Goldman Sachs Recommends Non-AI Stock Investments
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Source: CNBC
- Market Trend Analysis: Goldman Sachs highlights that despite the dominance of AI trades pushing the S&P 500 and Nasdaq to multiple record highs this year, there are still noteworthy non-AI companies to invest in, indicating market diversity and potential opportunities.
- Portfolio Recommendations: Goldman analysts suggest a portfolio of Russell 1000 stocks with low sensitivity to both AI trades and economic growth pricing, which have recently seen positive earnings revisions by analysts, indicating fundamental support for these investments.
- Eli Lilly Outlook: Although Eli Lilly's stock has slipped about 1% this year, Goldman believes only 9% of its recent returns are driven by the U.S. economic outlook and AI, while Morgan Stanley's analyst sets a $1,344 price target, implying a 26.2% upside potential.
- Fortinet Strong Performance: Fortinet has surged 68.7% this year, with Goldman attributing 19% of its returns to the U.S. economic outlook and AI; BTIG upgraded its rating to buy with a $125 price target, reflecting confidence in its mid-term revenue growth prospects.
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Analyst Views on LLY
Wall Street analysts forecast LLY stock price to rise
20 Analyst Rating
18 Buy
2 Hold
0 Sell
Strong Buy
Current: 1126.800
Low
950.00
Averages
1192
High
1500
Current: 1126.800
Low
950.00
Averages
1192
High
1500
About LLY
Eli Lilly and Company is a medicine company, which discovers, develops, manufactures, and market products in a single business segment called human pharmaceutical products. The Company manufacture and distribute its products through facilities in the United States, including Puerto Rico, and in Europe and Asia. The Company’s products are sold in approximately 90 countries. Its Cardiometabolic Health products Basaglar; Humalog, Humalog Mix 75/25, Humalog U-100, Humalog U-200, Humalog Mix 50/50, insulin lispro, and others; Humulin, Humulin 70/30, and others; Jardiance; Mounjaro; Trulicity; Zepbound, and others. Its oncology products include Cyramza, Erbitux, Tyvyt, Verzenio, Retevmo, Jaypirca, and others. Its immunology products include Ebglyss, Olumiant, Omvoh, and Taltz. Its neuroscience products include Emgality and Kisunla. Its LillyDirect, a direct-to-patient digital health care platform, provides delivery of select Lilly medicines dispensed by third-party pharmacies to patients.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Eli Lilly's Cancer Therapy Significantly Reduces Recurrence Risk
- Clinical Trial Results: Eli Lilly's targeted cancer therapy Retevmo demonstrated an 83% reduction in the risk of recurrence or death in early-stage RET fusion-positive non-small cell lung cancer patients, a significant finding that could influence treatment practices.
- Event-Free Survival Improvement: Among patients with stage II-IIIA disease, the 24-month event-free survival rate was 92% for those treated with selpercatinib, compared to 61% for the placebo group, highlighting the drug's substantial advantage in prolonging survival.
- Global Patient Recruitment: The trial enrolled 151 patients who were randomized to receive either selpercatinib or placebo for up to three years, providing robust evidence for the application of targeted therapies in early lung cancer treatment.
- Safety Profile and Regulatory Plans: While there were adverse events such as elevated liver enzymes, Eli Lilly noted these could be managed through dose adjustments, and plans to submit LIBRETTO-432 data to global regulators for approval in the adjuvant setting.
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LIBRETTO-432 Trial Results Significantly Improve Early Lung Cancer Prognosis
- Clinical Trial Success: Eli Lilly's LIBRETTO-432 trial demonstrates that Retevmo (selpercatinib) as adjuvant therapy significantly improves event-free survival (EFS) in early-stage RET fusion-positive non-small cell lung cancer patients, reducing the risk of recurrence or death by 83%, thus providing a new treatment option for early lung cancer patients.
- Data Publication and Presentation: The trial results will be published in the New England Journal of Medicine and presented at the 2026 ASCO Annual Meeting, highlighting the significance of this research in lung cancer treatment and potentially prompting changes in clinical practice.
- Patient Recruitment and Analysis: A total of 151 patients were enrolled in the trial, randomized to receive either Retevmo or placebo, and after a median follow-up of 24 months, the EFS rate was 94% in the Retevmo group compared to 70% in the placebo group, showcasing the significant efficacy of Retevmo.
- Safety and Tolerability: The safety profile of Retevmo aligns with previous studies, with the most common adverse events being elevated ALT and AST at 17% and 19%, respectively, which can be effectively managed through dose adjustments, ensuring patient safety during treatment.
