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Two Companies Poised for Long-Term Growth: Eli Lilly and Visa
A limited number of companies currently have market caps exceeding $1 trillion. While more corporations are expected to reach this milestone, mere membership in this exclusive group is not enough for investors. They seek businesses that will deliver strong performance over the long term. That makes Eli Lilly (NYSE: LLY) and Visa (NYSE: V) particularly appealing. Both companies have the potential to surpass the $1 trillion mark by 2030 and are likely to continue providing solid returns thereafter. 
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1. Eli Lilly: Solid Growth Prospects
Eli Lilly, one of the largest healthcare firms globally, has a market cap of about $737 billion as of now. Though reaching the $1 trillion milestone in roughly five years may not seem overly ambitious, the company faces various challenges. Market conditions, including potential tariffs, could hinder Eli Lilly’s growth. Additionally, the company’s forward price-to-earnings (P/E) ratio stands at 35.4, significantly higher than the healthcare sector average of 16.
Short of exceptional performance, Eli Lilly’s stock could face downward pressure, as seen after its first-quarter update. Nevertheless, hitting the $1 trillion benchmark remains feasible. The firm would need a five-year compound annual growth rate (CAGR) of 6.3%, below historical market performance, but Eli Lilly isn’t an average company. Although its forward P/E is high, its robust revenue and earnings growth justifies a premium valuation. The stock is likely to perform well beyond 2030, driven by its innovative capabilities.
Eli Lilly has a promising pipeline, including investigational weight management medications that could disrupt current competitors like Novo Nordisk. A significant update is its oral GLP-1 medicine, orforglipron, which may capture considerable market share. The weight loss sector is projected to expand substantially in the next five years, making Eli Lilly a prime beneficiary.
Beyond diabetes and anti-obesity treatments, Eli Lilly’s product lineup includes blockbuster drugs in immunology and oncology. Its pipeline, while focused on diabetes and obesity, also features exciting initiatives, such as a gene therapy for deafness. Furthermore, Eli Lilly is recognized for dividend growth, with reinvested dividends likely enhancing returns. The case for investing in Eli Lilly extends beyond its potential to become a trillion-dollar company; the long-term outlook offers a strong buy-and-hold argument.
2. Visa: A Leader in Payment Technology
Visa, a top player in payment technology, has a market cap of nearly $679 billion. Achieving a market cap of $1 trillion by 2030 will be a notable accomplishment for Visa, as it requires a CAGR of 8.1%. This target is still manageable given market standards, although Visa, like Eli Lilly, must navigate broader economic issues. Notably, Visa’s revenue model relies on transaction fees that are percentage-based, which could benefit from inflationary pressures.
Economic conditions, including a potential recession, may lead to temporary slowdowns, but Visa has shown resilience. The company has maintained steady performance over the past five years, even amid the pandemic and other economic challenges.
Over time, Visa is expected to thrive, making it a stock worth considering for long-term investors. It dominates its sector and faces minimal direct competition—primarily from Mastercard. Visa’s strong network effect reinforces its market position. As more consumers utilize Visa-branded credit cards, merchants are more inclined to adopt the network. This dynamics makes it challenging for new entrants to disrupt the Visa-Mastercard duopoly. Additionally, there remains substantial room for growth as cash and checks continue to be replaced by electronic transactions.
Visa’s long-term prospects look bright. Over the past decade, the company has increased its dividends by nearly 392%. Even if Visa falls short of the $1 trillion mark by 2030, investors who hold this stock will likely find future value in their portfolios.
Should You Invest $1,000 in Eli Lilly Now?
Before investing in Eli Lilly, consider this:
The Motley Fool Stock Advisor analyst team has identified what they believe are the 10 best stocks for investors today, and Eli Lilly is not among them. The selected stocks have the potential for substantial returns in the coming years.
For example, when Netflix made this list on December 17, 2004, an investment of $1,000 would have grown to $614,911! * Likewise, if you invested $1,000 in Nvidia on April 15, 2005, it would be worth $714,958!*
The average return from Stock Advisor stands at 907%, significantly outperforming the 163% average of the S&P 500.
*Stock Advisor returns as of May 5, 2025
Prosper Junior Bakiny holds positions in both Eli Lilly and Novo Nordisk. The Motley Fool has positions in Mastercard and Visa, and recommends Novo Nordisk. Full disclosure is available on their site.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
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