5 Best Diabetes Stocks To Buy Now

4. Eli Lilly and Company (NYSE:LLY)

Number of Hedge Fund Holders: 64

Eli Lilly and Company (NYSE:LLY) is a pharmaceutical company whose products are sold in more than 120 countries. The Indiana-based drug manufacturer ranks fourth on the list of 10 best diabetes stocks to buy now. The company manufactures insulin injections for patients with type 1 or type 2 diabetes. 

Additionally, Eli Lilly and Company (NYSE:LLY) recently highlighted positive clinical results from its new diabetes pipeline, Tirzepatide, on October 19. Tirzepatide is a potential type 2 diabetes medication that could produce $10 billion in sales and add to the pharmaceutical giant’s promising pipeline of new treatments, according to analysts. Eli Lilly and Company (NYSE:LLY) plans to submit the drug to regulatory authorities in the US and globally by the end of 2021. 

Shares of Eli Lilly and Company (NYSE:LLY) soared 44%, year to date. On October 11, Eli Lilly and Company (NYSE:LLY) was upgraded to Buy from Hold by analyst Kerry Holford of Berenberg. According to the analyst, the drug company’s pipeline advancement has effectively sealed Eli Lilly’s long-term sales growth, sitting at 10% yearly through 2030 compared to a peer average of 4%. Holford increased his price target for the stock to $270 from $240.

Overall, 64 elite hedge funds have a positive sentiment on Eli Lilly and Company (NYSE:LLY) by the end of the second quarter of 2021, compared to 55 in the previous quarter.

Eli Lilly and Company (NYSE:LLY) is a suitable option for income investors, as the company pays an annual dividend of $3.40 per share. 

In the Q2 2021 investor letter of Baron Funds, the fund mentioned Eli Lilly and Company (NYSE:LLY) and discussed its stance on the firm. Here is what the fund said:

“We started a position in Eli Lilly and Company, a large-cap pharmaceutical company. We think Lilly has a healthy base business with limited near-term patent expirations, a strong pipeline, and potential for significant margin expansion, which should translate to high single-digit revenue growth and mid-teens earnings growth over the next five years. Lilly’s pipeline includes donanemab, a potential blockbuster drug which the company is developing for Alzheimer’s disease and which recently received Breakthrough Therapy Designation by the FDA.”