic franchise. Demand for its popular GLP-1 drugs, Mounjaro and Zepbound, remains strong, making them the company’s key top-line drivers.
Lilly’s other new drugs like Kisunla, Omvoh and Jaypirca are also contributing to top-line growth. It is also making rapid pipeline progress in obesity and diabetes. Its new GLP-1 obesity pill, Foundayo, is expected to be a commercial game-changer. Its next-generation weight loss pill, retatrutide, if approved, could become another multibillion-dollar product.
Lilly has announced several M&A deals aimed at diversifying beyond GLP-1 drugs and expanding its presence in immunology, oncology and neuroscience. Rising pricing pressure on some drugs and potential competition in the GLP-1 market are some top-line headwinds.
(You can read the full research report on Eli Lilly here >>>)
Shares of Palo Alto Networks have outperformed the Zacks Security industry over the past year (+70.8% vs. +66.8%). The company continues to benefit as enterprises consolidate security tools and adapt defenses for AI-driven threats. Platformization is supporting larger customer commitments, while growth across SASE, software firewalls, Prisma AIRS, XSIAM, observability and identity broadens recurring revenues.
CyberArk and Chronosphere are extending the company into new security categories, with integration progress supporting cross-selling. Cash generation remains healthy, and fiscal 2027 guidance points to continued revenue growth and operating-margin expansion.
However, gross-margin compression from the cloud and SaaS mix, rising hosting and component costs, competition, a larger diluted share base and acquisition execution risks temper the outlook. The balance of durable demand drivers and execution risks supports a Neutral view.
(You can read the full research report on Palo Alto Networks here >>>)
Texas Instruments’ shares have outperformed the Zacks Semiconductor - General industry over the past year (+44.4% vs. +33.9%). The company is benefiting from broadening demand across industrial, data center and automotive markets, while its analog and embedded processing franchises support durable long-term growth. Internal manufacturing, expanding 300-millimeter capacity and CHIPS Act support strengthen supply control and cost efficiency.
The Silicon Labs acquisition should deepen wireless connectivity capabilities and broaden embedded opportunities. Cash generation is recovering as revenue and factory loadings rise, supporting dividends and buybacks. Management also sees demand broadening into the second half of 2026.
Risks remain from elevated debt, geopolitical and trade exposure, competition, seasonality and higher manufacturing costs. Still, broader end-market demand and rising free cash flow support an Outperform view for TXN shares.
(You can read the full research report on Texas Instruments here >>>)
Shares of Stratus have outperformed the Zacks Real Estate - Operations industry over the past year (+22.9% vs. -12.9%). This microcap company with a market capitalization of $151.26 million is anchored by its board-approved liquidation plan, which provides a defined path to monetizing assets and returning capital to shareholders. Strong liquidity, including $73.5 million in cash and additional revolver capacity, supports execution while allowing the company to advance development assets to value-enhancing milestones before sale.
Near-term catalysts include pending asset dispositions at New Caney, Amarra Villas and Jones Crossing, which could generate additional cash. Holden Hills remains a key source of embedded value, supported by third-party validation through a joint venture transaction.
However, key risks include significant 2026 debt maturities requiring refinancing, regulatory uncertainty surrounding Holden Hills development rights, continued weakness in multifamily markets, and declining recurring leasing income. Shares trade below book value but at a premium EV/sales multiple.
(You can read the full research report on Stratus here >>>)
Other noteworthy reports we are featuring today include BP p.l.c. (BP), PayPal Holdings, Inc. (PYPL) and Raymond James Financial, Inc. (RJF).
Mark Vickery
Senior Editor
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Palo Alto (PANW) Rides on Platform Consolidation
Featured Reports
Two-Sided Platform & Rich Partner Base Aids PayPal (PYPL)
Per the Zacks Analyst, PayPal gains from its two-sided platform, rich partner base and expanding efforts. However, a challenging macroeconomic and competitive environment remains a woe.
Acquisitions to Aid Raymond James' (RJF) Top Line Amid Cost Woes
Per the Zacks analyst, while Raymond James' efforts to expand through acquisitions and its global diversification efforts are expected to result in higher costs, these will likely drive the top line.
Symbotic Rides on Contracted Programs Amid High Customer Concentration
Per the Zacks Analyst, Symbotic benefits from a large contracted backlog, operational systems and a broader product roadmap. High customer concentration and project delays continues to bother.
Akamai (AKAM) Rides on Solid Demand for Cloud and Security Solutions
Per the Zacks analyst, strong demand for cloud infrastructure services to support AI workloads is expected to drive Akamai's top line. Continued growth in cybersecurity solutions is a positive.
Somnigroup (SGI) Benefits From Integration and Global Expansion
Per the Zacks analyst, Somnigroup is benefiting from Mattress Firm synergies, vertical integration and international growth, supporting earnings diversification as bedding demand recovers.
Microinverter, Energy Storage Expansion Drive Enphase Energy (ENPH)
Per the Zacks analyst, Enphase Energy's microinverter and energy storage expansion should support growth. New products and multiyear safe-harbor volumes will broaden its growth opportunities.
Innodata (INOD) Gains From Diversification, Timing Risks Linger
Per the Zacks analyst, broader Big Tech exposure and expanding AI capabilities support growth. However, project timing and concentrated revenues keep earnings visibility uneven.
New Upgrades
BP (BP) to Benefit From Key Upstream Project Pipeline
The Zacks analyst likes BP for its multi-year upstream project pipeline and structural cost actions, which should support stronger cash flow and returns.
Merit Medical (MMSI) Gains from Broad Product Portfolio, Global Growth
Per the Zacks analyst, Merit Medical's product launches, R&D investments and expanding global footprint are strengthening growth prospects, while WRAPSODY offers additional upside in renal therapies.
Creation of New Revenue Streams, Upbeat EBIT Outlook Aid Garrett (GTX)
Per the Zacks analyst, Garrett's efforts to extend its high-speed turbomachinery capabilities into power generation bode well for its top-line growth. An upbeat EBIT outlook also sparks optimism.
New Downgrades
UK Operations Weighs on Group 1 Automotive's (GPI) Profitability
Group 1's U.K. operations face EV mandates, inflation, forex volatility and intense competition, pressuring sales and margins and keeping the Zacks analyst bearish on GPI.
Weak Volumes and Core Brands Weigh on Boston Beer (SAM)
Per the Zacks analyst, Boston Beer faces weak depletion and shipment trends as Twisted Tea and Truly lose volume and share, keeping its 2026 outlook tilted toward the lower end of expectations.
Exposure to Stiff Competition, Strict Regulation Ail EverQuote (EVER)
Per the Zacks analyst, Stiff Competition for traffic and provider budgets keeps variable marketing margins volatile. Also, strict regulation raises compliance costs, which increase expenses.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
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Top Analyst Reports for Eli Lilly, Palo Alto Networks & Texas Instruments

