Eli Lilly and Chewy Showcase Strong Growth Potential

Stock Analysis: Eli Lilly and Chewy are highlighted as top growth stocks. Their recent performance and strategic expansions suggest favorable long-term prospects for investors.

Date: 02-02-2025

AI Rating: 7

Overview of Eli Lilly
Eli Lilly has demonstrated significant growth in revenue and net income. Over the past decade, its annual profitability increased by approximately 118%, while revenue grew by 71%. In the first nine months of 2024, Eli Lilly reported about $32 billion in revenue, marking a 27% increase year-over-year, with net income of approximately $6.2 billion, double its prior year’s profits. The company's diverse product portfolio, especially its successful GLP-1 drugs, positions it strongly in the market.

Overview of Chewy
Chewy, primarily known for its pet e-commerce platform, has also been showing promising growth. In its third quarter of 2024, Chewy's Autoship segment accounted for 80% of its $2.3 billion in net sales, reflecting a 9% increase from the previous year. The company is capitalizing on a significant market opportunity as it expands into in-person vet clinics, which could enhance brand visibility and drive e-commerce sales.

Revenue Growth
Eli Lilly's anticipated revenue increase of 32% for 2024 compared to 2023 showcases its strong market position. Chewy's focus on non-discretionary purchases, along with the growth of its active customer base, further solidifies its positive revenue outlook. Both companies appear to be prioritizing revenue growth, with Eli Lilly benefiting from the approval of new drugs and Chewy expanding into vet services.

Net Income
Eli Lilly's significantly increased net income, comparing favorably with prior periods, highlights its operational efficiency and profitability potential. Chewy's net income of approximately $4 million in Q3 2024, albeit modest, indicates continued resilience in a challenging market.

Conclusion
Both Eli Lilly and Chewy exhibit promising indicators of revenue growth and net income, suggesting that if these trends continue, they could positively affect their stock prices moving forward.

Stocks: LLY CHWY