Nvidia has been an incredible stock to own over the past few years, generating incredible returns for investors. But the risk is that expectations are too high for the title, particularly with regard to artificial intelligence (AI). This means the stock could be vulnerable to a selloff if reality doesn’t match the sky-high expectations that investors and consumers have created for AI.
The future of AI is difficult to predict. What is much more predictable are health care needs and the growing demand that will come from a larger and aging population. And in this sense, investors might be better off considering investing in unstoppable projects. health care actions which are poised for strong growth in the years to come. Elie Lilly (NYSE:LLY), Novo Nordisk (NYSE:NVO)And UnitedHealth Group (NYSE:UNH) may be safer growth stocks than Nvidia for investors. Here’s why these stocks look so attractive right now.
1. Eli Lilly
Eli Lilly has become the world’s most valuable healthcare stock with a market capitalization of around $700 billion. But there is still a lot more room for its value to increase, for two big reasons: Mounjaro and Zepbound. The first is its diabetes medicine and the second is its weight loss medicine. Both are essentially the same because they contain the active ingredient tirzepatide, but they are approved for different indications. Together, they could generate at least $50 billion in annual sales at their peak. For a company that reported $34 billion in revenue for all of last year, that could represent incredible growth on the horizon for Eli Lilly.
And there are many obesity-related conditions and diseases that could benefit from tirzepatide, meaning it’s possible it could gain approval for more indications, leading to even greater benefits. For example, in a clinical trial, tirzepatide was shown to be effective in treating steatohepatitis associated with metabolic dysfunction, a form of fatty liver disease.
On top of that, there’s also Eli Lilly’s early-stage Alzheimer’s treatment, donanemab, which could get approval from the Food and Drug Administration (FDA) later this year, and that too could be a blockbuster drug and generate billions in revenue for the company.
Eli Lilly shares aren’t cheap, trading at more than 120 times current earnings. But with so much growth on the horizon, it could still be a fantastic long-term buy. The healthcare stock could be the first to reach a $1 trillion market cap. There is a significant need to treat Alzheimer’s disease, obesity, and diabetes, and if the company can have products that can help all of these areas, then Eli Lilly could truly be an unstoppable stock to own for the long term. term.
2. Novo Nordisk
Novo Nordisk is similar to Eli Lilly in that it offers a few top-notch treatments for diabetes and weight loss. Although it is approved for diabetes, Ozempic is popular on social media for its ability to help people lose weight. Wegovy is the company’s rising star…
