Will AI create the world’s first trillionaire? Our team just released a report on a little-known company, called an “Indispensable Monopoly,” providing the critical technology Nvidia and Intel both need. <\/p>\n
Continue \u00bb<\/a> <\/p>\n The problem with Eli Lilly is the stock’s valuation. The stock’s price-to-earnings ratio is 34x. While that’s down from the five-year average of 56x, it is far above the pharmaceutical industry average of 23x. Investors are still pricing in a lot of positive news for Eli Lilly, which makes struggling Novo Nordisk and Pfizer look like they have much more upside potential.<\/p>\n Novo Nordisk is catching up <\/p>\n Novo Nordisk was the first to market with a GLP-1 drug, but Eli Lilly’s entrants proved more effective. That allowed Eli Lilly to pull ahead in the new, fast-evolving pharmaceutical<\/a> niche. But Novo Nordisk just beat Eli Lilly to market with a GLP-1 pill, and the pill has quickly gained traction, with 1.3 million prescriptions in the first quarter following its launch. The big story, however, is that Novo Nordisk’s GLP-1 pill appears to have a greater impact on weight loss than Eli Lilly’s recently launched pill.<\/p>\n That suggests Novo Nordisk could regain share in the GLP-1 space. In fact, the success of the company’s GPL-1 pill was so strong that the company increased its full-year 2026 guidance. Meanwhile, the shares offer a very attractive 4% dividend yield. By comparison, Eli Lilly’s yield is a miserly 0.7%. Notably, Novo Nordisk’s payout ratio is a very reasonable 40%. Conservative dividend investors looking for a turnaround stock should probably do a deep dive.<\/p>\n Pfizer isn’t even in the race… yet <\/p>\n If GLP-1 drugs are the main event, then Pfizer hasn’t received an invitation to the show yet. It had to drop its GLP-1 drug candidate, which further increased investor concerns about the company’s upcoming patent expirations. However, the company has a long and successful history and remains an industry-leading drug maker. It quickly pivoted, acquiring a company with an attractive GLP-1 drug candidate. And it has oncology and migraine drugs in the works, as well.<\/p>\n Story Continues <\/p>\n Drug development efforts and patent expirations don’t always line up perfectly. Given enough time, Pfizer will likely get back on track. That should prompt investors to return to the stock, pushing the price higher. Meanwhile, the dividend yield is a lofty 6.5% for those willing to take on more risk. The payout ratio is above 100%, but management states that its goal is to maintain it in the short term and to start growing the dividend again over the long term.<\/p>\n Too much love versus too little love <\/p>\n Wall Street has a bad habit of piling into a good story, pushing valuations to extremes. That appears to be what is happening with Eli Lilly right now. Long-term investors should probably tread with caution. A better option might be Eli Lilly and Pfizer, both of which are deeply unloved. There are reasons investors are avoiding these two drug stocks, but the negative sentiment may be overdone. And that suggests they could have more upside than already-richly priced Eli Lilly.<\/p>\n Should you buy stock in Eli Lilly right now? <\/p>\n Before you buy stock in Eli Lilly, consider this:<\/p>\n The Motley Fool Stock Advisor analyst team just identified what they believe are the\u00a010 best stocks<\/a> for investors to buy now\u2026 and Eli Lilly wasn\u2019t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.<\/p>\n Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation,\u00a0you\u2019d have $476,034!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you\u2019d have $1,274,109!*<\/p>\n Now, it\u2019s worth noting\u00a0Stock Advisor\u2019s total average return is 974% \u2014 a market-crushing outperformance compared to 206% for the S&P 500.\u00a0Don’t miss the latest top 10 list, available with\u00a0Stock Advisor, and join an investing community built by individual investors for individual investors.<\/p>\n See the 10 stocks \u00bb<\/a><\/p>\n *Stock Advisor returns as of May 7, 2026. <\/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![\"A](\"https:\/\/www.europesays.com\/dk\/wp-content\/uploads\/2026\/05\/b0b2fc7761bd860640ed5b6f85317b5b.jpeg\")
Image source: Getty Images. <\/p>\n