Eli Lilly (NYSE: LLY) has shown exceptional momentum in recent years. The pharmaceutical firm has delivered outstanding financial performance and impressive market gains, prompting some observers to wonder if the window has closed. Lilly's forward price-to-earnings ratio now surpasses 35, more than double the healthcare sector average of 15.8.

Potential concerns include tariff measures under President Donald Trump that might pressure results. Still, several compelling factors support buying Eli Lilly shares. Consider these three points.

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1. Leading position in the weight management field

Eli Lilly has long dominated diabetes treatments. That segment remains robust, while the company has also advanced markedly in obesity therapies over five years. Approvals for Mounjaro and Zepbound have produced quarterly sales above $1 billion each.

Phase 3 data for orforglipron, an oral GLP-1 candidate, could give patients a convenient pill option versus injections. Retatrutide, a triple agonist, delivered solid phase 2 findings. Fresh phase 1 results for a next-generation weight loss agent also look promising.

Lilly has outpaced rival Novo Nordisk and seized the lead. Although Novo Nordisk launched first with agents such as Ozempic and Wegovy, it encountered clinical hurdles. Lilly continues to post successive successes. Its commanding role in weight management enhances appeal as this market expands rapidly.

2. Broadening its approved products and development pipeline

Eli Lilly offers more than one flagship therapy. Approved medicines include blockbusters Verzenio for cancer and Taltz for immune disorders, plus near-term candidates Kisunla for Alzheimer's and Ebglyss for eczema.

Pipeline growth continues through acquisitions. In May the company purchased SiteOne Therapeutics for $1 billion, securing an oral non-opioid pain candidate. On June 17 it agreed to buy Verve Therapeutics for roughly $1.3 billion to add gene-editing therapies targeting cardiovascular disease. These transactions illustrate Lilly's intent to reduce reliance on core areas.

3. Backing its valuation with robust prospects

The elevated valuation could discourage buyers. Failure to meet expectations may trigger share declines, as occurred after first-quarter results when guidance disappointed. Even so, revenue climbed 45 percent year over year to $12.7 billion while net income rose 29 percent to $3 billion.

Lilly justifies a premium multiple given its financial strength, despite short-term volatility. Continued progress in weight management, diabetes, and additional fields should yield further clinical wins and sustained above-average growth. This outlook keeps the stock attractive despite rich multiples.

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Prosper Junior Bakiny has positions in Eli Lilly and Novo Nordisk. The Motley Fool recommends Novo Nordisk. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.