Eli Lilly: Solid as a Rock

11/13/2017 5:00 am EST

Focus: HEALTHCARE

Todd Shaver

Founder and Editor-in-Chief, BullMarket.com

Eli Lilly and Company (LLY) was founded in 1876 and is headquartered in Indianapolis; If you want solidity and stability in your investments, you can get it here, notes Todd Shaver, editor of BullMarket.com.

The company is worth $87 billion, pays a 2.5% dividend and has moved from $20 in 2008 to its current level, in a pretty straight line. 

Revenues are solid too. Revenues had a nice bump from the $20 billion in 2015 to the 2016 total of $21.2 billion. This year looks like $23 billion is in the bag.  Slow and steady.

And profitable. $2.7 billion ($3.00 a share) to the bottom line after taxes in 2016 up from $2.4 billion in 2015.  Not counting some non-recurring charges this year, the company should hit north of $4 billion before tax and about the same as last year in 2017.  Solid.

The company offers products to treat diabetes; osteoporosis; human growth hormone deficiency; and testosterone deficiency.


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It also provides neuroscience products for the treatment of depressive disorders, diabetic peripheral neuropathic pain, anxiety disorders, fibromyalgia schizophrenia; attention-deficit hyperactivity disorders; depressive, obsessive-compulsive, bulimia nervosa, and panic disorders; and adult brain imaging.

In addition, the company offers products to treat non-small cell lung, colorectal, head and neck, pancreatic, metastatic breast, ovarian, bladder, and metastatic gastric cancers, as well as malignant pleural mesothelioma; and migraine headaches. 

And this is just a small part of what they do for humans. They do similar things for animals and are noted for their science and expertise. This is truly a worldwide leader in big pharma.

This amazing company should hit another $3 a share in 2017, giving the firm a PE of under 28. We expect the company to hit the $4 level in a few years and wouldn’t be surprised to see the stock in the 90s within two years.  I my view, this stock is as solid as a rock.

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