Unquestionably, the “Magnificent Seven” have reigned over the stock market kingdom, basking in the glory of their stellar performances over the last decade. These illustrious entities – Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla – have flaunted their prowess as pioneers, trailblazers, and constant profit generators within their respective domains.
While the Magnificent Seven’s eminence remains unchallenged, a few other contenders stand ready to be inducted into this esteemed circle, offering promising investment opportunities. If we were to expand this celebrated assembly to a “Magnificent Nine,” there are two exceptional stocks that would seamlessly blend in: Eli Lilly and Netflix.
Unyielding Power of Eli Lilly
Eli Lilly epitomizes the essence of stock market excellence, akin to a mighty dragon ruling its realm. Outshining all but Nvidia in the last decade, this pharmaceutical stalwart owes its success to a dominant presence in the diabetes drug market. Trulicity, a beacon for type 2 diabetes treatment since its U.S. debut in 2014, has been a principal growth driver for Eli Lilly.
Now, Eli Lilly unveils a new gem in its crown: tirzepatide, christened as Mounjaro for diabetes and Zepbound for obesity. Introduced in 2022, tirzepatide has swiftly gained momentum, amassing over $5 billion in revenue in its inaugural full year.
Prognosticators foresee tirzepatide potentially achieving peak sales of $25 billion, riding the wave of a burgeoning anti-obesity drug market. A titan in diabetes care, Eli Lilly competes neck and neck with only one other player, Novo Nordisk; a feat that solidifies Eli Lilly’s place in the “Magnificent Nine.”
Not only is Eli Lilly’s financial performance commendable, with revenue and earnings scaling new heights, but analysts anticipate a staggering 50.7% yearly increase in earnings per share (EPS) over the next five years.
The Resilience of Netflix
Akin to a nimble acrobat navigating turbulent winds, Netflix encountered adversity between 2021 and 2022, only to spring back into action within the last year. While its stock performance over the past decade sits mid-tier among the Magnificent Seven, Netflix has proven its mettle as a pioneer and evident leader in streaming services.
Despite facing a saturated market burgeoning with new rivals, Netflix retains a dominant role in the realm of streaming. As of December, Netflix commanded 8% of U.S. television viewership, second only to Alphabet’s YouTube at 9% – albeit a different playing field.
With streaming constituting a mere 36% of total TV viewership in the U.S., ample room for growth persists. Netflix’s ability to sustain superb financial outcomes, like in the past, augurs well for its future.
Should you invest $1,000 in Eli Lilly right now?
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