Pfizer PFE stock has risen 8.6% in the past three months as investors have gained confidence in the company’s ability to stabilize earnings and offset the continued decline in COVID-19 product sales. A key catalyst has been a solid second-quarter performance, which showed that higher revenue from non-COVID products more than offset declining sales of its COVID products –Comirnaty (COVID-19 vaccine - in partnership with BioNTech [BNTX]) and Paxlovid (oral antiviral). Excluding sales from BioNTech-partnered Comirnaty and Paxlovid, revenues increased 5% operationally. Pfizer also raised the lower end of its 2026 revenue guidance, backed by continued strong performance of its new and acquired products.
The shares hit a fresh 52-week high on Sept. 3, 2026, reflecting a meaningful improvement in sentiment after years of pressure. Investors are increasingly looking beyond the COVID revenue decline toward Pfizer’s newer growth drivers, including oncology and other acquired assets and the company's pipeline and cost-cutting efforts.
However, to make an informed decision on whether to buy, sell or hold the stock, it is important to assess Pfizer’s fundamentals by weighing its key strengths against the risks and challenges it faces.
Pfizer’s Non-COVID Products Fueling Its Next Growth Phase
Pfizer's business mix has changed significantly over the past few years. During the pandemic, the company became heavily dependent on COVID-19 products. However, the company is gradually diversifying its portfolio through a combination of internal product launches like Abrysvo, Zavzpret, Elrexfio, Hympavzi, Litfulo and others, strategic acquisitions like Seagen, Metsera and Biohaven and the continued growth of several established brands like Vyndaqel, Padcev and Eliquis.
Pfizer expects its recently launched and acquired products to record continued double-digit growth. Reflecting this trend, sales from these products increased 22% operationally in the first quarter of 2026 and 18% in the second quarter.
Pfizer’s Oncology Portfolio Poised for Continued Growth
Pfizer is one of the world’s leading oncology drugmakers with a broad portfolio of marketed cancer therapies as well as a deep oncology pipeline spanning multiple treatment modalities, including small molecules, antibody-drug conjugates (ADCs) and immuno-oncology biologics.
Oncology sales comprise around 27% of its total revenues. Its oncology revenues grew 5% in the first half of 2026, driven by drugs like Xtandi, Lorbrena, the Braftovi-Mektovi combination and Padcev. Pfizer considers Padcev to be a potential growth driver in the oncology segment and plans to invest in this asset.
Pfizer has ventured into the oncology biosimilars space and markets six biosimilars for cancer. It is also advancing its oncology clinical pipeline across areas such as breast, thoracic, gastrointestinal and blood cancers. Several oncology candidates have entered late-stage development, such as atirmociclib (a selective CDK4 inhibitor for HR-positive/HER2-negative breast cancer), sigvotatug vedotin (an antibody-drug conjugate for first-line metastatic non-small cell lung cancer) and mevrometostat (an EZH2 inhibitor being developed in combination with enzalutamide for prostate cancer).
A key candidate in its oncology pipeline is PF-08634404, a dual PD-1/VEGF inhibitor in-licensed from Chinese biotech 3SBio in 2025. Pfizer has initiated nine studies, including two pivotal phase III studies for PF-08634404 in first-line metastatic colorectal cancer and first-line NSCLC. Pfizer aims to establish PF-08634404 as a potential backbone therapy across multiple tumor types. By 2030, Pfizer expects to have eight or more blockbuster oncology medicines in its portfolio.
PFE Targets Obesity Market With Ambitious Phase III Program
The company is rebuilding its pipeline in oncology and obesity, which it believes can drive growth in 2028 and beyond. Pfizer plans an extensive phase III program for berobenatide, its monthly GLP-1 receptor agonist added from last year’s Metsera acquisition. In 2026. Pfizer plans 10 phase III studies for berobenatide for obesity and obesity-related comorbidities, including knee osteoarthritis and obstructive sleep apnea. Three phase III studies on berobenatide have already begun. Pfizer is targeting the first of a series of potential approvals for berobenatide in 2028. Pfizer is also evaluating berobenatide in combination with an amylin-based therapy, PF'3945, in phase II studies. However, in the obesity space, Pfizer lags far behind leaders like Eli Lilly LLY and Novo Nordisk NVO.
