Apple (AAPL 0.64%) and Eli Lilly (LLY 2.09%) share several similarities. Both are long-standing leaders in their respective industries, having produced market-beating returns over the past 10 years, but have lagged behind the market in 2025.
However, despite their poor performances this year, Apple and Eli Lilly still appear to be attractive stocks. In fact, they have qualities that make them likely to deliver excellent returns over the long run, making them great forever picks.
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1. Apple
Apple has been dealing with the threat of tariffs for the entire year. And although that's a challenge worth monitoring, the company's underlying business remains attractive. For one thing, it consistently records strong financial results. In the third quarter of its fiscal year 2025, ended June 28, revenue increased by 10% year over year to $94 billion.
Apple's devices remain hugely popular. The company noted that its installed base, which it previously reported was above 2.35 billion active devices, has reached yet another all-time high. This happens often enough that it has almost become an expectation when Apple releases quarterly updates.
It's also the engine of Apple's future growth. The company boasts a deep ecosystem, and it's using that to boost its recurring services revenue. That number also reached a brand-new all-time high during Apple's Q3, coming in at $27.4 billion, 13.3% higher than the comparable period of the previous fiscal year.
The company's long-term plan is to increase this high-margin, fee-based source of recurring revenue, which will significantly improve the business's margins and bottom line. With more than 1 billion paid subscriptions to its name across several high-growth industries such as fintech, Apple is already well on its way. Services now account for almost 30% of the company's sales.
Furthermore, Apple generates significant cash flow to invest in research and development (R&D). Although its artificial intelligence (AI) efforts have failed to impress investors so far, it's not out of the question for the company to make a significant and lucrative move in this market eventually.
Finally, Apple is an excellent dividend stock. Despite an unimpressive current forward yield of 0.4%, the company has doubled its dividend in the past decade.
Apple has a lot to offer long-term investors. Despite the issues it has faced this year, its stock remains a worthwhile long-term investment.
2. Eli Lilly
Eli Lilly has faced several setbacks this year. Most recently, orforglipron, one of the company's investigational GLP-1 medicines, led to a 12.4% mean weight loss in patients who were overweight or obese but not diabetic. Wall Street expected more, leading to a sell-off.
However, that's little more than a wrinkle for investors focused on the long game. Lilly should continue dominating the fast-growing weight loss market at least through the end of the decade. Tirzepatide, which it sells under the brand names Mounjaro and Zepbound for the treatment of diabetes and obesity, could reach sales of almost $62 billion by 2030, an impressive feat for any pharmaceutical product.
Eli Lilly's pipeline in this area is also one of the strongest in the industry. Orforglipron was a smashing success in helping diabetes patients control their A1C levels and lose weight, so the medicine should still help drive top-line growth. And the drugmaker has several other exciting pipeline candidates in this field.
Beyond its core area of expertise, Lilly has a diversified product portfolio and pipeline across areas such as immunology, oncology, and neurological diseases. The company's strong financial results in recent years enabled it to bolster its pipeline through acquisitions and licensing deals. So not only is Lilly proving to be an innovative powerhouse, but it's also setting a strong foundation for the future.
Finally, Eli Lilly's dividend profile looks robust. Its forward yield is currently unimpressive at 0.8%, but its dividend has increased by 200% over the past 10 years. The stock's recent dip presents an excellent opportunity for investors to purchase shares and hold them for the long term.
