Just because a stock has already made millionaires doesn’t mean it no longer has room to grow. Take Alphabet (GOOG +2.00%) (GOOGL +1.68%) and Eli Lilly (LLY +2.55%). These two companies have produced outstanding returns over the past two decades. An investment of $50,000 in either one in 2006 would be worth over $1,000,000 today. However, these market leaders still have lucrative opportunities ahead that could allow them to beat the market over the next 10 years. Here’s why Alphabet and Eli Lilly are still buys.
Image source: Getty Images.
1. Alphabet
Alphabet is best-known for its search engine, Google, which dominates the industry by a wide margin. The company should continue generating growing sales thanks to it. Alphabet has improved its search capabilities through artificial intelligence (AI), boosting engagement and driving higher ad sales. However, Alphabet’s business is well-diversified beyond its core segment. And over the next 10 years, the company could pounce on several growth opportunities to deliver market-beating returns.
Alphabet is a leader in cloud computing, for instance, a unit that has been among its fastest-growing in recent years. Although some investors fear that its heavy capex spending will backfire, my view is that Alphabet will be just fine. It is positioning itself to capitalize on the rapidly growing AI market, something that could pay rich dividends down the road.
Today’s Change
(1.68%) $5.66
Current Price
$341.68
Key Data Points
Market Cap
$4.1T
Day’s Range
$336.24 – $342.32
52wk Range
$146.10 – $349.00
Volume
26M
Avg Vol
33M
Gross Margin
59.68%
Dividend Yield
0.25%
Alphabet is also a leader in streaming through YouTube, an underappreciated opportunity. We can expect streaming to capture significantly more television viewing time over the next 10 years, and Alphabet should be one of the major beneficiaries. YouTube benefits from a strong brand name, a vast user base, and deep network effects, all of which should help it remain one of the leaders in this niche.
Then there is Alphabet’s ambitious self-driving vehicle business through Waymo, which already has a fleet of cars in several U.S. cities. Waymo is one of the companies that has achieved level 4 autonomy with its vehicles. Even as more competitors reach that milestone, Alphabet’s already-established network and partnerships with a ride-hailing giant like Uber will be significant advantages.
And as self-driving cars experience increased adoption over the next 10 years, it’s yet another opportunity that could eventually meaningfully move the needle for Alphabet. Here’s the bottom line: The company leads several fast-growing industries, has a wide moat, and a culture of innovation. All of these factors could allow Alphabet to deliver more terrific returns through 2036.
2. Eli Lilly
Investors interested in Eli Lilly are laser-focused on its dominance in the weight loss market, and with good reason. The company has made significant breakthroughs in this area, and there are likely more on the horizon. However, the pharmaceutical cycle goes through lows and highs, with clinical and regulatory progress among the most important catalysts that send drugmakers’ stock prices soaring, while patent cliffs and clinical trial setbacks loften have the opposite effect. What if Eli Lilly could change the industry?
That’s what the company wants to do. It has invested in AI drug discovery, an initiative that could have a massive impact on its business if successful. If Eli Lilly can cut the costs and time required to discover and develop medicines, they can reach patients faster and spend more time on the market before encountering patent cliffs. That could mean billions of dollars in added revenue for some products.
Today’s Change
(2.55%) $23.04
Current Price
$927.03
Key Data Points
Market Cap
$876B
Day’s Range
$917.80 – $929.99
52wk Range
$623.78 – $1133.95
Volume
3.3M
Avg Vol
3.1M
Gross Margin
83.04%
Dividend Yield
0.67%
Eli Lilly will also have more time to develop newer drugs before older ones lose patent exclusivity. It could alter the typical cycle pharmaceutical companies go through, making them more valuable. There is no guarantee that Eli Lilly will succeed. However, between the company’s push into AI, its current crop of medicines that could set industry records, and its vast lineup and pipeline outside its core areas of expertise, Eli Lilly’s long-term prospects look very bright. The stock may have underperformed the broader market since 2026 started. But investors who intend to hold onto Eli Lilly’s shares through 2036 can still safely initiate a position.