Wells Fargo's Tactical Ideas List: Eli Lilly and Roku Lead the Charge!

Ladies and gentlemen, buckle up! We've got some serious action happening in the market, and Wells Fargo is leading the charge with their latest tactical ideas list. Eli Lilly and Roku are among the standout picks, and let me tell you, these companies are on fire! Let's dive in and see what's making them tick.

First up, we have Eli Lilly. This pharmaceutical giant has been making waves with its impressive financial performance and pipeline progress. In Q4 2024, Eli Lilly reported a 45% increase in revenue, driven by volume growth from Mounjaro and Zepbound. That's right, folks! These drugs are flying off the shelves, and the company's pipeline is bursting with potential.



Let's break it down:

- Revenue Growth: Eli Lilly's revenue surged to $13.53 billion in Q4 2024, a 45% increase from the previous year. This growth was fueled by the success of Mounjaro and Zepbound, which saw a 48% increase in volume.
- Pipeline Progress: The company has made significant strides with the approval of Zepbound for a new indication as the first and only prescription medicine for moderate-to-severe obstructive sleep apnea in adults with obesity. Additionally, Omvoh has been approved for the treatment of moderately to severely active Crohn's disease in adults.
- 2025 Guidance: Eli Lilly has issued guidance for 2025 with revenue expected to range from $58.0 billion to $61.0 billion, and EPS in the range of $22.05 to $23.55. This is a clear indication of the company's strong financial outlook.

Now, let's talk about Roku. This streaming giant is making a bold move with its 'Roku 2.0' phase, focusing on monetization and user engagement. Roku's recent partnership with a major television brand aims to expand its market presence in Europe, and the company is leveraging its vast base of over 90 million active accounts and 125 billion streaming hours logged in 2024.



Here's what you need to know:

- Strategic Partnerships: Roku's partnership with a major television brand is a game-changer. This move will help Roku expand its market presence in Europe and reinforce its competitive moat amidst a growing landscape.
- Financial Performance: Roku's reported revenue stands near $4.11B, indicating substantial sales volume. The company's gross margin sits at a healthy 43.9%, showing effective cost management. However, the pretax and overall profit margins are negative, suggesting areas for improvement.
- Monetization and Engagement: Roku's pivot to diversify its revenue streams continues, with partnerships unlocking synergy in streaming services at the forefront. The company is tapping into the global surge in streaming demand, benefiting from rising Connected TV advertising and improved ad fill rates due to strategic third-party partnerships.

So, what does this all mean for you, the investor? Well, it means that Eli Lilly and Roku are poised for growth, and Wells Fargo is betting big on these companies. Eli Lilly's strong financial performance and pipeline progress, coupled with Roku's strategic partnerships and focus on monetization, make them standout picks in the current market landscape.

Do this! Add Eli Lilly and Roku to your watchlist and get ready to ride the wave of growth. These companies are on the move, and you don't want to miss out on the action. Stay tuned for more updates, and remember, the market is always full of surprises. Keep your eyes on the prize and your portfolio diversified. BOO-YAH!