15 Best Growth Stocks to Buy for the Next 3 Years

3. Eli Lilly And Co. (NYSE:LLY)

3-Year Revenue CAGR: 16.73%

Number of Hedge Fund Holders: 115

Eli Lilly And Co. (NYSE:LLY) discovers, develops, and markets human pharmaceuticals. The company’s portfolio includes treatments for diabetes, obesity, oncology, autoimmune diseases, and neurological conditions. It serves patients across the US and internationally through different collaborations and partnerships.

Eli Lilly’s entry into the GLP-1 space has proven highly successful, which is highlighted by the recent Phase 3 trial of orforglipron. This is an oral GLP-1 agonist. The ACHIEVE-1 trial in type 2 diabetes showed A1C reductions of 1.3% to 1.6% from a baseline of 8.0%, with placebo showing a 0.1% reduction. Eli Lilly And Co. (NYSE:LLY) plans to submit orforglipron for obesity treatment approval by the end of 2025 and for type 2 diabetes in 2026.

The company has also been on an acquisition spree over the last few years. Eli Lilly bought 8 companies and signed 3 new partnerships. These moves, starting with DICE Therapeutics in mid-2023 and most recently Scorpion Therapeutics in early 2025, are helping the company grow into new areas. On April 21, Evan Seigerman of BMO Capital maintained a Buy rating on Eli Lilly with a $900 price target due to its strong position in the pharmaceutical industry.

Parnassus Core Equity Fund sees Eli Lilly And Co. (NYSE:LLY) as a strong long-term investment due to its GLP-1 franchise and innovation, capitalizing on a sell-off to buy at an attractive valuation. It stated the following in its Q4 2024 investor letter:

“Eli Lilly and Company (NYSE:LLY) stock declined following worse-than-expected third quarter results for its weight-loss drug segment. We initiated our position partway through the quarter, after the drawdown and in time for a partial rebound, and our average underweight for the quarter led to a relative contribution.

In the Health Care sector, we added drugmaker Eli Lilly, which has an exceptional GLP-1 franchise and a strong track record of innovation, which position the company for long-term growth. A rare revenue miss and President-elect Trump’s health secretary nomination sparked a sell-off, providing a window of opportunity to gain exposure to the drugmaker’s attractive product suite and pipeline at an attractive valuation.”