NYSE:LLY

Eli Lilly & Co. (LLY)

1,169.86
+54.18 (4.86%)
as of Aug 5, 2026, 8:00:00 pm Market Open.
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Investor Insights
star iconAug 5, 2026, 12:00 am

This summary was created by AI, based on 29 opinions in the last 12 months.

Eli Lilly & Co. (LLY) is positioning itself strongly in the healthcare market, particularly in the GLP-1 drug sector, leading to significant earnings growth expectations of around 25% annually in the coming years. Analysts emphasize LLY's competitive edge over Novo Nordisk (NVO), noting that their innovations have resulted in increased market share, particularly with the anticipated approval of an oral weight-loss pill. Many highlights include a solid pipeline of drugs and an expanding presence in treatment areas such as obesity and diabetes, while recent momentum has seen the stock breaking into new highs. However, there's caution over potential valuations due to the stock’s strong performance and the RSI nearing overbought territory. Overall, LLY is seen as a reliable long-term growth story amid a transformation from a traditional steady income earner to a fast-growing pharmaceutical company.

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Consensus
Bullish
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Valuation
Overvalued
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DON'T BUY

Cheap on this year’s earnings, but not so cheap on next year’s. Part of the problem with this company is that one of their major drugs Cymbalta goes off patent at the end of 2013. In the 3rd quarter this drug was over 20% of their revenues, so they are looking at a pretty significant drop in revenues in 2014 and a more significant drop in earnings. A more interesting one would be Pfizer (PFE-N) as there are catalysts for change as they are looking at breaking this company up into 3 different divisions starting in 3 years but will start reporting on those divisions individually next year. He holds no pharmaceuticals at this time.

BUY

Been undergoing struggles with patent expiry and competition. Massive R&D budget and it is hard to know when they will have the next block buster drug. A good blue chip name to own. JNJ might be a safer way to participate.

DON'T BUY

Has always traded at a lower valuation than some of the other pharmaceuticals. Has a fair number of patent expiry overhangs that it faces. There are only a few drugs that have been really able to keep their momentum going. On valuation, it always looks attractive, but with the problem of getting new drugs to market, there are other names that he would prefer such as Pfizer (PFE-N) or Johnson & Johnson (JNJ-N).

BUY

50% payout ratio. Drugs are coming off patent. You are buying for yield and low volatility. There are better names in the group but they are in the sweet spot in the market.

PARTIAL SELL

Had a very good run. Due for a consolidation period. If you are concerned, take half off the table.

BUY
All drug companies are facing the “patent cliff”. (Have a lot of drugs that are coming off patent.) This is pretty well known and all the stocks are cheap. 5% dividend yield. Dividend is safe and you have very good visibility into the cash flows.
DON'T BUY
This one is going nowhere fast. Declining earnings. Just had a big drug, Prexus, come off patent, which accounted for 11% of their sales. No new block busters on the horizon. Earnings consensus going from $4.30 to $3.60 next year.
BUY
Industry could be considered a value trap. A large number of large scale pharmas are trading at depressed values because of US health reforms and patents expiring. However this one is in one of the better positions to see itself through this cycle. Have about 70 drugs, mainly in oncology, neuroscience and diabetes that they are working on in their pipeline.
DON'T BUY
In the same camp as many of the other big pharmas. Having trouble filling the pot. Patent expirations are taking revenue out. Good cash business with a good dividend of about 5.5%. A value trap.
DON'T BUY
Similar to a lot of Pharma companies in that they have to find some growth. Will have patent expiries in 2011, which will create falling sales. Looks cheap and has a great dividend but it is a shrinking situation.
BUY
2 issues that face phama stocks: one is health care and what will happen; and two is that the pipeline of fantastic drugs has slowed down. Treat it as a high dividend paying company and not look for huge increases in stock price.
BUY
All the pharmaceutical stocks are cheap. He would recommend Johnson & Johnson (JNJ-N) and Merck & Co. (MRK-N) ahead of this one. (See Top Picks.)
DON'T BUY
Pharma is a sector that usually outperforms in times of crisis and in bear markets. They have generally been a good hiding spot. The group will probably lag any uptick in the market. 5.5% dividend.
BUY
One of the major concerns that pharmacy companies have is patent expiration and generics coming in. Doesn't think they have any major products coming off patents until 2010.
BUY
Hasn't gone anywhere because it hasn't any blockbuster drugs. Has a good pipeline. Demographically, diabetes is set to explode.
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