2 Growth Stocks to Buy Hand Over Fist in February
Not all growth stocks worth buying these days focus on the artificial intelligence field. There are many exciting ones in other industries -- even in healthcare, a sector some investors might consider boring. Two healthcare stocks that may or may not be boring, but that regardless look like strong growth stocks to invest in this month, are Eli Lilly (NYSE: LLY) and Sarepta Therapeutics (NASDAQ: SRPT).
Eli Lilly has been a terrific stock to own for the past five years, thanks to its excellent clinical and regulatory progress. The company's breakthroughs are paying off. In each of the past six quarters, Eli Lilly's revenues have increased by more than 20% year over year, which is an incredible result for a pharmaceutical giant.
LLY Operating Revenue (Quarterly YoY Growth) data by YCharts.
Eli Lilly should continue to grow its top line faster than its similarly sized peers. Its lineup features several blockbusters, including its popular diabetes and weight loss medicines, Mounjaro and Zepbound.
It's true that these drugs' sales are not increasing quite as fast as analysts expected, which has led to the stock declining over the past five months. However, that dip has created a better entry point for long-term investors.
The company won't stop innovating. It boasts exciting candidates across all clinical trial stages. Eli Lilly's investigational gene therapy for deafness is in early-stage studies and is already showing promise. Last year, the company reported that after treatment with the gene therapy, an 11-year-old patient who had been deaf from birth was able to hear for the first time. Eli Lilly's late-stage pipeline features such products as retatrutide, a potential novel weight loss treatment.
Eli Lilly broke new ground with Zepbound. It's a dual GLP-1/GIP agonist, meaning it mimics the action of those two hormones. It was the first treatment of its kind to earn the green light from health regulators. Retatrutide mimics the action of three hormones: GLP-1, GIP, and GCG. Eli Lilly nicknamed this investigational weight loss therapy "Triple G." These examples barely scratch the surface of Eli Lilly's pipeline. Investors can expect significant R&D progress from the company in the next five years and strong financial results.
Lastly, Eli Lilly is an excellent dividend growth stock. Management has increased its payouts by a total of almost 103% in the past five years. So both for its growth prospects and its quality as an income investment, Eli Lilly looks like an excellent pick now, especially since its share price performance hasn't been strong recently.
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