Jim Cramer Explains Why Eli Lilly May Not Be Next to Hit $1 Trillion

Eli Lilly and Company (NYSE:LLY) is one of the stocks Jim Cramer recently discussed. While talking about the company, Cramer said that investors are not “supposed to buy drug stocks” when the Fed is cutting rates. He remarked:

“Not that long ago, pretty much everybody assumed that the next non-tech stock to cross the trillion-dollar threshold would be the stock of Eli Lilly. Why not? They’ve developed a weight loss and diabetes wonder drug with incredible prospects… Right now, Lilly’s market capitalization is roughly $724 billion…

Oh, I thought Lilly would be next… Today, Lilly announced plans to build a $5 billion manufacturing plant in Richmond, Virginia. As we told members of the investing club this morning, this facility marks the first of four American plants for targeted cancer and autoimmune drugs… When you consider all the indications for this thing… You can see why the betting line favored Lilly to cross the trillion-dollar finish line first.

But Lilly’s stock has been stalled in part because it has a vicious, some would say desperate rival in the form of Novo Nordisk… Plus, you aren’t supposed to buy drug stocks if the Fed’s going to cut interest rates… So you should avoid so-called safety drug stocks. And of course, the president seems to be hostile to the industry… So yeah, my original prediction will likely be wrong. Eli Lilly is probably not the next non-tech stock to cross the trillion-dollar barrier.”

Eli Lilly and Company (LLY) Unveils AI Platform to Enhance Drug Discovery

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Eli Lilly and Company (NYSE:LLY) develops and markets pharmaceuticals across diabetes, obesity, oncology, immunology, neuroscience, and pain management.

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