Eli Lilly (LLY) Earnings

Eli Lilly (LLY) reported mixed results for Q4, 2024, even though demand for new weight loss and diabetes medications grew. While earnings exceeded Wall Street estimates, sales fell short. Competition and supply chain issues have weighed on the rollout of these new drugs, which Eli Lilly hopes to overcome by greatly increasing production in 2025.

Over the last seven years Eli Lilly’s stock price has appreciated more than 1,000%, potentially leading investors into chasing results. However, pharmaceutical companies like Eli Lilly have complex business models and supply chains, so investors should be wary of trying to time moves in the stock price based on news. Instead, they should be patient with their strategy, knowing that over the long-term diversification and quality are the keys to success.

That’s why diversifying and investing in quality companies is important. While Eli Lilly’s stock has performed very well over the last several years, it’s important to spread risk because things can change quickly in the markets. By diversifying across several companies, industries, sectors, and asset classes, investors can reduce their overall risk without having to track every development in the markets. Remember: with an efficient portfolio, time is more important than timing.

The opinions expressed herein reflect the opinions of Linden Thomas Advisory Services, LLC (LTAS), and are subject to change without notice. Past performance is no guarantee for future results. The securities referenced in the article are not a solicitation or recommendation to buy, sell or hold securities. Upon request, free of charge, LTAS can provide a list of all portfolio holdings held in its portfolio for the past year.”