ETFs to Buy as Eli Lilly Beats Q1 Earnings, Lifts Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 01 2024
0mins
Source: NASDAQ.COM
- Eli Lilly and Company Earnings: Eli Lilly posted mixed first-quarter 2024 earnings, beating earnings estimates but lagging on revenues. The stock jumped 6% in response to the earnings beat.
- Revenue and Sales Growth: Revenues rose 26% to $8.77 billion, driven by strong sales of drugs like Mounjaro, Zepbound, Verzenio, and Jardiance. Mounjaro's sales saw a significant increase.
- 2024 Outlook: Eli Lilly raised its revenue guidance for 2024 due to tremendous sales growth for Mounjaro and Zepbound. Adjusted earnings per share were also increased.
- ETFs Exposure to Eli Lilly: Investors can consider ETFs with exposure to Eli Lilly, such as iShares U.S. Pharmaceuticals ETF, Horizon Kinetics Medical ETF, iShares U.S. Healthcare ETF, Health Care Select Sector SPDR Fund, and VanEck Vectors Pharmaceutical ETF.
- Details of Specific ETFs: Each ETF offers different exposure to Eli Lilly, with varying assets under management, fees, and risk outlooks.
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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: 1041.650
Low
950.00
Averages
1192
High
1500
Current: 1041.650
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.
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- New Drug Presentation: Verzenio (abemaciclib) has been selected for a Plenary Session presentation in the Phase 3 SARC041 study for patients with advanced dedifferentiated liposarcoma, indicating Lilly's ongoing innovation and exploration of new indications in cancer treatment.
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See More
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- Drug Innovation Driving Prices: Merck (MRK) saw a substantial stock price increase after announcing a lung cancer drug that reduced tumor progression risk by 65% in a Phase 3 study, highlighting the positive impact of ongoing pharmaceutical innovation on stock valuations.
- Favorable Medicare Policies: The Centers for Medicare and Medicaid Services announced that starting in 2027, Eli Lilly's (LLY) GLP-1 drugs will be available to Medicare patients for $50 a month, resulting in a 25% stock price increase for Lilly over three weeks, demonstrating the direct support of policy changes for healthcare stocks.
- Aging Population Trend: The global aging population is driving increased demand for pharmaceuticals, medical devices, and health insurance, positioning the healthcare sector as a focal point for investors seeking growth opportunities in the face of demographic shifts.
See More
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- Pharmaceutical Innovation: Merck (MRK) saw its stock rise 5.63% this week after announcing a 65% reduction in tumor progression risk from a lung cancer drug developed with a Chinese partner in a Phase 3 study, highlighting the ongoing innovation within the pharmaceutical sector.
- Favorable Insurance Policies: The Centers for Medicare and Medicaid Services announced that Eli Lilly's (LLY) GLP-1 drugs will be available to Medicare patients for $50 a month starting January 2027, leading to a 25% stock price increase for Lilly over three weeks, showcasing the positive impact of policy changes on company performance.
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See More
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- Commitment to Independence and Integrity: Trump emphasized that Warsh should maintain “total independence” while leading the Fed and aims to restore the institution's integrity, reflecting urgent demands for reform in current monetary policy.
- Economic Growth Outlook: Warsh pledged to fulfill his role with “energy and purpose,” stating that pursuing maximum employment and price stability could lead to unprecedented prosperity for America, showcasing an optimistic view of future economic conditions.
- Market Reaction and Rate Expectations: As Warsh takes office, traders are increasing bets that the Federal Reserve will raise its benchmark rate by the end of the year, highlighting the market's keen interest and uncertainty regarding future monetary policy directions.
See More
