- Eli Lilly (LLY) exhibits exceptional growth, profitability, and momentum, reaching a new all-time high today.
- Shares are up more than 60% over the past year.
- LLY maintains a 100% “Buy” technical opinion from Barchart.
- I recommend maintaining a rational stop loss given the stock’s momentum and volatility, despite continued analyst optimism.
Today’s Featured Stock
Valued at $1.17 trillion, Eli Lilly (LLY) is one of the world’s largest pharmaceutical companies. It boasts a diversified product profile including a solid lineup of new successful drugs. It also has a dependable pipeline as it navigates through challenges like patent expirations and rising pricing pressure on its U.S. diabetes franchise. Its pharmaceutical product categories are neuroscience, diabetes, oncology, immunology, and others.
What I’m Watching
I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals and superior current momentum. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. LLY checks those boxes. The Trend Seeker issued a new “Buy” signal on Oct. 15. Since that signal, LLY is up 3.43%.
Barchart’s Technical Indicators for Eli Lilly
Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.
Eli Lilly hit aa all-time high of $1,311.75 on Oct. 20.
- Eli Lilly has a Weighted Alpha of 55.40.
- LLY has a 100% “Buy” opinion from Barchart.
- The stock has gained 60.51% over the past 52 weeks.
- Eli Lilly has its Trend Seeker “Buy” signal intact.
- The stock recently traded at $1,296.81 with a 50-day moving average of $1,182.79.
- LLY had 8 highs and gained 12.62% in the last month.
- 60-month beta of 0.46
- Relative Strength Index (RSI) is at 63.39.
- There’s a technical support level around $1,233.04.
Don’t Forget the Fundamentals
- $1.17 trillion market capitalization.
- 39.92x trailing price-earnings ratio.
- Dividend yield of 0.53%
- Revenue is expected to grow 35.84% this year and another 15.28% next year.
- Earnings are estimated to increase by 44.14% this year and an additional 35.29% next year.
Analyst and Investor Sentiment on Eli Lilly
- Wall Street analysts followed by Barchart give the stock 23 “Strong Buy,” 3 “Moderate Buy,” and 3 “Hold” opinions with price targets from $915 to $1,600.
- Value Line rates the stock “Highest” with price targets between $1,220 and $1,660.
- Morningstar thinks the stock is 28% overvalued with a fair value of $980.
- CFRA’s MarketScope rates the stock as “Buy” with a price target of $1,395.
- 159,680 investors are following the stock on Seeking Alpha, which rates it as a “Hold.”
- TipRanks’ analysts have a consensus of $1,369, which is above yesterday’s close.
- Short interest is 0.84% of the float with 2.99 days to cover the float.
The Bottom Line on Eli Lilly
The stock demonstrates extraordinary growth and profitability, with strong momentum, but LLY’s stretched valuation gives me concern. Most analysts think the stock still has room to run. As usual, I advise a rational stop loss on stocks that have had this kind of momentum.
Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio, it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.
On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.