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- Market Highs: The stock market reached new highs driven by optimistic expectations surrounding the Iran deal, reflecting investor confidence in future economic recovery and potentially attracting more capital inflows.
- Tech Titans Performance: Nvidia and Tesla, among five trillion-dollar companies nearing buy points, indicate strong market interest in tech stocks, which could lead to further price increases in these sectors.
- Improved Investor Sentiment: As market sentiment improves, investors are showing a greater preference for risk assets, which may result in increased capital flowing into high-growth industries, further propelling stock market gains.
- Economic Recovery Outlook: The anticipation of the Iran deal not only boosts short-term stock performance but also lays the groundwork for long-term economic recovery, drawing more investor attention to opportunities in related sectors.
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Stock Market Reaches New Highs on Iran Deal Hopes
- Market Highs: The stock market reached new highs driven by optimistic expectations surrounding an Iran deal, reflecting investor confidence in future economic recovery, which may attract more capital inflows into the market.
- Tech Giants Performance: Nvidia and Tesla, among five trillion-dollar companies nearing buy points, indicate potential investment opportunities in these tech stocks as the market rebounds, further propelling overall market gains.
- Improved Investor Sentiment: With the improvement in market sentiment, investor interest in high-risk assets has increased, potentially leading to a shift of funds from the bond market to the stock market, enhancing the upward momentum of equities.
- Economic Recovery Expectations: The optimism surrounding the Iran deal not only boosts stock market performance but may also promote recovery in related sectors, particularly in energy and technology, further driving economic growth.
See More
Eli Lilly's New Developments in GLP-1 Drugs
- Intensifying Market Competition: Eli Lilly's introduction of an oral GLP-1 drug may attract consumers, but it trails behind Novo Nordisk's more effective pill launched in 2026, potentially delaying market acceptance and impacting future revenues.
- High Revenue Dependency: Nearly 65% of Eli Lilly's revenue comes from its injectable GLP-1 drugs, Mounjaro and Zepbound, indicating that any loss in market share could significantly affect the company's financial health and growth prospects.
- Promising Drug Development: Eli Lilly's next-generation GLP-1 drug, Retatrutide, is in development, with early trials showing some patients losing over 30% of their weight, comparable to bariatric surgery, which could provide a new growth avenue if successfully launched.
- Valuation Appeal: Although Eli Lilly's price-to-earnings ratio stands at 37, above the pharma average of 24, if Retatrutide meets expectations and drives growth, the current valuation may appear more attractive to investors, warranting close attention.
See More
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- Intense Market Competition: Eli Lilly leads the GLP-1 drug market, yet its newly launched oral medication may face acceptance challenges compared to Novo Nordisk's more effective pill, highlighting the fierce competition in the industry.
- High Revenue Dependency: Nearly 65% of Eli Lilly's revenue comes from two injectable GLP-1 drugs, Mounjaro and Zepbound, indicating the critical importance of GLP-1 drugs to the company's business, with future market performance directly impacting its financial health.
- Promising Drug Development: Eli Lilly's next-generation GLP-1 drug, Retatrutide, shows promising early trial results, with some patients losing over 30% of their weight, potentially providing new growth momentum for the company, although it is still in the testing phase.
- Valuation Analysis: With a price-to-earnings ratio of 37x, significantly above the pharma average of 24x, Eli Lilly's current valuation may seem high, but if the new GLP-1 drug meets expectations, it could lead to attractive growth opportunities for the company.
See More
Eli Lilly's Cancer Therapy Significantly Reduces Recurrence Risk
- Clinical Trial Results: Eli Lilly's targeted cancer therapy Retevmo demonstrated an 83% reduction in the risk of recurrence or death in early-stage RET fusion-positive non-small cell lung cancer patients, a significant finding that could influence treatment practices.
- Event-Free Survival Improvement: Among patients with stage II-IIIA disease, the 24-month event-free survival rate was 92% for those treated with selpercatinib, compared to 61% for the placebo group, highlighting the drug's substantial advantage in prolonging survival.
- Global Patient Recruitment: The trial enrolled 151 patients who were randomized to receive either selpercatinib or placebo for up to three years, providing robust evidence for the application of targeted therapies in early lung cancer treatment.
- Safety Profile and Regulatory Plans: While there were adverse events such as elevated liver enzymes, Eli Lilly noted these could be managed through dose adjustments, and plans to submit LIBRETTO-432 data to global regulators for approval in the adjuvant setting.
