Forecast: Top Value Stocks to Watch Through 2030

Headlines 

1. Eli Lilly and Walmart are highlighted as strong contenders for value stock performance through the next decade.
2. Eli Lilly's growth is driven by its diabetes and weight loss drugs, as well as new approvals like Kisunla for Alzheimer's disease.
3. Walmart's expansive reach, consistent performance, and reliable dividend payments position it favorably for future growth.

While no one can predict with absolute certainty which stocks will excel or lag behind, established companies often reward their shareholders over the long term. The best choices for your portfolio will depend on your preferences and risk tolerance.

Value stocks can be a strategic component in various market conditions, as they typically represent well-established companies with strong industry leadership. For those looking to enhance their portfolios through 2030, two notable examples are Eli Lilly and Walmart.

1. Eli Lilly

Eli Lilly (NYSE:LLY) has been a prominent name in the pharmaceutical industry since the 19th century. Recently, the company has gained renewed attention for its contributions to the diabetes and weight loss markets, driven by the demand for glucagon-like peptide-1 (GLP-1) agonists.

Eli Lilly’s key products, such as Mounjaro for diabetes and Zepbound for weight loss, feature tirzepatide, which is anticipated to become a leading treatment with potential annual sales of $27 billion by the end of the decade. The market for GLP-1 agonists is expanding rapidly, providing ample opportunity for growth.

In addition to its diabetes and weight loss treatments, Eli Lilly has made headlines with its recent approval of Kisunla, a treatment for early symptomatic Alzheimer's disease. Kisunla, a disease-modifying therapy, aims to slow or reverse disease progression. Late-stage trials showed that Kisunla reduced cognitive and functional decline by 35% compared to a placebo. Analysts project that Kisunla could achieve $2 billion in sales by 2030.

Eli Lilly also boasts a portfolio of successful drugs, including Verzenio for HR+/HER2- breast cancer, Taltz for plaque psoriasis, and Jardiance for type 2 diabetes, heart failure, and chronic kidney disease. The company reported profits of $6.1 billion on revenue of about $36 billion over the past year.

With a history of dividend payments stretching back to 1885, Eli Lilly continues to provide dividends, currently totaling $5.20 per share annually. Despite a yield of less than 1%, the stock has delivered a total return of approximately 700% over the past five years, with its dividend payout doubling in that period.

2. Walmart

Walmart (NYSE:WMT) is a well-known retail giant with a vast network of over 10,000 stores worldwide, including e-commerce operations in 19 countries. The company operates through three segments: U.S. Walmart stores, international stores, and Sam's Club. Its extensive U.S. presence includes 162 distribution facilities and a broad e-commerce platform.

As the world’s largest retailer, Walmart represents about 9% of all retail sales in the U.S., with 90% of the population living within 10 miles of a store. The company’s commitment to low prices provides significant value for consumers across various economic climates.

Despite the current challenges in the economic environment for discretionary spending, Walmart’s low-price strategy remains a strong advantage. In the first quarter of fiscal 2025, Walmart reported $161.5 billion in revenue, a 6% increase from the previous year. Operating income reached $6.8 billion, up 9.6%, while global e-commerce sales grew by 21% and global advertising revenue increased by 24%.

Over the past year, Walmart achieved profits of about $19 billion on revenue of $657 billion, with an operating cash flow of approximately $35 billion.

Walmart has consistently paid dividends since 1974 and has raised its dividend annually. The current dividend payout is less than $1 annually, with a yield of around 1.2%, aligning with the average S&P 500 stock. Although its dividend yield may seem modest, Walmart’s total return, factoring in capital gains and dividend growth, has been around 100% over the past five years. Despite the challenges, Walmart’s financial stability and unwavering dividend commitment suggest continued favorable performance in the coming years.