The Incredible Potential of GLP-1 Drugs For Investors: A Guide From Jim Cramer
If you believe that the changing landscape of healthcare could have a major impact on the market, then you should know about GLP-1 drugs. As CNBC’s Jim Cramer outlines, this new form of medication has created some new investing opportunities for savvy investors.
What Are GLP-1 Drugs?
GLP-1 drugs are medications used to treat diabetes and obesity. While they have been gaining traction since the fall, Wall Street investors initially feared their market implications. But now that the market is rebounding, investors are turning their attention to stocks that could see potential gains due to GLP-1 drugs.
Why Should Investors Be Interested In GLP-1 Drugs?
GLP-1 drugs could have a transformational impact on the economy, creating winners in several sectors. From pharmaceutical companies such as Eli Lilly and Novo Nordisk, to food and nutrition companies like Tyson Foods, high-protein food producers, and companies known for producing apparel, GLP-1 drugs offer numerous opportunities for investors.
Investing in Pharmaceutical Companies
Investors may want to consider buying shares of companies that make GLP-1 drugs, such as Eli Lilly and Novo Nordisk. These stocks have already had significant runs, but Cramer believes they may be poised to see more gains due to their potential use in treating conditions outside of just diabetes and obesity, such as heart disease, kidney disease, and alcoholism.
Investing in Food and Nutrition Companies
GLP-1 drugs can cause patients to lose muscle as well as fat, so doctors are recommending they consume more protein. Companies like Tyson Foods and Hormel Foods may thus be good investments to grow a portfolio, as well as high-protein food producers.
Investing in Apparel Companies
As most people taking GLP-1 drugs will be losing weight, they may want to purchase new clothes to accommodate their changing physique. Companies like Levi’s CEO Chip Bergh have already seen a boom in pre-pandemic sales due to this type of trend. And with GLP-1 drugs gaining in popularity, it could provide another burst for the apparel industry.
Moving Forward A business engineering and construction outfit such as Jacobs Solutions could also benefit from the GLP-1 craze, as they help design the manufacturing facilities used by pharmaceutical companies to create these medications.
Investing in GLP-1 drugs may not be the most obvious way to expand a portfolio, but as Jim Cramer points out, when the market is optimistic, it’s important to focus on potential winners as well as losers. With the increasing popularity of GLP-1 drugs, investors should consider taking advantage of the market opportunities they provide.
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