Key Points
Eli Lilly has been a growth beast, coming off an impressive year in which its revenue rose by 45%.
Viking Therapeutics has an exciting GLP-1 drug in development that, if approved, could send its shares skyrocketing.
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The most exciting opportunity in healthcare these days is in the GLP-1 market, where many companies are developing weight-loss drugs that could generate billions in revenue. Below, I’ll look at two promising stocks in this space: Eli Lilly (NYSE: LLY), which is a behemoth with a strong track record, and Viking Therapeutics (NASDAQ: VKTX), which is much smaller in valuation but may have tremendous upside.
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The case for Eli Lilly
Eli Lilly is a relatively safe stock to own. Unlike Viking, it already generates billions in revenue and has multiple approved GLP-1 products, including Mounjaro and Zepbound. Regulators also recently approved its weight loss pill, Foundayo, which is likely to be yet another incredible moneymaker for its business.
The healthcare company is raking in revenue, and its profits have been soaring in the process. In 2025, its sales rose by 45%, totaling more than $65 billion. Its net income was just under $21 billion, for an impressive profit margin of around 32%.
The business is also far bigger than just its GLP-1 drugs. In 2024, the Food and Drug Administration approved its Alzheimer’s drug, Kisunla, which also may bring in billions for the company. Plus, the company has partnered with tech giant Nvidia to create an artificial intelligence factory to bring new drugs to market more quickly.
Eli Lilly is a growth beast that shows no signs of slowing down. It’s effectively the default option for any serious growth investors looking at the healthcare sector.
The case for Viking Therapeutics
Viking is a fairly small company, with a market cap of just $4 billion — that’s a tiny fraction of Eli Lilly’s $830 billion valuation. While Eli Lilly is doing well, it should be doing well given that kind of market cap. Viking is riskier, but it could become much more valuable if its GLP-1 drug, VK2735, receives approval. Healthcare giant Pfizer recently agreed to pay up to $10 billion for Metsera, which doesn’t have an approved GLP-1 drug just yet. If VK2735 gets across the finish line, large healthcare companies could be lining up to buy Viking’s business.
VK2735 has been doing well in clinical trials, with patients losing around 15% of their weight after just 13 weeks on the injectable treatment. The oral version of the drug has also been impressive, with patients losing up to 12% of their weight in a recent trial. The injectable version of VK2735 is already in phase 3 trials, while the oral drug is expected to begin phase 3 trials later this year.
While Viking’s business doesn’t generate any revenue today, its prospects for growth and profitability would change drastically if VK2735 receives approval.
Which stock is the better buy for the long haul?
I like both of these stocks and believe they can be good buys, but choosing the best one for your portfolio will ultimately depend on your risk tolerance. If you are risk-averse and want a solid, safe stock to own, then the choice is easy: Eli Lilly.
But if you’re OK with taking a moderate amount of risk, then Viking Therapeutics may be the better option right now. Eli Lilly’s stock is safer, but at more than 40 times earnings, it is expensive, and its upside may be limited if you’re buying it at these levels. You may secure some modest returns, but the bigger payoff may come from Viking Therapeutics — if VK2735 obtains approval. That is, of course, by no means a certainty. But given how well the drug has been performing in clinical trials, I think there’s a good chance it gets across the finish line. When that happens, not only could the stock soar, but other healthcare companies may start a bidding war for the business.
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David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia and Pfizer. The Motley Fool recommends Viking Therapeutics. The Motley Fool has a disclosure policy.
