Investors typically want to beat the market over the long run. Though it's not an easy task, it certainly is possible with the right companies. Let's consider two corporations that could help you do better than average in the next decade: Eli Lilly (LLY +0.80%) and DexCom (DXCM 1.50%).
1. Eli Lilly
Eli Lilly has been one of the best-performing pharmaceutical giants in the past 10 years. Though that doesn't guarantee future success, it's worth highlighting what has led to the company's strong showing. Lilly has made significant clinical breakthroughs in recent years, none more important than tirzepatide, a medicine sold as Mounjaro in treating diabetes, and Zepbound in managing weight. It was the first dual GLP-1/GIP agonist approved by the U.S. Food and Drug Administration.
Image source: Getty Images.
Here are two ways in which that's relevant to the company's future performance.
First, tirzepatide hasn't been on the market that long, having earned approval about three years ago. It will continue delivering excellent top-line growth.
Second, even more clinical successes like tirzepatide could help the stock perform well. Eli Lilly recently released positive data from a phase 3 clinical trial for orforglipron, an oral GLP-1 medicine; the strong results sent the stock price soaring.
The drugmaker is also working on retatrutide, which mimics the action of not just two gut hormones (as tirzepatide does), but three. Lilly dubbed it "triple G." Retatrutide could be yet another breakthrough. In total, the company has 11 weight loss candidates in the pipeline. Even with mounting competition in this field, Eli Lilly looks like a runaway leader compared to any company not named Novo Nordisk.
NYSE: LLY
Key Data Points
And that's before we mention the rest of the pipeline. Last year, Lilly earned approval for Kisunla in treating Alzheimer's disease, another significant win considering that very few medicines have gotten the green light from regulators in this area in the past 20 years.
Lilly has not performed well in 2025 due to tariff-induced volatility, and disappointing bottom-line guidance for the full year. However, the company is pivoting its manufacturing back into the U.S., something it has been doing for years -- so even if President Donald Trump's trade agenda survives his administration, the drugmaker should be fine.
And while the stock's forward price-to-earnings ratio of around 33 is around twice the average of 16 for the healthcare industry, the company's better-than-average results and excellent prospects justify its valuation.
Eli Lilly is a terrific dividend stock. The company has increased its payouts by 200% over the past 10 years. And the stock should deliver superior returns through 2035, especially for shareholders who opt to reinvest the dividend.
2. DexCom
DexCom specializes in developing and marketing continuous glucose monitoring (CGM) systems that help diabetes patients keep track of their blood sugar levels. The company's appeal is the superiority of its devices compared to the alternatives. With blood glucose meters, patients use a painful finger prick (or something similar) to collect a small blood sample to know their measurement at that specific point in time. In contrast, once installed, CGMs constantly monitor their status, day and night, with measurements made up to every five minutes. That's 12 per hour and 288 per day -- no manual meter can match that.
NASDAQ: DXCM
Key Data Points
Strong adoption of the technology has been a massive tailwind for DexCom. Patients are switching to CGM, and third-party payers are increasingly reimbursing for it. This has resulted in growing revenue and earnings over the past decade, and a strong, if somewhat volatile, stock-market performance.
DXCM Revenue (Annual) data by YCharts.
Here's more good news: DexCom has consistently pointed out that the CGM market remains underpenetrated. In the U.S., the number of diabetes patients who use CGM is much lower than the number whose use would be covered by insurance. Furthermore, the company has routinely entered new markets to expand its addressable population.
DexCom does have to deal with stiff competition from Abbott Laboratories, but has remained successful nonetheless. Abbott pointed out about 18 months ago that just 1% of diabetic adults worldwide had access to CGM. So there's space for multiple winners over the long run.
And while tariffs could be a threat, DexCom does significant manufacturing for U.S. consumers domestically. Management expects minimal impact from tariffs.
Lastly, though DexCom's recent forward P/E of around 42 looks high, it's not far from the lowest point it has seen in years:
DXCM PE Ratio (Forward) data by YCharts.
A high-growth stock, DexCom has generally traded at high premiums and has still performed better than the broader market. Its valuation won't kill momentum in the next decade. And in the meantime, the stock should once again deliver outsize returns as DexCom makes headway into the massive CGM market.
