Eli Lilly and Company (LLY) Surged Over Higher Expectations on its Weight Loss Pill

Madison Investments, an investment advisor, released its “Madison Sustainable Equity Strategy” first quarter 2025 investor letter. A copy of the letter can be downloaded here.  In the first quarter, the S&P 500 had a total return of -4.3%, with a significant -5.6% drop in March. This decline was mainly due to the impact of tariffs, which hurt business and consumer confidence. Expectations for strong economic growth and deregulation have decreased as the new administration’s trade priorities have become clearer. The strategy returned -3.32% (Gross) in the quarter compared to -4.27% for the index. Both sector allocation and security selection were positive during the quarter. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2025.

In its first-quarter 2025 investor letter, Madison Sustainable Equity Strategy 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 12.81%, and its shares lost 6.93% of their value over the last 52 weeks. On June 10, 2025, Eli Lilly and Company (NYSE:LLY) stock closed at $807.19 per share, with a market capitalization of $724.644 billion.

Madison Sustainable Equity Strategy stated the following regarding Eli Lilly and Company (NYSE:LLY) in its Q1 2025 investor letter:

“In mid-January, Eli Lilly and Company (NYSE:LLY) pre-announced fourth quarter results and gave 2025 revenue guidance at the JP Morgan Healthcare conference. While the fourth quarter results were slightly below expectations, the initial revenue guidance of $58 billion to $61 billion for 2025 was in line with consensus. In early February, the company reported full fourth quarter results and provided more detail for the 2025 outlook including earnings per share estimate of $23.25 using the midpoint of $22.50 to $24.00. This guidance was seen as conservative with room for the company to raise guidance over the course of the year. The stock has also moved higher on expectations that the company will soon release key data on its once-daily weight loss pill orforglipron. The pill could further broaden access for patients in the U.S. and internationally.”

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

Eli 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 potential of Eli Lilly and Company (NYSE:LLY) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered Eli Lilly and Company (NYSE:LLY) and shared RiverPark Large Growth Fund’s views on the company. In addition, please check out our hedge fund investor letters Q1 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.