Investors looking for stocks that can outperform the market over the next decade should focus on companies with strong competitive positions in growing industries. The principle that winning businesses tend to keep winning is a core strategy for generating superior returns. Two standout companies poised to continue their success are Amazon and Eli Lilly.
Amazon (NASDAQ: AMZN) is well-positioned to benefit from the artificial intelligence (AI) boom. Its cloud computing platform, Amazon Web Services (AWS), grew sales by 37% in the second quarter and is projected to reach $169 billion in annualized revenue. CEO Andy Jassy believes AWS could generate $600 billion in annual sales by 2036, potentially becoming a trillion-dollar business. Amazon's e-commerce operations also stand to gain from advances in AI and automation, with the company deploying its 1 millionth robot in its fulfillment network.
Eli Lilly (NYSE: LLY) is another strong contender, thanks to its blockbuster GLP-1 medications for weight loss and related health benefits. Sales of Mounjaro and Zepbound surged 91% and 44%, respectively, to $9.9 billion and $4.9 billion in the second quarter. The company's new GLP-1 pill, Foundayo, and expanded Medicare coverage are expected to drive further growth. Annual global sales of GLP-1 drugs are projected to reach $190 billion by 2035, with Eli Lilly well-placed to capitalize on this trend.
While both companies show strong potential, investors should consider broader recommendations. The Motley Fool Stock Advisor team has identified what they believe are the 10 best stocks for investors to buy now, though Eli Lilly was not among them. Past recommendations, such as Netflix and Nvidia, have delivered substantial returns, highlighting the importance of diversified investment strategies.