PFE’s COVID Business Faces Continued Revenue Declines
During the pandemic, Pfizer generated extraordinary COVID-related sales from Comirnaty and Paxlovid. Those revenues have fallen sharply as the pandemic faded.
Sales of Pfizer’s COVID products, Comirnaty and Paxlovid, came down to around $11 billion in 2024 and $6.7 billion in 2025 from $56.7 billion in 2022. Sales of Comirnaty are declining due to a narrow recommendation for COVID vaccines in the United States, while Paxlovid is experiencing reduced demand from lower infection rates.
In 2026, Pfizer expects COVID-related revenues of approximately $4 billion, down from its previous forecast of $5 billion and below $6.7 billion generated in 2025. The decline reflects the continued normalization of COVID-19 infection rates and lower demand for COVID products. Consistent with this trend, sales of both Comirnaty and Paxlovid declined significantly during the first half of 2026.
PFE’s LOE Headwinds
Pfizer faces a significant patent cliff later this decade. Pfizer expects a significant negative impact on revenues from the loss of exclusivity (LOE) cliff in the 2026-2030 period as several of its key products, including Eliquis, Ibrance, Xeljanz and Xtandi, face patent expirations. The LOE cliff is expected to hurt sales by approximately $1.1 billion in 2026.
Pfizer’s 2026 Guidance Points to Sluggish Growth
Pfizer’s revenue guidance for 2026 indicates mostly flat to slightly negative year-over-year growth.
Pfizer expects total revenues for 2026 to be between $60.5 billion and $62.5 billion. The range represents a slight decline from 2025 revenues of $62.6 billion due to lower revenues from COVID products, Comirnaty and Paxlovid, and loss of revenues from the upcoming patent cliff.
In 2026, Pfizer expects adjusted earnings per share in the range of $2.80-$3.00, which represents a decline from the 2025 EPS of $3.22 due to the dilutive impact of 3SBio and Metsera deals, lower COVID revenues and higher taxes.
PFE Stock’s Price, Estimates & Valuation
The stock has risen 11.6% so far this year compared with an increase of 14.5% for the industry.
PFE Stock Underperforms Industry
Image Source: Zacks Investment Research
From a valuation standpoint, Pfizer appears attractive relative to the industry. Going by the price/earnings ratio, Pfizer’s shares currently trade at 9.42 forward earnings, significantly lower than 18.70 for the industry but slightly above the stock’s five-year mean of 9.25. The stock is also trading below most large drugmakers like Lilly, Novo Nordisk, AstraZeneca, AbbVie, J&J and others.
PFE Stock Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 earnings per share has risen from $2.97 to $2.98, while that for 2027 has risen from $2.86 to $2.94 over the past 60 days.
PFE Estimate Movement
Image Source: Zacks Investment Research
Stay Invested in PFE Stock
Pfizer is navigating a difficult transition following the sharp decline in COVID-related sales from Comirnaty and Paxlovid. The market is concerned about Pfizer’s ability to replace declining COVID-related revenues and offset upcoming patent expirations through new product launches, pipeline development and contributions from acquisitions.
Although Pfizer’s 2026 sales guidance indicates minimal growth, the company expects a high single-digit revenue CAGR for five years, starting from year-end 2028. Pfizer expects its recently launched and acquired products, along with a strong pipeline, to help it return to growth from 2029 onward.
Pfizer's valuation is relatively inexpensive compared with many large pharmaceutical peers, and the stock offers one of the highest dividend yields in the sector. Pfizer’s dividend yield stands at around 6.2%
Pfizer’s significant cost reduction and efforts to improve R&D productivity measures are also driving profit growth. Pfizer expects approximately $9.7 billion in total net savings from its productivity enhancement initiative through 2029.
Long-term investors may consider retaining this Zacks Rank #3 (Hold) stock and can wait and see if Pfizer can successfully execute on its strategy and generate meaningful growth from its newer assets and restore revenue growth. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Pfizer Stock Rises Almost 9% in 3 Months: Time to Buy, Hold or Exit?

