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Markets

LLY

My Top Obesity Stock to Buy and Hold

May 07, 2026 — 05:05 am EDT

Written by

Jeff Siegel for

The Motley Fool->

Key Points

- Eli Lilly's Zepbound is already generating billions of dollars in revenue, making it the clear leader in a rapidly expanding market.

- Lilly’s ability to produce and deliver creates a hurdle that smaller competitors can’t easily overcome.

- The company is positioned to grow into its valuation, making it a compelling choice for investors focused on durability.

- 10 stocks we like better than Eli Lilly ›

If you're looking for exposure to the anti-obesity drug market, you essentially have just two choices: You can chase smaller biotech stocks that might develop the next breakthrough, or you can own the company that's already generating billions of dollars from one.

If your goal is safety and profit, not speculation, the answer is clear: Eli Lilly (NYSE: LLY).

Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »

This is not a future market

The weight management sector is often framed as an emerging opportunity, but that framing is outdated. This is already a commercial market valued in the tens of billions of dollars. And while Novo Nordisk (NYSE: NVO) once was the market leader, Lilly began to dominate it in 2025 due to stronger products and better execution.

Its lead drug, tirzepatide, sold as Zepbound, delivers industry-leading weight-loss results and is rapidly gaining ground for both diabetes and obesity indications. There is no question about whether the product works. The only question is how large the market becomes.

Profitability is already here

Most healthcare growth stories require years of execution before they translate into meaningful earnings. That's not the case here. Eli Lilly is already generating substantial profit from its anti-obesity franchise.

Image source: Getty Images.

In the first quarter of 2026, Lilly reported $7.4 billion in net income, with earnings more than doubling year over year, driven largely by rapid sales growth for its tirzepatide-based drugs.

Although the company does not break out profit by individual product, the magnitude of earnings relative to past periods makes clear that its GLP-1 drug franchise is a primary driver of profitability.

To be sure, growth is tied to volume expansion and strong demand, not just pricing. The result is that Eli Lilly's GLP-1 business is already contributing meaningfully to bottom-line performance, making it a cash-generating engine today rather than a potential star.

It's all about scale

Given the potent demand for GLP-1 drugs, manufacturing capacity, distribution, and global reach are now just as important as clinical results.

Lilly has invested heavily to expand production. That gives it a structural advantage that smaller competitors simply cannot replicate. And even if new drugs enter the market, they still have to be manufactured, distributed, and reimbursed. That takes a lot of time and a lot of capital.

Eli Lilly is already there, and positioned to benefit from continued demand well into the future.

The only real competitive risk might be if Novo Nordisk were to come up with a major breakthrough, but there's been no evidence yet of that.

Of course, no stock is safe in absolute terms. But relative to alternatives in the anti-obesity drug market, Lilly stands out with a diversified pharmaceutical portfolio and strong cash flow across multiple areas. It also funds its own growth internally. Compare that to smaller companies that are pre-revenue, depend on a single drug, and carry clinical and regulatory risk.

If your goal is to speculate on the next weight-loss breakthrough, there are plenty of smaller names to choose from. But if your goal is to own the category leader with real earnings, scalable infrastructure, and durable demand, Eli Lilly is not a tough choice.

Should you buy stock in Eli Lilly right now?

Before you buy stock in Eli Lilly, consider this:

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Now, it’s worth n