We recently compiled a list of the Jim Cramer’s Latest Game Plan: 20 Stocks to Watch. In this article, we are going to take a look at where Eli Lilly and Company (NYSE:LLY) stands against the other stocks featured in Jim Cramer’s latest game plan.
Jim Cramer, the host of Mad Money, recently advised investors to maintain composure as major companies release their earnings this week. Additionally, he highlighted the significance of the upcoming nonfarm payroll report, set to be released on Friday, which he believes will have considerable implications for interest rates.
He said that weak hiring figures could prompt the Federal Reserve to continue cutting rates. Last Friday, Cramer noted a mixed performance in the markets: the Dow dropped by 260 points, the S&P fell slightly by 0.03%, while the Nasdaq managed a gain of 0.56%. Cramer characterized the current market conditions as a preparatory phase for an eventful week ahead, urging viewers to pay close attention.
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Cramer emphasized the importance of the employment data released on the first Friday of the month, particularly in light of the forthcoming Fed meeting.
“Speaking of employment, on the first Friday of the month, we get the nonfarm payroll report. I can’t stress how important this number is. We have an upcoming Fed meeting and we’re now seeing [that] cyclicals really missed their numbers because of higher interest rates. A lot of them are rolling over. But if employment stays as strong as it’s been, then we’re going to hear that there will be no November rate cut.”
Throughout his commentary, Cramer conveyed a clear message: while it may be tempting to sell, this period aligns with a cycle of Fed rate cuts, suggesting that buying could be the more prudent strategy. He reminded viewers that this week feels charged with significance, likening it to a playoff atmosphere where the stakes are exceptionally high.
In his concluding remarks, Cramer said:
“Bottom line, huge week, huge opportunity. Just please remember, the first move’s been the wrong move, I’d say probably maybe, almost half the time since this earnings season began. Wait to process the numbers, listen to the conference call before you pull the trigger.”
Our Methodology
For this article, we compiled a list of 20 stocks that were discussed by Jim Cramer during his episode of Mad Money on October 25. We listed the stocks in ascending order of their hedge fund sentiment as of the second quarter, which was taken from Insider Monkey’s database of more than 900 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
An array of pharmaceutical pills with the company’s logo on the bottle.
Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders: 100
Regarding Eli Lilly and Company (NYSE:LLY), Cramer previously stated that its peers cannot compete with the amount of firepower it has. This is what he said in the most recent episode:
“Now Wednesday morning, Eli Lilly, one of our best picks for the Charitable Trust… And that’s had quite a run thanks to the GLP-1 weight loss drugs. This morning, Stifel brokerage house put out a note that talks about the impact of these drugs on the food stocks. I think, pretty much everyone else, all the analysts and the people in the food industry, these guys say it’s going to impact the food companies negatively. Well, that means it’s going to impact Lilly positively.”
Eli Lilly (NYSE:LLY) is a leading global pharmaceutical company focused on transforming diabetes care and addressing obesity, along with its serious long-term effects. A significant addition to its portfolio is Zepbound, a novel treatment for obesity that activates specific hormone receptors, representing a fresh approach in the therapeutic landscape. Mounjaro, another key product, is the first approved medication for type 2 diabetes that targets these same receptors, utilizing tirzepatide as its active ingredient.
Recently, Reuters reported that Eli Lilly (NYSE:LLY) plans to launch Mounjaro in Denmark. The pricing for Mounjaro in Denmark is set at DKK 2,200 per month, while competitor Novo Nordisk charges between DKK 1,313 and 2,353 per month for its weight-loss medication Wegovy.
Bloomberg News reported on October 27 that the company expects to introduce Mounjaro in Hong Kong by the end of the year. The Hong Kong government has approved the sale of tirzepatide injections, branded Mounjaro, which will be delivered through a device known as Kwikpen. This approval allows the drug to be marketed for both long-term weight management and the treatment of type 2 diabetes.
Overall LLY ranks 7th on the list of stocks featured in Jim Cramer’s latest game plan. While we acknowledge the potential of LLY as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than LLY but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.