Is Eli Lilly Stock a Buy Right Now?

Core Viewpoint - The pharmaceutical sector is at risk of facing new tariffs from the Trump administration, which has already caused investor anxiety despite no direct impact yet [1][2]. Industry Summary - The pharmaceutical industry, particularly companies like Eli Lilly, is bracing for potential tariffs that could increase costs for raw materials sourced overseas [4][5]. - The uncertainty surrounding tariffs has made investors jittery, affecting stock performance and market sentiment [2][3]. Company Summary: Eli Lilly - Eli Lilly has been a strong performer in the pharmaceutical sector, primarily driven by its GLP-1 medications, Mounjaro and Zepbound, which compete with Novo Nordisk's products [7]. - The company also has a promising cancer drug, Verzenio, which has received multiple FDA approvals, expanding its oncology market opportunities [8]. - Eli Lilly's recent FDA approval for its Alzheimer's medication, Kisunla, positions it well in a fragmented market expected to grow significantly [9][10]. - Despite the potential for increased operating expenses and profit margin compression due to tariffs, the long-term outlook for Eli Lilly remains positive due to its diversified portfolio and growth opportunities [6][15]. Investment Considerations - Current market conditions suggest that investing in Eli Lilly may require a long-term perspective, as short-term volatility is anticipated due to potential tariff impacts [12][14]. - A strategy of dollar-cost averaging is recommended for long-term investors to mitigate risks associated with price fluctuations [14].