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NYSE:LLY
This summary was created by AI, based on 29 opinions in the last 12 months.
Eli Lilly & Co. (LLY) is recognized as a leading player in the healthcare industry, particularly in the GLP-1 drug market, which has driven significant stock performance, up approximately 370% over the past five years. Experts highlight the company’s robust drug pipeline, strong execution, and expansion plans, particularly with the anticipated oral version of its weight-loss drug. Despite these strengths, many analysts warn about current high valuations, suggesting that the stock may be priced to perfection, creating caution around new investments at present levels. While the company has a diversified portfolio beyond GLP-1 drugs, stock performance has recently hit all-time highs, prompting some to advise a strategic wait for pullbacks before making new purchases. Overall, analysts see a positive growth trajectory for Eli Lilly in terms of revenue and earnings, backed by a strong market position and effective management of its drug offerings.
A lot of the move down happened this week. Numbers were good -- earnings and revenue beat, guidance was good. Market really homed in on obesity pill disappointment (slightly less efficacy than a competitor's, 10% dropped out due to side effects). Now trades at 24x PE, with 19% growth.
Very cheap, but sentiment has become difficult and challenging. Long term, the demand for diabetes and obesity drugs is still there and will continue to grow. Industry-leading Alzheimer's drug in pipeline as well. Fortress-like balance sheet, really great cashflow.
Best among the weight-loss drugs, more effective than its peers. Also, the oral version will be a game-changer. LLY is gaining market share as its manufacturing ramps up. Shares are flat and need a catalyst, possibly on Aug. 7 with earnings. Their oncology platform is also doing well. He expects their revenues to double by 2030, based on 25-30% compounded growth.
The more successful of the GLP-1 stocks compared to NVO. Decent entry point. Trades in the 30s on forward PE, so there's a strong expectation of prescription growth; every reason to believe that's going to happen.
Be cautious on position size; don't be aggressive. Stock was down 10% yesterday because NVO made a deal with CVS to become its prime recommended product for obesity. So NVO is starting to compete more on price.
Our PAST TOP PICK with LLY has triggered its stop at $703. To remain disciplined, we recommend covering the position at this time.