Adria Cimino, The Motley Fool
5 min read
The S&P 500 has roared higher over the past three years — and since President Donald Trump’s inauguration in January of last year, the famous benchmark has advanced more than 23%. Investors have rushed to buy high-growth players, particularly in innovative areas such as artificial intelligence (AI) and quantum computing.
And a new batch of growth companies has also rushed to take advantage of investors’ appetite for high-growth stories. AI chip company Cerebras Systems recently completed the biggest initial public offering of the year, Elon Musk’s SpaceX this week aims to launch what may be the largest IPO ever, and AI lab Anthropic earlier this month filed confidentially with regulators for a market debut.
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All of this is fantastic and is supportive of further stock market gains. But… my prediction is the Trump bull market may end soon. The S&P 500 Shiller CAPE ratio shows that stocks remain around their highest valuation level ever, and historically, this has led to declines. Meanwhile, inflationary pressures persist, as we can see through rising energy prices and increases in the Consumer Price Index (CPI).
But here’s some good news: If the Trump bull market ends in the near future, the following two stocks, both on the rise so far this year, will keep winning anyway. Let’s check them out.
1. Eli Lilly
Eli Lilly (NYSE: LLY) is a pharmaceutical giant, selling a wide variety of products that patients need regardless of the economic backdrop. That’s why you can count on a certain level of revenue stability and growth even during tougher times. And today Lilly happens to be the leader in one of the highest-growth healthcare markets: obesity drugs.
Lilly is the maker of the well-known Mounjaro, commercialized for type 2 diabetes, and Zepbound, approved for weight loss. The underlying product is tirzepatide, a drug of the GLP-1 class. These drugs work by interacting with hormonal pathways involved in the digestion process.
Mounjaro and Zepbound are blockbusters, with revenue continuing to climb in the double and triple digits. On top of this, Lilly just released Foundayo, an oral weight loss drug — Mounjaro and Zepbound are injectables. This new product should broaden the addressable market, offering Lilly a new growth driver. And the company aims to further expand this portfolio through its solid pipeline. It recently announced positive phase 3 results for GLP-1 candidate retatrutide, a potential drug that may help patients who aim for greater weight loss.
