Eli Lilly and Company (LLY): Jim Cramer's "Bullish" On News Of Tariffs

We recently published 10 Stocks That Jim Cramer Talked About. Eli Lilly and Company (NYSE:LLY) is one of the stocks Jim Cramer recently discussed.

Eli Lilly and Company (NYSE:LLY) is one of Cramer’s top pharmaceutical stocks. While the firm’s weight loss drugs are one reason the CNBC TV host likes it, he’s also bullish on Eli Lilly and Company (NYSE:LLY) due to the firm’s robust drug pipeline and its plans to set up a robust manufacturing base in America. During this show, Cramer discussed how US tariffs on European pharmaceutical firms could help Eli Lilly and Company (NYSE:LLY) in the weight loss drug industry due to challenges for rival Novo Nordisk:

“[If market should start thinking about sectoral tariffs after Trump’s latest remarks] I mean when I heard it first I said okay, so they put a tariff on Novo Nordisk. It’s really good for Eli Lilly. Now that’s not necessarily what we’re talking about but remember this price differential right now. . CVS, Eli Lilly versus Novo. So for Wegovy versus Zepbound. Be interesting to see what happens,  I think it’s very bullish for Eli Lilly.”

In an earlier appearance, Cramer discussed an Achilles Heel for Eli Lilly and Company (NYSE:LLY)’s weight loss drugs:

“What I’m thinking, as someone who owns Eli Lilly for the Charitable Trust and who wishes I owned PepsiCo, is that there might be a short-term peak in the use of these drugs (GLP-1s). The Achilles heel of these drugs is that they’re too effective. At some point, you lose enough weight, and you might think you can stop taking them… Whatever the case, if Eli Lilly is going to break out from this level, it needs breakthroughs in new areas, heart, brain, that it just doesn’t have right now, or there has to be some new data that shows something else positive that the GLP-1 drugs can do.

And of course, it’s got to start coming in pill form because people are tired of taking needles. I still like the stock of Eli Lilly. We have a huge gain in this one for the Charitable Trust. We’re going to hang on to it for now. But PepsiCo’s breakout, a lack of Lilly’s breakthroughs, and a reminder that at one point we were thinking of buying the airlines because of these GLP-1 drugs means that I no longer feel as certain about Lilly’s future without science that says these drugs do a lot more than just control diabetes and make you lose some weight.”

While we acknowledge the potential of LLY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.