Two Growth Stocks to Buy in April

The upcoming earnings season usually brings some volatility to the stock market. Shares of companies that exceed or underperform expectations can fluctuate dramatically overnight.

However, long-term investors know that a quarterly report rarely changes a company's fundamental investment philosophy. It's good to invest money in good stocks that will perform well no matter what happens in the coming weeks.

Let's look at the growth of this item with the two carbs:come with a giftfirms(NYSE: LLY)respond in singingDexComfirms(NASDAQ: DXCM)The

1. Lilly

In 2023, despite the complete evaporation of coronavirus antiviral sales, drug giant Eli Lilly & Co. saw its sales grow 20% year-over-year to $34.1 billion. The drugmaker's revenue growth is expected to be just as strong this year. Eli Lilly's newly approved anti-obesity drug Zepbound has been so popular that many pharmacies can't keep up with demand. The diabetes drug Mounjaro, a variant of Zepbound, will also continue to do well.

Investors should become accustomed to these two brands; they will be Lilly's most important growth drivers for many years. Lilly has long been a leader in the development of diabetes medicines. It also sells other important products in this area, including Jardiance, and its sales are still moving in the right direction. Over the next few years, Lilly should receive important approvals in its core areas of expertise, including a weekly insulin product it is developing called efsitora alfa.

In addition to diabetes and obesity, the company has an attractive product line. These include immunology drugs such as Olumiant, Omvoh and Taltz, and cancer therapies such as Verzenio and Jaypirca. Lilly has demonstrated an incredible capacity for innovation over the past five years, and it is now bearing fruit. That's why Lilly has been riding a wave of momentum in the marketplace in recent years and will continue to do so for the foreseeable future.

Another great reason to invest in Lilly is the company's solid dividend program. Although the forward yield of 0.68% is not particularly attractive, Lilly's dividend has doubled over the past five years. So whether it's for growth or dividends, Lilly is a great stock to buy this month and hold for the long term.

2. Dekang

DexCom develops continuous glucose monitoring (CGM) systems for people with diabetes. The company's current lineup includes the G6, the newer G7, and the DexCom One, an inexpensive product for the more price-sensitive consumer, which beats out the blood glucose meter (BGM), which tracks blood glucose levels continuously throughout the day, taking measurements every five minutes. BGMs use painful fingerprints and only show blood glucose levels at certain times.

That's why the adoption of CGM technology continues to rise, and DexCom, as one of the leaders in the field, continues to benefit from this trend. Last year, the company's revenue grew 24% year-over-year to $3.62 billion. Compared to 2022, DexCom's earnings per share were $1.30, an increase of nearly 58.51 TP3T.

While some investors are concerned that the growing popularity of anti-obesity drugs such as Zepbound will mean less business for the company, there is still plenty of room for DexCom to grow. As management has emphasized, diabetics are heeding the advice of their doctors to use CGM technology in conjunction with weight loss therapy, so this should not be the headwind that some expect. DexCom still estimates that penetration in the U.S. market is not yet high enough, and as third-party payers around the world increasingly cover CGMs, it has gained 4 million reimbursed patients in the last two years. Meanwhile, as third-party payers increasingly cover CGMs globally, DexCom has gained access to an additional 4 million reimbursed patients in the past two years.

There is still a huge untapped global market. Currently, there are more than 500 million adults with diabetes worldwide, and only about 1% of them are using CGM technology. Many of these patients live in developing countries, where DexCom does not yet have a presence. However, the company has been working hard to expand into new areas of business, which could eventually be much broader than it is today. This is why DexCom will be able to deliver superior returns in the coming years.

Should you invest $1,000 in曏 Eli Lilly now?

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Prosper Junior Bakiny does not hold any of the aforementioned stocks.The Motley Fool recommends DexCom.The Motley Fool has a disclosure policy.

Two Growth Stocks to Buy in April was originally published by The Motley Fool.