Key Points
Eli Lilly has crushed broader equities in recent years.
The company's leadership in the fast-growing GLP-1 market grants it attractive medium-term prospects.
The stock can deliver competitive returns over the next five years.
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.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Is it too late to buy?
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).
The medicine was first approved in 2022 and is already the world's best-selling compound. Tirzepatide has arguably exceeded expectations, driving Eli Lilly's sales and stock price higher. But it could run into several issues in the medium term. Other companies will launch competing weight-loss medicines, potentially leading to lower tirzepatide sales (due to decreased sales volume and lower realized prices). Eli Lilly's revenue and earnings have grown at rates well above average for pharmaceutical giants over the past five years.
The drugmaker is unlikely to maintain this pace through 2031.
That said, there are also reasons to be bullish on the stock. Let's consider three of them. First, even with increased competition in its core GLP-1 area, this corner of the pharmaceutical industry is projected to grow rapidly over the next five years (and likely beyond). Some medicines will compete directly with Mounjaro and Zepbound, but the market will also expand as breakthroughs open new opportunities.
Take Eli Lilly's Foundayo, an oral weight loss GLP-1 medication that earned approval in April. The company noted that 80% of Foundayo's prescriptions were for patients who had never taken GLP-1s before.
Translation: Foundayo isn't just cannibalizing Zepbound's sales. It is expanding the market. Second, Eli Lilly has a pipeline full of products that could establish it as a leader in new categories of the GLP-1 space. Consider, once again, tirzepatide. It is showing promise as a combination therapy for autoimmune disorders and is being investigated across other areas as well.
Eli Lilly's next-gen obesity drug, retatrutide, posted efficacy results that some have compared to what we typically see in weight loss surgery, something never before seen in the industry. That's another medicine that will help expand the market, as early access to retatrutide is showing. Eli Lilly is offering it to certain patients, even though it hasn't received approval. One criterion these patients must meet is to have treatment-resistant obesity. Eli Lilly is also developing eloralintide, which mimics the amylin hormone. Eloralintide's differentiator could be its better tolerability compared with GLP-1 medicines.
Eli Lilly's GLP-1 pipeline is arguably second to none, so as the market expands, expect the company to stay in the lead. Third, Eli Lilly has an attractive approved lineup and pipeline even beyond its core area. Several of the company's newer products will continue posting strong results over the next five years. It should also launch new products in areas such as neuroscience, immunology, and oncology.
Here's the math
Eli Lilly is trading at 24.6x forward earnings, compared to the average of 18.9x for healthcare stocks. The premium is well-deserved, given its outstanding results. Let's assume its earnings per share (EPS) grow at an average of 20% over the next five years and its forward price-to-earnings ratio contracts to 20. Under this scenario, the stock will grow from its current market cap of $1.09 trillion to $2.2 trillion, or a roughly 15.1% annualized return. So a $5,000 investment could be worth about $10,100 in five years.
That's not bad at all, and the 20% average EPS growth assumption seems reasonable, considering Eli Lilly will almost certainly substantially top that over the next couple of years, at least, as its tirzepatide-bound tailwind continues. Now, a lot could go wrong. Clinical setbacks, the GLP-1 market not growing as fast as we expect, more competition or price erosion in this area than expected, etc. However, my view is that Eli Lilly remains well-positioned to deliver solid returns through 2031.
Should you buy stock in Eli Lilly right now?
Before you buy stock in Eli Lilly, consider this:
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Prosper Junior Bakiny has positions in Eli Lilly. The Motley Fool has positions in and recommends Eli Lilly. The Motley Fool has a disclosure policy.

