{"id":462391,"date":"2026-02-06T14:08:32","date_gmt":"2026-02-06T14:08:32","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/462391\/"},"modified":"2026-02-06T14:08:32","modified_gmt":"2026-02-06T14:08:32","slug":"eli-lilly-soared-by-39-in-2025-but-heres-another-healthcare-stock-to-buy-in-2026-6","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/462391\/","title":{"rendered":"Eli Lilly Soared by 39% in 2025, but Here’s Another Healthcare Stock to Buy in 2026"},"content":{"rendered":"

Eli Lilly is riding the GLP-1 gravy train, while this competitor is struggling to get on board.<\/p>\n

Eli Lilly’s (LLY<\/a> 7.79%) share price jumped 39% in 2025, driven by investors eager to benefit from the success of the company’s GLP-1 drugs, Mounjaro (for diabetes) and Zepbound (for weight loss). That said, the company’s position at the top of the GLP-1 heap isn’t guaranteed, with Novo Nordisk (NVO<\/a> 8.16%) beating Eli Lilly to market with a GLP-1 pill. If you are looking at Eli Lilly, you might want to consider a pharmaceutical stock like Pfizer (PFE<\/a> 1.08%), which is relatively unloved right now, instead. Here’s why.<\/p>\n

Eli Lilly won’t always be on top<\/p>\n

The pharmaceutical sector is highly competitive and driven by innovation. GLP-1 weight loss drugs are a perfect example<\/a>. Novo Nordisk was first to market with a GLP-1 shot. Eli Lilly’s GLP-1 shots were better received by the market and quickly became the leading options. In early 2026, however, Novo Nordisk was first to market with a GLP-1 pill, which could give it a chance to win back market share. Eli Lilly plans to bring out its own pill, so Novo Nordisk’s advantage could be short-lived.<\/p>\n

\"Two<\/p>\n

Image source: Getty Images.<\/p>\n

That said, after a strong price advance driven by the excitement around GLP-1 drugs, Eli Lilly’s valuation seems stretched. The stock’s price-to-earnings ratio is a lofty 50. For comparison, the S&P 500 index, which is trading near all-time highs, has a P\/E of 28. If valuation matters to you<\/a>, you’ll probably be better off with a competitor like Pfizer, which is relatively unloved.<\/p>\n

Pfizer is playing catch-up<\/p>\n

Pfizer’s internally developed GLP-1 drug didn’t pan out and had to be abandoned. That’s bad and helps explain why investors have been less than positive about the company’s future, noting that its P\/E ratio is just 15. However, Pfizer has a long and successful history in the drug sector. It may not be the most innovative company right now, but history suggests it will, eventually, develop new and exciting blockbuster drugs.<\/p>\n

\"Pfizer<\/p>\n

Today’s Change<\/p>\n

(-1.08%) $-0.29<\/p>\n

Current Price<\/p>\n

$26.49<\/p>\n

Key Data Points<\/p>\n

Market Cap<\/p>\n

$151B<\/p>\n

Day’s Range<\/p>\n

$26.46 – $27.19<\/p>\n

52wk Range<\/p>\n

$20.91 – $27.69<\/p>\n

Volume<\/p>\n

268K<\/p>\n

Avg Vol<\/p>\n

59M<\/p>\n

Gross Margin<\/p>\n

76.10%<\/p>\n

Dividend Yield<\/p>\n

6.49%<\/p>\n

Notably, its GLP-1 setback was quickly followed up by the acquisition of a company with a promising GLP-1 pipeline and a partnership to distribute a Chinese company’s GLP-1 pill if it is approved. In other words, Pfizer isn’t giving up; it is adjusting just like it always has.<\/p>\n

If you don’t mind a turnaround story<\/a>, Pfizer’s relatively attractive valuation could be a much better option than richly priced Eli Lilly. And it is important to remember that new drugs are only given a time-limited patent to protect them. So, by design, Eli Lilly’s GLP-1 opportunity will not last forever.<\/p>\n

Reuben Gregg Brewer<\/a> has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Pfizer. The Motley Fool recommends Novo Nordisk. The Motley Fool has a disclosure policy<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"Eli Lilly is riding the GLP-1 gravy train, while this competitor is struggling to get on board. Eli…\n","protected":false},"author":2,"featured_media":462392,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[34],"tags":[64,63,137,500],"class_list":{"0":"post-462391","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-healthcare","8":"tag-au","9":"tag-australia","10":"tag-health","11":"tag-healthcare"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/462391","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=462391"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/462391\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/462392"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=462391"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=462391"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=462391"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}