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Eli Lilly is building off its GLP-1 success
Eli Lilly is the leading maker of GLP-1 weight-loss drugs. Although that’s a risk, since these medications now account for nearly 66% of the company’s top line, it is also a huge opportunity. And Eli Lilly isn’t wasting the opportunity. For starters, weight loss is a huge market, and demand for GLP-1 drugs is ly to be strong even if rates rise. But the big story is that Eli Lilly is using the huge amounts of cash it is generating from GLP-1 drugs to diversify its drug pipeline.
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NYSE: LLY
Eli Lilly
Premium Feature
Moneyball Superscore
94/100
Today’s Change
(-0.61%) $-7.00
Current Price
$1,142.85
Key Data Points
Market Cap
$1.1TMarket cap calculated using publicly traded s outstanding only. Does not include unlisted, private, or dual-class non-traded s. Implied market cap may vary.
Day’s Range
$1136.66 – $1164.92
52wk Range
$783.85 – $1292.65
Volume
2.1M
Avg Vol
2.5M
Gross Margin
83.40%
Dividend Yield
0.59%
For example, in August 2026, Eli Lilly agreed to acquire Merida Biosciences, which operates in the autoimmune and allergic disease space. In July 2026, it agreed to buy AtaiBeckley, which works in the mental health space. And in May, Eli Lilly acquired three companies, quickly building a division in the infectious-disease space. So not only does this drug maker look resilient to rate increases due to its GLP-1 weight-loss drugs, but it is also quickly building the foundation for even more growth in the future.
Medtronic has turned the corner
Medtronic is a low-risk turnaround story. Over time, the medical device giant’s business got bloated, and growth slowed. Management looked at the situation and took action, slimming down the business to focus on its most profitable and fastest-growing divisions. And it began investing more heavily in new products. The company appears to have turned the corner, but Wall Street remains in a show-me mood. That’s an opportunity for dividend investors, noting the stock’s above-market 3.3% yield.
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NYSE: MDT
Medtronic
Premium Feature
Moneyball Superscore
75/100
Today’s Change
(-0.07%) $-0.06
Current Price
$86.38
Key Data Points
Market Cap
$110BMarket cap calculated using publicly traded s outstanding only. Does not include unlisted, private, or dual-class non-traded s. Implied market cap may vary.
Day’s Range
$85.59 – $87.94
52wk Range
$73.31 – $106.33
Volume
35.4M
Avg Vol
9.5M
Gross Margin
60.56%
Dividend Yield
3.31%
To put some number on the turnaround, Medtronic’s sales grew 8.4% in fiscal 2026. That was the fastest pace of growth in a decade. But it gets better: the first-quarter 2027 sales advance was nearly 14%. The growth is being aided by new products finally hitting the market, including the company’s Hugo surgical robot. Notably, despite a few years of slow growth, the company continued to increase its dividend each year. The streak is up to 49 years, one year shy of Dividend King status. Even risk-averse investors should probably find Medtronic of interest today.
Johnson & Johnson is a diversified Dividend King
Johnson & Johnson is a healthcare giant, operating in both the pharmaceutical and medical device niches. Medtronic, it has been slimming down, spinning off or selling divisions so it can focus on its most profitable and fastest growing businesses. It is a great option for investors who desire broad exposure to the healthcare sector and to own historically well-run businesses.
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NYSE: JNJ
Johnson & Johnson
Premium Feature
Moneyball Superscore
80/100
Today’s Change
(-1.02%) $-2.63
Current Price
$256.03
Key Data Points
Market Cap
$617BMarket cap calculated using publicly traded s outstanding only. Does not include unlisted, private, or dual-class non-traded s. Implied market cap may vary.
Day’s Range
$255.12 – $259.38
52wk Range
$182.94 – $281.07
Volume
10.9M
Avg Vol
7M
Gross Margin
68.03%
Dividend Yield
2.06%
The proof of J&J’s successful history is found in its dividend, which has been increased annually for over six decades. It is a full-on Dividend King, and then some. The yield is 2%, which is notably higher than the market, but not as attractive as what you’d get from Medtronic. However, the added diversification from this historically resilient healthcare giant will ly be appealing to many investors.
You don’t have to wait for a rate hike
The investment thesis behind Eli Lilly, Medtronic, and J&J isn’t based on a rate hike. These are well-run businesses with strong opportunities for growth in just about any environment. You may want to take a deep dive now to get ahead of a rate hike, or simply to own some of the best-run healthcare companies in the world.
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Bristol-Myers Squibb vs. Johnson & Johnson: Comparing Quarterly Revenue Scale
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3 Reasons Johnson & Johnson Is Still a Buy With Its Stock Near a Record High
About the Author
Reuben Gregg Brewer is a contributing Motley Fool stock market analyst covering energy, utilities, REITs, and consumer staples. He is the former director of research at Value Line Publishing, where he rose from mutual fund analyst to equity analyst before leading all research operations. Reuben holds a bachelor’s degree in psychology from SUNY Purchase, a master’s in social work from Columbia University, and an MBA from Regis University. He has been featured as a financial expert on CNBC and in the Financial Times, Barron’s, and InvestmentNews.
Stocks Mentioned
Johnson & Johnson
NYSE: JNJ
$256.03
(-1.02%)-$2.63
Motley Fool Stock Advisor’s Latest Pick
—% Avg Return
Eli Lilly
NYSE: LLY
$1,142.85
(-0.61%)-$7.00
Medtronic
NYSE: MDT
$86.38
(-0.07%)-$0.06
*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.
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