Last Updated: 18 Sep 2024
Executive Summary
Eli Lilly and Company (LLY) is a leading pharmaceutical company with a strong track record of innovation and growth. The company's stock has outperformed the S&P 500 index over the past five years, and analysts are bullish on its long-term prospects. LLY's current stock price of $906.18 is below its 52-week high of $972.53, providing a potential buying opportunity for investors.
Company Overview
Eli Lilly and Company is an American pharmaceutical company headquartered in Indianapolis, Indiana. The company was founded in 1876 and is one of the world's largest pharmaceutical companies. LLY's products include a wide range of prescription drugs, including treatments for cancer, diabetes, and autoimmune diseases. The company also has a strong presence in the animal health market.
Fundamental Analysis
LLY's financial performance has been strong in recent years. The company's revenue has grown at a compound annual growth rate (CAGR) of 5% over the past five years. LLY's earnings per share (EPS) have also grown at a CAGR of 10% over the same period. The company's profit margin is 18.9%, which is above the industry average. LLY's return on equity (ROE) is 59.3%, which is also above the industry average.
Technical Analysis
LLY's stock price has been in a downtrend since reaching a 52-week high of $972.53 in January 2023. The stock price is currently trading below its 50-day moving average and 200-day moving average. The relative strength index (RSI) is also below 50, indicating that the stock is oversold.
Short Term Outlook
LLY's stock price is likely to remain under pressure in the short term. The company is facing headwinds from the rising cost of raw materials and the expiration of patents on some of its key drugs. However, LLY's strong pipeline of new drugs should support growth in the long term.
Long Term Outlook
LLY is a well-positioned company with a strong track record of innovation and growth. The company's pipeline of new drugs is expected to drive growth in the long term. LLY's stock price is currently trading at a discount to its intrinsic value, making it an attractive investment for long-term investors.
Analyst Recommendations
The majority of analysts have a buy or strong buy rating on LLY's stock. The average analyst target price is $1003.35, which implies a potential upside of 10.7% from the current price.