See More
LIBRETTO-432 Trial Results Significantly Improve Early Lung Cancer Prognosis
- Clinical Trial Success: Eli Lilly's LIBRETTO-432 trial demonstrates that Retevmo (selpercatinib) as adjuvant therapy significantly improves event-free survival (EFS) in early-stage RET fusion-positive non-small cell lung cancer patients, reducing the risk of recurrence or death by 83%, thus providing a new treatment option for early lung cancer patients.
- Data Publication and Presentation: The trial results will be published in the New England Journal of Medicine and presented at the 2026 ASCO Annual Meeting, highlighting the significance of this research in lung cancer treatment and potentially prompting changes in clinical practice.
- Patient Recruitment and Analysis: A total of 151 patients were enrolled in the trial, randomized to receive either Retevmo or placebo, and after a median follow-up of 24 months, the EFS rate was 94% in the Retevmo group compared to 70% in the placebo group, showcasing the significant efficacy of Retevmo.
- Safety and Tolerability: The safety profile of Retevmo aligns with previous studies, with the most common adverse events being elevated ALT and AST at 17% and 19%, respectively, which can be effectively managed through dose adjustments, ensuring patient safety during treatment.
See More
Stock Market Reaches New Highs on Iran Deal Hopes
- Market Highs: The stock market reached new highs driven by optimistic expectations surrounding the Iran deal, reflecting investor confidence in future economic recovery and potentially attracting more capital inflows.
- Tech Titans Performance: Nvidia and Tesla, among five trillion-dollar companies nearing buy points, indicate strong market interest in tech stocks, which could lead to further price increases in these sectors.
- Improved Investor Sentiment: As market sentiment improves, investors are showing a greater preference for risk assets, which may result in increased capital flowing into high-growth industries, further propelling stock market gains.
- Economic Recovery Outlook: The anticipation of the Iran deal not only boosts short-term stock performance but also lays the groundwork for long-term economic recovery, drawing more investor attention to opportunities in related sectors.
See More
Stock Market Reaches New Highs on Iran Deal Hopes
- Market Highs: The stock market reached new highs driven by optimistic expectations surrounding an Iran deal, reflecting investor confidence in future economic recovery, which may attract more capital inflows into the market.
- Tech Giants Performance: Nvidia and Tesla, among five trillion-dollar companies nearing buy points, indicate potential investment opportunities in these tech stocks as the market rebounds, further propelling overall market gains.
- Improved Investor Sentiment: With the improvement in market sentiment, investor interest in high-risk assets has increased, potentially leading to a shift of funds from the bond market to the stock market, enhancing the upward momentum of equities.
- Economic Recovery Expectations: The optimism surrounding the Iran deal not only boosts stock market performance but may also promote recovery in related sectors, particularly in energy and technology, further driving economic growth.
See More
Eli Lilly's New Developments in GLP-1 Drugs
- Intensifying Market Competition: Eli Lilly's introduction of an oral GLP-1 drug may attract consumers, but it trails behind Novo Nordisk's more effective pill launched in 2026, potentially delaying market acceptance and impacting future revenues.
- High Revenue Dependency: Nearly 65% of Eli Lilly's revenue comes from its injectable GLP-1 drugs, Mounjaro and Zepbound, indicating that any loss in market share could significantly affect the company's financial health and growth prospects.
- Promising Drug Development: Eli Lilly's next-generation GLP-1 drug, Retatrutide, is in development, with early trials showing some patients losing over 30% of their weight, comparable to bariatric surgery, which could provide a new growth avenue if successfully launched.
- Valuation Appeal: Although Eli Lilly's price-to-earnings ratio stands at 37, above the pharma average of 24, if Retatrutide meets expectations and drives growth, the current valuation may appear more attractive to investors, warranting close attention.
See More
Eli Lilly Faces Intensifying Competition in GLP-1 Drug Market
- Intense Market Competition: Eli Lilly leads the GLP-1 drug market, yet its newly launched oral medication may face acceptance challenges compared to Novo Nordisk's more effective pill, highlighting the fierce competition in the industry.
- High Revenue Dependency: Nearly 65% of Eli Lilly's revenue comes from two injectable GLP-1 drugs, Mounjaro and Zepbound, indicating the critical importance of GLP-1 drugs to the company's business, with future market performance directly impacting its financial health.
- Promising Drug Development: Eli Lilly's next-generation GLP-1 drug, Retatrutide, shows promising early trial results, with some patients losing over 30% of their weight, potentially providing new growth momentum for the company, although it is still in the testing phase.
- Valuation Analysis: With a price-to-earnings ratio of 37x, significantly above the pharma average of 24x, Eli Lilly's current valuation may seem high, but if the new GLP-1 drug meets expectations, it could lead to attractive growth opportunities for the company.
See More
