Eli Lilly and Co (LLY) Traded Lower in Q2 Despite Good Results

Impax Asset Management, an investment management company, released its “Impax US Sustainable Economy Fund” second quarter 2025 investor letter. A copy of the letter can be downloaded here. In 2025’s second quarter, tariffs triggered market declines and recession fears, but a pause in tariffs sparked a historic rally as earnings remained resilient. In the second quarter of 2025, the fund underperformed the Russell 1000 benchmark. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its second-quarter 2025 investor letter, Impax US Sustainable Economy Fund highlighted stocks such as Eli Lilly and Company (NYSE:LLY). Eli Lilly and Company (NYSE:LLY) is a pharmaceutical company headquartered in Indianapolis, Indiana. The one-month return of Eli Lilly and Company (NYSE:LLY) was -2.66%, and its shares lost 0.80% of their value over the last 52 weeks. On August 5, 2025, Eli Lilly and Company (NYSE:LLY) stock closed at $765.95 per share, with a market capitalization of $687.621 billion.

Impax US Sustainable Economy Fund stated the following regarding Eli Lilly and Company (NYSE:LLY) in its second quarter 2025 investor letter:

“Eli Lilly and Company (NYSE:LLY) (Health Care, Pharmaceuticals) boasts an innovative drug portfolio that has the potential to transform the standard of care across several diseases. The stock was weaker in the quarter despite results that were in-line or better than expectations. Shares were under pressure after CVS’ announcement that competitor Novo Nordisk’s Wegovy will now be the preferred GLP-1 drug on their national formulary, which currently represents a mid-single digit percentage of Lilly’s current Zepbound patients.”

Was Jim Cramer Right About Eli Lilly and Company (LLY)?

li Lilly and Company (NYSE:LLY) is in 21st position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 119 hedge fund portfolios held Eli Lilly and Company (NYSE:LLY) at the end of the first quarter, which was 115 in the previous quarter. Eli Lilly and Company (NYSE:LLY) reported strong results in first quarter of 2025, with revenue increasing 45% compared to Q1 2024. While we acknowledge the risk and potential of Eli Lilly and Company (NYSE:LLY) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ELI LILLY AND COMPANY (NYSE:LLY) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Eli Lilly and Company (NYSE:LLY) and shared the list of most profitable growth stocks to buy according to billionaires. RiverPark Large Growth Fund noted in its Q2 2025 letter that Eli Lilly (NYSE: LLY) experienced a stock decline despite strong revenue growth. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.