Warning: This Skyrocketing Stock Has a Hidden Risk
Usually, Wall Street gets a story in its teeth and then runs with it, often to the point where a stock's valuation gets ahead of its fundamentals. That is why investors should be worried about pharmaceutical giant Eli Lilly (NYSE: LLY) today. It is a leader in the GLP-1 weight loss drug space, but investors have used that story to afford the company a worryingly high valuation. That's a warning you shouldn't ignore.
The first company to market with GLP-1 drugs was Eli Lilly's competitor Novo Nordisk. GLP-1 drugs are a new and exciting option in the weight loss space that have gained rapid acceptance among practitioners and consumers. Although there are notable negative side effects, such as muscle loss and possible intestinal issues, the benefit of losing weight without having to diet or exercise has turned GLP-1 drugs into instant blockbusters.
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Source Fool.com
