Over the past three years, the S&P 500 index has continued to rise. Since President Trump took office in January last year, this benchmark index has accumulated a gain of more than 23%. Investors have poured into high-growth sectors, particularly innovative fields such as artificial intelligence and quantum computing.
At the same time, a new batch of growth-oriented companies have quickly seized on investors’ enthusiasm for high-growth stories. AI chip company Cerebras Systems recently completed the largest initial public offering of the year. SpaceX aims to launch what could be the largest IPO in history this week, while AI lab Anthropic secretly submitted its listing application to regulators earlier this month.
All of this is exciting and provides support for further stock market gains. However, predictions suggest that the “Trump Bull Market” may soon come to an end. The S&P 500 Shiller CAPE ratio shows that stock valuations remain near historically high levels, which has often led to declines in the past. At the same time, inflationary pressures persist, reflected by rising energy prices and an increase in the Consumer Price Index (CPI).
But here is the good news: even if the “Trump Bull Market” ends in the near future, the following two stocks, both of which have risen so far this year, may still continue to strengthen.
Eli Lilly is a pharmaceutical giant that sells products patients need regardless of the economic environment. This means the company can maintain a certain level of revenue stability and growth even during market downturns. And today, Eli Lilly happens to hold a leading position in one of the fastest-growing markets in healthcare—the weight-loss drug market.
The company is the manufacturer of the well-known drugs Mounjaro (for treating type 2 diabetes) and Zepbound (approved for weight loss). The active ingredient in both drugs is tirzepatide, which belongs to the GLP-1 class of medications and works by acting on hormonal pathways involved in the digestive process. Mounjaro and Zepbound have become blockbuster drugs, consistently delivering double-digit or even triple-digit revenue growth. Moreover, Eli Lilly has just released Foundayo, an oral weight-loss drug—whereas Mounjaro and Zepbound are both injectables. This new product is expected to expand the accessible market, providing a new growth driver for Eli Lilly. The company also plans to further develop this product portfolio through its robust R&D pipeline. Recently, it announced positive Phase 3 clinical trial results for its GLP-1 candidate retatrutide, a potential drug that could help patients seeking greater weight loss.
With the weight-loss drug market approaching nearly $100 billion by the end of this decade, now is an excellent time to invest in this market leader.
Consumers may be familiar with Johnson & Johnson through products like Band-Aid bandages—but the company actually spun off its consumer health business as Kenvue three years ago. This move was aimed at shifting focus and resources toward areas that can generate the strongest growth over time, and Johnson & Johnson is proving this was a wise decision.
Its innovative pharmaceutical and medical technology businesses continue to see revenue growth, with the most recent quarter providing a strong example of the company’s direction. Sales in the innovative pharmaceutical business grew by 11%, while the medical technology business grew by 7.7%. Total company sales increased by nearly 10%, exceeding $24 billion. Thanks to its vast portfolio of blockbuster products, there is reason to be optimistic about sustained growth: the company currently has 28 products or platforms, each generating at least $1 billion in annual sales—and Johnson & Johnson plans to further expand this blockbuster portfolio.
Johnson & Johnson has set a goal of achieving $100 billion in annual revenue this year and delivering double-digit growth by the end of this decade. If the company can achieve these targets (and there is reason to be optimistic about that), the stock price is likely to rise. Any potential economic changes should not disrupt Johnson & Johnson’s progress toward these goals—as noted earlier, regardless of the market environment, patients need their medications.
