Eli Lilly is one step closer to bringing an oral weight loss medicine to the booming obesity drug market. A clinical trial saw people lose 12% of body weight.

Sales grew 38% year over year, driven by volume growth from weight-loss and diabetes drugs Zepbound and Mounjaro, Lilly said. Zepbound sales in the quarter was $3.4 billion and Mounjaro sales came in at $5.2 billion, beating estimates of $3 billion and $4.7 billion, according to FactSet estimates.

Eli Lilly stock beats Q2 estimates with strong sales but faces competitive risks and high valuation. Here's why investors may simply want to hold for now.