Prediction: This Is What a $5,000 Investment in Eli Lilly Will Be Worth in 2031

Key Points
Warren Buffett guided the Berkshire Hathaway holding company to market-beating returns for 60 years.
He regularly said that everyday investors could do well by purchasing an exchange-traded fund that tracks a diversified index like the S&P 500.
In February 2014, Buffett specifically recommended the Vanguard S&P 500 ETF for its low fees and its ability to help young investors secure their financial future.
Warren Buffett is one of the world's most iconic investors. He served as CEO of the Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB) holding company from 1965 to 2025, turning it into a $1 trillion conglomerate with numerous subsidiaries, a stock portfolio worth over $350 billion, and another $365 billion in cash.
Berkshire stock returned 19.7% annually during Buffett's 60-year tenure, so an investment of $500 in 1965 would have grown to a whopping $24 million by the end of 2025. But he was a seasoned professional, so he always knew the average investor would struggle to replicate his performance. That's why he consistently advocated exchange-traded funds (ETFs) that track a diversified index, like the S&P 500.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
The Vanguard S&P 500 ETF (NYSEMKT: VOO) is one that Buffett specifically recommended in 2014 for its ultra-low fees. Here's how it could help young investors in their 20s build a financially secure future.
America's best stocks from 11 economic sectors
The S&P 500 is the most widely followed U.S. stock market index for a couple of reasons. First, it's made up of 500 companies from 11 different sectors of the economy, so it's highly diversified. Second, it has very strict entry criteria: its members must maintain a market capitalization of at least $22.7 billion and be profitable. But even after those boxes are ticked, a special committee ultimately decides which companies make the cut.
The S&P is weighted by market capitalization, so the largest companies in the index have a much higher representation than the smallest. Therefore, despite its diversified composition, the information technology sector has a massive weighting of 36.6% because it's home to five companies worth $1 trillion or more (Nvidia, Apple, Microsoft, Broadcom, and Micron Technology).
Below are the 11 sectors that make up the Vanguard S&P 500 ETF, along with their weightings and the three largest companies in each.
S&P 500 Sector
Sector Weighting
Largest Companies
Information technology
36.6%
Nvidia, Apple, Microsoft
Financials
12.5%
Berkshire Hathaway, JPMorgan Chase, Visa
Communication services
9.9%
Alphabet, Meta Platforms, Netflix
Consumer discretionary
9.4%
Amazon, Tesla, Home Depot
Healthcare
9.1%
Eli Lilly, Johnson & Johnson, AbbVie
Industrials
8.7%
Caterpillar, GE Aerospace, RTX Corporation
Consumer staples
4.7%
Walmart, Costco, Coca-Cola
Energy
3.4%
ExxonMobil, Chevron, ConocoPhillips
Utilities
2.1%
NextEra Energy, Constellation Energy, Southern Co
Real estate
1.9%
Welltower, Prologis, Equinix
Materials
1.8%
Linde, Newmont, Freeport-McMoRan
Data source: Vanguard. Sector weightings are accurate as of July 31, 2026, and are subject to change.
The technology sector is exerting a particularly strong influence on the performance of the S&P 500 right now, thanks to the artificial intelligence (AI) revolution, which began to gain momentum when OpenAI's ChatGPT application surpassed 100 million users in early 2023. In fact, if we exclude the sector's contribution over the last three-and-a-half years, the S&P 500's return drops from 101% to just 63%.
Simply put, the Vanguard ETF gives investors exposure to the fastest-growing area of the market in a diversified manner, which is why it's a popular long-term investment option.
Taking Buffett's advice could yield spectacular results
The S&P 500 has returned 10.7% since its inception in 1957 (assuming all dividends were reinvested). But it has delivered an accelerated return of 13.9% since Buffett recommended the Vanguard S&P 500 ETF in 2014, primarily thanks to the tech sector.
Past performance isn't always a reliable indicator of future results, but a 25-year-old investor could build a very nice retirement fund using the Vanguard ETF if its historical returns persist. Below are two potential outcomes.
Starting Balance at Age 25
Compound Annual Return
Balance at Age 65
$20,000
10.7%
$1,166,634
$20,000
13.9%
$3,647,362
Those results don't include costs, but with an expense ratio of just 0.03%, investors would incur an annual fee of just $3 for every $10,000 they have parked in the Vanguard ETF.
To conclude, investors probably shouldn't sell their entire position at retirement age, because compounding yields the greatest benefits over time. With a large enough balance after 40 years, the subsequent annual returns could provide a significant income to fund life after employment.
Should you buy stock in Vanguard S&P 500 ETF right now?
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Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,997!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,413,876!*
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JPMorgan Chase is an advertising partner of Motley Fool Money. Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AbbVie, Alphabet, Amazon, Apple, Berkshire Hathaway, Broadcom, Caterpillar, Chevron, Constellation Energy, Costco Wholesale, Eli Lilly, Equinix, GE Aerospace, Home Depot, JPMorgan Chase, Meta Platforms, Micron Technology, Microsoft, Netflix, NextEra Energy, Nvidia, Prologis, RTX, Tesla, Vanguard S&P 500 ETF, Visa, and Walmart. The Motley Fool recommends ConocoPhillips, Johnson & Johnson, and Linde. The Motley Fool has a disclosure policy.

