LLY Faces Setbacks, but the Investment Thesis Still Holds
It’s no secret that big pharmaceutical companies like $Eli Lilly(LLY)$ need to get regulators to agree that their drugs are safe and effective before they can make money. But regulators aren’t the only group companies need to appease before shareholders see returns.On October 23, Eli Lilly’s Alzheimer’s drug Kisunla was approved in the UK by the Medicines and Healthcare Products Regulatory Agency (MHRA), following in the footsteps of the US Food and Drug Administration (FDA) and Japanese regulators. UK regulators agreed with clinical trial results that showed the drug was somewhat effective in slowing or stopping the rate of cognitive decline associated with the disease for up to about seven months. They also found that treatment-related side effects,
$GLOBAL X DOW 30® COVERED CALL ETF(DJIA)$ is unique, featuring only 30 stocks and being a price-weighted index. As one of the major U.S. stock indices, it offers a solid starting point for dividend stock investors, including strategies like buying the top 10 highest-yielding stocks, often referred to as "Dogs of the Dow."Currently, the top three dividend-paying stocks in the Dow are $Verizon(VZ)$$Dow Chemical(DOW)$$Chevron(CVX)$. These companies offer attractive dividends, but it's essential to consider their individual risk factors before diving in.1. $Verizon(VZ)$ : A Key Player w
MSFT & JNJ - Only Two U.S. Stocks Rated Higher Than the Government
In August 2011, just a few years after the financial crisis, Standard & Poor’s downgraded the U.S. credit rating from AAA (the highest rating) to AA+ (the second highest). Then, in August 2023, Fitch followed suit, lowering the U.S. from AAA to AA+. Both S&P and Fitch still see the U.S. as having an extremely low risk of default, but that top-tier status is undeniably gone.Many U.S. companies have faced a similar fate. Back in 1980, around 60 publicly traded companies held AAA credit ratings. After more than four decades of acquisitions, mergers, bankruptcies, innovation, and economic shifts, only two companies still hold this perfect rating: tech giant $Microsoft(MSFT)$ and healthcare powerhouse $John
In the stock market, you don’t need to bet everything on expensive stocks to invest in quality companies. There are still solid options available at reasonable prices, like $Exelixis(EXEL)$ , which is currently trading below $40.Major Wins for ExelixisExelixis is a biotechnology company focused on oncology, with its most important product being Cabometyx, used to treat renal cell carcinoma (a type of kidney cancer) and hepatocellular carcinoma (liver cancer).Cabometyx has been the cornerstone of Exelixis’s revenue for some time. In Q2, its revenue grew 35.6% year-over-year, reaching $637.2 million. Cabometyx alone accounted for $437.6 million in the U.S., making up nearly 69% of the company's total revenue.While relying heavily on one product carr
Meta Earnings Preview: New Growth Amid Profit Pressure?
On October 30, $Meta Platforms, Inc.(META)$ will release its Q3 2024 earnings report. Overall, the results are expected to be solid, offering enough reasons for the stock to maintain its strength—at least on the surface.But beyond logic, other forces are driving the stock and market. Even though Meta might continue showing decent relative growth, analysts aren’t optimistic about further gains. Why? Revenue growth is slowing, expenses are rising, and the stock is already hitting record highs.2025 Outlook: AI Investments and Growth SlowdownOnce 2025 comes into focus and massive AI investments start weighing on the balance sheet, things won’t be so easy. Revenue growth is naturally slowing after the strong gains of the past two years. Meta’s path for
Many healthcare stocks offer attractive dividends, but some high-yield options are worth considering, while others come with higher risks.1. $Pfizer(PFE)$ Some investors might think Pfizer is a stock to avoid, especially after its recent performance. The stock has dropped over 50% from its late 2021 peak, and though it has seen a slight recovery this year, it lags far behind $.SPX(.SPX)$ .The main reason for Pfizer's struggles? Its COVID-19 vaccine, Comirnaty. It generated $37.8 billion in sales in 2022 but is expected to drop to just $5 billion by 2024. Plus, Pfizer faces a looming patent cliff, with multiple drug patents expiring soon.Despite these challenges, Pfizer's forward dividend yield is a solid 5
OKLO Stock Soars 175% in 22 Days, on the Back of Altman
Ryan_Z0528: +175% on $OKLO in 22 Days , The electricity value train:https://x.com/EricFlaningam/status/1848009956961685536 Investors are flocking to power-related stocks, and California-based advanced nuclear systems developer $Oklo Inc.(OKLO)$ has seen its stock price double, skyrocketing by 115% to a record high of $19.72, peaking at $20.64 and giving it a market cap of over $2.4 billion.Oklo went public in May through a merger with the special purpose acquisition company (SPAC) AltC Acquisition, experiencing volatile stock movements since then. The nuclear stock had fallen to a low of $5.35 on September 9 but has jumped over 200% in the past six weeks.Oklo is working on developing small modular reactors (SMRs) and plans to deliver its first rea
The GLP-1 weight-loss drug market is massive, but the competition is fierce. Instead of joining the race, Swiss pharma giant $Novartis AG(NVS)$ is playing it smart, focusing on more strategic growth areas.Novartis is sticking to what it’s good atCEO Vas Narasimhan recently said in an interview that the company has no plans to jump into the "crazy" weight-loss market, claiming they’ve got better options. He’s aiming to invest in projects with bigger potential payoffs, like radioligand cancer therapies, which could bring in up to $20 billion.Novartis is also eyeing other opportunities in treatments for Parkinson's, Huntington's, and Alzheimer’s diseases. Compared to the ultra-competitive weight-loss field, these areas might offer more solid ground fo
Should Be Cautious or Enter as Lilly's Valuation Grows?
$Eli Lilly(LLY)$ is now one of the most valuable healthcare companies globally, boasting a market cap of over $800 billion. With its stock price surging more than 50% in the past 12 months, some investors may feel hesitant due to its price-to-earnings (P/E) ratio exceeding 100 times. However, there are strong reasons to consider Eli Lilly despite the high valuation. Here are three factors that suggest its valuation could continue to climb in the coming months and years:1. Tirzepatide's Undervalued PotentialEli Lilly has seen major success with FDA approvals, notably for the weight-loss drug Zepbound and the diabetes drug Mounjaro, both containing the same active ingredient: tirzepatide. These drugs are in the early stages of their growth cycles, an
Historically, small-cap stocks have thrived once the Fed begins cutting rates. Globally, markets in Japan, China, and the UK currently offer attractive valuations, providing interesting opportunities for investors.Small and Mid-Cap Stocks: Poised for GainsAccording to Brian G. Belski, chief investment strategist at BMO Capital Markets, valuations for small-cap and mid-cap stocks are appealing for investors looking to increase exposure. Data shows that small-cap stocks (S&P SmallCap 600) are still trading below their 20-year average, while mid-cap stocks (S&P MidCap 400) are only slightly above it. In contrast, the $.SPX(.SPX)$ is trading well above its 20-year average.Since 1995, in the year following the Fed’s first rate cut, the S&P