Missed Out on Eli Lilly? This GLP-1 Stock Could Be a Bargain Buy.
Key Points
Eli Lilly's stock trades at more than 30 times forward earnings, which is a steep price to pay right now.
Amgen is a much cheaper option by comparison.
It also has a promising GLP-1 treatment in MariTide, which may only need to be taken quarterly.
- 10 stocks we like better than Amgen ›
Eli Lilly (NYSE: LLY) is the most valuable healthcare company in the world, with a market cap of around $950 billion. In the past five years, the stock price has soared an incredible 400%, thanks in large part to the surging popularity of its GLP-1 drugs, Mounjaro (approved for diabetes) and Zepbound (approved for weight loss).
If you're worried you missed the boat on Eli Lilly, you shouldn't be, as there are other healthcare companies involved in the development of GLP-1 drugs, which could generate some strong growth in the future. One stock you'll want to keep an eye on is Amgen (NASDAQ: AMGN).
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Image source: Getty Images.
Why Amgen could be an underrated stock in the GLP-1 race
Amgen is developing a promising GLP-1 drug, MariTide, which is an injectable treatment that can be taken just once a month. Mounjaro and Zepbound are both weekly injectables. And while there is excitement around pills, those typically need to be taken on a daily basis. MariTide may offer a more convenient option for people. Amgen CEO Bob Bradway says the data suggests it may even need to be less frequently -- perhaps on a quarterly basis.
While many people may prefer pills over injectables, if using MariTide means just using the treatment four times a year, that might be a preferred option for a big slice of the market. In clinical trials, MariTide has shown that it can help people lose up to 20% of their body weight over a 52-week period, which is comparable to the currently approved GLP-1 treatments.
Amgen is a fairly valued stock that could have plenty of room to run
If MariTide, which is currently in phase 3 trials, ends up obtaining approval, there could be a ton of upside for Amgen's stock. In the past five years, it has risen by a relatively modest rate of 34%. And it trades at a forward price-to-earnings (P/E) multiple of 16, based on analyst expectations. By comparison, investors today are paying a forward P/E of 32 for Eli Lilly stock.
Amgen is a cheap buy in comparison to Eli Lilly, and with a possible catalyst that could drive its share price much higher, it could make for an appealing healthcare stock to buy right now. The GLP-1 drug market could be worth more than $150 billion within a decade; there's plenty of room for Eli Lilly and other companies to carve out some significant market share.
Should you buy stock in Amgen right now?
Before you buy stock in Amgen, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Amgen wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $461,527!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,155,666!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 197% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of January 28, 2026.
David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amgen. The Motley Fool has a disclosure policy.
Recommended Articles