If I Were in My 20s, I'd Buy This Vanguard ETF Warren Buffett Recommended and Hold It Forever

In the latest close session, Eli Lilly (LLY) was down 2.21% at $1,123.91. This change lagged the S&P 500's 0.58% loss on the day. At the same time, the Dow lost 1.18%, and the tech-heavy Nasdaq lost 0.32%.
Shares of the drugmaker have depreciated by 6.7% over the course of the past month, underperforming the Medical sector's gain of 2.73%, and the S&P 500's loss of 0.36%.
Analysts and investors alike will be keeping a close eye on the performance of Eli Lilly in its upcoming earnings disclosure. The company's earnings report is set to go public on October 29, 2026. It is anticipated that the company will report an EPS of $9.56, marking a 36.18% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $22.08 billion, indicating a 25.46% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $35.93 per share and a revenue of $88.27 billion, indicating changes of +48.41% and +35.42%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for Eli Lilly. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, Eli Lilly boasts a Zacks Rank of #3 (Hold).
Looking at its valuation, Eli Lilly is holding a Forward P/E ratio of 31.99. This expresses a premium compared to the average Forward P/E of 17.92 of its industry.
It is also worth noting that LLY currently has a PEG ratio of 1.44. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 2.27 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 102, placing it within the top 42% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Here's Why Eli Lilly (LLY) Fell More Than Broader Market

Key Points
Novo Nordisk was first to market with a GLP-1 weight-loss drug, but lost the lead to Eli Lilly.
Novo Nordisk has been working hard to regain lost market share in the GLP-1 space.
Using traditional valuation metrics, Novo Nordisk's stock looks cheap.
GLP-1 weight-loss drugs burst onto the scene when Novo Nordisk (NYSE: NVO) introduced Wegovy to the world. There was so much demand that the drug maker couldn't keep up. That shows the opportunity that this new class of weight-loss drugs offers, but it also explains why Novo Nordisk, while first to market, isn't the industry leader today. That title goes to Eli Lilly (NYSE: LLY).
After a massive decline of over 66% from its 2024 high, traditional valuation metrics suggest Novo Nordisk's stock is cheap. However, the bigger question you need to consider is the pharmaceutical company's ability to compete against Eli Lilly's now-dominant GLP-1 drugs. Here's a quick look at what you need to know about Novo Nordisk before you buy it.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
There is always a competitor looking to knock you off your perch
Two of the most important things to understand about the pharmaceutical sector are that it is intensely competitive and driven by innovation. Just because a company has a blockbuster drug doesn't mean it has a lock on a medical condition. There's also the small issue of patent protection, which is time-limited for new drugs. So, even in the best-case scenario, a drug maker can only expect to generate outsize profits from a successful drug for a short period.
That's the backdrop within which you have to view Novo Nordisk. Yes, it was the first company to market with a GLP-1 weight-loss drug, but it quickly lost its lead to Eli Lilly. That's a big reason why investor sentiment has turned against Novo Nordisk. But Wall Street has a habit of going too far. This is where traditional valuation metrics come in for Novo Nordisk.
The stock's price-to-sales ratio is 4x as of this writing compared to a five-year average of 8.6x. Its price-to-earnings ratio is 11.6x compared to a five-year average of 25.1x. And its price-to-book ratio is 6.1x versus a longer-term average of 16.4x. By comparison, using the valuation metric that most investors lean on, the average drug maker's P/E is 26.5x.
From this perspective, Novo Nordisk does, in fact, look attractively priced. Value-focused investors would probably find it interesting. But add in a 3.7% dividend yield and a payout ratio below 40%, and the story could be attractive for dividend lovers, too.
Can Novo Nordisk get back in the game?
The problem here is that Novo Nordisk is in the middle of a transition period. First, the company is attempting to use its new GLP-1 pill to regain share in the GLP-1 weight-loss space. The Wegovy pill is seeing strong early success, but it remains unclear whether it will be enough to improve Novo Nordisk's competitive position against industry leader Eli Lilly, which has also recently introduced a GLP-1 pill.
Second, Novo Nordisk is attempting to change to a volume-driven model. That has meant lowering prices on its GLP-1 drugs in an effort to get more customers to use them. In the short term, this has resulted in weakness in revenue and earnings. As with the company's new pill, it is unclear whether a focus on volume will work out as hoped. In other words, there remains a significant amount of uncertainty.
Is Novo Nordisk worth buying?
Value investors and dividend investors should probably take a deep dive into Novo Nordisk. There is a lot of uncertainty right now as the company, effectively, attempts to turn its business around in the GLP-1 space. However, it is a well-respected drugmaker offering innovative products in a niche health area (weight loss) with significant long-term potential. Even if it doesn't unseat Eli Lilly from its GLP-1 lead, Novo Nordisk should still be able to generate significant revenues and earnings, and support an attractive yield. Given its valuation, the risk/reward balance is probably leaning toward reward right now. In other words, Novo Nordisk is, indeed, too cheap to ignore.
Should you buy stock in Novo Nordisk right now?
Before you buy stock in Novo Nordisk, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Novo Nordisk wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,997!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,413,876!*
Now, it’s worth noting Stock Advisor’s total average return is 978% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 8, 2026.
Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Eli Lilly and Novo Nordisk. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Is Novo Nordisk Stock Still Too Cheap for Investors to Ignore?

