1 Reason to Buy Eli Lilly Hand Over Fist Before the New Year

Eli Lilly (NYSE: LLY) stock recently reached a big milestone, surpassing the level of $1,000. This wasn't too much of a surprise as the shares have marched higher in recent years thanks to the company's strengths in a high-growth area: the weight loss drug market. Demand for these drugs has been so strong that they even spent last year on the U.S. Food and Drug Administration's shortage list.

Though Lilly stock has climbed more than 100% over the past three years, I think it still has room to run in both the short term and the long term. Let's check out one big reason to buy Eli Lilly shares hand over fist before the new year.

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Mounjaro and Zepbound

Before we dive in, a quick note on the weight loss drug portfolio that's been driving considerable gains. Lilly sells tirzepatide, commercialized as Mounjaro for type 2 diabetes and as Zepbound for weight loss -- though doctors have been known to prescribe either one for weight loss. These drugs are dual GIP/GLP-1 receptor agonists -- as they act on two hormones involved in digestion, they help control blood sugar levels and appetite. And the result is impressive levels of weight loss.

Mounjaro and Zepbound are injectables, like rival drugs Ozempic and Wegovy, made by Novo Nordisk. The two pharma giants dominate the market, and their drugs have delivered significant growth in recent years -- and this continues. For example, volume growth for blockbusters Mounjaro and Zepbound pushed Lilly's third-quarter revenue to a gain of more than 50%.

Now, let's consider one reason to buy Lilly stock now, before the end of the year. And the reason for this has to do with a new growth driver that may supercharge revenue as of 2026. I'm talking about Lilly's potential weight loss pill, orforglipron. The company recently reported data from successful late-stage clinical trials and said it aims to apply for regulatory review in obesity before the end of this year.

Investing in manufacturing

Lilly recently announced billion-dollar investments in manufacturing capacity in Puerto Rico and in Europe to support the production of orforglipron as well as other oral medications. So, Lilly is preparing the terrain for the launch and production of this new product.

Orforglipron would be the world's first oral GLP-1 receptor agonist that doesn't require any dietary restrictions. It could be an important product because it offers advantages, such as easier storage than an injectable, as well as more freedom for patients -- it's easier to take a pill on the go than it is to carry around injectable products.

Of course, patients who are happy with their current injectables may stick with those, but an oral option could broaden the company's addressable market.

This momentum may start with a possible approval for orforglipron in 2026, making now a great time to buy Lilly shares hand over fist.

Adria Cimino has no position in any of the stocks mentioned. The Motley Fool recommends Novo Nordisk. The Motley Fool has a disclosure policy.