3 Underrated Weight Loss Stocks to Buy and Hold

According to a report by Motley Fool, three stocks in the weight loss drug sector stand out as attractive long-term investment opportunities: Eli Lilly (LLY), Amgen (AMGN), and Regeneron (REGN). These companies appear well-positioned to capture a slice of the rapidly growing anti-obesity market.

Details

The report highlights that the obesity drug market is expanding significantly, with projections reaching tens of billions of dollars in the coming years. Eli Lilly markets Zepbound (tirzepatide) approved for obesity, while Amgen is developing AMG133, which has shown promising results in clinical trials. Regeneron is collaborating with other firms to develop new treatments.

Context

This positive outlook comes amid rising awareness of obesity risks and the need for effective treatments. Novo Nordisk's Ozempic pioneered the field, but other companies are vying for market share. Technological advances in AI, such as those driven by NVIDIA (NVDA), could accelerate drug discovery.

What It Means for Investors

While these stocks carry significant growth potential, investors should be aware of risks related to clinical trials, regulatory approvals, and intense competition. Thorough research is recommended before making any investment decisions.