Novo Nordisk NVO announced positive data from the phase III STEP Young study evaluating once-weekly subcutaneous semaglutide, in combination with a reduced-calorie diet and increased physical activity, in children with obesity aged six to under 12 years.
More on the STEP Young Study Data
The phase III STEP Young study met its primary endpoint by demonstrating a greater reduction in body mass index (BMI) at week 68 following treatment with semaglutide versus placebo. Both treatment groups received lifestyle modification, including a reduced-calorie diet and increased physical activity.
Importantly, 40.4% of children who were treated with once-weekly subcutaneous semaglutide were no longer classified as having obesity after week 68, compared with none in the placebo group. More than 85% of children had class II or III severe obesity at baseline.
Per the company, two out of five children treated with semaglutide reduced their BMI below the obesity threshold, reaching either a normal-weight or overweight classification, compared with none of the children receiving placebo.
The overall safety and tolerability profile of semaglutide seen in the STEP Young study was consistent with prior pediatric and adult studies, with no new safety concerns reported.
The company plans to present detailed data from the phase III STEP Young study at the Obesity Society’s annual meeting in November.
NVO’s Price Performance
Year to date, shares of Novo Nordisk have declined 5.3% against the industry’s rise of 16.4%.
Image Source: Zacks Investment Research
NVO Thrives on Semaglutide-Based Medicines
Novo Nordisk markets its semaglutide-based medicines under the brand names Ozempic (injection and oral pill) and Rybelsus (oral tablet) for type II diabetes (T2D), and Wegovy (injection and oral pill) for chronic weight management.
The company’s semaglutide-based medicines continue to demonstrate benefits beyond blood sugar control and weight loss, including reducing cardiovascular (CV) risk and improving kidney disease outcomes.
Novo Nordisk has been witnessing strong success with its GLP-1 medicines, Wegovy for obesity and Ozempic and Rybelsus for T2D.
In the first half of 2026, total reported Obesity care sales increased 20% year over year in DKK, or 24% at constant exchange rates, driven by higher sales across the Wegovy portfolio, including incremental sales from the newly launched Wegovy pill.
In late December, the FDA approved NVO’s 25 mg oral semaglutide (Wegovy pill) for obesity and CV disease, which was subsequently launched in early January. The Wegovy pill is also approved in the EU.
NVO Faces Rising Competitive Pressure
Novo Nordisk faces intense competition from Eli Lilly LLY in the obesity market. Lilly's Mounjaro for T2D and Zepbound for obesity have earlier demonstrated superior weight-loss efficacy in clinical studies, allowing the company to gain market share steadily. Despite being on the market for a shorter duration, these drugs have become LLY’s key top-line drivers.
Lilly has also secured FDA approval for its oral GLP-1 drug, orforglipron, for adults with obesity or overweight with weight-related medical problems, marketed under the brand name Foundayo.
While Novo Nordisk and Eli Lilly currently dominate this space, smaller biotechs like Structure Therapeutics GPCR and Viking Therapeutics VKTX are also advancing GLP-1–based therapies for treating obesity.
Viking Therapeutics’ dual GIPR/GLP-1 receptor agonist (RA), VK2735, is being developed in both oral and subcutaneous formulations for the treatment of obesity. VKTX plans to advance oral VK2735 into phase III development for obesity in the fourth quarter of 2026.
Structure Therapeutics’ phase II ACCESS program on its orally administered small molecule GLP-1 RA, aleniglipron, demonstrated significant weight loss across all doses. Based on such encouraging results, GPCR has initiated dosing patients in its late-stage ACCOMPLISH program to evaluate aleniglipron for chronic weight management.
NVO Zacks Rank
Novo Nordisk currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).

