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NYSE:LLY

Eli Lilly & Co. (LLY)

1,099.90
+1.33 (0.12%)
as of Jun 18, 2026, 11:56:42 pm Market Open.
50 watching
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COMMENT
Their stock has rallied so much after vaccine hopes that it's now cooling off. Their pipeline of drugs is super. Any further positive news about their Alzheimer's drug push this stock higher.
BUY
He owns a basket. He owns this one for their oncology division. He has not owned it for anything COVID-related. Sometimes it is better to buy a basket of these companies.
BUY
They just released very promising data on their breast cancer drug (the previous update in June saw the stock pop), but the stock still dropped in price today. This is strange and undeserved, but the selling won't last.
DON'T BUY
He sold it several months ago, because it outperformed like crazy in late-2018. That was expected, because healthcare is the most defensive sector and Q4 was a bear market with fears of a recession. LLY made an acquisition in oncology and one of their big drugs got withdrawn. Novo Nordisk may launch a diabetes drug in September to fcompete with LLY.
TOP PICK
It has one of the best growth profiles on the street with EPS growth at 10%. It trades at a premium to its peers, though. They have some potential blockbuster drugs focused on diabetes and heart disease. Itt depends on the effectiveness of that drug. Now is a good entry point. (Analysts’ price target is $125.81)
DON'T BUY
The whole drug industry is a slow growth one. It is difficult to get top line growth. That growth tends to come from a revolving set of assets. MRK-N has a bit of a leg up and is growing rapidly. It has a long runway before patent expiration. He prefers MRK-N.
WATCH
Likes it. One of better growth profiles for large cap pharma. Exceptional job building out the pipeline in oncology and diabetes. Cardiac drug seems like becoming the standard of care. Some hiccups, but the market gave them a pass. 14-15% EPS growth. 17x next year's earnings. Make sure the launches are on track next quarter.
PAST TOP PICK
(A Top Pick Dec 18/18, Up 17%) He owned a lot in this sector and sold on strength. He would have no problem buying it if he did not have a healthcare stock. It is one of the few areas that are truly in a secular bull market.
HOLD
He is not yet taking profits. They dominate the insulin business. As the world gets larger and overeats … The stock takes patience. It will probably sell off with the market.
WATCH
What does the increase in volume signal? Some technicians see volume as confirmation. You need volume spike to confirm a move. On the downside, volume doesn't tell you a lot, as things can start slowly. So don't read too much into it. If this stock comes back down to north of $105, a lot of investors would probably come back in. A good name, if you didn't want to buy XLD or HHL.T.
TOP PICK
Broke out over the summer. Healthcare is one of the few sectors that's in a secular bull market, and is even making new highs in the current bull market. LLY tends to beat guidance. They deliver. This trend should continue into 2019. (Analysts’ price target is $114.96)
TOP PICK

Just bought it. They have come with new pills for diabetes with huge potential. Yield of 2.0%. Drugs stocks are in favor. Likes the sector.

HOLD

He likes this. They have a diversified pipeline. Had a couple of mishaps. A fair amount was baked into their Alzheimer’s drug in November, and they kind of walked away from it. Also, their anti-inflammatory did not get FDA approval. There was some positive data from their Monarch pretrial, phase 3 of breast cancer. This is a very strong hold.

DON'T BUY

The whole drug sector in general has been suffering badly. For the last decade or so, it has been almost impossible to raise drug prices. The election of Donald Trump may be favourable to the drug sector. They are all suffering with the increasing movement of generic drugs, and all have relatively weak pipelines. Most of the pharma sector is struggling, and even cutting back on research and development. He would look elsewhere.

DON'T BUY

Right now Pharma is struggling. This company has cash generation and a diversified portfolio lineup. There are a number of factors for right now, but healthcare is facing a lot of headwinds now. You should be looking at this in the 10s, maybe low teens growth profile.

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