2 Weight Loss Stocks That Are Screaming Buys in December

As the holiday season approaches, investors are looking for stocks that can deliver strong returns in the coming months. Two weight loss stocks, Zealand Pharma and Eli Lilly, are poised to benefit from the growing demand for obesity treatments and could be screaming buys in December.

Zealand Pharma (ZLDP.F -1.43%) is a biotech company with a pipeline full of promising clinical-stage weight loss programs. Its lead anti-obesity program, survodutide, is in phase 3 clinical trials and has shown promising results. Survodutide is unique in that it targets both the glucagon-like peptide-1 (GLP-1) and glucose-dependent insulinotropic polypeptide (GIP) receptors simultaneously, differentiating it from competitors like Novo Nordisk's Wegovy and Eli Lilly's Zepbound. This dual action could potentially offer more effective weight loss or better tolerability, making it a viable alternative for patients who don't respond to or tolerate other medicines. Additionally, Zealand Pharma has a strong cash runway and low operating expenses, providing ample time to develop its candidates and find commercialization partners.

Eli Lilly (LLY 0.86%) is another strong contender in the weight loss market, with its potent drug Zepbound leading the way. Zepbound has already become a blockbuster, with third-quarter sales of $1.2 billion. Lilly is also investing heavily in expanding its manufacturing capacity for Zepbound, indicating its confidence in the drug's future success. Furthermore, Lilly is exploring new indications for Zepbound, such as its potential use in heart failure patients, which could expand its total addressable market even further. With a winning medicine in hand and a strong pipeline of other anti-obesity medicines, Eli Lilly is well-positioned to capitalize on the growing demand for weight loss treatments.

Both Zealand Pharma and Eli Lilly have the potential to deliver strong returns in the coming months, as the demand for weight loss treatments continues to grow. With their unique mechanisms of action and strong pipelines, these two stocks are screaming buys in December. However, investors should be aware that the longer they wait to buy these stocks, the greater the chances of missing out on the remainder of the period when they'll be experiencing their most intense rate of growth.