Shares of Eli Lilly (NYSE: LLY) saw a significant surge of 3.3% on Wednesday, outperforming the major market indexes amidst a broader market decline. The boost in Lilly's stock can be attributed to growing investor enthusiasm surrounding the potential of the company's weight-loss drug, Zepbound. Analysts believe that Zepbound's success in capturing market share from Novo Nordisk's Ozempic and Wegovy is an early indication of Lilly's dominance in the obesity treatment landscape by 2024.

According to BMO analyst Evan Seigerman, Lilly's Zepbound has already shown promising signs of outperforming its competitors. Seigerman noted in a communication to clients, "This is early validation that Lilly's franchise will dominate the landscape in 2024." As a result, market sentiment towards Eli Lilly has turned positive, prompting the increase in its stock value.

While it appears likely that Seigerman's optimistic outlook for Zepbound will prove accurate, it remains uncertain whether the drug will entirely dominate the obesity market by 2024. Market research firm Evaluate projects that Novo Nordisk will generate approximately $8 billion in additional sales in the coming year. Comparatively, it expects Eli Lilly to achieve a sales increase of around $5 billion. Both companies are predicted to lead the biopharmaceutical industry; however, Evaluate believes that, for now, Novo Nordisk may have a slight edge over Lilly.

Potential investors may hesitate to purchase Eli Lilly stock due to its relatively high forward price-to-earnings ratio of 48. However, experts argue that Lilly's forward earnings multiples don't tell the full story. The company is expected to deliver impressive growth not only in 2024 but also for the foreseeable future. Zepbound is not the sole growth driver for Eli Lilly, further supporting the positive outlook for the company.

Despite experiencing a remarkable 70% increase in stock value over the past year, industry analysts maintain that Eli Lilly remains a lucrative investment opportunity. With its potential for sustained growth, the stock is still considered a favorable choice for investors.

It is worth noting that The Motley Fool Stock Advisor analyst team has not included Eli Lilly in their list of recommended stocks for investors at this time. However, they have identified 10 other stocks that they believe have the potential to yield significant returns in the coming years.

In conclusion, Eli Lilly's stock surged on Wednesday due to investor optimism regarding the market dominance of their weight-loss drug, Zepbound, against Novo Nordisk's competing products. While projections suggest a tight competition between the two companies, Eli Lilly's potential for long-term growth continues to make it an appealing investment option.

Disclaimer: Keith Speights has no position in any of the mentioned stocks. The Motley Fool recommends Novo Nordisk. The Motley Fool maintains a disclosure policy.

Note: The article focuses on the entities, numbers, and dates mentioned in the provided information and refrains from including any speculative information or personal opinions.