Investing Opportunities Arise as GLP-1 Drugs Gain Popularity
CNBC’s Jim Cramer identifies potential winners in the market as GLP-1 drugs, used to treat diabetes and obesity, gain traction.
The increasing popularity of GLP-1 drugs, medications utilized in the treatment of diabetes and obesity, has opened up new investment opportunities. CNBC’s Jim Cramer highlights the potential gains that investors can expect as these drugs become more widely used. Previously, Wall Street expressed concerns about the impact of these drugs on the market, leading to a decline in stocks of companies associated with junk food and medical devices. However, with the market rebounding, Cramer suggests focusing on stocks that could benefit from the growing demand for GLP-1 drugs.
Investing in the Companies Manufacturing GLP-1 Drugs
Cramer suggests that investors consider buying shares of companies that produce GLP-1 medications. Eli Lilly and Novo Nordisk are two prominent players in this space, with their stocks already experiencing significant growth. Cramer believes these companies may continue to see gains as these drugs demonstrate potential in treating conditions beyond obesity and diabetes, such as heart disease, kidney disease, and alcoholism.
Unconventional GLP-1 Plays
In addition to traditional pharmaceutical companies, Cramer identifies several unexpected opportunities related to GLP-1 drugs. Companies known for producing meat and high-protein foods, such as Tyson Foods and Hormel Foods, could benefit from the increased demand for protein consumption. GLP-1 drugs can cause patients to lose muscle mass along with fat, leading doctors to encourage higher protein intake. Engineering and construction firms like Jacobs Solutions may also profit from the GLP-1 craze, as they assist in designing manufacturing facilities for pharmaceutical companies producing these medications.
The Apparel Industry’s Potential
Cramer sees potential in the apparel sector, as consumers undergoing weight loss due to GLP-1 drugs may require new clothing to accommodate their changing waistlines. He refers to his interview with Levi’s CEO Chip Bergh, who mentioned that the company had already experienced benefits from customers’ post-pandemic weight loss.
Conclusion:
As GLP-1 drugs gain popularity in the treatment of diabetes and obesity, CNBC’s Jim Cramer highlights the investment opportunities that arise. Traditional pharmaceutical companies like Eli Lilly and Novo Nordisk are expected to see continued growth, given the expanding applications of these drugs. Additionally, companies in the meat and high-protein food industry, engineering and construction firms, and the apparel sector may also benefit from the increased demand for GLP-1 medications. With the market becoming more optimistic, investors are now focusing on potential winners in this evolving landscape.
