2 Growth Stocks to Buy in November Without Any Hesitation

The healthcare sector has performed well this year, and Eli Lilly (NYSE: LLY), the largest company in the industry by market cap, has helped lift the average. We can't say the same for Intuitive Surgical (NASDAQ: ISRG), a medical device specialist that has lagged broader equities year to date. However, even though they have moved in different directions this year, both of these healthcare stocks are worth buying for investors focused on the long game. Here's why Eli Lilly and Intuitive Surgical could perform well over the long run.

1. Eli Lilly

In the third quarter, Eli Lilly's revenue increased by 39% year over year to $24.4 billion. That's very impressive top-line growth for a pharmaceutical giant. In fact, Eli Lilly has been growing its revenue much faster than its similarly sized peers in the pharmaceutical industry for the better part of the last three years.

LLY Revenue (Quarterly YOY Growth) data by YCharts

Can the company keep that pace up? That seems likely, in my view. Here are three reasons why. First, Eli Lilly's core GLP-1 portfolio is firing on all cylinders. Medicines like Zepbound and Foundayo for weight loss, as well as Mounjaro for diabetes, are seeing rapid sales growth. Label expansions will help push their revenue even higher. Foundayo, an oral GLP-1 product that first earned approval earlier this year, could eventually be indicated for diabetes.

Zepbound has earned indications in obstructive sleep apnea, and, recently, Mounjaro was approved to reduce cardiovascular risk in adults with type 2 diabetes.

Second, even though Eli Lilly will face increased competition in the weight-loss and diabetes markets, it should remain one of the leaders. The company's pipeline features other exciting products such as retatrutide, which could expand the market by helping treat patients with treatment-resistant obesity. And that's just one example. Eli Lilly boasts other promising candidates in its core specialty.

Third, the company's products in other areas are also posting solid sales growth and should make meaningful progress in the next few years. By 2030, Eli Lilly could remain the top player in diabetes and weight loss, while having a deep, highly diversified portfolio of approved drugs across areas such as neuroscience, oncology, immunology, pain management, and more. Don't let Eli Lilly's performance in recent years scare you away. The stock is likely far from having peaked and can still crush the market over the medium term.

2. Intuitive Surgical

Intuitive Surgical was already having a rough year, but the company's third-quarter update made things even worse, with shares dropping significantly post-earnings on weaker-than-expected procedure guidance, among other factors. The company's actual financial results weren't bad. The company's revenue increased by a healthy 22% year over year to $3.05 billion, driven by a 14% increase in Da Vinci procedures.

That may not mean much if growth slows in the coming quarters. Intuitive Surgical is also facing margin pressure, partly due to the rollout of the da Vinci 5, the latest version of its crown jewel. Further, investors are worried about increased competition, notably from Medtronic (NYSE: MDT) and Johnson & Johnson (NYSE: JNJ). Despite these problems, Intuitive Surgical looks like a great long-term option.

One reason for that is the massive addressable market in the robotic-assisted surgery industry. According to some estimates, fewer than 8% of eligible soft tissue procedures are performed robotically, despite the advantages these procedures offer (minimally invasive robotic surgeries can lead to smaller incisions, reduced bleeding, less scarring, and shorter hospital stays).

So, there is a significant opportunity here for Intuitive Surgical to tap into, even with growing competition, given its more than two-decade lead over its competitors. Also, Intuitive Surgical's da Vinci 5 could eventually make up for its lower margins by earning indications in areas where previous models wouldn't be as strong. For instance, Intuitive Surgical is looking to make the da Vinci 5 the centerpiece of its telesurgery efforts.

Management expects regulatory clearance for telesurgery in the first half of 2028, and this approval could significantly boost procedure volume over the long run. Intuitive Surgical may remain volatile over the next year, but the company's long-term prospects are attractive as it continues to find ways to expand its reach in the underpenetrated RAS market where it is the leader. The stock looks like a buy after its recent slump.

Prosper Junior Bakiny has positions in Eli Lilly, Intuitive Surgical, Johnson & Johnson, and Novo Nordisk. The Motley Fool has positions in and recommends AbbVie, Eli Lilly, Intuitive Surgical, Medtronic, Merck, and Novo Nordisk. The Motley Fool recommends Johnson & Johnson and recommends the following options: long January 2028 $520 calls on Intuitive Surgical and short January 2028 $530 calls on Intuitive Surgical. The Motley Fool has a disclosure policy.