Have these stocks outperformed the S&P 500?

Yes, all three have posted returns exceeding the index recently.

What challenges does AbbVie face?

AbbVie faces the risk of Humira patent expirations, which could impact its revenue.

Why is Eli Lilly considered highly valued?

Due to strong demand for its new obesity drugs, which have driven the stock price to elevated levels.

3 Biggest Pharma Giants: Buy, Sell or Hold?

Shares of the three largest pharma companies (Eli Lilly, Johnson & Johnson, AbbVie) have beaten the S&P 500, but surging returns and strong fundamentals tell different stories about each stock's outlook.

July 19, 2026

2 min read

Source: 24/7 Wall St.

According to a report from 24/7 Wall St., the three largest U.S. pharma companies—Eli Lilly (LLY), Johnson & Johnson (JNJ), and AbbVie (ABBV)—have outperformed the S&P 500 index recently. However, future expectations for each stock differ based on their financial performance and fundamentals.

Details

The report did not provide specific return figures or growth rates, but noted that all three stocks posted gains exceeding the market average. Investors are now questioning whether this momentum can continue or if current valuations justify profit-taking.

Context

This strong performance comes amid rising demand for innovative drugs in the healthcare sector, particularly in obesity (Eli Lilly), immunology (AbbVie), and medical devices (Johnson & Johnson). However, companies face regulatory challenges and pricing pressures.

What It Means for Investors

Investors should evaluate each stock individually: Eli Lilly may be richly valued due to the obesity drug boom, while Johnson & Johnson offers relative stability with dividends. AbbVie faces the risk of Humira patent expirations. Consult a financial advisor before making any decisions.

Frequently Asked Questions

Eli Lilly (LLY), Johnson & Johnson (JNJ), and AbbVie (ABBV).

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.