Novo Nordisk's Semaglutide Meets Goal in Pediatric Obesity Study

Eli Lilly and Company LLY boasts a wide range of products across cardiometabolic health, neuroscience, oncology and immunology. Cardiometabolic Health is Lilly’s largest therapeutic area by a wide margin, particularly with the success of its tirzepatide medicines, Mounjaro and Zepbound. Its cardiometabolic products accounted for approximately 80% of Lilly’s total revenues in the first half of 2026.
However, Lilly is gradually building a more diversified portfolio by expanding in oncology, immunology and neuroscience. Lilly has also embarked on an aggressive M&A spree in the past couple of years, acquiring biotech companies across oncology, neuroscience, cardiovascular disease, gene editing, inflammation, cell therapy and vaccines to diversify its long-term growth drivers beyond GLP-1 therapies.
In this article, we will discuss Lilly’s position in the neuroscience space and how it is expanding its presence in this area.
Neuroscience Still Small but Has Significant Growth Potential
Neuroscience currently represents only a small portion of Lilly's sales, around 2%. In the first six months of 2026, neuroscience revenues increased around 32% to $811 million. The portfolio currently has two major marketed products — Emgality, an anti-CGRP monoclonal antibody for migraine prevention and Kisunla, an anti-amyloid beta antibody for early symptomatic Alzheimer's disease. Of these, Kisunla is seeing rapid year-over-year sales growth.
The relatively small contribution means neuroscience is not yet an important earnings driver for Lilly, but it also means the upside could be substantial if its neuroscience pipeline succeeds.
Lilly Building a Broader Neuroscience Pipeline Through M&A
Lilly has built a considerably deeper neuroscience pipeline. Key candidates are remternetug, a next-generation anti-amyloid antibody being developed for Alzheimer's disease in phase III, cleminorexton, an orexin receptor 2 agonist in phase II/III for hypersomnia and a GBA1 gene therapy for Parkinson's disease in phase II.
Acquisitions have played an important role in building Lilly’s neuroscience franchise. In July, Lilly agreed to acquire AtaiBeckley ATAI, which is advancing a pipeline of rapid-acting neuroplastogens for treatment-resistant depression (TRD) and other mental health conditions. ATAI’s lead asset, BPL-003, an intranasal formulation of mebufotenin benzoate, is being developed as a potential treatment for people living with TRD. The candidate has shown encouraging mid-stage data in TRD.
The acquisition of Centessa added cleminorexton to the pipeline. In previous years, acquisitions like Prevail Therapeutics and Disarm Therapeutics added candidates to treat neurological diseases.
Overall, Lilly’s neuroscience pipeline now spans Alzheimer's, sleep disorders, pain, schizophrenia, neurodegeneration and other neurological conditions.
Conclusion
Lilly’s neuroscience business is still small, but its strong growth, expanding pipeline and M&A-driven additions could make it an increasingly important long-term growth driver. The success of key candidates could help Lilly diversify its revenue base and reduce its reliance on cardiometabolic therapies.
Competition to LLY’s Neuroscience Products
Kisunla’s single biggest competitor is Eisai/Biogen’s BIIB Leqembi, both being amyloid-targeting treatments. Other companies are also developing next-generation Alzheimer's therapies, including Roche/Genentech and several biotech companies.
Emgality (galcanezumab) competes in the highly competitive CGRP migraine market, which includes Teva’s Ajovy, Amgen/Novartis’ Aimovig, Pfizer’s PFE Nurtec ODT and AbbVie’s Qulipta.
LLY’s Stock Price, Valuation and Estimates
Lilly’s stock has risen 6.9% so far this year compared with the industry’s increase of 14.5%.
Image Source: Zacks Investment Research
From a valuation standpoint, Lilly’s stock is expensive. Going by the price/earnings ratio, the company’s shares currently trade at 26.85 forward earnings, higher than 18.70 for the industry. However, the stock is trading below its 5-year mean of 34.57.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 has risen from $35.56 to $35.93 per share over the past 60 days, while that for 2027 has risen from $44.58 to $45.93 per share over the same timeframe.
Image Source: Zacks Investment Research
Lilly has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).

Indicator	TTM Median
P/E	38.82 21.70
Price/Sales	14.91 3.10
P/B	32.34 2.54
P/FCF	57.14 19.03

Indicator	TTM Median
ROE	92.54 19.44
ROA	21.97 7.04
ROI	37.57 9.42
Net Worth	1.03K 0.24
Quick Ratio	1.10 1.71
Current Ratio	1.36 2.85

Indicator	TTM Median
Net Profit Margin	33.53 10.99
Operating Margin	42.22 14.14
Gross Margin	82.83 75.17
Return on tangible equity	212.69 41.48

Indicator	TTM Median
EPS	8.38 0.46
EPS Forecast	6.01 0.37
Revenue	19.80B 19.00M
Gross Profit	16.22B —
EBITDA	9.51B —

Eli Lilly and Company

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