Image Source: Pexels

I have repeatedly suggested over the past few months that pharmaceutical companies would be a logical place to invest if the rest of the market began to slow down or hit a rocky patch. It seems I may have been on to something. Eli Lilly & Co. (LLY) reported Q2 earnings and revenue that crushed expectations, highlights Keith Fitz-Gerald, editor of 5 With Fitz.

The company also hiked its full-year revenue outlook by $3 billion. Lilly expects revenue for the year to come in between $45.4 billion and $46.6 billion, an increase of $3 billion at both ends of the range.

Eli Lilly & Co. (LLY)

So, should you buy Lilly? I wouldn’t hold it against you if you did. It’s a great company and a popular choice. Personally, I prefer three other pharma choices because they’ve all got substantially higher True Shareholder Yields, but that’s just me. 

Keep in mind: AI is going to change the business model, so I encourage you to have at least one big pharma choice in your portfolio. Just make it a good one. I think prices move sharply higher over the next few years and, not for nothing, the cold hard cash they kick off in dividends is pretty nifty, too. 

About the Author

 Keith Fitz-Gerald has been called “somebody you should pay attention to” by #1 New York Times bestselling author and personal finance expert Suze Orman, “always insightful” by Constellation Research CEO Ray Wang, and a “market visionary” by Forbes. He has more than 3,000 prime-time appearances to his credit on the Fox Business Network, CNBC, Dubai One, BBC, and other networks around the world. 

Mr. Fitz-Gerald’s commentary and market analysis have been featured in such notable publications as the Wall Street Journal, The Times (of London), Wired, and more. 

He is the principal of the Fitz-Gerald Group which provides consulting services to professional wealth managers and personally writes the popular, free “5 with Fitz” which is read by more than 25,000 individual investors, financial advisors, and hedge fund pros around the world daily. Mr. Fitz-Gerald believes anybody can be wildly successful in the financial markets when armed with the right knowledge, education, and tactics. 

More By This Author: