Is Eli Lilly and Company (LLY) the Best Stock That Will Always Grow?

We recently published a list of 10 Best Stocks That Will Always Grow. In this article, we are going to take a look at where Eli Lilly and Company (NYSE:LLY) stands against other best stocks that will always grow.

The Looming Risk of a Recession in the US

Threats of an impending recession are looming over the stock market due to Trump’s tariffs and macroeconomic uncertainty. According to CNBC’s quarterly CFO Council Survey for Q1 2025, a majority of chief financial officers are of the opinion that the economy is likely to fall into a recession in H2 2025. The CFOs said that they were generally “pessimistic” about the overall state of the American economy, and expressed uncertainty about the stock market.

The survey also showed that 95% of the CFOs claimed that their ability to make business decisions is being affected by policy, and a significant number said that although the Trump administration is “delivering on promises,” the government’s dealing with such matters is proving disruptive, extreme, and too chaotic. This is causing considerable difficulty to businesses looking to effectively navigate the present challenges. Therefore, around 60% of the CFOs opined that they expect a recession to materialize in H2 2025; another 15% said that it may appear in 2026.

CNBC reported on April 16 that Fed Chair Jerome Powell announced the day before that the central bank may be caught at the crossroads of supporting economic growth and controlling inflation. He said that although he anticipates lower growth and increased inflation, it is uncertain where the Fed will need to focus its attention. In prepared remarks before the Economic Club of Chicago, he said:

“We may find ourselves in the challenging scenario in which our dual-mandate goals are in tension. If that were to occur, we would consider how far the economy is from each goal, and the potentially different time horizons over which those respective gaps would be anticipated to close.”

Powell also did not give any indication of where interest rates could be headed, but remarked that:

“For the time being, we are well positioned to wait for greater clarity before considering any adjustments to our policy stance.”

READ ALSO: 15 Best Blue Chip Stocks to Buy According to Billionaires and 11 Best Retail Stocks to Buy Right Now.

Are the Stagflation Risks Real?

On April 17, Joyce Chang, JPMorgan chair of global research, appeared on CNBC’s ‘Closing Bell Overtime’ to talk about Powell’s latest comments and the looming risk of recession. She was of the opinion that the risk of the recession is hovering over the stock market even with Trump’s 90-day tariff delays at around 60%.

Chang said that PCE inflation is coming towards 4% over the next year, with growth flat at the end of the year. While a recession is not imminent, as some of the hard data is still looking relatively healthy, with higher inflation, flat growth, and still very high fiscal deficits, one has to highlight that the stagflation risks are very real. The uncertainty would continue and is highly unlikely to be over after 90 days.

Since current and future market conditions reflect volatility and uncertainty, let’s examine the 10 best stocks that might always grow, even in an economic downturn.

Our Methodology

We sifted through stock screeners, financial media reports, and ETFs to compile a list of 20 recession-proof stocks with a 10-year revenue growth rate of 8%-15% and chose the top 10 most popular among hedge funds as of Q4 2024. The list is ordered in ascending order of hedge fund sentiment. We sourced the hedge fund sentiment data from Insider Monkey’s database.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

Eli Lilly and Company (NYSE:LLY)

Number of Hedge Fund Holders: 115

Eli Lilly and Company (NYSE:LLY) develops, manufactures, discovers, and sells pharmaceutical products. These products span oncology, diabetes, immunology, neuroscience, and other therapies. Investors are bullish on Eli Lilly and Company (NYSE:LLY) due to its in-demand GLP-1 drugs, used to treat diabetes and obesity, which are still in their early growth stages, and the company’s strong financials.

On April 21, Evan Seigerman, an analyst from BMO Capital, maintained a Buy rating on the company with a $900.00 price target. The analyst opined that Eli Lilly and Company’s (NYSE:LLY) strong position in the pharmaceutical industry supports this buy rating. The company is also preparing for the launch of Orforglipron, which is a promising medication for obesity and type 2 diabetes and brings a positive light to its future operations. The company is ready to satisfy market demand with a notable inventory build-up. The analyst said that this preparation, combined with an anticipated high gross margin, points towards considerable revenue potential for the product.

Eli Lilly and Company (NYSE:LLY) also decided to strategically manufacture the drug’s active pharmaceutical ingredient in the US, relieving it from tariff-related pressures and bolstering its market position. The analyst further remarked that the company has a robust pipeline and a strong oncology franchise, which is expected to support sustained growth and the overall positive outlook for its financial performance. Eli Lilly and Company (NYSE:LLY) is the second best stock that will always grow.

Aristotle Atlantic Partners, LLC highlighted LLY in its Q4 2024 investor letter. Here is what the firm said:

“Eli Lilly and Company (NYSE:LLY) contributed to performance in the fourth quarter. While shares underperformed, our underweight position versus the benchmark resulted in a positive contribution to relative returns. Lilly shares were weak following an uncharacteristic third-quarter earnings miss driven by softer-than-expected sales of its blockbuster diabetes and obesity drugs. The company blamed this partly on wholesaler destocking. Lilly reinforced its view that end demand for the drugs remains strong”.

Overall, LLY ranks 2nd on our list of the best stocks that will always grow. While we acknowledge the potential for LLY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than LLY but trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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